I read with shock on Air Asia Chief Executive Officer Tony Fernandes’ blog that the cost of the new KLIA2 “low-cost” airport has ballooned to a shocking RM5 billion.
The initial budget for the airport when it was first announced by Dato’ Seri Ong Tee Keat, the then Transport Minister in July 2007 was only RM1.7 billion. (Berita Harian 22 July 2007)
The budget was subsequently increased to RM2.0 billion in March 2009 (The Star 10 March 2009), and then RM2.5 billion in October 2010 (Business Times 30 October 2010).
At the end of last year, Malaysia Airports Holdings Berhad (MAHB) shocked Malaysians by disclosing that the cost of the new airport has ballooned to RM3.9 billion due to cost overruns in November 2011. Hence the new estimated cost of KLIA2, RM5 billion is now nearly 200% above the original budget of RM1.7 billion.
I have repeatedly called for the cost of KLIA2 to be investigated by the Public Accounts Committee (PAC) as well as the Ministry of Transport since last year. However, the attempts to secure accountability over the massive scandal has been impeded by the lack of urgency in the PAC as well as the absolute disinterest by the Minister of Transport, Dato’ Seri Kong Cho Ha.
Despite several promises to meet Pakatan Rakyat Members of Parliament over the issue since last year, Dato’ Seri Kong Cho Ha has failed to so.
I had requested for an explanation from his ministry over the issue, particularly over the reason for the shift of the airport from the originally proposed northern site (KLIA North) to the current western site (KLIA West) which is under construction. The shift of the site has caused the cost of construction to bloat because KLIA West was already identified as unsuitable for the construction of an airport due to it being a peat swamp.
The result of the shift for example, has caused substantial increase in earthworks cost, which the Ministry of Transport claimed to cost RM773 million, but is believed by many parties in the industry to be even higher.
However, despite the seriousness of the mismanagement of public funds, Dato’ Seri Kong Cho Ha has refused to provide any details in his parliamentary reply, and merely shrugged off the issue claiming that the decision to shift the site was “based on KLIA Blueprint December 2008”.
What is worse is the Minister’s complete lackadaisical attitude towards the brazen abuse of tax-payers’ funds. The Transport Minister has responded to my statements earlier by saying that I was “playing politics” (Bernama) and was “barking up the wrong tree” (The Star).
Dato’ Seri Kong said I “should direct questions about the construction of KLIA2 to Malaysia Airport Holdings Berhad (MAHB) instead of accusing him of trying to cover up.” He had further added that he has “nothing to hide. I'm not an airport engineer or consultant for the project and whatever the information I have about the project were given by MAHB.”
In fact, at the rate the cost of KLIA2 is piling up, it will soon become a much bigger scandal than the Port Klang Free Zone project which cost increased from an initial RM1.1 billion to RM12.5 billion.
In the interest of transparency and accountability, the Prime Minister must order a full public investigation into how the cost of the new “low cost” airport could be so inflated and ensure that all who are responsible for the RM5 billion fiasco be sacked from their office, including that of the Minister of Transport.
Thursday, July 05, 2012
Tuesday, July 03, 2012
Crime In Selangor on the Rise?
Selangor Deputy Chief Police Officer effectively admitted to rising crime in Selangor and a conspiracy by Home Ministry and Pemandu to lay the blame on perception and the media
Selangor Deputy Chief Police Officer (CPO) Datuk A Thaiveegan had curiously blamed the recent increase in crime on the repealed Emergency Ordinance (EO), which resulted in the “the mass release of suspected criminals from Simpang Renggam detention centre.”
He even speculated that "…we see there is a rise in crime (recently) because they've been in (detention) for too long, they need 'exercise', so they come out and immediately they carry out their activities.”
Datuk A Thaiveegan’s admission of rising crime in Selangor flies directly in the face of the Home Ministry and PEMANDU’s dogged insistence that the Government’s fight against crime is successful and correspondingly the crime index has fallen significantly.
Minister in Prime Minister's Department, Datuk Idris Jala was quoted in The Star on Sunday 24 June 2012 that, "if the [crime] statistics are not convincing, perhaps then we should try to dwell into how the police were able to bring the crime rates down in a specific area, for example, one of the hotspots”.
He further called on the media to play its role in fighting crime and help arrest the “doom and gloom” by reporting on solved cases and not sensationalising crime by repeatedly reporting the same news.
At the same time, However, Home Minister, Datuk Seri Hishammuddin Hussein had said that the recent cases of violent crime were “isolated”. He said “blowing a few cases out of proportion would create a perception that Malaysia was unsafe country, when official data showed otherwise”.
Hence the Government has not only provided contradictory and piecemeal statistics on crime incidence which do not provide a complete picture of crime in the country, we now have the Selangor police and the Federal Ministers telling different stories to the public.
Given the complete lack of transparency as well as the sheer lack of consistency in the state of crime in the country, it is not a surprise that the Malaysian public do not trust the authorities. What makes it worse is the Government’s refusal to acknowledge the fears the men and women-on-the-street face when they are in or out of their houses.
While the Federal Ministers had placed the blame on media and perception, the Selangor Police’s blame in the repeal of the EO is even more comical. The Deputy CPO is admitting that they lacked the competence to solve criminal cases, and that they have to throw every suspect into detention without trial, innocent or otherwise, in order to cut down crime.
We call upon the Government to get its act together. The persistent refusal by the Home Ministry to provide detailed crime statistics, even at the official request of elected Members of Parliament, smacks of cover up and manipulation. The respective authorities must hence stop the denial syndrome and start taking concrete measures to tackle the rising spate of crime, especially in Selangor.
Selangor Deputy Chief Police Officer (CPO) Datuk A Thaiveegan had curiously blamed the recent increase in crime on the repealed Emergency Ordinance (EO), which resulted in the “the mass release of suspected criminals from Simpang Renggam detention centre.”
He even speculated that "…we see there is a rise in crime (recently) because they've been in (detention) for too long, they need 'exercise', so they come out and immediately they carry out their activities.”
Datuk A Thaiveegan’s admission of rising crime in Selangor flies directly in the face of the Home Ministry and PEMANDU’s dogged insistence that the Government’s fight against crime is successful and correspondingly the crime index has fallen significantly.
Minister in Prime Minister's Department, Datuk Idris Jala was quoted in The Star on Sunday 24 June 2012 that, "if the [crime] statistics are not convincing, perhaps then we should try to dwell into how the police were able to bring the crime rates down in a specific area, for example, one of the hotspots”.
He further called on the media to play its role in fighting crime and help arrest the “doom and gloom” by reporting on solved cases and not sensationalising crime by repeatedly reporting the same news.
At the same time, However, Home Minister, Datuk Seri Hishammuddin Hussein had said that the recent cases of violent crime were “isolated”. He said “blowing a few cases out of proportion would create a perception that Malaysia was unsafe country, when official data showed otherwise”.
Hence the Government has not only provided contradictory and piecemeal statistics on crime incidence which do not provide a complete picture of crime in the country, we now have the Selangor police and the Federal Ministers telling different stories to the public.
Given the complete lack of transparency as well as the sheer lack of consistency in the state of crime in the country, it is not a surprise that the Malaysian public do not trust the authorities. What makes it worse is the Government’s refusal to acknowledge the fears the men and women-on-the-street face when they are in or out of their houses.
While the Federal Ministers had placed the blame on media and perception, the Selangor Police’s blame in the repeal of the EO is even more comical. The Deputy CPO is admitting that they lacked the competence to solve criminal cases, and that they have to throw every suspect into detention without trial, innocent or otherwise, in order to cut down crime.
We call upon the Government to get its act together. The persistent refusal by the Home Ministry to provide detailed crime statistics, even at the official request of elected Members of Parliament, smacks of cover up and manipulation. The respective authorities must hence stop the denial syndrome and start taking concrete measures to tackle the rising spate of crime, especially in Selangor.
Monday, July 02, 2012
H&I Niaga Sues Bank Negara for RM131.9 million
H&I Niaga Sdn Bhd is Class “A” Bumiputera contractor who has been in existence since 1998. They were recognised as a “Kontraktor Wibawa” by the Guild of Bumiputra Contractors.
