Dealings with the underworld (Pt1)

Cashflow was tight, every dollar we spent on te projects we only mange to collect 50cents, thing are not going well as planned. A another 2 months like this we will be underwater...

Tension was building up with the suppliers and subcontractors who have supported us so far. Some have been patient while some were merely hand to mouth, any delay of payment due to them was a big no no.

The subcons and suppliers wrere always lingering around the office, waiting for me to show up to chasae for payment. I began to evade office, always on the pretext of meetings outside of office or site visit. Sometimes I would just hide at home, waiting for a miracle to happen.

Something did happen, when all hell break loose what do you expect? Hell send his darkest demon to hunt me down.

One fine day, I decided to drop by the office late, having made sure noone was at the office waiting for me. 15 minutes in the room 2 guys barged in, 2 guys I ave never met, one introduced himself as Gan, a middle aged plump man wearing long sleeve and slacks, normal office attire. The other guy (can't remember him name, was scary looking, with a scar over his face and tatoo on both his arms, someone you know is up to no good.

Gan introduce himself as a representative of a debt collection agency engaged by one of our subcontractor. SHIT! Debt collection agency are basicaly run by ah longs who will help you hunt down people who owe you money and beat the hell out of them so they pay up.

I tried to explained that we are also chasing payment from our client, who owes us in the tune of RM1mil while we only owe Gan's client Rm50k. I ask him not to worry that he has my word that we will payment once we collect the money from our client.

Gan was one cool cat (at least that was what I sense in our first encounter), he calmly told me he believed every single word I said but he need to produce result and I can help him by showing intend to pay by issuing a post dated chack for him to bring back to his client. (notice the other guy never utter a single word)

I was not sure when we can get paid and I was not willing to risk a bounce check by issuing a PD check to this guy whom I just met. I tried to explain that I can't issue the check without my MD around. He quickly said : nevermind I will deal with your partner, you just need to preapre the check and sign your part. FXXK he was quick to corner me. Running out of excuses I told him the checkbook is in a locked drawer and I dun have access. Hearing that Gan calmly turned his head towards the goon loking fella and said in Hokkien: it seems today we can't avoid seeing RED... and pulled out a dagger from his pants and gently placed it on the table.

He said it very calmly, but the tone and expression on his face was as if he had just signed my death warrant and the goon was going to get me any a bounce. I quickly changed my tone and stood up, the goon stood up immediately in front of me, showing off his tatooed biceps. I told them I will try to look for the keys to the check drawer.

It turns out that the key to the drawer was really not in the office and I told myself :SHIT I am going to die!!! quickly I grabbed a screw driver and broke the drawers lock and got the checkbook out and issued Gan a RM50k post dated check.

Before he left he told me : nice doing business with you, hope we will meet again. I was telling myself who the Fxxk want to meet you again?

And we did meet, and we became associates for almost a year later, all because he called me and made me an offer I can't refuse the second day after our first encounter...

Screwed by a friend (pt3)

What can you do?

I did not have much options, I was down on my luck and cash, hoping that this will be my big break and more projects to come from the friend who awarded the project to us. If I had cash I would ask him to fly kite and run the project myself. I teamed up with the Taiwanese because on pretext of his financial strength.

All the horrendous expereince of creditors coming to my office with abusing languange, knocking on my door in the middle of the night, red paint, melted door is coming back to me. It took me a lot of effort to manovre myself out fo the shithole and I am not digging another one to jump in again. I reasoned with him for many nights, giving him assurance and analysze the contract with him in great depth, on the pretext that I still believe he is capable to bring in the money to run the project.

I even brought in a subcontractor to start the works going, buying time for the Taiwanese to reconsider, seems there was a silver lining that he will be able to convince Taiwan to send the money. When he saw the subcontractor performing well, he become more convinced that we should just total sub the job to the subcon. I could have done it and pass on the buck to the subcon, but I was worried, from the bad and distasteful expereince I had not long ago, I am worried that the Taiwanese may have the upper hand on the recievables from the client start screwing payments due to the subcon.

And me being the bridge for the subcon and Taiwanese, I will be the natural scapegoat if that ever happened. I can't imagine screwing a friend (the subcon spent money on the project and can't collect) and if things turns bad debt collectors coming to my house again looking for me, whilst the Taiwanese can just pack and leave Malaysia, bagging all the money from the job.

I was in a fix, and this time I will not be the victim, I decided to burn the bridge... the subcon expect payment at end of 4th week for his labours, I do not have much time. The longer I delay the decision I risk losing a friend and befallen to a bigger shit hole.

