Friday, 24 December 2010

Deals and last minute sting jobs

I am not going to listen to the usual flippant answer- you don't know? Why it's all designed to fatten the war chest of UMNO and BN- that's why we have all these deals. That is like saying every chicken road-killed is because UMNO is in power and every road-killed chicken in the kampong is the fault of the local assemblyman.
Get a hold of yourself people.
So let's go behind the reasons why for example these people in decision making positions decide to buy over Sunrise Bhd. What they will do perhaps is to create instant billionaires who will invest in China and Singapore. UEM which has its HQ in a very tall building at KL Sentral does not know how to build high rise condominiums? Those people in UEM land must be dullards or what.
With RM 1.4 billion they can go get all the kwailos out there to come work in Malaysia and build all the tall buildings they desire that reach into the clouds. With the same amount of money, they can entice the whole property team at Sime Darby Properties to work for UEM. No, let's go behind and ask more awkward questions.
Let's go behind, why there is a rush to award the RM43 billion job or part thereof to Gamuda-MMC. Obviously some people are getting fabulously wealthy by orchestrating this deal. Why is Putrajaya forming a SPV to finance this project when it was announced the last time, this was to be private sector project financed by private sector? Here is why. Make public the liability, make private the profitability.
Or why now, UEM and EPF who together control almost 70% of the PLUS highways appear to balk at an 11th hour offer by a little kichimayung Jelas Ulung. Maybe there is some collusion and conspiracy to defraud. Or why people in MAS are buying a large number of airplanes without justifying the purchases to the volume of passengers? Because maybe, large amount of commissions exchange hands.
Does the money go to UMNO and BN? Come on, they go to the finders-keepers people.UMNO, BN and the government can always be the bogey-man.
In that spirit, let's play around with the most recent drama unfolded at Khazannah's doors with a little nudge from Jelas Ulung. When the CEO of Khazanah pompously declared that PLUS highways are a critical national asset and the same sentiment was echoed by the choir boys at EPF and UEM, the issue should have come to an end.
But when Jelas Ulung comes forward and offers more meat in the form of explicitly saying they now have firm source of financing and now they won't ask for tax waivers and now they will also reduce or maintain the toll rates- all these sound and appear to be done as if in response to instructions from above.
It suggests for example, people in Khazanah telling some people out there- hey you go back to the drawing board- come back to us with a new proposal at the last minute, with some novel adjustments to pluck the holes in the entire previous proposals.
That would allow those people in Khazanah and EPF and UEM to say in unison, this is a polished deal worth deliberating. We shall now recommend to the shareholders and to impute a disinterested sense of fair play on the whole thing, we shall abstain from voting.
Suddenly, those boys who previously pompously declared that PLUS highways must be retained at all cost because they are a critical national asset are passing the buck to other shareholders. Why the sudden pious retreat?
Its money, money always sunny in a rich man's world.

18 comments:

Anonymous,  24 December 2010 06:26  

Somebody please look at MMC track record in project delivery either in Malaysia or in Saudi Arabia's economic city development project.

Look at their project announcements in Algeria, Republic of Iran and Sudan.

They are no miracle worker, snake oil peddlers are more like it.

flyer168 24 December 2010 06:39  

Dato',

"Deals and last minute sting jobs"

What else is new in Bolehland?

Just another "Bankrupt the nation" exercise...

“Give me control of a nation's money and I care not who makes it's laws."
- Mayer Amschel Bauer Rothschild

“The few who can understand the system will be either so interested in its profits, or so dependent on its favours, that there will be no opposition from that class...

While, on the other hand, that great body of people, mentally incapable of comprehending the tremendous advantage that Capital derives from the system, will bear its burden without complaint and, perhaps, without even suspecting that the system is inimical to their interests” - Mayer Amschel Bauer Rothschild

“The money power preys on the nation in times of peace, and conspires against it in times of adversity.

It is more despotic than monarchy, more insolent than autocracy, more selfish than bureaucracy.

It denounces, as public enemies, all who question its methods or throw light upon its crimes.” - Abraham Lincoln

You be the judge.

Cheers.

Zulkarnain 24 December 2010 08:45  

Some people think they own the country and some people enthusiastically think their spouses own the country so they think it is their country and they think they have the right to run the country how they think it ought to be run before the country is run by another country so is their thinking and there are also some people who think we don't have to think just follow the herd instinct and you can live like a king and this is really a mind boggling thing...

Anonymous,  24 December 2010 09:10  

It is a win win situation. If BN lose in the GE, they can control & play adhoc with the newly formed government with the companies they now sold and took control. At that time the new government being a new babe on the block will be having difficulties running the country + the adhocs created by BN controlled companies.