H&I has successfully completed more than RM460 million worth of construction projects around the country including a RM164.7 million Engineering Complex project for Institut Teknologi Mara, Shah Alam and a RM56.7 million low-cost housing project for Syarikat Perumahan Negara Bhd. Other clients include Universiti Malaya, Ministry of Works, Ministry of Youth & Sports as well as Perbadanan Kemajuan Negeri Selangor (PKNS).
The 2 key shareholders of the company are Dato’ Ismail Mohd Hashim (50%) and Ir Amerudin bin Ismail (40%). They are also respectively the Managing and Executive Directors of the company.
The Project and Dispute with Bank Negara Malaysia (BNM)
BNM awarded H&I the RM320.3 million contract for the construction of its Financial Services Resource Centre (FSRC) on 14 September 2005. The Project was initially anticipated to take 22 months to complete i.e., it was to be completed by August 2007. However, there were numerous delays to the Project as a result of BNM’s failure to make prompt decisions and instructions on critical matters.
Despite the delays, BNM had successfully held the Islamic Financial Services Board Conference at the FSRC on 23 November 2009. By then, the project was already 97% completed.
However, since May 2009, H&I was not receiving adequate progress payments from BNM. H&I had two meetings with Tan Sri Zeti Akhtar Aziz (Governor of BNM), Dato’ Zamani Bin Abd Ghani (then Deputy Governor of BNM) and Dato’ Mohd Nor Bin Mashor (then Assistant Governor of BNM) on 16 May 2009 and 8 April 2010, respectively. On both these occasions, Tan Sri Zeti has explicitly expressed that she would do her level best to ensure H&I received their payments and claims for delays in the project.
Instead on 27 April 2010, BNM terminated the Contract with H&I. BNM then decided to appoint Putra Perdana Construction Sdn Bhd as management Contractor to complete the remaining works on the Project at the cost of RM71,999,735.46, who in turn engaged the same subcontractor appointed by H&I meant to complete the balance 3% works.
H&I has exhausted all means to settle the above matter with BNM in an amicable manner. This includes initiating an Arbitration process between the disputing parties in September 2011. However the lack of cooperation and urgency on the part of BNM to resolve the matter has left H&I with no choice but to institute legal action against BNM.
This is because H&I creditors have made claims and filed suits against the company for outstanding amounts of approximately RM60 million. This includes an attempt to wind up H&I by Affin Bank for an outstanding amount of RM12 million.
The dispute has caused a complete collapse of H&I which was a highly successful bumiputera construction company with more than 60 staff to only 3 today.
The Suit
The legal suit is filed against BNM, Tan Sri Dato’ Ungku Dr Zeti Akhtar Abdul Aziz, Dato’ Zamani Abd Ghani and Dato’ Mohd Nor Manshor.
H&I seeks to claim the amounts of RM81.9 million for outstanding payments, including costs for project delays and out-of-pocket-expenses; and RM50 million for financial and reputational damages to H&I.
The suit also seeks a Court Declaration that the defendants have made fraudulent representations to H&I and request the Court to make a ruling on aggravated damages as a result of such representation.
Conclusion
I see from the above case that H&I and its shareholder-directors have been maliciously penalized by BNM due to faults of BNM.
BNM has not only caused losses to an honest company, but single-handedly destroyed everything that these 2 men have built over the past 24 years. Dato’ Ismail and Ir Amerudin have bent over backwards and taken all necessary steps to ensure that the FSRC gets completed despite the tens of millions of ringgit of additional financial cost they had to bear to cope with the delays in the project caused by BNM management.
They even took pains to try to negotiate an amicable settlement with BNM for more than a year, firmly believing that such a key government institution and its top-ranking officials would never leave them high and dry. However, their trust was betrayed and their faith completely misplaced.
The Government talks about protecting, supporting and promoting bumiputera entrepreneurs in its affirmative action programmes. And yet, what we are witnessing here is the complete opposite, the victimization and destruction of an honest and competent 100% bumiputera Class ‘A’ contractor.
We call upon BNM not to act as a big bully in its relations with its contractors and negotiate a fair settlement for the outstanding sums due to H&I.
Friday, June 29, 2012
1MDB Paper Profits
Pakatan: 1MDB account 'manipulated' to show profit
S Pathmawathy
5:38PM Jun 28, 2012
1Malaysia Development Berhad's (1MDB) accounts are "not as sound" as made out to be, claimed three opposition members of the Public Accounts Committee (PAC).
This is because the profits shown in the balance sheet submitted by the government's strategic investment arm had been propped up by the re-evaluation of parcels of prime land as well as the injection of loans, said Petaling Jaya Utara DAP MP Tony Pua (right).
At a press conference today, he said PAC chairperson Azmi Khalid claiming that the company is financially sound was an "unfair assessment".
Citing the company's statement of cash flow from March 2011, Pua noted that 1MDB's profits of RM544 million that year were paper gains.
As for the profits recorded in 2011, they were from the evaluation of 1MDB's property from RM194 million to a whopping RM827 million bringing the total value of 1MDB's property to RM1.02 billion, a 426 percent jump.
Record balance from loan
Pua said the parcels of land included government-owned plots in Jalan Cochrane and Jalan Imbi, were transferred to the company for the development of the Kuala Lumpur International Financial District (KLIFD) at a "much lower" cost.
He added that the company's cash flow also showed that the record[ed] balance was due a RM 2.06 billion loan.
"If it was not for the borrowing, the cash flow would have been negative, resulting in a loss for the financial year 2011.
"The reality is that 1MDB's accounts are manipulated to (reflect profit). It is not fair to conclude that the accounts are in order. Let's not assume that their cash flow is healthy," he said.
Selayang PKR parliamentarian William Leong reminded Azmi that it is wrong to come to that conclusion when 1MDB had refused to furnish six out of seven documents requested by the PAC.
The sole document furnished by the investment arm to PAC was its financial balance sheet for the year financial ended 2011.
"Once when we have everything required then we can conclude," said Leong with concurrence coming from Tumpat PAS MP Kamaruddin Jaffar (left).
[...]
In the past, when the PAC was probing the Port Klang Free Zone (PKFZ), every document sought was handed over to the parliamentary committee, he said.
"Why should it be any different with 1MDB?" he asked.
Kamaruddin added that they had expressed their concerns on the issue at yesterday's PAC's meeting and the Auditor-General's office has been asked to look into the company finances.
S Pathmawathy
5:38PM Jun 28, 2012
1Malaysia Development Berhad's (1MDB) accounts are "not as sound" as made out to be, claimed three opposition members of the Public Accounts Committee (PAC).
This is because the profits shown in the balance sheet submitted by the government's strategic investment arm had been propped up by the re-evaluation of parcels of prime land as well as the injection of loans, said Petaling Jaya Utara DAP MP Tony Pua (right).
At a press conference today, he said PAC chairperson Azmi Khalid claiming that the company is financially sound was an "unfair assessment".
Citing the company's statement of cash flow from March 2011, Pua noted that 1MDB's profits of RM544 million that year were paper gains.
As for the profits recorded in 2011, they were from the evaluation of 1MDB's property from RM194 million to a whopping RM827 million bringing the total value of 1MDB's property to RM1.02 billion, a 426 percent jump.
Record balance from loan
Pua said the parcels of land included government-owned plots in Jalan Cochrane and Jalan Imbi, were transferred to the company for the development of the Kuala Lumpur International Financial District (KLIFD) at a "much lower" cost.
He added that the company's cash flow also showed that the record[ed] balance was due a RM 2.06 billion loan.
"If it was not for the borrowing, the cash flow would have been negative, resulting in a loss for the financial year 2011.
"The reality is that 1MDB's accounts are manipulated to (reflect profit). It is not fair to conclude that the accounts are in order. Let's not assume that their cash flow is healthy," he said.
Selayang PKR parliamentarian William Leong reminded Azmi that it is wrong to come to that conclusion when 1MDB had refused to furnish six out of seven documents requested by the PAC.
The sole document furnished by the investment arm to PAC was its financial balance sheet for the year financial ended 2011.
"Once when we have everything required then we can conclude," said Leong with concurrence coming from Tumpat PAS MP Kamaruddin Jaffar (left).
[...]
In the past, when the PAC was probing the Port Klang Free Zone (PKFZ), every document sought was handed over to the parliamentary committee, he said.
"Why should it be any different with 1MDB?" he asked.
