Bumiputera Discriminated ?
Anyone has anything to say and comment?
The following is a reply by a self proclaimed Petronas Staff posted in Malaysiakini to
"It’s not just Maybank" posted in Malaysiakini byCH OngMay 9, 07 2:33pm
http://malaysiavoices.blogspot.com/2007/05/discrimination-policy-by-glc.html
Unspoken discrimination towards silent bumiputeras
Posted by
Petronas Staff
in Malaysiakini
May 21, 07 2:03pm
http://www.malaysiakini.com/letters/67500
Refered to Boycott of Bumi-Controlled GLC, i.e Petronas
(Refer to previous post
http://malaysiavoices.blogspot.com/2007/05/discrimination-policy-by-glc.html)
I refer to the countless of letters in malaysiakini recently condemning discriminatory policies by bumiputera-controlled GLCs. We have been seeing emotional and irrational letters from readers calling for a widespread boycott of bumi-controlled GLCs, such as Petronas. One writer that called for a non-bumis boycott of Petronas gas stations must have some rusted metal stuck in his brain.
Does the writer even has a tiny cognisance of the faithful Chinese and Indians in both the lower and upper level managements of Petronas who work passionately and selflessly in the pursuit of returning the energy received from Mother Earth back to each and every Malaysian?
(Malaysia blogger : Any comment from Chinese and Indians working in Petronas/ GLC?
Point to Ponder : How many Non-Bumi is working in Petronas/GLC? Anyone care to provide the statistic? Any discrimination is employment of N0n-Bumi staff in GLC Company?)
Has the writer ever sought any clarification from any Petronas officials on the blatant assumption that Petronas service stations are 100 percent monopolised by bumiputeras?
(Malaysia blogger :
ANYONE CARE TO PROVIDE STATISTIC ON THE CLAIM OF 100% PETRONAS SERVICE STATIONS MONOPOLISED BY BUMIPUTERA?
ANY NON-BUMI PETRONAS SERVICE STATION OWNER TO DIS-JUSTIFIFY THIS CLAIM?
OR ANYONE ACTUALLY COME ACROSS ANY NON-BUMI OWNED PETRONAS?
No Offend to anyone but Just Point to Ponder? Hope someone can give some clarification?)
Referring to the letter from Malaysian Truly Asian, the most obscene double standard is that all of the influential opinion leaders, both in the mainstream and alternative media, from the non-bumiputera community are discouraging more bumiputeras from standing up and speaking up for a just Malaysia. These people quickly brush off allegations of discriminatory practices by non-bumiputera controlled companies as if these injustices were ‘justifiable’ retaliation for the NEP’s ‘discrimination’ towards the non-bumiputeras.
I have heard a story of an ambitious bumiputera entrepreneur who can’t survive in KL’s most popular IT retail plaza due to his suppliers’ price discrimination and price fixing and artificial barriers to entry. Or of a competent, highly respected professor of a very specialised field, groomed in one of the highest learning institutions in the US, whose prospective employment with private colleges was made arduous and even impossible because he is Malay and the leading interviewers were Chinese.
Or of a hard-working Malay stockist of a large, long-established direct marketing company whose waitlisted, high-demanded items were diverted to the Chinese stockists without any concrete reasons. One does not have to be an economist to acknowledge that companies in the private sector, big or small, tend to employ people of a certain race with an undisclosed quota.
The GLCs ultimately score better when compared to the non-GLCs in that they nearly have a work force that reflects the racial composition of the country at the macro and micro level.
(Malaysia Blogger : Is this TRUE? Interesting FACTS to find out? Anyone?)
Almost all of the employment ads that I have seen in a popular Johor Baru shopping complex explicitly seek Chinese-only candidates (with some of the ads appearing only in Chinese) when most of the customers do not speak Chinese (or even appear Chinese). The products have nothing to do with the Chinese culture and such ads freely appear in the classified advertisements section of so-called ‘pluralistic’ newspapers.
The voices of the discriminated bumis are unheard of in both Malay-controlled and non- Malay-controlled media, with the former treating such issues as the ‘little things’ that the Malays have to bear in return for the secured opportunities that the NEP provides, and the latter ignoring the problems as if they were totally unheard of before the introduction of the NEP. Cartels and unhealthy business practices, after all, existed in the colonial period and the early years of Merdeka. It takes more than rants and slogans to institutionalise equal opportunity in its truest sense. Boycotts will only exacerbate the problem.
Source
Posted by
Petronas Staff
in Malaysiakini
May 21, 07 2:03pm
http://www.malaysiakini.com/letters/67500
Malaysia Blogger has no intention to side either parties in issues raised above but few that it will be very interesting for readers to stop, think and ponder on the few questions raised by Malaysia Blogger.
Feel Free to comments
Friday, 25 May 2007
Thursday, 24 May 2007
Discrimination Policy by GLC
It’s not just Maybank
Posted in Malaysiakini by
CH OngMay 9, 07 2:33pm
Maybank issues
Maybank's policy that legal firms must have at least 50 percent bumiputera equity in order to qualify for appointment to it's panel of lawyers is similar to that being practised by other GLCs over the years.
However the other GLCs do not announce their discriminatory policies. They simply implement such policies.
Petronas Discriminatory Policies.
I have not come across Petronas service stations being operated by non-bumiputeras.
I am a non-bumiputera professional in private practice without a bumiputera partner and my professional services are not welcomed by Petronas. Because of Petronas' discriminatory policies I have stopped patronising Petronas service stations. If only all non-bumiputera Malaysians stopped patronising Petronas service stations, then perhaps the Petronas management will rethink their discriminatory policies.
Boustead's property division discriminatory policies
I used to buy petrol from BP service stations but since BP has been bought over by Boustead, I have stopped patronising them. I don't even know what they are called now. The reason is that I found out Boustead's property division also practised discriminatory policies when appointing consultants. In the early eighties, when Sime Darby's property division was headed by a non-bumiputera (an Indian gentleman), I was appointed to provide professional services. As soon as bumiputeras took over, my services were no longer welcomed and required.
Also in the early eighties my company was a customer to bumiputera company. This company was an associate company of Island and Peninsula. However when I approached Island and Peninsula with the intention of getting my company registered as a provider of professional services, I was told clearly that my services were not welcome because my company did not have any bumiputera partners. I then did some research and discovered that generally the so-called GLC property companies being run by bumiputeras practise discriminatory policies. Since then I have never considered buying any property from such companies. All the above are facts which I am aware of. All these GLCs may well be practising other discriminatory policies which I am not aware of and which I shall not speculate on.
