Tuesday, 1 May 2007

Khairy Jamaluddin and ECM Libra Avenue Berhad

Khairy Jamaluddin and ECM Libra Avenue Berhad

ECM Libra

Controversial Merger between ECM Libra Capital Bhd and government-linked Avenue Capital Resources Bhd,
Around late 2005, he was involved in controversial merger between ECM Libra Capital Bhd and government-linked Avenue Capital Resources Bhd, which resulted in the creation of ECM Libra Avenue Berhad.

On December 27 last year, the three founding members of ECM Libra -- Lim Kian Onn, Kalimullah Masheerul Hassan and David Chua -- announced that they were each selling 1% of their shareholding in the company to Khairy Jamaluddin. The deal was transacted at 71 sen per share, or a total of RM9.2 million.

A public audit committee chaired by parliamentarian Shahrir Abdul Samad was later set up to investigate allegation of wrongdoing done during the merger. The committee on August 10 concluded that the merger was done according to procedure.
On August 11, Shahrir Abdul Samad said "In principle, this can be a conflict of interest. In this case, maybe, it is a question of approval from the minister because it was probably not referred to the Cabinet."

Khairy Jamaluddin Sells Entire Stake In ECM Libra Avenue Berhad
On August 12 2006, Khairy Jamaluddin sold his entire holding of the company at 65 sen per share.
Umno Youth deputy head Khairy Jamaluddin has sold his entire stake of 10.2 million shares representing 1.23 per cent of ECM Libra Avenue Berhad, an investment and stockbroking-based company

Why Khairy Sold his ECM Libra Avenue Berhad Share ?

Khairy claimed that his intentions to sell the shares are to focus on politics and to protect the shareholder interest from being jeorpadized by his personal controversy.

Source : http://www.utusan.com.my/utusan/content.asp?y=2006&dt=0814&pub=Utusan_Malaysia&sec=Muka_Hadapan&pg=mh_01.htm


" Sounds like a noble act but it’s always questionable whether his intention is to protect the company or his father-in-law, or just to save his own political future?"

(extracted from http://jeelife.com/2006/08/14/khairy-jamaluddin-sold-his-ecm-libra-stakes-questions-answered/)
Sounds like a noble act but it’s always questionable whether his intention is to protect the company or his father-in-law, or just to save his own political future?

Who bought Khairy Jamaluddin ECM Libra Avenue Berhad Share ?
ECM Libra Avenue Berhad chairman Datuk Kalimullah Hassan Masheerul Hassan has also reduced his stake in the company to 40 million shares or 4.8 per cent in the company and is now no longer deemed a substantial shareholder, The Edge business weekly reported.

Kalimullah, one of the founders of the company, also made the decision to sell yesterday and disposed of 16.26 million shares, also at 65 sen a share.

The 26,467,220 shares belonging to Khairy and Kalimullah were bought by Hikkaya Jaya Sdn Bhd, a subsidiary of AmcorpGroup Bhd, for RM17.2 million in total.

AmcorpGroup now holds about 61,534,284 shares or 7.41 per cent of ECM Libra Avenue Berhad through various subsidiaries

Related to Khairy Sell of ECM Libra Avenue Berhad Shares
Another founder of ECM Libra Avenue, chief operating officer David Chua, sold his entire stake of 56.26 million shares to a foreign fund management company on Thursday at 57 sen per share.

However, co-chief executive officer Lim Kian Onn, also a founder of the company, will stay on as a substantial shareholder.

How Khairy Jamaluddin funded his ECM Libra Avenue Berhad shares ?

This is what was reported by The Star on August 6, quoting a Bernama story:

"Asked to comment on claims he had become a millionaire overnight as he could afford to buy ECM Libra Berhad shares, Khairy said: “I borrowed the money.” – Bernama"

Why Khairy was given the shares at such a cheap price ?

The question of why Khairy was given the shares at such a cheap price -- considering it has risen about 50% since the deal was announced -- did not get answered for months. Minority shareholders, and the media, are reported to have demanded answers to several key questions related to the RM9.2 milliion transaction.

Questions like

( 1 ) What was Khairy's contribution to ECM Libra, an outfit he joined in mid-2004, that he deserved an equity stake?