Kamaruddin added that they had expressed their concerns on the issue at yesterday's PAC's meeting and the Auditor-General's office has been asked to look into the company finances.
Wednesday, June 27, 2012
Denial of Voter Stats Hints at Electoral Fraud
Denial of voter stats sparks fears of electoral fraud
By Shannon Teoh Jun 25, 2012
KUALA LUMPUR, June 25 — The government’s refusal to reveal the number of voters registered by political parties has raised further suspicion of fraud in the electoral roll, a claim which has seen tens of thousands take to the streets in two mass rallies over the past year.
Minister in the Prime Minister’s Department Datuk Seri Nazri Aziz said, in a written reply to a parliamentary question by Petaling Jaya Utara MP Tony Pua, that the Election Commission (EC) “does not have statistics on newly registered voters by each party for each quarter since 2008.”
But Pua told a press conference today that the reply given last week to his written question posed during the March sitting contradicted previous reports in 2010 and last year where the EC issued a breakdown of voters registered by parties.
“I am shocked by this answer which is a huge lie by the prime minister,” the DAP publicity chief said, referring to reports by Bernama and The Malaysian Insider as proof that “the detailed breakdown exists.”
He added that he had made repeated requests for the statistics from the respective state EC offices as well as the headquarters in Putrajaya and in Parliament.
“Why is the government now refusing? This strengthens doubts over the cleanliness of the electoral roll and suspicions that new voters or foreigners are being planted,” he said.
The Malaysian Insider had previously reported in September 2010 that the DAP had registered the most number of new voters followed by Umno, based on figures released by the EC in a press conference.
EC deputy chief Datuk Wan Ahmad Wan Omar had also broken down the number of new voters in Penang according to which party registered them in August last year.
A survey by Merdeka Center last month also showed that 92 per cent of voters in Peninsular Malaysia want the electoral roll cleaned before the general election that must be called within the year.
Pakatan Rakyat (PR) has claimed that at least 120,000 doubtful voters are on the roll while independent political consultant Ong Kian Ming has said his Malaysian Electoral Roll Analysis Project (MERAP) pointed to over 400,000 doubtful names, enough to decide 35 federal seats.
The two Bersih rallies on July 9, 2011 and April 28 this year drew tens of thousands to the streets of the capital, events which ended in clashes with the police who fired tear gas and water cannons to disperse the crowds.
Datuk Seri Najib Razak’s popularity had dipped immediately after both demonstrations for free and fair elections.
The July 9 protest resulted in the prime minister announcing a raft of liberal reforms including a parliamentary select committee on electoral improvements.
But Bersih proceeded to hold the April gathering after saying it was disappointed with the findings of the panel, accusing the government of not being serious about cleaning up the electoral system.
By Shannon Teoh Jun 25, 2012
KUALA LUMPUR, June 25 — The government’s refusal to reveal the number of voters registered by political parties has raised further suspicion of fraud in the electoral roll, a claim which has seen tens of thousands take to the streets in two mass rallies over the past year.
Minister in the Prime Minister’s Department Datuk Seri Nazri Aziz said, in a written reply to a parliamentary question by Petaling Jaya Utara MP Tony Pua, that the Election Commission (EC) “does not have statistics on newly registered voters by each party for each quarter since 2008.”
But Pua told a press conference today that the reply given last week to his written question posed during the March sitting contradicted previous reports in 2010 and last year where the EC issued a breakdown of voters registered by parties.
“I am shocked by this answer which is a huge lie by the prime minister,” the DAP publicity chief said, referring to reports by Bernama and The Malaysian Insider as proof that “the detailed breakdown exists.”
He added that he had made repeated requests for the statistics from the respective state EC offices as well as the headquarters in Putrajaya and in Parliament.
“Why is the government now refusing? This strengthens doubts over the cleanliness of the electoral roll and suspicions that new voters or foreigners are being planted,” he said.
The Malaysian Insider had previously reported in September 2010 that the DAP had registered the most number of new voters followed by Umno, based on figures released by the EC in a press conference.
EC deputy chief Datuk Wan Ahmad Wan Omar had also broken down the number of new voters in Penang according to which party registered them in August last year.
A survey by Merdeka Center last month also showed that 92 per cent of voters in Peninsular Malaysia want the electoral roll cleaned before the general election that must be called within the year.
Pakatan Rakyat (PR) has claimed that at least 120,000 doubtful voters are on the roll while independent political consultant Ong Kian Ming has said his Malaysian Electoral Roll Analysis Project (MERAP) pointed to over 400,000 doubtful names, enough to decide 35 federal seats.
The two Bersih rallies on July 9, 2011 and April 28 this year drew tens of thousands to the streets of the capital, events which ended in clashes with the police who fired tear gas and water cannons to disperse the crowds.
Datuk Seri Najib Razak’s popularity had dipped immediately after both demonstrations for free and fair elections.
The July 9 protest resulted in the prime minister announcing a raft of liberal reforms including a parliamentary select committee on electoral improvements.
But Bersih proceeded to hold the April gathering after saying it was disappointed with the findings of the panel, accusing the government of not being serious about cleaning up the electoral system.
Tuesday, June 26, 2012
Crime: Stop Spinning & Give Full Statistics
Minister in Prime Minister's Department, Datuk Idris Jala was quoted in The Star yesterday, "if the [crime] statistics are not convincing, perhaps then we should try to dwell into how the police were able to bring the crime rates down in a specific area, for example, one of the hotspots”.
He further called on the media to play its role in fighting crime and help arrest the “doom and gloom” by reporting on solved cases and not sensationalising crime by repeatedly reporting the same news.
We call upon the Government to stop the spin on the crime situation in the country. There is absolutely no question that the people do not feel safe in the streets regardless of the many "feel good" selective statistics the Government has released to the public.
Datuk Idris Jala claimed that “we as in the police (PDRM), Home Ministry (KDN) and Pemandu have been very transparent in acknowledging that there are 157,891 index crime cases reported in 2011”. However, if the Government is so confident of its crime fighting achievements, why is it refusing to provide detailed statistics by districts (e.g., Petaling Jaya, Klang, Serdang etc.) or by type of crime (e.g., murder, kidnapping, snatch theft, robbery, armed robbery etc.)?
It is not helped by the fact that crime incidence appears to be on the rise again after at least 4 recent reports over robbery and attempted abduction in various shopping centres across the Klang Valley over the past month alone.
Ironically, my very own special assistant had her house broken into in Taman Desa, Kuala Lumpur just last week.
And if crime is indeed on the rise, the media must not be faulted for reporting them. In fact they have the responsibility to report them to ensure that members of the public are alerted to take the necessary precautions.
On the other hand, in other much safer countries such as Singapore, Hong Kong and Japan, crime incidences are similarly reported, without jeopardising the confidence the people have in the safety of these countries. Hence if the situation on the ground is truly safe as the Government claims, then the Malaysians confidence in the system cannot be so fragile, and so easily shaken by "sensationalised" media reports on certain crime incidence.
The Governments attempt to gag the media from reporting crime incidence and to focus only on gloating the selective "success" of crime fighting efforts, will only result in a sense of false security, causing more innocent victims to fall prey to crime.
We once again call upon the Government stop blaming the media for the concerns about crime. Instead, tell us why the Government refuses to provide detailed statistics on crime to all Malaysians, if they really have nothing to hide from us.
He further called on the media to play its role in fighting crime and help arrest the “doom and gloom” by reporting on solved cases and not sensationalising crime by repeatedly reporting the same news.
We call upon the Government to stop the spin on the crime situation in the country. There is absolutely no question that the people do not feel safe in the streets regardless of the many "feel good" selective statistics the Government has released to the public.
Datuk Idris Jala claimed that “we as in the police (PDRM), Home Ministry (KDN) and Pemandu have been very transparent in acknowledging that there are 157,891 index crime cases reported in 2011”. However, if the Government is so confident of its crime fighting achievements, why is it refusing to provide detailed statistics by districts (e.g., Petaling Jaya, Klang, Serdang etc.) or by type of crime (e.g., murder, kidnapping, snatch theft, robbery, armed robbery etc.)?
It is not helped by the fact that crime incidence appears to be on the rise again after at least 4 recent reports over robbery and attempted abduction in various shopping centres across the Klang Valley over the past month alone.