I have been a customer of Maybank, for both banking and credit card services, for more than 25 years. Since Maybank has decided to openly practise discriminatory policies, I have also decided to take steps to terminate my accounts with Maybank, and I shall definitely let them know my reason for terminating my accounts. I believe that if all non-bumiputeras let all these GLCs know how they feel about their discriminatory policies, by way of action and not just words, then perhaps they will not be so arrogant.
Gerakan Youth chief Mah Siew Keong's statement: "In many smaller towns, a lot of lawyers are a one-man show. If the 50 percent bumiputera equity (policy) is enforced, then it means all those lawyers operating alone will not be allowed to do any work for the bank," only shows that he is weak and dare not condemn outright Maybank's discriminatory policy.
Is he suggesting that in big towns and cities where most legal firms are partnerships rather than one-man shows, it is then OK for Maybank to practice it's discriminatory policy?
Source:
Posted in Malaysiakini byCH OngMay 9, 07 2:33p
http://www.malaysiakini.com/letters/66999
The above comment was extracted from Malaysiakini website, Letter to Malaysiakini.
Malaysia Blogger has not verified whether the above claim is correct but it is subjected to the readers to think for themself and make their own judgement.
Posted in Malaysiakini by
CH OngMay 9, 07 2:33pm
Maybank issues
Maybank's policy that legal firms must have at least 50 percent bumiputera equity in order to qualify for appointment to it's panel of lawyers is similar to that being practised by other GLCs over the years.
However the other GLCs do not announce their discriminatory policies. They simply implement such policies.
Petronas Discriminatory Policies.
I have not come across Petronas service stations being operated by non-bumiputeras.
I am a non-bumiputera professional in private practice without a bumiputera partner and my professional services are not welcomed by Petronas. Because of Petronas' discriminatory policies I have stopped patronising Petronas service stations. If only all non-bumiputera Malaysians stopped patronising Petronas service stations, then perhaps the Petronas management will rethink their discriminatory policies.
Boustead's property division discriminatory policies
I used to buy petrol from BP service stations but since BP has been bought over by Boustead, I have stopped patronising them. I don't even know what they are called now. The reason is that I found out Boustead's property division also practised discriminatory policies when appointing consultants. In the early eighties, when Sime Darby's property division was headed by a non-bumiputera (an Indian gentleman), I was appointed to provide professional services. As soon as bumiputeras took over, my services were no longer welcomed and required.
Also in the early eighties my company was a customer to bumiputera company. This company was an associate company of Island and Peninsula. However when I approached Island and Peninsula with the intention of getting my company registered as a provider of professional services, I was told clearly that my services were not welcome because my company did not have any bumiputera partners. I then did some research and discovered that generally the so-called GLC property companies being run by bumiputeras practise discriminatory policies. Since then I have never considered buying any property from such companies. All the above are facts which I am aware of. All these GLCs may well be practising other discriminatory policies which I am not aware of and which I shall not speculate on.
I have been a customer of Maybank, for both banking and credit card services, for more than 25 years. Since Maybank has decided to openly practise discriminatory policies, I have also decided to take steps to terminate my accounts with Maybank, and I shall definitely let them know my reason for terminating my accounts. I believe that if all non-bumiputeras let all these GLCs know how they feel about their discriminatory policies, by way of action and not just words, then perhaps they will not be so arrogant.
Gerakan Youth chief Mah Siew Keong's statement: "In many smaller towns, a lot of lawyers are a one-man show. If the 50 percent bumiputera equity (policy) is enforced, then it means all those lawyers operating alone will not be allowed to do any work for the bank," only shows that he is weak and dare not condemn outright Maybank's discriminatory policy.
Is he suggesting that in big towns and cities where most legal firms are partnerships rather than one-man shows, it is then OK for Maybank to practice it's discriminatory policy?
Source:
Posted in Malaysiakini byCH OngMay 9, 07 2:33p
http://www.malaysiakini.com/letters/66999
The above comment was extracted from Malaysiakini website, Letter to Malaysiakini.
Malaysia Blogger has not verified whether the above claim is correct but it is subjected to the readers to think for themself and make their own judgement.
Wednesday, 23 May 2007
Foundation for the Future - Anwar Ibrahim
Foundation for the Future
Datuk Seri Anwar Ibrahim has denied having a hand in getting the high pay rise for Shaha Ali Riza, girlfriend of World Bank president Paul Wolfowitz.
The former deputy prime minister, who is the chairman of Foundation for the Future, said he did not appoint Shaha Riza to the foundation. “She was first assigned by the World Bank, through the US State Department, to the foundation in late 2005, before I became chairman. “The executive committee decided in mid-December 2006 to regularise the appointment so that Shaha (Riza) advised directly from the World Bank and not the State Department,” he said in a statement.
The following is a Statement from Datuk Seri Anwar Ibrahim on Foundation for the Future :-
The Foundation for the Future was first announced in Bahrain in November 2005 by foreign and development ministers of the broader Middle East, North Africa, Europe and the United States. The Foundation is an independent set-up, involving governments and civil society to support civil society organisations in their efforts to foster democracy and freedom in the broader Middle East and North Africa.
From the onset, the Foundation obtained pledges of US$56 million. Thus far the Foundation only received funds from Turkey, the United Kingdom and Jordan, among others. The US has not disbursed any funds to the Foundation.
I was invited to join the board of the Foundation in mid 2006 together with representatives from Morocco, Kuwait, Iraq, Spain, Syria, Turkey, Lebanon, US, Saudi Arabia, Egypt, Switzerland and Qatar.
The other board members include Kamel Abu Jaber, advisor to the Jordanian Foreign Minister; Dr. Cornelio Sommaruga, former President of the International Committee of the Red Cross; Professor Ibrahim Kallin, advisor to the Foreign Minister of Turkey; and Sandra Day O’ Connor, former US Supreme Court justice.
The first board meeting was convened in Doha, Qatar at the invitation of Sheikh Hamad Bin Jassim Bin Jabr Al-Thani, the Foreign Minister and presently Prime Minister of Qatar on 15 July 2006, and I was unanimously elected as the first honorary chairman. The decision was to set up the headquarters in Beirut.