In fact that's what BN is doing to Penang & Selangor. At least now they have the federal government to play adhoc against the opposition state governments.

So controlled companies in their hands are creasted for the purposes, should BN lose the federal government.

Anonymous,  24 December 2010 09:51  

Hahaha Dato , you seemed very pissed off about Sunrise. Maybe it is owned by a Chinese?

Maybe now you know, behind the scenes the Chinese are still the ones doing a lot of work


Well perhaps my suggested solution to your frustration is to "rent" Lim Guan Eng to run the country eh?

Then we start seeing whether ALREADY RICH Malays can get richer or getting poor Malays overall having better standards of living.

The latter will happen.

This is reality. Chinese businessmen today can go anywhere in the region to do business from Indonesia to China and they are doing it. The expertise they gain overseas are what makes them indispensible while you guys everyday talk about 30%.

By the way, the 70% is not owned by the Chinese or Indians alone. They are owned mostly by government and GLCs and foreign interests.

Today when we talk about getting any share of the economy... you have to work for it. Not because of your skin colour.

Btw, starting a successful business is not easy. I myself failed twice and this is my third attempt having learnt the previous lessons. It is tough really and many have failed but they try again and again.

Anonymous,  24 December 2010 10:01  

Dear Dato,
You have it on good authority that UMNO and BN never ever get money from deals that you mentioned - directly or indirectly? The beneficiaries are not called on to help the parties, like funding elections? That would be a revelation to me that political parties do not benefit from such monstrous deals.

Anonymous,  24 December 2010 10:10  

Let the imagination runs wild here!

Has anyone ever think of the political side of the PLUS take-over proposal?

Hint - the unilateral profiteering contract agreement signed between that mamak's govt with the operator, whos's the frontman of umno's income war-chest.

IFF when BR takes over the govt, & IFF the insistency of open disclosure of THAT agreement by the new govt, what's going to leak will most properly BIGGER than the flood this country ever see in her history.

That's the reason why these umno frontmen have to do ANYTHING to get PLUS, besides its profit guarantee income. Moreover, it'll be a continuous income EVEN if BN loses GE13.

On top of that, many of the 'reputation' of the umno heroes will be preserved. & those kampung die-hards will still cheerfully shout Alif BaTa!

YES?

Anonymous,  24 December 2010 10:11  

In many Third World Countries privatization has been a failure. I do not know why we are going on with this kind of chutzpah. In the end The State is going to be left with all the debt and the so-called private sector with all the assets.

Privatization should be an equal partnership at least in term of cash capital outlay. The State, by using whatever means to give a perception that a 'private company' is doing it, is only pulling sheep over the eyes of the people who cannot question the dealings of government because of OSA.

We have elected this government to conduct the affairs of the State in an ordrly fashion. You can hide behind the OSA some of the time but you cannot hide behind the OSA when the state is left holding the combined debt of the private sector and government debt. When that happens the speculators will have a field day. Have we not learnt anything from the 1998 Finacial Crisis? I thought we have bcause our Governor of Bank Negara is being given accolade after accolade and I understand more are on her way.

And yes, history has been made a compulsory subject but we do not seem to understand that it must be one and all. Please study the recent financial history of Ireland and you will get a good idea of what to do and not to do when it comes to The State flirting with the private sector.

Anonymous,  24 December 2010 10:29  

Dato,

This sentence resonates;

'That is like saying every chicken road-killed is because UMNO is in power and every road-killed chicken in the kampong is the fault of the local assemblyman.'

with the latest road tragedy around Genting highland!

How, so?

Think Puspakom!

Who gives that money-milking machine to DRBHicom? Who's behind that out-fit?

Here's a take from Niamah;

'Today's Star reported that the high-deck bus that crashed in Cameron Highlands and killed 27 people was illegally modified to carry more passengers. The bus was originally designed to carry 19 but was modified to accommodate 40 passengers!!! The story says that the bus had a permit for only 19 passengers. Now, if I am not mistaken there was an earlier story that said that Puspakom had inspected and approved the bus about a month ago. I think it is the duty and responsibility of Puspakom to come out and tell us and the families of the victims what happened at that inspection. Did they inspect and approve a 19-seater or 40-seater bus? The story even goes further to say that the crashed bus had been inspected by Puspakom regularly since the bus was registered in 2007. So what happened Puspakom?'

Oh...ooh, umno has nothing to do with DRBHicom, thus Puspakom!

On that note why SPAD was created to takes out the responsibility of Road Transport Ministry. Could it be to protect that NEP-induced scamming interest in the name of Alif BaTa? More so why put Hamid as a head when that idiot was known to 'under-tabled' millions for the construction of Suria KLCC, while acting as the oil minister under mamak's care?