- May 27: 25 year old internet marketeer Chin Xin-Ci had a meat cleaver pressed against her throat before being shoved into the car in an attempted kidnap and car robbery in The Curve.
- June 3: Aeon Jusco Cheras Selatan - 2 robbers bashed the head of an unsuspecting customer for her purse as she walked to her car with a relative.
- June 12: Attack and robbery at the Adorn Level of Starhill Gallery’s car park
- June 22: Victim was found leaning against a wall with blood gushing from her head and hands at Midvalley Carpark office tower lift lobby at parking zone G, on level 4.
Ironically, my very own special assistant had her house broken into in Taman Desa, Kuala Lumpur just last week.
And if crime is indeed on the rise, the media must not be faulted for reporting them. In fact they have the responsibility to report them to ensure that members of the public are alerted to take the necessary precautions.
On the other hand, in other much safer countries such as Singapore, Hong Kong and Japan, crime incidences are similarly reported, without jeopardising the confidence the people have in the safety of these countries. Hence if the situation on the ground is truly safe as the Government claims, then the Malaysians confidence in the system cannot be so fragile, and so easily shaken by "sensationalised" media reports on certain crime incidence.
The Governments attempt to gag the media from reporting crime incidence and to focus only on gloating the selective "success" of crime fighting efforts, will only result in a sense of false security, causing more innocent victims to fall prey to crime.
We once again call upon the Government stop blaming the media for the concerns about crime. Instead, tell us why the Government refuses to provide detailed statistics on crime to all Malaysians, if they really have nothing to hide from us.
Saturday, June 23, 2012
Tan Sri Syed Mokhtar's Empire Built on RM34.3 Billion Debt
In 1998, the Asian Financial crisis precipitated the collapse of UMNO crony company, Renong Bhd. Renong which had debts in excess of RM20 billion, or approximately 7% of all loans in the banking system then, went bankrupt under the weight of its debt. It caused hundreds of millions in losses to investors, the collapse of the stock market index and triggered a RM10 billion bailout of the company. Renong was one of the largest and favoured conglomerates by the BN government with interests in highways (PLUS, UEM, Linkedua), rail (KTM, Putra LRT), property, telecommunications (TIME) and a whole host of other companies.
Fast forward 14 years later, we now have Tan Sri Syed Mokhtar Al-Bukhary’s group of companies which have a combined debt of RM34.3 billion or more than 10% of all local currency outstanding corporate bonds as at 2011. These companies have an estimated total cash and cash equivalents of RM7.8 billion as at May 2012.
Hence the debt far exceeds that of Renong’s, causing genuine fears that a repeat of the crisis requiring monster bailouts with tax-payers’ funds. This fear is especially real in the light of a global economic slowdown and a fallout from the Eurozone financial crisis.
Tan Sri Syed Mokhtar’s empire spans across scores of companies and industries, which are generally held under 4 listed entities. The largest of them is the 51.8%-owned MMC Corporation Bhd whose group alone has outstanding debt of RM24.2 billion. The key subsidiaries of MMC Corporation are Malakoff Corporation, Gas Malaysia, Aliran Ihsan Resources (water utility company), Port of Tanjong Pelepas, Johor Port, Senai Airport Terminal Services, SMART Tunnel and the MMC-Gamuda joint ventures.
His second largest entity is the 55.9%-owned DRB-Hicom Bhd which has debt of RM5.7 billion, inclusive of the most recent RM3.0 billion debt raised to acquire Proton Bhd. The other companies of the group are Edaran Otomobil Nasional, MODENAS, Honda Malaysia, Bank Muamalat, PUSPAKOM, Alam Flora, POS Malaysia, Defence Technologies and several property development companies.
The third entity is 43.0%-owned Tradewinds (M) Bhd which has debt of RM3.48 billion. It owns BERNAS which has a monopoly of rice purchase, import and distribution in Malaysia, Central Sugar Refinery and smaller stakes in Malaysian Sugar Manufacturing Bhd which together monopolises the Malaysian sugar market, and Tradewinds Plantations.
The final entity is 71.5%-owned Tradewinds Corporation Bhd which has debt of RM890 million. Tradewinds Corporation runs several major hotel chains in Malaysia, including Crowne Plaza Mutiara Kuala Lumpur, Hilton Kuching and Petaling Jaya and Hotel Istana.
Despite the expansiveness of his empire, and the load of his debt holdings, the Prime Ministers’ Department has just confirmed the privatisation of Penang Port to him. With no details yet available, the acquisition will certainly require him to raise possible several billions of additional debt to fund the exercise. What’s more, it has been widely rumoured that Tan Sri Syed Mokhtar is also leading the race to acquire Port Klang (Northport Holdings) as well as KTM Berhad.
The Government must explain the measures which are being taken to ensure that a repeat of the 1998 financial crisis will be avoided at all cost. The Ministry of Finance must make available data on how much our financial institutions, statutory bodies such as the Employees Provident Fund (EPF), Civil Service Retirement Fund (KWAP), Tabung Haji Fund and Armed Forces Fund (LTAT). In addition, we call upon the Government to assure the Malaysian tax-payers that in the event of default, the rakyat’s monies will once again not be made to pay for the follies of Barisan Nasional cronies.
Fast forward 14 years later, we now have Tan Sri Syed Mokhtar Al-Bukhary’s group of companies which have a combined debt of RM34.3 billion or more than 10% of all local currency outstanding corporate bonds as at 2011. These companies have an estimated total cash and cash equivalents of RM7.8 billion as at May 2012.
Hence the debt far exceeds that of Renong’s, causing genuine fears that a repeat of the crisis requiring monster bailouts with tax-payers’ funds. This fear is especially real in the light of a global economic slowdown and a fallout from the Eurozone financial crisis.
Tan Sri Syed Mokhtar’s empire spans across scores of companies and industries, which are generally held under 4 listed entities. The largest of them is the 51.8%-owned MMC Corporation Bhd whose group alone has outstanding debt of RM24.2 billion. The key subsidiaries of MMC Corporation are Malakoff Corporation, Gas Malaysia, Aliran Ihsan Resources (water utility company), Port of Tanjong Pelepas, Johor Port, Senai Airport Terminal Services, SMART Tunnel and the MMC-Gamuda joint ventures.
His second largest entity is the 55.9%-owned DRB-Hicom Bhd which has debt of RM5.7 billion, inclusive of the most recent RM3.0 billion debt raised to acquire Proton Bhd. The other companies of the group are Edaran Otomobil Nasional, MODENAS, Honda Malaysia, Bank Muamalat, PUSPAKOM, Alam Flora, POS Malaysia, Defence Technologies and several property development companies.
The third entity is 43.0%-owned Tradewinds (M) Bhd which has debt of RM3.48 billion. It owns BERNAS which has a monopoly of rice purchase, import and distribution in Malaysia, Central Sugar Refinery and smaller stakes in Malaysian Sugar Manufacturing Bhd which together monopolises the Malaysian sugar market, and Tradewinds Plantations.
The final entity is 71.5%-owned Tradewinds Corporation Bhd which has debt of RM890 million. Tradewinds Corporation runs several major hotel chains in Malaysia, including Crowne Plaza Mutiara Kuala Lumpur, Hilton Kuching and Petaling Jaya and Hotel Istana.
Despite the expansiveness of his empire, and the load of his debt holdings, the Prime Ministers’ Department has just confirmed the privatisation of Penang Port to him. With no details yet available, the acquisition will certainly require him to raise possible several billions of additional debt to fund the exercise. What’s more, it has been widely rumoured that Tan Sri Syed Mokhtar is also leading the race to acquire Port Klang (Northport Holdings) as well as KTM Berhad.
The Government must explain the measures which are being taken to ensure that a repeat of the 1998 financial crisis will be avoided at all cost. The Ministry of Finance must make available data on how much our financial institutions, statutory bodies such as the Employees Provident Fund (EPF), Civil Service Retirement Fund (KWAP), Tabung Haji Fund and Armed Forces Fund (LTAT). In addition, we call upon the Government to assure the Malaysian tax-payers that in the event of default, the rakyat’s monies will once again not be made to pay for the follies of Barisan Nasional cronies.
Friday, June 22, 2012
Crime Statistics: 1 Question, 3 Answers
Home Ministry's third boo-boo over crime rate?