However, in the Board Meeting on 4 December 2006 in Amman, Jordan, I met the Jordanian Foreign Minister Abdelelah Al-Khatib, who endorsed the setting up of the regional secretariat in Amman due to the delay in the Beirut headquarters as a result of the Israeli attack on Lebanon. The next board meeting will convene in 29-30 May 2007 in Bahrain, Lebanon.
I did not appoint Ms. Shaha Ali Reza to the Foundation. She was first assigned by the World Bank through the US State Department to the Foundation in late 2005 before I became Chairman. The executive committee of the decided in mid 2006 to regularise the appointment so that Shaha advises directly from the World Bank and not the State Department.
The board will issue a full statement after the meeting in Bahrain next week. However, due to the incessant propaganda from the UMNO controlled-media, I have decided to issue this statement. If there is no clarification by the media on the matter, the Foundation will not hesitate to institute legal action against the relevant parties.
Anwar Ibrahim
Foundation for the Future Chairman
May 20th 2007
News reports had said that Anwar had written to a letter to Robin Cleveland, Wolfowitz’s counsellor at the World Bank, last October, asking for Riza to be transferred from the State Department to the foundation. The move raised her pay by 36% from US$133,000 (RM452,250) to US$193,590(RM658,255). In his press statement, Anwar said the setting up of the Foundation for the Future was announced in Bahrain in November 2005. The aim was for an independent body, comprising governments and civil societies to support non-government organisations (NGOs) in developing democracy and freedom in the Middle East and North Africa. He said US$56mil (RM190.5mil) was promised to the foundation but to date, it had only received funds from Turkey, the UK and Jordan, and none from the US. Anwar said he had been invited to join the board of the foundation in mid-2006 along with representatives from Morocco, Kuwait, Iraq, Spain, Syria, Turkey, Lebanon, Saudi Arabia, Egypt, Switzerland and Qatar. At the first board meeting, he said he was unanimously chosen as the chairman.
Umno Youth deputy chief Khairy Jamaluddin had said on Sunday that Anwar must explain his role in the controversy involving Wolfowitz and Riza, clarify his relationship with Wolfowitz, and explain his motives for heading a foundation “bankrolled” by the US. "Anwar has to explain because this is an irregularity and abuse of power at the international level," he said.
Datuk Seri Anwar Ibrahim has denied having a hand in getting the high pay rise for Shaha Ali Riza, girlfriend of World Bank president Paul Wolfowitz.
The former deputy prime minister, who is the chairman of Foundation for the Future, said he did not appoint Shaha Riza to the foundation. “She was first assigned by the World Bank, through the US State Department, to the foundation in late 2005, before I became chairman. “The executive committee decided in mid-December 2006 to regularise the appointment so that Shaha (Riza) advised directly from the World Bank and not the State Department,” he said in a statement.
The following is a Statement from Datuk Seri Anwar Ibrahim on Foundation for the Future :-
The Foundation for the Future was first announced in Bahrain in November 2005 by foreign and development ministers of the broader Middle East, North Africa, Europe and the United States. The Foundation is an independent set-up, involving governments and civil society to support civil society organisations in their efforts to foster democracy and freedom in the broader Middle East and North Africa.
From the onset, the Foundation obtained pledges of US$56 million. Thus far the Foundation only received funds from Turkey, the United Kingdom and Jordan, among others. The US has not disbursed any funds to the Foundation.
I was invited to join the board of the Foundation in mid 2006 together with representatives from Morocco, Kuwait, Iraq, Spain, Syria, Turkey, Lebanon, US, Saudi Arabia, Egypt, Switzerland and Qatar.
The other board members include Kamel Abu Jaber, advisor to the Jordanian Foreign Minister; Dr. Cornelio Sommaruga, former President of the International Committee of the Red Cross; Professor Ibrahim Kallin, advisor to the Foreign Minister of Turkey; and Sandra Day O’ Connor, former US Supreme Court justice.
The first board meeting was convened in Doha, Qatar at the invitation of Sheikh Hamad Bin Jassim Bin Jabr Al-Thani, the Foreign Minister and presently Prime Minister of Qatar on 15 July 2006, and I was unanimously elected as the first honorary chairman. The decision was to set up the headquarters in Beirut.
However, in the Board Meeting on 4 December 2006 in Amman, Jordan, I met the Jordanian Foreign Minister Abdelelah Al-Khatib, who endorsed the setting up of the regional secretariat in Amman due to the delay in the Beirut headquarters as a result of the Israeli attack on Lebanon. The next board meeting will convene in 29-30 May 2007 in Bahrain, Lebanon.
I did not appoint Ms. Shaha Ali Reza to the Foundation. She was first assigned by the World Bank through the US State Department to the Foundation in late 2005 before I became Chairman. The executive committee of the decided in mid 2006 to regularise the appointment so that Shaha advises directly from the World Bank and not the State Department.
The board will issue a full statement after the meeting in Bahrain next week. However, due to the incessant propaganda from the UMNO controlled-media, I have decided to issue this statement. If there is no clarification by the media on the matter, the Foundation will not hesitate to institute legal action against the relevant parties.
Anwar Ibrahim
Foundation for the Future Chairman
May 20th 2007
News reports had said that Anwar had written to a letter to Robin Cleveland, Wolfowitz’s counsellor at the World Bank, last October, asking for Riza to be transferred from the State Department to the foundation. The move raised her pay by 36% from US$133,000 (RM452,250) to US$193,590(RM658,255). In his press statement, Anwar said the setting up of the Foundation for the Future was announced in Bahrain in November 2005. The aim was for an independent body, comprising governments and civil societies to support non-government organisations (NGOs) in developing democracy and freedom in the Middle East and North Africa. He said US$56mil (RM190.5mil) was promised to the foundation but to date, it had only received funds from Turkey, the UK and Jordan, and none from the US. Anwar said he had been invited to join the board of the foundation in mid-2006 along with representatives from Morocco, Kuwait, Iraq, Spain, Syria, Turkey, Lebanon, Saudi Arabia, Egypt, Switzerland and Qatar. At the first board meeting, he said he was unanimously chosen as the chairman.
Umno Youth deputy chief Khairy Jamaluddin had said on Sunday that Anwar must explain his role in the controversy involving Wolfowitz and Riza, clarify his relationship with Wolfowitz, and explain his motives for heading a foundation “bankrolled” by the US. "Anwar has to explain because this is an irregularity and abuse of power at the international level," he said.
