“Do you think that even if the authorities wanted to take down Invoke, they will not simply just add KEIP to the list? After all, KEIP’s employees are Invoke’s staff, KEIP has the same 90% majority shareholder and KEIP’s only customer is Invoke?”
Lim Sian See
In his press conference today, Rafizi Ramli admitted that KEIP Resources is his own company and that Invoke pays KEIP every month for supply of manpower.
However, he really struggled to explain why he created KEIP Resources to supply manpower to his own invoke. To hide his difficulty in answering he called Rizal Mansor (and me) “bodoh” about 50 to 100 times in his press conference.
His main answer is that it is to minimize risk to the employees of Invoke – hence the put these people under KEIP as he thinks that Invoke will be under threat by the authorities and hence get their employees into trouble.
(He said he doesn’t want to expose KEIP’s staff to threat but he carelessly revealed donors list of Invoke. What a stupid logic is this?)
He says this is because KEIP has no relationship (tiada kena-mengena) with Invoke hence any action on Invoke will not affect KEIP.
Yes.. that is his reason why Rafizi meniaga dengan Rafizi.
To me, this is a most stupid of reason.
The majority shareholder of BOTH companies is him plus KEIP’s only customer is Invoke.
Any action on Invoke will affect KEIP as this is already a related-party transaction (something that this supposed accountant does not understand).
Do you think that even if the authorities wanted to take down Invoke, they will not simply just add KEIP to the list? After all, KEIP’s employees are Invoke’s staff, KEIP has the same 90% majority shareholder and KEIP’s only customer is Invoke?
What a stupid reason.
Also, Rafizi showed some invoices from KEIP to Invoke and admitted that KEIP also charges Invoke a management fee surcharge – meaning he is already making money from Invoke.
On top of this, the invoices show that KEIP did not charge Invoke any GST despite their revenues already exceeding RM500k and hence is required to register with customs to collect GST.
He is already breaking the law here. Customs should take action on him.
By creating this separate model, Rafizi has showed he has no problem with paying GST – whereas if Invoke hired the staff directly, there is no GST chargeable on Invoke from KEIP.
Additionally, Rafizi also said that people donating to Invoke is considered as they buying a business service from Invoke – and hence they are also paying GST on the so-called “purchase of business services”.
Is Invoke registered with customs for GST? Has Invoke been paying GST to customs?
Rafizi also confirmed that the RM755k he said he put into Invoke comprises of subscribing to shares worth RM250k and the remainder is a shareholder’s advances or loan of RM500k.
This means that he is running Invoke as a business and that Invoke is liable to pay back Rafizi the RM500k at any time.
Thus, he did not donate to Invoke – as is widely believed.
As to why he registered Invoke as a commercial business instead of a NGO, he says that RoS will not approve – but did he even try applying?