S Pathmawathy
1:46PM Jun 21, 2012
Selangor's actual crime data is under scrutiny after it was pointed out that the Home Ministry has given three conflicting sets of figures for the crime rate in 2009.
Petaling Jaya Utara MP Tony Pua said he received a written parliamentary reply in 2010, which states the total crime cases in Selangor as 54,443 for 2009.
Two days ago, Pua received a written reply to a similar question, which had sought a detailed breakdown - by type and district - on crime in Selangor, which was stated as 56,689 cases.
Pua then held a press conference to complain about the vague details in the reply and claimed that it does not show that the war against crime was succeeding.
Yesterday, Home Ministry secretary-general Abdul Rahim Mohamad Radzi withdrew the written reply to Pua and revised the 2009 crime figure to 54,994.
Rahim had claimed that the written reply contained a "typographical" error.
'Correction sent out on Monday'
According to the secretary-general, the new figures show a 19.4 percent drop in Selangor’s crime rate since 2009, and a 24.7 percent drop nationwide.
Rahim also said that the correction was sent to Parliament on Monday for Pua's reference, a day before the media conference, but Pua said nothing had been placed on his desk.
"Are these figures adapted as and when the ministry wants to adapt them? If they are genuine about the crime statistics, they should publish all breakdowns as requested," Pua hit out.
He had earlier complained that the ministry had not been forthcoming with the thorough statistics since 2010, when the National Key Results Area (NKRA) on crime prevention under the Government Transformation Progamme was announced.
Prior to that, there had never been a problem in getting statistics on the rise or reduction of crime rates, he said.
Insisting that crime prevention "warrants serious attention" from the authorities, Pua urged the government to release the complete breakdown on crime in the country.
"If they are really proud that crime has been reduced by 20, 30 or 40 percent, then they should not hesitate to publish the results," he added.
Thursday, June 21, 2012
BAFIA Breach - Bank Negara in Denial?
The Malay Mail carried the front page story on Monday 18 June that local banks are disposing of their non-performing loans (NPLs) or bad debts to companies owned by foreign entities. Under the Banking & Financial Institutions Act 1989 (BAFIA), “banks can only sell to locally incorporated companies which the purchaser is majority owned by domestic shareholders as the purchaser is subject to a foreign equity ap of 49%”.
The Bank Negara (BNM) has chosen to issue a flat denial to the report claiming it was “inaccurate and misleading”.
BNM statement said that “banking institutions can dispose of their NPLs as part of the bank’s risk management practice. Disposal of NPLs provides the flexibility for banks to manage their loan portfolios effectively and efficiently to maximize recovery to protect depositors’ interest. Any recovery action must be in accordance with the law.”
However, in today’s Malay Mail frontpage report, evidence was provided of several such companies who bought NPLs from local financial institutions where it is clear that the ownership breached the 49% limit. Sinesinga Sdn Bhd for example, is 75% owned by Standard Bank London Holdings PLC. Similarly, another company, Resolution Alliance Sdn Bhd is 55% owned by Standard Chartered Bank (Hong Kong) Limited. What’s more, all 3 directors of Resolution Alliance are foreigners.
When posed these questions during the Supplementary Budget Bill 2012 debate yesterday, the Deputy Finance Minister Datuk Seri Dr Awang Adek refuses to give a straight answer as to whether the BAFIA has been breached, and was only willing to repeatedly emphasize “in his experience as an ex-Bank Negara official… I am confident (“yakin”) all necessary approvals would have been obtained by the local financial institutions from Bank Negara, because they would not act otherwise”.
Despite the seriousness of the matter, which has been reported since Monday, the Finance Ministry is obviously still completely clueless over the matter. In fact, there are even questions as to whether the above companies who are acting as debt collecting agencies are in fact licensed to do so in Malaysia.
What is worse is the accusation by The Malay Mail in its Monday report that “a foreigner, who is the son in-law of a prominent local banker, owns the majority of shares in one such debt collection agency, which had procured a vesting order from a premier locally based foreign bank.”
The above raises the issue of serious conflict of interest, criminal breach of trust and even fraud and must be investigated by the relevant authorities. Such incidences jeopardises the integrity of our financial institutions and the trust investors and consumers place in our banking system. It also raises the question as to whether BNM is willing to act independently and expediently without fear or favour, or would it prefer to get cosy and collude with the movers-and-shakers of the local banks.
BNM must not sweep the issue under the carpet while the Finance Ministry cannot come to Parliament completely clueless and ignorant.
The Bank Negara (BNM) has chosen to issue a flat denial to the report claiming it was “inaccurate and misleading”.
BNM statement said that “banking institutions can dispose of their NPLs as part of the bank’s risk management practice. Disposal of NPLs provides the flexibility for banks to manage their loan portfolios effectively and efficiently to maximize recovery to protect depositors’ interest. Any recovery action must be in accordance with the law.”
However, in today’s Malay Mail frontpage report, evidence was provided of several such companies who bought NPLs from local financial institutions where it is clear that the ownership breached the 49% limit. Sinesinga Sdn Bhd for example, is 75% owned by Standard Bank London Holdings PLC. Similarly, another company, Resolution Alliance Sdn Bhd is 55% owned by Standard Chartered Bank (Hong Kong) Limited. What’s more, all 3 directors of Resolution Alliance are foreigners.
When posed these questions during the Supplementary Budget Bill 2012 debate yesterday, the Deputy Finance Minister Datuk Seri Dr Awang Adek refuses to give a straight answer as to whether the BAFIA has been breached, and was only willing to repeatedly emphasize “in his experience as an ex-Bank Negara official… I am confident (“yakin”) all necessary approvals would have been obtained by the local financial institutions from Bank Negara, because they would not act otherwise”.
Despite the seriousness of the matter, which has been reported since Monday, the Finance Ministry is obviously still completely clueless over the matter. In fact, there are even questions as to whether the above companies who are acting as debt collecting agencies are in fact licensed to do so in Malaysia.
What is worse is the accusation by The Malay Mail in its Monday report that “a foreigner, who is the son in-law of a prominent local banker, owns the majority of shares in one such debt collection agency, which had procured a vesting order from a premier locally based foreign bank.”
The above raises the issue of serious conflict of interest, criminal breach of trust and even fraud and must be investigated by the relevant authorities. Such incidences jeopardises the integrity of our financial institutions and the trust investors and consumers place in our banking system. It also raises the question as to whether BNM is willing to act independently and expediently without fear or favour, or would it prefer to get cosy and collude with the movers-and-shakers of the local banks.
BNM must not sweep the issue under the carpet while the Finance Ministry cannot come to Parliament completely clueless and ignorant.
Wednesday, June 20, 2012
Crime Rising in Selangor
There has been increasing concern over the recent months over the crime rates in the country, especially in Klang Valley and urban areas.
On May 27, 25 year old internet marketeer Chin Xin-Ci had a meat cleaver pressed against her throat before being shoved into the car in an attempted kidnap and car robbery in The Curve. On June 7, teacher Teoh Soo Kim was found at the Talam oil palm estate in Kuala Selangor after she had been abducted from Bandar Kinrara, beaten up and her car stolen. Two days later, Bersih steering committee member Wong Chin Huat was left with a bloody face after being assaulted while jogging in Petaling Jaya in the morning. There is no doubt that there are many other unreported cases.
However, the Home Minister, Datuk Seri Hishammuddin Hussein had said that the recent cases of violent crime were “isolated”. He said “blowing a few cases out of proportion would create a perception that Malaysia was unsafe country, when official data showed otherwise”.
The problem is, when we request for official detailed crime statistics from the Minister, such statistics are not at all forthcoming. This was not the case before 2009 when detailed statistics were readily made available to Members of Parliament.
I’ve finally received the official reply from the Home Minister to my written answer question posed in the March 2012 parliamentary session after more than 3 months of waiting. And yet, the answers are intentionally incomplete so as to give the people an incomplete picture of the real crime situation. I’ve posed the same questions to the Minister on several other parliamentary sessions over the past 2 years, and each time, I get the same reply with very little information.
In this latest question, I’ve asked for a detailed breakdown of crime statistics broken down by districts (Petaling Jaya, Klang, Serdang etc.) and type of crime (Violent crime: murder, rape, armed robbery, unarmed robbery, assault; Property theft: Motor vehicles, snatch theft, burglary etc.) in Selangor for each year since 2006.