Tuesday, 15 May 2007
Proton Losses RM 1 Billion of cash in 9 months
Proton Losses RM 1 Billion of cash in 9 months
"For the first nine months of FY2007, Proton’s net loss stood at RM590.45 million. "
With about RM1 billion of its cash pile gone in nine months, national carmaker Proton Holdings Bhd is urgently in need of a foreign partner to turn its fortunes around.
However, after months of negotiations with major global automotive players, Proton has yet to make any significant progress in securing a partnership deal and talks appeared to have come to a grinding halt.
Analysts believe that the situation has become critical for the national car project and painful decisions have to be made now to stop Proton from "bleeding" further.
Second Finance Minister Tan Sri Nor Mohamed Yakcop on May 15 said no progress had been made, but again said that the engagement of a strategic partner “will be resolved soon.”
Without elaborating, he said the government has yet to make a decision on the much-hyped foreign strategic alliance for Proton, and has also not set a deadline to conclude any agreement.
The government had earlier missed its own end-March deadline to strike a deal with a foreign carmaker for a partnership in Proton, fuelling speculation that talks with German carmaker Volkswagen AG, one of the suitors for Proton, had failed.
Nor Mohamed's statement comes in the wake of analysts' forecast that Proton will suffer a net loss of at least RM600 million for its full-year results for the financial year ended March 31, 2007 (FY2007), and this is the more optimistic part of the forecast spectrum.
For the first nine months of FY2007, Proton’s net loss stood at RM590.45 million.
Proton's sales over the last few years had declined to just about over 30% of domestic market share from a high of over 60% previously. Export sales, meanwhile, are nothing much to shout about.
Rosnani Rasul of TA Securities said Proton’s cash was rapidly depleting, down to RM627 million as at end Dec 31, 2006 from RM1.59 billion in March last year.
“What Proton needs fast is either a partner to lift it up with technical support or at the least, newer fuel-efficient models to compete with the likes of the new ViVA from Perodua,” she said.
She said that Proton’s year-to-date car sales volume of 110,000 units until February this year suggested that it was likely to miss TA Securities’ FY07 target of 125,000 units
“At best, we believe March sales are expected to reach between 8,000-10,000 units thanks to the newly launched model 'Proton Saga Merdeka Version'.
"Based on industry input, the demand for the latest model by Proton is expected to be a hit as the price offered at RM27,000 is affordable and appealing to the lower-income group,” she said.
However, Rosnani said given the slump in Proton car sales, the net loss would be at RM755 million, adding that its car sales for the year could at best be 120,000 units even with the Savvy and Waja Facelift models.
She said the only possible silver lining still in the horizon was the willingness of Prime Minister Datuk Seri Abdullah Ahmad Badawi to meet VW's chairman Ferdinand Piech.
“But a decision has to be made real fast, lest Proton financially bleeds further,” she quipped.
Aseambankers Research head Vincent Khoo said it was no easy task finding a partner to a company that was at the very heart of the national automotive industry, in that the livelihood of some 30,000 hinged very much on Proton’s survival.
“It is challenging to find a solution that will solve Proton’s financial needs for its turnaround and simultaneously fulfil the socio-economic duty of supporting the ancillary businesses that so depend on Proton,” he said.
Khoo said it was a tough situation for the government as the selection of a strategic partner for Proton must take into account not just shareholder interests, but that of those dependent on Proton.
“For Proton, its cash has dwindled a lot and before long, it would be in a net debt position. A decision must be made fast,” he said.
Source :
The Edgedaily.com, May 15, 2007
http://www.theedgedaily.com/cms/content.jsp?id=com.tms.cms.article.Article_900aff98-cb73c03a-135f44e0-76689ac8
"For the first nine months of FY2007, Proton’s net loss stood at RM590.45 million. "
With about RM1 billion of its cash pile gone in nine months, national carmaker Proton Holdings Bhd is urgently in need of a foreign partner to turn its fortunes around.
However, after months of negotiations with major global automotive players, Proton has yet to make any significant progress in securing a partnership deal and talks appeared to have come to a grinding halt.
Analysts believe that the situation has become critical for the national car project and painful decisions have to be made now to stop Proton from "bleeding" further.
Second Finance Minister Tan Sri Nor Mohamed Yakcop on May 15 said no progress had been made, but again said that the engagement of a strategic partner “will be resolved soon.”
Without elaborating, he said the government has yet to make a decision on the much-hyped foreign strategic alliance for Proton, and has also not set a deadline to conclude any agreement.
The government had earlier missed its own end-March deadline to strike a deal with a foreign carmaker for a partnership in Proton, fuelling speculation that talks with German carmaker Volkswagen AG, one of the suitors for Proton, had failed.
Nor Mohamed's statement comes in the wake of analysts' forecast that Proton will suffer a net loss of at least RM600 million for its full-year results for the financial year ended March 31, 2007 (FY2007), and this is the more optimistic part of the forecast spectrum.
For the first nine months of FY2007, Proton’s net loss stood at RM590.45 million.
Proton's sales over the last few years had declined to just about over 30% of domestic market share from a high of over 60% previously. Export sales, meanwhile, are nothing much to shout about.
Rosnani Rasul of TA Securities said Proton’s cash was rapidly depleting, down to RM627 million as at end Dec 31, 2006 from RM1.59 billion in March last year.
“What Proton needs fast is either a partner to lift it up with technical support or at the least, newer fuel-efficient models to compete with the likes of the new ViVA from Perodua,” she said.
She said that Proton’s year-to-date car sales volume of 110,000 units until February this year suggested that it was likely to miss TA Securities’ FY07 target of 125,000 units
“At best, we believe March sales are expected to reach between 8,000-10,000 units thanks to the newly launched model 'Proton Saga Merdeka Version'.
"Based on industry input, the demand for the latest model by Proton is expected to be a hit as the price offered at RM27,000 is affordable and appealing to the lower-income group,” she said.
However, Rosnani said given the slump in Proton car sales, the net loss would be at RM755 million, adding that its car sales for the year could at best be 120,000 units even with the Savvy and Waja Facelift models.
She said the only possible silver lining still in the horizon was the willingness of Prime Minister Datuk Seri Abdullah Ahmad Badawi to meet VW's chairman Ferdinand Piech.