"Khairy Jamaluddin is Director, Investment Banking of ECM Libra Capital. Prior to joining, he was Deputy Principal Private Secretary to the Prime Minister and Director of the Policy and Communications Division at the Office of the Prime Minister. As a senior aide to the Prime Minister, he was responsible for policy formulation and execution, especially in the areas of economic and security policies. He headed a team that drew up the Prime Minister's overall policy and communications strategy, and coordinated the campaign for the 2004 General Elections. He has also worked as a journalist and fund manager in London. He has degrees from the universities of Oxford and London."

Source : http://www.ecmlibra.com/people/cv_khairy.asp

( 2 ) Now that Khairy is a shareholder, how will the Son-in-Law avoid a 'conflict of interest' situation should ECM Libra pitch for jobs from government-linked companies (GLCs)?

Another mega question is that how could ECM-Libra take-over Avenue Capital Resources, a GLC owned by the Ministry of Finance (MoF), which has a far larger asset base than the acquirer?

Leave that to the PAC.

Meanwhile, let's deal with the lesser devil in our face:

How was the Son-in-Law's RM9.2 million funded in the first place?

What the Father-in-Law (Abdullah Badawi say )
Quoted from Abullah Badawi Interview , 7 August 2006 (The Star)

11. Q: Some believe that you still have the clean image. Others say that people around you are very influential on you. For example, your son-in-law Khairy Jamaluddin.

A: Khairy once worked with me. All officers have their roles. They give their reports and views but it is my decision whether to accept or reject their views and decision. When stories came up about an influential 28-year-old in the Government, he resigned and did not want to work with me anymore. But he has to make a living like the others. He bought a small amount of shares and became a partner in ECM Libra and he took his own loans. But there is no proof that he hijacked and took over a government project.

Answer :

Khairy: I borrowed RM9.2 mil to buy shares

source :

MalaysiaKini, Aug 5 2006

I will here simply refer readers to the statement by Khairy Jamaluddin, reported on Malaysiakini.com on 7 August 2006, that his purchase of RM 9.2 million worth of ECM Libra Bhd stock was financed by the company; and to Section 67 of the Companies Act Malaysia 1965 which states that no company shall provide any financial assistance for the purpose of or in connection with a purchase by any person of any shares in the company


Aug 7, 2006 Malaysiakini


Probe Khairy’s ECM Libra Avenue Berhad share purchase

Who are the people who financed him?

If these parties truly had financed him, surely there must be some form of collateral to back the RM9.2 million loan, says a reader.
Who are these people who financed him? If these parties truly had financed him, surely there must be some form of collateral to back this loan and such collateral must be greater than or equal to the sum loaned to Khairy. Nobody gives out money for nothing even if you are the son-in-law of the prime minister.

According to
Section 131 of the Companies Act, it is illegal for a company to make a loan to anyone (especially a director) to buy its own shares. In this case, ECM Libra is also a financial institution (a so-called investment bank) which means it is also under the purview of the Bafia (Banking and Financial Institutions Act). The Bafia has a few more restrictions than the Companies Act.

Since Khairy has made a public confession, the attorney-general and Bank Negara should investigate if there is any breach of either the Companies Act, the Bafia, or both.

Aug 7, 2006 Malaysiakini

Answer :
Section 67(2)(c)of the Companies Act provides a clear exemption to the prohibition to companies providing financial assistance to employees of the company to purchase the company's own shares.

Other Question raised by

  • As a public company, has it been voluntarily disclosed to the industry regulator that ECM Libra operates, or operated, a senior management loan scheme, or that Khairy's purchase of ECM shares was made under that scheme?
  • If indeed there had been such a scheme, were the investing public notified of the terms, conditions and other elements of this scheme, so as to determine how the operation of this scheme affects the public listed company.
  • Given that the directors who sold the shares to the Son-in-Law, Khairy Jamaluddin, are the party that has majority control. As such, were adequate disclosures made for the protection of the interests of minority shareholders?
  • In addition to the above matters, it would also be interesting to find out how, from what source, and when, did Bursa Malaysia determine that the purchase of 12.99 million ECM Libra Bhd shares by Khairy Jamaluddin was via a senior management loan scheme.
Khairy also said that he wished his action will ‘clear the already clean situation’ and hope that the society that’s interested with all ‘those’ news will try to get the right picture in the future before believing in an issue.
(Translated from
"Khairy berkata, tindakannya itu diharap akan ‘memutihkan lagi apa yang telah sedia putih’ dan berharap masyarakat yang berminat dengan berita-berita seumpama itu akan berusaha mendapatkan gambaran sebenar di masa hadapan sebelum mempercayai sesuatu perkara. "
Source : Utusan Malaysia

Finally What Pak Lah Say : -

"That is his right, not mine, i don't have any comment, he only inform me" he said
Translated from

‘‘Itu hak dia, syer dia punya, bukan saya punya, saya tidak ada apa-apa komen, dia pun hanya beritahu sahaja,” katanya.
Source : Utusan Malaysia

Others Source : http://thestar.com.my/news/story.asp?file=/2006/8/7/nation/20060807230710&sec=nation

1 comment:

yapchongyee said...