The Minister has refused to provide the relevant detailed breakdowns. Instead, he gave only the total number of violent crime and property theft for each of these years. There was no further breakdown by districts in Selangor or by type of crime.
I’ve also asked that the same national statistics be given, broken down by states and type of crime. However, the Minister once again gave only the total number of crime incidence for the entire country since 2006. He refused to break it down by states, or by the type of crime.
Clearly Najib’s administration is trying to provide only positive looking summary data to improve the perception of his government. PEMANDU does the exact same thing by obfuscating crime data which will give a positive perception to the Government in its National Key Result Area (NKRA) reports. For example, one will not be able to find any of the above data which I’ve requested in PEMANDU’s Annual Report in 2010 for the Government Transformation Plan (GTP) on the NKRA on Crime.
Despite that, with the little data that is provided in the latest parliamentary reply, we could already tell that crime is once again on the rise, especially in Selangor. In 2010, the total number of violent crimes in Selangor was 7,853 cases but has increased to 8,141 cases in 2011. Similarly, the total number of theft cases increased from 31,838 to 36,161 cases over the same period. In total, the crime index for Selangor has worsened by 11.6% from 39,691 to 44,302!
This is despite the fact that many major cities in the Klang Valley has been turned into “war zones” with barricades, security checkpoints and boom-gates set up in various residential zones at the residents’ own expense. These private security measures have contributed to significantly reducing crime incidence in these areas.
The above data proves that there are many possible areas of weakness in the Government’s fight against crime which it is trying to hide from the public. While the overall crime levels may have dropped from 2009 to 2010 due to the initial flurry of police activities after the NKRA on crime was launched, it appears that crime is definitively on the rise again in 2011, and could have increased further in 2012.
We call on the Government to be completely transparent with its crime data. In fact, the latest annual report of the Royal Malaysian Police which can be downloaded from their website is the 2008 copy.
There is absolutely no point of the Home Minister and PEMANDU singing praises of the Government with half-truths and blaming the people’s real fear of crime on “perception”. Instead, the Government should tackle the serious crime issue head on, by recognizing the increase in crime, especially in Selangor and announce the necessary steps to halt the deteriorating circumstances.
On May 27, 25 year old internet marketeer Chin Xin-Ci had a meat cleaver pressed against her throat before being shoved into the car in an attempted kidnap and car robbery in The Curve. On June 7, teacher Teoh Soo Kim was found at the Talam oil palm estate in Kuala Selangor after she had been abducted from Bandar Kinrara, beaten up and her car stolen. Two days later, Bersih steering committee member Wong Chin Huat was left with a bloody face after being assaulted while jogging in Petaling Jaya in the morning. There is no doubt that there are many other unreported cases.
However, the Home Minister, Datuk Seri Hishammuddin Hussein had said that the recent cases of violent crime were “isolated”. He said “blowing a few cases out of proportion would create a perception that Malaysia was unsafe country, when official data showed otherwise”.
The problem is, when we request for official detailed crime statistics from the Minister, such statistics are not at all forthcoming. This was not the case before 2009 when detailed statistics were readily made available to Members of Parliament.
I’ve finally received the official reply from the Home Minister to my written answer question posed in the March 2012 parliamentary session after more than 3 months of waiting. And yet, the answers are intentionally incomplete so as to give the people an incomplete picture of the real crime situation. I’ve posed the same questions to the Minister on several other parliamentary sessions over the past 2 years, and each time, I get the same reply with very little information.
In this latest question, I’ve asked for a detailed breakdown of crime statistics broken down by districts (Petaling Jaya, Klang, Serdang etc.) and type of crime (Violent crime: murder, rape, armed robbery, unarmed robbery, assault; Property theft: Motor vehicles, snatch theft, burglary etc.) in Selangor for each year since 2006.
The Minister has refused to provide the relevant detailed breakdowns. Instead, he gave only the total number of violent crime and property theft for each of these years. There was no further breakdown by districts in Selangor or by type of crime.
I’ve also asked that the same national statistics be given, broken down by states and type of crime. However, the Minister once again gave only the total number of crime incidence for the entire country since 2006. He refused to break it down by states, or by the type of crime.
Clearly Najib’s administration is trying to provide only positive looking summary data to improve the perception of his government. PEMANDU does the exact same thing by obfuscating crime data which will give a positive perception to the Government in its National Key Result Area (NKRA) reports. For example, one will not be able to find any of the above data which I’ve requested in PEMANDU’s Annual Report in 2010 for the Government Transformation Plan (GTP) on the NKRA on Crime.
Despite that, with the little data that is provided in the latest parliamentary reply, we could already tell that crime is once again on the rise, especially in Selangor. In 2010, the total number of violent crimes in Selangor was 7,853 cases but has increased to 8,141 cases in 2011. Similarly, the total number of theft cases increased from 31,838 to 36,161 cases over the same period. In total, the crime index for Selangor has worsened by 11.6% from 39,691 to 44,302!
This is despite the fact that many major cities in the Klang Valley has been turned into “war zones” with barricades, security checkpoints and boom-gates set up in various residential zones at the residents’ own expense. These private security measures have contributed to significantly reducing crime incidence in these areas.
The above data proves that there are many possible areas of weakness in the Government’s fight against crime which it is trying to hide from the public. While the overall crime levels may have dropped from 2009 to 2010 due to the initial flurry of police activities after the NKRA on crime was launched, it appears that crime is definitively on the rise again in 2011, and could have increased further in 2012.
We call on the Government to be completely transparent with its crime data. In fact, the latest annual report of the Royal Malaysian Police which can be downloaded from their website is the 2008 copy.
There is absolutely no point of the Home Minister and PEMANDU singing praises of the Government with half-truths and blaming the people’s real fear of crime on “perception”. Instead, the Government should tackle the serious crime issue head on, by recognizing the increase in crime, especially in Selangor and announce the necessary steps to halt the deteriorating circumstances.
PAC Dragging Its Feet?
PAC gets yellow card for 'wasting time'
S Pathmawathy
12:30PM Jun 19, 2012
Petaling Utara MP Tony Pua has questioned the Public Accounts Committee’s (PAC) motives in re-evaluating its decision on probes into four financial scandals, and has renewed the accusation that this is a delay tactic.
“I don't understand why the PAC can't just immediately set a date to summon the officers and management of the agencies and companies we want to investigate,” he told Malaysiakini.
“We've already discussed and agreed on the cases during our meeting on March 5. Why the need for another housekeeping meeting (tomorrow)?”
The four matters involve close to RM9 billion of government expenditure:
- The RM250 million government soft loan to the National Feedlot Centre (NFC) project
- The Highly confidential out-of-court settlement between Malaysia Airlines former boss Tajudin Ramli and Pengurusan Danaharta Bhd over his RM589 million debt
- 1Malaysia Development Bhd’s RM3.5 billion ‘dubious’ investments in Petrosaudi
- The higher cost of constructing the permanent low-cost carrier terminal in Sepang, which has ballooned from RM2.2 billion to RM3.9 billion
The meeting scheduled for tomorrow morning will debate whether the PAC should follow through its investigations, Azmi Khalid (right) had told reporters last week.
This is because Dewan Rakyat speaker Pandikar Amin Mulia had “advised” the panel to discontinue its probe into matters that are currently before the courts.
This is contrary to Azmi’s earlier assertion that committee is not "completely barred" from investigating the controversies.
'Start with three cases’
Pandikar had expressed reservations about the probes into the NFC project and Tajudin’s deal.
However, the Pakatan MPs (right) on the bipartisan PAC had waved off the speaker’s objections, explaining that the committee would only question government agencies on the disbursement of funds, which will not amount to sub judice.
Pua said there is a possibility of “an intentional attempt to delay matters” in light of the looming general election, which must be called by April next year.
“Why waste another meeting? Also, why can't we call others - KLIA2, 1MDB and Tajuddin - if he (Azmi) doesn't want to proceed with NFC?
“Why is everything else stuck just because of NFC?” he asked
S Pathmawathy
12:30PM Jun 19, 2012
Petaling Utara MP Tony Pua has questioned the Public Accounts Committee’s (PAC) motives in re-evaluating its decision on probes into four financial scandals, and has renewed the accusation that this is a delay tactic.