“But a decision has to be made real fast, lest Proton financially bleeds further,” she quipped.
Aseambankers Research head Vincent Khoo said it was no easy task finding a partner to a company that was at the very heart of the national automotive industry, in that the livelihood of some 30,000 hinged very much on Proton’s survival.
“It is challenging to find a solution that will solve Proton’s financial needs for its turnaround and simultaneously fulfil the socio-economic duty of supporting the ancillary businesses that so depend on Proton,” he said.
Khoo said it was a tough situation for the government as the selection of a strategic partner for Proton must take into account not just shareholder interests, but that of those dependent on Proton.
“For Proton, its cash has dwindled a lot and before long, it would be in a net debt position. A decision must be made fast,” he said.
Source :
The Edgedaily.com, May 15, 2007
http://www.theedgedaily.com/cms/content.jsp?id=com.tms.cms.article.Article_900aff98-cb73c03a-135f44e0-76689ac8
Wednesday, 9 May 2007
Mahathir Prefer Najib to Abdullah
Tun Mahathir "Najib Better Than Abdullah"
But Decided on Abdullah based on Seniority
Najib would not have scrapped the Singapore Bridge Project.
KUALA LUMPUR, Malaysia:
Former Malaysian Prime Minister Mahathir Mohamad ended an unspoken truce and launched a new attack on his successor, saying he is not the most qualified person to lead the country.
Mahathir, whose enmity with Prime Minister Abdullah Ahmad Badawi surfaced last year, said in an interview published Wednesday that Abdullah's deputy, Najib Razak, was "the better candidate."
Mahathir told independent news Web site Malaysiakini.com that before he retired in 2003 after 22 years in power, he had considered handing the office to Najib instead of Abdullah.
"If it is a comparison between (Abdullah) and Najib, I would say that (Abdullah) was less qualified," he said. "But I also thought that he (Najib) was, maybe, a little bit young, so he should give an older person a chance. That was why I decided on Abdullah."
Asked whether he believed Najib, 53, is still the best person to lead Malaysia, Mahathir said, "I think if Najib is not so afraid of losing his (current) position if he displeases the prime minister, he would make a good prime minister."
Mahathir's comments appeared to be aimed at driving a wedge between the 67-year-old Abdullah and Najib, both of whom have repeatedly voiced confidence in each other and denied speculation of any friction. Malaysia's Cabinet and ruling party leaders have also said they support Abdullah completely.
Mahathir's main aide did not immediately answer calls on his mobile phone. Abdullah's aides could not be reached for comment.
Mahathir began attacking Abdullah for alleged nepotism and weak governance in mid-2006, but the 71-year-old elder statesman has largely steered clear of open criticism following a mild heart attack in November.
Mahathir has not presented proof to back up his allegations, and Abdullah has refrained from retaliating against Mahathir while vehemently denying the accusations.
Mahathir beleived that Najib would not have scrapped the Singapore Bridge Project.
In his interview with Malaysiakini, Mahathir said he believed Najib, who has also served in recent years as defense minister, would not have aborted Mahathir's vision of building a new bridge to neighboring Singapore.
"I think our world views will be slightly different, but by and large, they are more or less the same," Mahathir said. "I wouldn't say, for example, that Najib would drop the bridge. He was talking about building the bridge to the very last moment."
Najib was on a visit to the United States, and his aides could not be reached for comment.
Abdullah announced the scrapping of the bridge project last year, saying Malaysians were unhappy with Singapore's preconditions for the plan. Mahathir has accused Abdullah of compromising national interests and being too afraid to negotiate properly with Singapore
Source:
International Herald Tribune
May 9, 2007
http://www.iht.com/articles/ap/2007/05/09/asia/AS-POL-Malaysia-Mahathir.php
But Decided on Abdullah based on Seniority
Najib would not have scrapped the Singapore Bridge Project.
KUALA LUMPUR, Malaysia:
Former Malaysian Prime Minister Mahathir Mohamad ended an unspoken truce and launched a new attack on his successor, saying he is not the most qualified person to lead the country.
Mahathir, whose enmity with Prime Minister Abdullah Ahmad Badawi surfaced last year, said in an interview published Wednesday that Abdullah's deputy, Najib Razak, was "the better candidate."
Mahathir told independent news Web site Malaysiakini.com that before he retired in 2003 after 22 years in power, he had considered handing the office to Najib instead of Abdullah.
"If it is a comparison between (Abdullah) and Najib, I would say that (Abdullah) was less qualified," he said. "But I also thought that he (Najib) was, maybe, a little bit young, so he should give an older person a chance. That was why I decided on Abdullah."
Asked whether he believed Najib, 53, is still the best person to lead Malaysia, Mahathir said, "I think if Najib is not so afraid of losing his (current) position if he displeases the prime minister, he would make a good prime minister."
Mahathir's comments appeared to be aimed at driving a wedge between the 67-year-old Abdullah and Najib, both of whom have repeatedly voiced confidence in each other and denied speculation of any friction. Malaysia's Cabinet and ruling party leaders have also said they support Abdullah completely.
Mahathir's main aide did not immediately answer calls on his mobile phone. Abdullah's aides could not be reached for comment.
Mahathir began attacking Abdullah for alleged nepotism and weak governance in mid-2006, but the 71-year-old elder statesman has largely steered clear of open criticism following a mild heart attack in November.
Mahathir has not presented proof to back up his allegations, and Abdullah has refrained from retaliating against Mahathir while vehemently denying the accusations.
Mahathir beleived that Najib would not have scrapped the Singapore Bridge Project.
In his interview with Malaysiakini, Mahathir said he believed Najib, who has also served in recent years as defense minister, would not have aborted Mahathir's vision of building a new bridge to neighboring Singapore.
"I think our world views will be slightly different, but by and large, they are more or less the same," Mahathir said. "I wouldn't say, for example, that Najib would drop the bridge. He was talking about building the bridge to the very last moment."
Najib was on a visit to the United States, and his aides could not be reached for comment.