I drove all the way down to Klang, the HQ of the client, scheduled a meeting with the boss and brought the subcon with me. Introduced them, explained to both parties my predicament and recomended a solution, ie, to cut the Taiwanese company (supposedly my company also) off the contract and deal directly with the subcon, since the Taiwanese is not finanicng the job (the subcon is so far), not managing the job ( I am) and has no contribution whatsoever on the job. Even the fxxking site vehicle for the job was purchased under my girfriend's name (a hint I should have noticed then, we have to take over the loan when the Taiwanese packed his back and left, another story for the laugh)

It was decided then, the deal was strucked, the Taiwanese is out and the subcon is dealing directly with the client., I leave it to the subcon if he needs me my contribution on the job, I could have asked for 2% intro fee if I had stemmed my case but I was too ashamed what had happened and the risk I put him through I did not open my mouth.

I am just trying to remember very hard how the Taiwanese left, if I remember correctly was under the pretext that I sent some goons after him and he was scared or something. Me? sending goons? never! haha. Anyway, the chapter closed with me gaining an extra ounce of failed experienced with my school mate who was dating him end up married to him few years later and I have not heard of him ever since.

I would not say it was an entirely failed exercise as it really gave me insights of how to deal with foreigners or investors wannabe and it also prompt me to quit my dream chasing and landed a job in the oil & gas industry which has brought me to exotic places like Dubai, Sudan, Perth, China, Bintulu etc...

Well, as always, that is another chapter of my life and another story altogether...

Screwed by a friend (Pt2)

Eventually after few hits and misses we manage to land a RM5million infrastructure works, a small parcel from a multi billion upgrading works in Seremban. The local company setup was between the Taiwanese and a mutual lawyer friend. (I decided to trust them and not to be in the company due to my ongoing lawsuit, which is another tale for another day)

The company bank account is a joint signature between the lawyer and taiwanese, no one can take any money out from the bank without the consent of either party. There was no money in the company account, expenses paid so far during business development time was through a private account held by the Taiwanese. With the Rm5mil job in hand, we worked out a execution plan and decided we need at least 10% (Rm500k) to run the project. It will require us to manage the project very carefully to run on a 10% cashflow, with no track record, many suppliers will ask for cash term or COD, labour subcontractor will be asking for prompt 2 weeks payment to cover their wages whilst we have a 30 days term with our client. (Essentially 30 days terms mean 60 days as you spend RM500k first month, you invoice, and by the time you receive your payment 30 days later you would have spent another 500k.)

I had full confidence we can get it through by maintaining good relationship with subcons and suppliers, not to mention prompt payment from client is essential. I have also full confidence with the Taiwanese at the point of time from the several occasions meeting his partner from Taiwan, reading their company profile and track record and even had family dinners with them when his father was i town. (His father was an investor in the parent company) The only thing I did not do was actually going to Taiwan to visit their office and sites, something I actually do to my own subcontractors before they come on board the projects I handled.

Problem surface several days after we receive the Letter of award from our client. While busy working on the execution plan and getting subcons and suppliers to quote for our job, I did not forget to pursue the Tawiwanese to bring in our RM500k lifeline. I knew without it we can't even stand one month of the project.

He looked at me and told me :I was thinking we should get a strong subcon to total subcontract the job. (Classic situation of what I meant more often than not, internal peer pressure or conflict causes more harm than external problems.)

Shit! My heart dropped, either he does not have the money or he has no intention to bring in any investment from day one. I tried to reason with him on 2 fronts, we got the project on strength of that we have strong financial backup from a big Taiwanese company and the rates in our contract has marginal profit as we wanted track record.

If we total sub, first I loose credit in fornt of the client who trusted us during our pitch and I do not believe we will be able to find a credible subcon to total sub at the budget we were working on. They only way we will be able to make money was to manage the job ourselves.

What do you think I should do at the time? He was dating my friend at that time and I thought we could reason with him through his girlfriend, failed, the girl, blinded by love, took his side although we ahve known each other for almost 20 years and only knew the Taiwanese though me for 6 months. The reason he gave his gf was that he was worried that he will loose control of the money if he bring it into malaysia. WTF?! I was devastated not because only no we are seeing the true colour of the Taiwanese but how gullible my friend was taking in the lame excuse. The Taiwanese is majority owner of the company and company bank account is controlled by him, he can just open another bank account solely require his signature if that was his concern.

What will you do in such a situation?