“I don't understand why the PAC can't just immediately set a date to summon the officers and management of the agencies and companies we want to investigate,” he told Malaysiakini.
“We've already discussed and agreed on the cases during our meeting on March 5. Why the need for another housekeeping meeting (tomorrow)?”
The four matters involve close to RM9 billion of government expenditure:
- The RM250 million government soft loan to the National Feedlot Centre (NFC) project
- The Highly confidential out-of-court settlement between Malaysia Airlines former boss Tajudin Ramli and Pengurusan Danaharta Bhd over his RM589 million debt
- 1Malaysia Development Bhd’s RM3.5 billion ‘dubious’ investments in Petrosaudi
- The higher cost of constructing the permanent low-cost carrier terminal in Sepang, which has ballooned from RM2.2 billion to RM3.9 billion
The meeting scheduled for tomorrow morning will debate whether the PAC should follow through its investigations, Azmi Khalid (right) had told reporters last week.
This is because Dewan Rakyat speaker Pandikar Amin Mulia had “advised” the panel to discontinue its probe into matters that are currently before the courts.
This is contrary to Azmi’s earlier assertion that committee is not "completely barred" from investigating the controversies.
'Start with three cases’
Pandikar had expressed reservations about the probes into the NFC project and Tajudin’s deal.
However, the Pakatan MPs (right) on the bipartisan PAC had waved off the speaker’s objections, explaining that the committee would only question government agencies on the disbursement of funds, which will not amount to sub judice.
Pua said there is a possibility of “an intentional attempt to delay matters” in light of the looming general election, which must be called by April next year.
“Why waste another meeting? Also, why can't we call others - KLIA2, 1MDB and Tajuddin - if he (Azmi) doesn't want to proceed with NFC?
“Why is everything else stuck just because of NFC?” he asked
Tuesday, June 19, 2012
FGVH IPO: Settler's Income Cannibalised
Felda Palm Industries Sdn Bhd (FPI) is a palm oil processing company which purchases from Felda Plantations as well as other oil palm plantation companies, and processes them into Crude Palm Oil (CPO) for sale to refineries, traders and other users.
FPI is company where Koperasi Permodalan Felda (KPF) has a 64.7% effective stake. Based on FPI’s latest available audited accounts, it made RM9.5 billion and RM204 million in revenue and profits respectively in 2010. More specifically, FPI sold 3.0 million metric tonne of CPO for RM8.1 billion during the year.
However, based on the FGVH prospectus, FPI has been forced to sign a concession contract on 1 March 2012 with FGVH where all CPO produced by FPI, except a small quantity used by FPI's own subsidiaries will be sold only to FGVH.
The above arrangement is clearly to enable FGVH to earn a margin from the sale of CPO to the final customers. FGVH adds no value to the entire process except to cannibalise part of the profits which would otherwise have been attributable to FPI. As highlighted in the FGVH prospectus, FGVH “resells all of this CPO to third-party customers, such as refiners and traders in
Malaysia and abroad, to our joint ventures…” (pp 184)
Assuming just a mere 5% margin in sales price earned by FGVH, it is in essence a loss of profit amounting to RM405 million to FPI.
The biggest loser will hence be KPF which owns 64.7% of FPI but does not even own a single share in the soon-to-be-listed FGVH. KPF which is 70% owned by Felda settlers, with the balance owned by Felda employees, is the entity set up in 1980 to become a savings and investment trust for Felda members. Its intent was to give a fair opportunity to Felda members to take part in equity ownership of companies set up by FELDA.
This is on top of the fact that 355,864 hectares of the Government's FELDA land previously managed by another KPF subsidiary, Felda Plantations Sdn Bhd, has been ceded to FGVH for 99 years. The transfer of the above land will boost FGVH profits by RM680 million annually based on 2011 financial performance.
Hence it is clear that in order to inflate the profits of FGVH and the attractiveness of its shares to potential investors, the Government has sacrificed the interest of Felda settlers represented by KPF by robbing them of income which they've enjoyed all these years.
We call upon the Government not to shortchange KPF and the FELDA settlers. The RM15,000 “durian runtuh” amounting to a total of RM1.69 billion does not even come close to the loss of income for KPF and the settlers for the next 99 years as a result of the above one-sided deals.
FPI is company where Koperasi Permodalan Felda (KPF) has a 64.7% effective stake. Based on FPI’s latest available audited accounts, it made RM9.5 billion and RM204 million in revenue and profits respectively in 2010. More specifically, FPI sold 3.0 million metric tonne of CPO for RM8.1 billion during the year.
However, based on the FGVH prospectus, FPI has been forced to sign a concession contract on 1 March 2012 with FGVH where all CPO produced by FPI, except a small quantity used by FPI's own subsidiaries will be sold only to FGVH.
The above arrangement is clearly to enable FGVH to earn a margin from the sale of CPO to the final customers. FGVH adds no value to the entire process except to cannibalise part of the profits which would otherwise have been attributable to FPI. As highlighted in the FGVH prospectus, FGVH “resells all of this CPO to third-party customers, such as refiners and traders in
Malaysia and abroad, to our joint ventures…” (pp 184)
Assuming just a mere 5% margin in sales price earned by FGVH, it is in essence a loss of profit amounting to RM405 million to FPI.
The biggest loser will hence be KPF which owns 64.7% of FPI but does not even own a single share in the soon-to-be-listed FGVH. KPF which is 70% owned by Felda settlers, with the balance owned by Felda employees, is the entity set up in 1980 to become a savings and investment trust for Felda members. Its intent was to give a fair opportunity to Felda members to take part in equity ownership of companies set up by FELDA.
This is on top of the fact that 355,864 hectares of the Government's FELDA land previously managed by another KPF subsidiary, Felda Plantations Sdn Bhd, has been ceded to FGVH for 99 years. The transfer of the above land will boost FGVH profits by RM680 million annually based on 2011 financial performance.
Hence it is clear that in order to inflate the profits of FGVH and the attractiveness of its shares to potential investors, the Government has sacrificed the interest of Felda settlers represented by KPF by robbing them of income which they've enjoyed all these years.
We call upon the Government not to shortchange KPF and the FELDA settlers. The RM15,000 “durian runtuh” amounting to a total of RM1.69 billion does not even come close to the loss of income for KPF and the settlers for the next 99 years as a result of the above one-sided deals.
Monday, June 18, 2012
Sunday, June 17, 2012
Parliamentary Questions 2012 (II)
Below are the set of 15 questions I've submitted to Parliament for the current on-going sitting.
Oral Answer Questions:
1. Tony Pua minta Perdana Menteri menyatakan terma-terma Lebuhraya Pantai Barat (WCE) termasuk anggaran tol yang akan dikenakan dan pulangan kepada pihak konsesi mengikut jangkaan kos pembinaan sebanyak RM7.1 bilion.