Abdullah announced the scrapping of the bridge project last year, saying Malaysians were unhappy with Singapore's preconditions for the plan. Mahathir has accused Abdullah of compromising national interests and being too afraid to negotiate properly with Singapore
Source:
International Herald Tribune
May 9, 2007
http://www.iht.com/articles/ap/2007/05/09/asia/AS-POL-Malaysia-Mahathir.php
Friday, 4 May 2007
Court Complex Cracks in Jalan Duta
Court Complex Cracks in Jalan Duta
3rd Case of Government Building Failures / Damages / Cracks in a months
(1) On April 28, the multi-purpose hall of the Entrepreneur and Co-operative Development Ministry in Putrajaya was damaged when the ceiling was brought down by water from a burst pipe.
(2) On April 11, the Immigration head office in Putrajaya was flooded when a pipe connected to a water tank broke.
(3) On May 3, the Court Complex in Jalan Duta Cracks
Cracks show up on Jalan Duta court complex wall
KUALA LUMPUR: Cracks have begun appearing on a wall at the Kuala Lumpur court complex in Jalan Duta, less than a week after parts of a ceiling fell in the building.
Malaysia Bar Website
http://www.malaysianbar.org.my/content/view/8775/2/
Also on Court Complex in Jalan Duta (Extracted from Malaysiakini)
World's biggest court complex in Jalan Duta lacks of parking bays
This world's biggest court complex in Jalan Duta, Kuala Lumpur, will house 30 High Courts, 21 Sessions Courts and 26 Magistrate's Courts and will be operational in May 2007.
Amusingly, the 77-court complex will only have 500 parking bays for the public and lawyers. It is situated in a place not accessible by Light Rail Transport (LRT) or good public transport facilities. It is a catastrophe waiting to happen.
Source :
Malaysiakini, April 5, 2007
http://www.malaysiakini.com/opinionsfeatures/65519
3rd Case of Government Building Failures / Damages / Cracks in a months
(1) On April 28, the multi-purpose hall of the Entrepreneur and Co-operative Development Ministry in Putrajaya was damaged when the ceiling was brought down by water from a burst pipe.
(2) On April 11, the Immigration head office in Putrajaya was flooded when a pipe connected to a water tank broke.
(3) On May 3, the Court Complex in Jalan Duta Cracks
Cracks show up on Jalan Duta court complex wall
KUALA LUMPUR: Cracks have begun appearing on a wall at the Kuala Lumpur court complex in Jalan Duta, less than a week after parts of a ceiling fell in the building.
The cracks, measuring more than 3m long, are on the fourth floor corridors opposite Magistrate’s Court Four.
It was not immediately known what caused them.
On Monday, it was believed that leaks from sewage pipes and sprinkler systems had caused some asbestos ceiling tiles to fall in the secretarial room of Civil High Court judge Datuk Abdul Malik.
This is the third case of damage to ceilings and burst pipes involving a government building in the last one month.
Entrepreneur and Co-operative Development Ministry in Putrajaya was damaged
On April 28, the multi-purpose hall of the Entrepreneur and Co-operative Development Ministry in Putrajaya was damaged when the ceiling was brought down by water from a burst pipe.
Immigration head office in Putrajaya was flooded
On April 11, the Immigration head office in Putrajaya was flooded when a pipe connected to a water tank broke.
The Works Ministry will assemble a team of experts to investigate the faults at the court complex in Jalan Duta, the Immigration Headquarters building in Putrajaya and the Entrepreneur and Co-operative Development Ministry building, also in Putrajaya.
Works Minister Datuk Seri S. Samy Vellu said yesterday the team would deliver a preliminary report on Monday for him to present to the Prime Minister at the cabinet meeting on Wednesday where further details, including repair costs, would be discussed.
On the appearance of cracks at the court complex, Samy Vellu said he had received a report on the matter.
Johawaki Sdn Bhd, contractor for the court complex, said in a statement that the ceiling did not collapse at the Jalan Duta court complex.
A 0.6m by 1.2m fibre board ceiling and a 0.2m diameter light fitting fell, it said.
It said the damage had been fixed and that a maintenance crew would be present on the site during the company’s defect and liability period which expires on Feb 26.
Malaysia Bar Website
http://www.malaysianbar.org.my/content/view/8775/2/
Also on Court Complex in Jalan Duta (Extracted from Malaysiakini)
World's biggest court complex in Jalan Duta lacks of parking bays
This world's biggest court complex in Jalan Duta, Kuala Lumpur, will house 30 High Courts, 21 Sessions Courts and 26 Magistrate's Courts and will be operational in May 2007.
Amusingly, the 77-court complex will only have 500 parking bays for the public and lawyers. It is situated in a place not accessible by Light Rail Transport (LRT) or good public transport facilities. It is a catastrophe waiting to happen.
Source :
Malaysiakini, April 5, 2007
http://www.malaysiakini.com/opinionsfeatures/65519
Thursday, 3 May 2007
More on ECM Libra Avenue Bhd and Tony Fernandez
Tune Air Sdn Bhd acquired 40 million shares in ECM Libra Avenue Bhd
( AirAsia Bhd's Datuk Tony Fernandez is a majority shareholder of Tune Air and Tune Money )
Tune Air Sdn Bhd acquired 40 million shares in ECM Libra Avenue Bhd, at 95 sen each in a married deal on April 13, sources say. It is believed that the block was acquired from Tan Sri Azman Hashim who emerged as the largest shareholder in ECM Libra Avenue in February, after acquiring blocks from the Ministry of Finance Inc.
Malaysia Blogger Personal Opinions/ Question?:
Why do MoF sales the equity blocks to Tan Sri Azman Hashim.
Why Do Tune Asia Sdn Bhd acquire share in ECM Libra Avenue?
It is not clear if Tune Air acquired the 4.8% block directly or through one of its units. Either way, sources say, this deal does not involve Tune Money Sdn Bhd, which is the Tune group's financial services arm. It is not yet clear what Tune Air's intentions are behind the acquisition, though sources say there are plans for it to increase its stake in ECM Libra Avenue in the future. According to industry sources, Tune Air's interest in ECM Libra Avenue is not new and is something that has been "on the burner" for some months. "Even before Azman entered the picture, there was already talk that Tune Air could have a place in ECM Libra Avenue in the future," says a source. Tune Money is a no-frills financial services company which will offer pre-paid credit cards, low-cost insurance and unit trust products. Its managing director is Tengku Ali Zafrul Abdul Aziz, who was the managing director of Avenue Capital Resources Bhd. On the other hand, ECM Libra Avenue is a full-service universal broker which has applied to become an investment bank. AirAsia Bhd's Datuk Tony Fernandez is a majority shareholder of Tune Air and Tune Money. The Edge was unable to reach him last Friday. Industry sources point to the difference between the two models and say they cannot understand the rationale behind Tune Air's move.
