Summary
- MYAirline’s founder, Goh Hwan Hu, was arrested alongside his wife and son for alleged violations of cash laundering and terrorism financing laws.
- Malaysian authorities haven’t specified the precise allegations or their connection to the airline’s collapse, but investigations are ongoing.
- The Malaysian government and stakeholders are distancing themselves from MYAirline’s collapse and are determined to carry those responsible accountable.
On 18 October 2023, just six days after ceasing business operations on 12 October, the founding father of Malaysian low-cost carrier MYAirline, Goh Hwan Hu, was taken into custody. Amid allegations of violating Malaysian anti-money laundering and anti-terrorism financing laws, Goh was arrested alongside his wife, Neow Ean Lee, and his adult son, Goh Tze Han.
Malaysian authorities were unable to specify any allegations that had been levied against the family and didn’t indicate in what exact way the arrests were connected to the collapse of MYAirline. Last week, the Malaysian low-cost carrier, which had only been operating for around a 12 months, abruptly halted all services citing severe financial difficulties. Shortly after ceasing operations, the carrier’s Air Operators Certificate was revoked.
An summary of the family
Each Goh, who stood because the carrier’s majority stakeholder, and his son sat on MYAirline’s board. Nonetheless, the family’s business interests expand far beyond the aviation industry, including quite a lot of different interests in industrial sectors.
Photo: Phuong D. Nguyen | Shutterstock
Goh owns two private holding firms, Zillion Wealth and Trillion Cove Holdings. Prior to the carrier’s collapse, Zillion Wealth owned 88% of the low-cost carrier, while Zillion Wealth maintained a ten% share. Moreover, Jothi Prakash Murugan, a director at Trillion Cove Holdings, also sat on MYAirline’s board. The carrier’s former CEO, Raynor Teo, also maintained a 2% stake within the carrier prior to operations ceasing.
Already this 12 months, Trillion Cove Holdings has been surrounded by allegations of scandal. The corporate was investigated in a money laundering case because of this of Malaysia Automotive Robotics’ CEO and the IoT Institute receiving suspicious payments, including nearly $200,000 value of Trillion Cove shares. Moreover, Goh has been tied up in a situation involving a Malaysian payment gateway company receiving unlicensed deposits. Please note that Goh and his family haven’t been found guilty of any wrongdoing, and investigations are ongoing.
What is occurring with MYAirline?
The Malaysian government, alongside the Southeast Asian low-cost market as an entire, was completely caught by surprise when MYAirline collapsed. Given the suspicious circumstances surrounding the carrier’s collapse, the Malaysian government and other stakeholders have rushed to distance themselves from the situation.
Malaysian authorities are extremely dissatisfied with the situation, and leaders are determined to carry the suitable responsible parties accountable. In a briefing, Malaysian Deputy Transport Minister Hasbi Habibollah was quick to point that the carrier wouldn’t be saved, issuing the next statement:
“We were totally shocked. They (MYAirline) didn’t even inform us or the Malaysian Aviation Commission, (they) just disappeared. The times of bailouts are over.”
A brand new interim CEO, Stuart Cross, has also resigned amid confusing circumstances, and regulators are starting to call for answers. Moreover, aircraft lessors are demanding the return of their jets, and a full parliamentary inquiry into the carrier’s mysterious collapse is about to start. Many are wondering exactly how the corporate was in a position to gain certification and what led to such a direct end of service.