2. Tony Pua minta Perdana Menteri menyatakan
(a) sebab Maju Expressway (MEX) akan diberikan kebenaran untuk menjual konsesi Lebuhraya KL-Putrajaya kepada EP Manufacturing Bhd
(b) sama ada kerajaan boleh mengambil-alih MEX dengan kos RM400 juta mengikut perjanjian konsesi
3. Tony Pua minta Perdana Menteri menyatakan sebab pemindahan Pengkalan Tentera Udara Diraja Malaysia dari Sungai Besi ke Sendayan dan lain-lain tempat memakan kos sebanyak RM2.7 bilion, jauh melebihi nilai tanah Sungai Besi RM1.6 bilion yang dijual kepada 1MDB
4. Tony Pua minta Perdana Menteri menyatakan
(a) sebab 1MDB menambahkan pinjaman kepada 1MDB-PetroSaudi Limited sebanyak US$500 juta (Mac 2010) dan US$200 juta (Mei 2011)
(b) kedudukan kewangan PetroSaudi International yang memberikan jaminan kepada pinjaman oleh 1MDB-PetroSaudi Limited sebanyak US$1.9 bilion
5. Tony Pua minta Perdana Menteri menyatakan
(a) asas penilaian semula hartanah 1MDB daripada RM194 juta kepada RM1.02 bilion atau 426% dalam jangkamasa 1 tahun sahaja untuk merekodkan keuntungan RM544 juta
(b) lokasi dan deskripsi hartanah tersebut
6. Tony Pua minta Menteri Kewangan menyatakan
(a) kedudukan siasatan Suruhanjaya Sekuriti ke atas kes RBTR Asset Management Bhd. (RBTR) yang melibatkan kehilangan RM13.5 juta sejak Ogos 2009
(b) sebab tindakan tidak diambil ke atas pihak pengarah RBTR yang meluluskan dan menjual produk pelaburan tersebut kepada orang awam
7. Tony Pua minta Menteri Kewangan menyatakan kedudukan siasatan Securities Commission ke atas saham Supercomnet Technologies Bhd yang melibatkan anak Perdana Menteri Mohd Nazifuddin menandatangani perjanjian option membeli saham syarikat tersebut dan selepas it menolak option tersebut dalam jangka masa 48 jam
8. Tony Pua minta Menteri Kewangan menyatakan
(a) jumlah pinjaman korporat merentasi kumpulan syarikat yang dikawal-milik Tan Sri Syed Mokhtar al-Bukhary dan sama ada Bank Negara mengambilkira risiko sistemik disebabkan pinjaman tersebut
(b) institusi kewangan yang terdedah kepada pinjaman beliau dan nilai kepada setiap satu
9. Tony Pua minta Perdana Menteri menyatakan
(a) sebab nilai saksama pelaburan anak syarikat yang tidak disebut Ekuiti Nasional Bhd. (Ekuinas) dapat meningkat RM163 juta dalam 2011 walaupun prestasi kewangan (EBITDA) syarikat-syarikat tersebut merosot
(b) unjuran kewangan yang menjadi asas kepada pernilaian tersebut
10. Tony Pua minta Perdana Menteri menyatakan punca wang dividen sebanyak RM1.69 bilion yang diperuntukkan kepada peneroka Felda sempena penyenaraian Felda Global Ventures Holdings (FGVH) di Bursa Malaysia.
Written Answer Questions:
11. Tony Pua minta Perdana Menteri menyatakan
(a) sama ada tanah FELDA sebanyak 340 ribu hektar yang diuruskan Felda Plantations Sdn Bhd akan diuruskan oleh FGVH sekarang
(b) kadar harga pajakan tanah FELDA tersebut yang dicaj kepada FGVH dibandingkan dengan harga pajakan pasaran purata untuk ladang kelapa sawit
12. Tony Pua minta Menteri Pengangkutan menyatakan sebab Lembaga Pelabuhan Kelang (LPK) masih membayar pemegang bon Kuala Dimensi Sdn Bhd sebanyak RM733 juta dalam 2011 walaupun litigasi berterusan sebanyak RM1.6 bilion terhadap KDSB atas pelanggaran kontrak dan lain-lain
13. Tony Pua minta Menteri Pendidikan menyatakan
(a) sebab kemerosotan prestasi pelajaran Malaysia yang dikemukakan oleh laporan terkini Program International Student Assessment (PISA) 2009+ dan The International Mathematics and Science Study (TIMSS) 2007
(b) kos yang dibayar kepada konsultan untuk "Education Review" dan sebarang retainer yang dikenakan
14. Tony Pua minta Perdana Menteri menyatakan
(a) kedudukan pembangunan Taman Industri Minyak, Gas dan Logistik Tanjong Agas sejak diumumkan pada tahun 2009
(b) jumlah, terma dan status pinjaman Tanjong Agas Supply Base and Marine Services Sdn Bhd daripada institusi kewangan Malaysia
15. Tony Pua minta Menteri Pengangkutan menyatakan
(a) sebab syarikat Itali, ENAV, diberikan peluang menawar untuk menjadi perunding kawalan trafik udara KLIA walaupun ENAV sedang disiasat atas tuduhan rasuah
(b) jumlah kos terkini bagi pembangunan Lapangan Terbang KLIA2
Sale of Maju Expressway Scuppered?
No nod for Maju Expressway sale, Putrajaya tells Parliament
By Shannon Teoh June 14, 2012
KUALA LUMPUR, June 14 — The controversial RM1.7 billion sale of the Maju Expressway (MEX) appears to be scuppered for now after the federal government said it had not approved the sale of the concession held by Maju Holdings.
The Prime Minister’s Department said in a written reply to a parliamentary question by Petaling Jaya Utara MP Tony Pua (picture) yesterday that no permission has been given for the deal due to “several policy matters related to this highway concession that must be studied by the government.”
“The government has never given permission in relation to the proposal for the sale of the KL-Putrajaya Highway to EP Manufacturing Berhad (EPMB),” it said.
Maju Holdings had hoped to walk away with RM668 million in profit.
[Tony: It's RM1.09 billion in profit!]
But the DAP publicity chief told The Malaysian Insider that “while it appears the deal is off, the answer only says it has not but does not say it will not give approval.”
EPMB had in March entered into an acquisition agreement with Maju Holdings to acquire MEX for RM1.15 billion and also assume debts totalling RM550 million, valuing the deal at a total cost of RM1.7 billion.
This would allow Maju Holdings, controlled by Tan Sri Abu Sahid Mohamed, to walk away with a “whopping” return of RM668 million, taking into account that the construction cost of RM1.3 billion was offset by a huge government grant of RM976 million.
MEX is 96.8 per cent owned by Maju Holdings, in which Abu Sahid controls a 91 per cent stake.
The opposition had promised the same month to buy back the MEX concession if it took over federal power after a coming general election and later called the deal a “rape” of taxpayers perpetrated by Tun Dr Mahathir Mohamad while he was still prime minister.
Pua had said the concession agreement was awarded “on a silver platter” to Abu Sahid in 1997 and revised in 2003 just prior to Dr Mahathir’s retirement.
“The rape of Malaysian taxpayers which made a billionaire out of Abu Sahid... is simply outrageous and unacceptable because out of his ‘profit’, RM976.7 million was paid for by Malaysian taxpayers,” he said, referring to the grant which was worth 74 per cent of the RM1.32 billion construction cost.
Pua said it was the former Umno president who made the decision to offer the RM976.7 million grant instead of a loan, allowing Abu Sahid to cash out quickly.
By Shannon Teoh June 14, 2012
KUALA LUMPUR, June 14 — The controversial RM1.7 billion sale of the Maju Expressway (MEX) appears to be scuppered for now after the federal government said it had not approved the sale of the concession held by Maju Holdings.
The Prime Minister’s Department said in a written reply to a parliamentary question by Petaling Jaya Utara MP Tony Pua (picture) yesterday that no permission has been given for the deal due to “several policy matters related to this highway concession that must be studied by the government.”
“The government has never given permission in relation to the proposal for the sale of the KL-Putrajaya Highway to EP Manufacturing Berhad (EPMB),” it said.
Maju Holdings had hoped to walk away with RM668 million in profit.
[Tony: It's RM1.09 billion in profit!]
But the DAP publicity chief told The Malaysian Insider that “while it appears the deal is off, the answer only says it has not but does not say it will not give approval.”
EPMB had in March entered into an acquisition agreement with Maju Holdings to acquire MEX for RM1.15 billion and also assume debts totalling RM550 million, valuing the deal at a total cost of RM1.7 billion.
This would allow Maju Holdings, controlled by Tan Sri Abu Sahid Mohamed, to walk away with a “whopping” return of RM668 million, taking into account that the construction cost of RM1.3 billion was offset by a huge government grant of RM976 million.
MEX is 96.8 per cent owned by Maju Holdings, in which Abu Sahid controls a 91 per cent stake.
The opposition had promised the same month to buy back the MEX concession if it took over federal power after a coming general election and later called the deal a “rape” of taxpayers perpetrated by Tun Dr Mahathir Mohamad while he was still prime minister.
Pua had said the concession agreement was awarded “on a silver platter” to Abu Sahid in 1997 and revised in 2003 just prior to Dr Mahathir’s retirement.
“The rape of Malaysian taxpayers which made a billionaire out of Abu Sahid... is simply outrageous and unacceptable because out of his ‘profit’, RM976.7 million was paid for by Malaysian taxpayers,” he said, referring to the grant which was worth 74 per cent of the RM1.32 billion construction cost.
Pua said it was the former Umno president who made the decision to offer the RM976.7 million grant instead of a loan, allowing Abu Sahid to cash out quickly.
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