However, a source says, there is no link between Tune Money and ECM Libra Avenue right now. "One is a business venture of the Tune group, the other is an investment."
Meanwhile, when contacted by The Edge, T Jayaratnam, ECM Libra Avenue's deputy CEO, said he was unaware of any shareholding changes because these were moves at shareholder level. However, he added that there had been internal and operational changes within the group. "Bank Negara [Malaysia] is currently evaluating our application to become an investment bank," Jayaratnam said in a telephone interview last Friday. He said the group was being repositioned as a new player in the investment banking sector.
Chief among the changes is the return of Datuk Kalimullah Hassan as executive chairman and chief executive of ECM Libra Avenue. Lim Kian Onn will be the managing director. Kalimullah sold down his 6.75% stake in ECM Libra Avenue in August last year to 4.8% because he "was forced to take the step by the unwarranted focus on the company by politicians".
Malaysia Blogger : Point for Ponder?
Which Politicians forced him to take the steps to sold down his share? Why?
At the time, it looked like the ECM franchise created in 2002 by Kalimullah, Lim and David Chua had crumbled. Chua exited the group at the same time Kalimullah sold down his stake, leaving Lim at the helm of what looked like a sinking ship. Key employees left the group after the completion of the merger between ECM Libra Bhd and Avenue Capital, leaving a vacuum in what is a people-intensive and sensitive industry. Jayaratnam, an experienced merchant banker, was appointed in October 2006. "Since then, I have been looking at the whole group to facilitate our transformation into an investment bank. When the merger [between ECM Libra and Avenue] was first completed, there was some confusion on direction and people were affected. But, now after we have reassessed our strengths, we have brought new people on board. We are now more structured," Jayaratnam said. He said that in the first quarter of this year, ECM Libra Avenue topped the league tables for secondary placements with a total value of US$146 million (about RM499 million).
Asked about persistent rumours on capital repayments, Jayaratnam said: "We are looking at how to enhance shareholder value and how best to allocate capital to maximise value. To operate as an investment bank, we need capital and we have identified other areas where we can utilise our capital best. Like private equity, for example. You only pay back capital when you do not have any other opportunities to create value. But now this is really an equities environment and we are looking at all our options."
SOurce : Extracted from Theedgedaily.com
http://www.theedgedaily.com/cms/content.jsp?id=com.tms.cms.article.Article_4fcf52d8-cb73c03a-18c8aea0-a6aee541
( AirAsia Bhd's Datuk Tony Fernandez is a majority shareholder of Tune Air and Tune Money )
Tune Air Sdn Bhd acquired 40 million shares in ECM Libra Avenue Bhd, at 95 sen each in a married deal on April 13, sources say. It is believed that the block was acquired from Tan Sri Azman Hashim who emerged as the largest shareholder in ECM Libra Avenue in February, after acquiring blocks from the Ministry of Finance Inc.
Malaysia Blogger Personal Opinions/ Question?:
Why do MoF sales the equity blocks to Tan Sri Azman Hashim.
Why Do Tune Asia Sdn Bhd acquire share in ECM Libra Avenue?
It is not clear if Tune Air acquired the 4.8% block directly or through one of its units. Either way, sources say, this deal does not involve Tune Money Sdn Bhd, which is the Tune group's financial services arm. It is not yet clear what Tune Air's intentions are behind the acquisition, though sources say there are plans for it to increase its stake in ECM Libra Avenue in the future. According to industry sources, Tune Air's interest in ECM Libra Avenue is not new and is something that has been "on the burner" for some months. "Even before Azman entered the picture, there was already talk that Tune Air could have a place in ECM Libra Avenue in the future," says a source. Tune Money is a no-frills financial services company which will offer pre-paid credit cards, low-cost insurance and unit trust products. Its managing director is Tengku Ali Zafrul Abdul Aziz, who was the managing director of Avenue Capital Resources Bhd. On the other hand, ECM Libra Avenue is a full-service universal broker which has applied to become an investment bank. AirAsia Bhd's Datuk Tony Fernandez is a majority shareholder of Tune Air and Tune Money. The Edge was unable to reach him last Friday. Industry sources point to the difference between the two models and say they cannot understand the rationale behind Tune Air's move.
However, a source says, there is no link between Tune Money and ECM Libra Avenue right now. "One is a business venture of the Tune group, the other is an investment."
Meanwhile, when contacted by The Edge, T Jayaratnam, ECM Libra Avenue's deputy CEO, said he was unaware of any shareholding changes because these were moves at shareholder level. However, he added that there had been internal and operational changes within the group. "Bank Negara [Malaysia] is currently evaluating our application to become an investment bank," Jayaratnam said in a telephone interview last Friday. He said the group was being repositioned as a new player in the investment banking sector.
Chief among the changes is the return of Datuk Kalimullah Hassan as executive chairman and chief executive of ECM Libra Avenue. Lim Kian Onn will be the managing director. Kalimullah sold down his 6.75% stake in ECM Libra Avenue in August last year to 4.8% because he "was forced to take the step by the unwarranted focus on the company by politicians".
Malaysia Blogger : Point for Ponder?
Which Politicians forced him to take the steps to sold down his share? Why?
At the time, it looked like the ECM franchise created in 2002 by Kalimullah, Lim and David Chua had crumbled. Chua exited the group at the same time Kalimullah sold down his stake, leaving Lim at the helm of what looked like a sinking ship. Key employees left the group after the completion of the merger between ECM Libra Bhd and Avenue Capital, leaving a vacuum in what is a people-intensive and sensitive industry. Jayaratnam, an experienced merchant banker, was appointed in October 2006. "Since then, I have been looking at the whole group to facilitate our transformation into an investment bank. When the merger [between ECM Libra and Avenue] was first completed, there was some confusion on direction and people were affected. But, now after we have reassessed our strengths, we have brought new people on board. We are now more structured," Jayaratnam said. He said that in the first quarter of this year, ECM Libra Avenue topped the league tables for secondary placements with a total value of US$146 million (about RM499 million).
Asked about persistent rumours on capital repayments, Jayaratnam said: "We are looking at how to enhance shareholder value and how best to allocate capital to maximise value. To operate as an investment bank, we need capital and we have identified other areas where we can utilise our capital best. Like private equity, for example. You only pay back capital when you do not have any other opportunities to create value. But now this is really an equities environment and we are looking at all our options."