Khairy Jamaluddin DO NOT BULLSHIT, here is a real case for you and if you are a real OXFORD UNIVERSITY GRADUATE then you will know that Judge Zainon binti Mohd. Ali needs to be prosecuted for committing criminal offences.

I refer readers to my post on this fellow Khairy Jamaluddin, son in law of the Prime Minister and play-boy with a fleet of very expensive cars, please go to http://yap.chongyee.blogspot.com.

Dear Khairy Jamaluddin is all hot air, lots of empty talk before election and nothing but promises after the election. He has been put into the deputy leadership of UMNO Youth. Where else can his father in law “fast track” him into the front ranks of UMNO and eventually to succeed Ahmad Bedawi as Prime Minister ? I have observed many times that Malaysia is an oligarchy in the IRON GRIP of UMNO elite. The promises he has made so far can only exist in his mind alone and in fact cannot be realized. They are mere empty promises and are not to be taken seriously.

Let me draw this Khairy Jamaluddin’s attention to the ongoing ROYAL COMMISSION INTO JUDICIAL CORRUPTION ! What is Khairy Jamaluddin going to do to ADDRESS JUDICIAL CORRUPTION ? This is what solid and down to earth ISSUES that need to be addressed; and has he said anything about it ? Let me cite my wife’s CASE : ORIGINATING PETITION No.: D2-26-41 of 2001 in the HIGH COURT IN KL was struck out by the PRESIDING JUDGE ZAINON BINTI MOHD. ALI, who is now promoted to the court of Appeal. It is hilariously funny that judge Zainon binti Mohd. Ali was so IGNORANT OF THE LAW THAT SHE AWARDED TO THE RESPONDENTS WONG KEM CHEN, STEPHEN LIM CHENG BAN AND KWONG SEA YOON 2 directly OPPOSING ORDERS (a) for security for costs, which my wife paid in the sum of RM.60,000; therefore by this payment by my wife there is nothing else to be done except to go to court; but instead judge Zainon binti Mohd. Ali went on to ILLEGALLY AWARD TO THE NAMED RESPONDENTS A SECOND AND OPPOSING ORDER TO STRIKE OUT PETITION.

The ignorance of this judge Zainon binti Mohd. Ali is so comically profound THAT ALL HER ACTIONS ON THE BENCH IN HER ADJUDICATION OF MY WIFE’S PETITION WERE CRIMINAL. She committed the following criminal OFFENCES :

(1) Aiding & Abetting respondents Wong Kem Chen, Stephen Lim and Kwong Sea Yoon TO COMMIT the criminal offences of PERJURY & FORGERY
(2) Acting jointly with above criminal respondents in A CONSPIRACY TO PERVERT THE COURSE OF JUSTICE
(3) Acting jointly in a conspiracy to obtain money under false pretences
(4) Acting jointly in a conspiracy to obstruct police investigating criminal offences
(5) Committed the criminal offences of Malfeasance.

I had written countless letters to the Malaysian A.-G, Chief Judge of High Court of Malaya, copies to President & Secretary of Malaysian Bar Council and to this day I have not received any response. Here is a Judge of the Highest Court of Malaysia who does not KNOW THAT SHE WAS IN FACT COMMITTING SEVERAL CRIMINAL OFFENCES WHILE PERFORMING HER JUDICIAL DUTIES. I have invited the Malaysian A,G, and all those mentioned above to come to Australia to obtain my EXTRADITION FOR SEDITION so why have they failed to clear the name of Judge Zainon binti Mohd. Ali ? Why bother for the Malaysian Government to spend several millions of Ringgit to hold a bullshit Royal commission when criminal behaviour of Judge Zainon Binti Mohd. Ali is all there to READY FOR PROSECUTION.

What is this fellow Khairy Jamaluddin going to do about a REAL CASE and not one that is hot air. I invite the Malaysian Government to come to Australia to get my EXTRADITION.