SOurce : Extracted from Theedgedaily.com
http://www.theedgedaily.com/cms/content.jsp?id=com.tms.cms.article.Article_4fcf52d8-cb73c03a-18c8aea0-a6aee541
Wednesday, 2 May 2007
ECM Libra Avenue Berhad Comeback
ECM Libra Avenue Berhad Comeback with RM 1 billions deals
ECM Libra Avenue Berhad is poised to make a strong comeback on the investment banking scene following some sweeping changes within the group and about RM1 billion of deals in the pipeline, an official said.
ECM Libra Avenue Berhad is poised to make a strong comeback on the investment banking scene following some sweeping changes within the group and about RM1 billion of deals in the pipeline, an official said.
The group will focus on investment banking and private equity, and it already has RM1 billion worth of M&A/private equity type deals in the pipeline
ECM Libra Avenue Berhad Reappoinment of Datuk Kalimullah Hassan and Lim Kian Onn
The group announced late yesterday the appointment of Datuk Kalimullah Hassan as its executive chairman and chief executive officer (CEO), and Lim Kian Onn as its managing director, effective May 1.
Kalimullah is currently ECM's non-executive chairman, while Lim is its non-independent non-executive director.
ECM, which saw an exodus of staff while undergoing an internal restructuring after the merger between ECM Libra Bhd and Avenue Capital Resources Bhd early last year, has in recent months also been filling up key positions with industry professionals.
This includes the appointments of T. Jeyaratnam, formerly of Aseambankers, as its deputy CEO and Stephen Weller - formerly of Southern Investment Bank and Citigroup - as its head of the equity capital market.
Now that the internal restructuring has been completed and top jobs have been filled, the group is ready to make a comeback, Jeyaratnam told Business Times.
He said ECM, with shareholders' funds of RM872 million, wants to position itself in two main areas - investment banking and private equity.
This new focus is already reflected in the group's business plan for the current fiscal year.
As it stands, the group already has some RM1 billion worth of merger and acquisition/private equity type deals in the pipeline, he said.
"The private equity activity of ECM will be the vehicle for value creation."
He said ECM would tap into existing and potential strategic partners for regional deal flows, M&A exercises and other regional opportunities.
ECM already works closely with Credit Suisse Group, for instance.
In investment banking, an area in which Jeyaratnam himself will play a key role, the group will focus on advisory and equity market activities.
ECM Libra Avenue Berhad Recent Investment
ECM has over the last few months steadily built up a niche for itself in equity placements. It has placed some RM1.1 billion worth of shares so far this year for companies like Pelikan International Corp, MMC Corp and Sime Darby.
ECM turned in a net profit of RM21.2 million in the last fiscal year ended January 31 2007.
Source
Strong ECM Libra Avenue comeback
Kalimullah and Kian Onn back to ECM Libra (Tony Fernandas (Air Asia) : Key Investor ?)
Kalimullah and Kian Onn back to ECM Libra Avenue Berhad
Tony Fernandas (Air Asia) will also emerge as one of the key investors in ECM Libra Avenue Berhad
Quoted from The Star April 28 :-
Tony Fernandas (Air Asia) will also emerge as one of the key investors in ECM Libra Avenue Berhad
Quoted from The Star April 28 :-
MAIN drivers and founders of ECM Libra group Datuk Kalimullah Hassan and Lim Kian Onn are back in the saddle at investment holding company ECM Libra Avenue Berhad (ECM).
Barely nine months after Kalimullah sold down his stake in ECM and both he and Kian Onn relinquished their executive positions in the company – a move which was perceived by many as the former having succumbed to the pressures of relentless vilification on his business involvements – they appear all set to take up the reins once again.
Late Friday, the company announced that Kalimullah, who was appointed as non-executive chairman on June 16 2006, will be redesignated as executive chairman and CEO while Lim, who is currently non-executive director, has been redesignated as managing director.
The appointments are effective May 1st.
According to sources, negotiations are being pursued at the moment, which are close to fruition and when completed, will result in ECM adding a new major core business to its current single staple of financial services activity, which will see its business transcend domestic boundaries.
It is further believed that Datuk Tony Fernandes of AirAsia Bhd fame will also emerge as one of the key investors in the newly enlarged group. (ECM Libra Avenue Berhad)
Sources say that Kalimullah and Lim's `return' to ECM signals that there are bigger plans waiting to unfold for the group in which the two personalities will play a major role. At this juncture, no one is quite ruling out the possibility that it may eventually result in them raising their stake in ECM.
Source :
The Star April 28 2007
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 ?
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:
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.
Quoted from Abullah Badawi Interview , 7 August 2006 (The Star)
http://www.jeffooi.com/2006/08/how_khairy_funded_his_ecmlibra.php
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.
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
http://www.jeffooi.com/2006/08/how_khairy_funded_his_ecmlibra.php
(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
http://www.utusan.com.my/utusan/content.asp?y=2006&dt=0814&pub=Utusan_Malaysia&sec=Muka_Hadapan&pg=mh_01.htm)
http://www.jeffooi.com/2006/08/how_khairy_funded_his_ecmlibra.php
http://www.bernama.com.my/bernama/v3/news.php?id=213609
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
Opinion
" 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
http://www.malaysiakini.com/news/54962#l
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
http://www.jeffooi.com/2006/08/how_khairy_funded_his_ecmlibra.php
Aug 7, 2006 Malaysiakini
http://www.malaysiakini.com/news/54993
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.
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.
Source
Aug 7, 2006 Malaysiakini
http://www.malaysiakini.com/news/54993
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
http://www.jeffooi.com/2006/08/how_khairy_funded_his_ecmlibra.php
- 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.
(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
http://www.utusan.com.my/utusan/content.asp?y=2006&dt=0814&pub=Utusan_Malaysia&sec=Muka_Hadapan&pg=mh_01.htm)
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
http://www.utusan.com.my/utusan/content.asp?y=2006&dt=0814&pub=Utusan_Malaysia&sec=Muka_Hadapan&pg=mh_01.htm)
http://www.jeffooi.com/2006/08/how_khairy_funded_his_ecmlibra.php
http://www.bernama.com.my/bernama/v3/news.php?id=213609