All in the family, all in the family. For these people X'mas does comes early!

Anonymous,  24 December 2010 10:35  

Dato' Sak... u have done a very good analysis on many "wrong doing/ wrong decision" that detremental to the country, but I wonder why there is NO assertive response from UMNO keymen up there. Are they blind and dump? Perhap Tengku Razaliegh should join you to echoe Government or GLCs doings that really unbearble of late before it goes too late.

OneMalaysian,  24 December 2010 11:02  

Dear Sakmongkol

No one will ever know what exactly goes on in the boardrooms of Khazanah, EPF, UEM Land, Sunrise, MMC or Gamuda. Or in the office of Najib, or his brother Nazir, who is always in the thick of these deals. What we do know is that Malaysia practises a form of state capitalism. This means that the government is somehow involved in big private sector deals, especially so when they are big and involve GLCs. And if they are very big, even the PM must give his nod.

It would be hard to imagine that the PM was unaware as to the essentials of the PLUS, UEML-Sunrise or MMC-Gamuda deals before they were “formalized” and finalised. Is this by itself bad? For those who disagree with state capitalism this certainly is bad. But I can accept this economic ideology on one condition. That is, the entire process of bidding and award is transparent and fair with the deal going to the best offer. If there are any conditionality let this be known to all before hand. This ensures that the public gets the best deal at the lowest price.

In this open process the role of the go-betweens is minimal. They should really have no role at all, no commission to make, and no kickbacks to politicos. Alas, those who have been in such businesses, or know friends who have, know the truth. They know of the lobbying and string pulling that goes on behind the scenes. They talk about kickbacks. If things were this straight, why is it only at the 11th hour that Jelas Ulang puts in a bid? And why would UEM Land make that seemingly inexplicable take-over of Sunrise? And why in the MRT project MMC-Gamuda can start work before SPAD can finalise the masterplan?

It is said that the UEML-Sunrise merger is a “win-win” deal – UEM Land gets to bulk up or garnish its CV so that it would look good to bid and get portions of the RMAF and RRIM lands; and when that happens the UEML share price shoots up, and all those who own it (Tong Kooi Ong and maybe others who now run UEML) will make a killing. Remember, Tong is more a deal maker than a property developer. The real credit for the Sunrise name should go to the acknowledged condo-king, Tong Kok Mau. Tong Kooi Ong would not have done this deal if there were no such plan (privatized land) in place, and no promise of a big pay-off in the near future. I suspect he will be the one laughing all the way to the bank.

schenker78 24 December 2010 14:22  

Time will come when the rakyat idiots wake up and realize .... people who forget or ignore history will always repeat the same mistakes all over again, .... one day, the current corrupt ministers and prime ministers akan di sula dr bawah ke atas...

jangan lupa reformasi Indonesia....

donplaypuks® 24 December 2010 15:56  

Jelas Ulung, whoever is the real controlling shareholder there, and its significantly higher offer for makes absolute sense.

In an era of low interest rates, anyone who is prepared to take a lower return on capital for an absolutely guaranteed profits no-risk business, should make an offer provided they can arrange the financing aspect of RM33 billion.

This is also why Govt and its agencies should not run business. They do not maximise shareholders wealth or profits because they simply don't know how to! In many instances they do now know even how to maximise social and wealth and satisfaction!!

JU has just demonstarted how Najib, Khazanah and EPF are attempting to short change PLUS shareholders.

As for the MRT and $43 billion contract, Rosmajib has once gain lied to all M'sians abot opn tender and is clearly attempting to privatise profits and socialise and nationalise losses.

At even 1% the project management fees alone should generate income of $430 million for Gamuda-MMC which many local consulting cos will be happy to receive once in a life-time.

It is also a lie that only Gamuda-MMC has the expertise in tunnelling. Many projects such as the Pencala Tunnel job were carried out by foreign-local JV's where the locals mainly provided cheap labour and the foreigners the high-tech machines and engineering expertise. The contractor originally ear-marked for the Pahang-Selangor water tunnel by a Jap project managing co was also another Jap concern.

So, the lies and deceit continue. Yes, a few connected individuals who are pushing for these lop-sided deals will benefit the most. But I can't see UMNO/BN giving it on a platter to them if there is no quid pro quo arrangement. If you think otherwise, you are still dreaming!

How many more of Rosemajib's lies are we M'sians prepared to fall for?

dpp
we are all of 1 Race, the HUman race

Anonymous,  24 December 2010 17:41  

If UEM values Sunrise expertise so much..please sack the current UEM CEO & his team and replace them with the Sunrise team.No 2 ways about that.If thats not done then the exercise is merely manipulative and a free ride for the real business man in the jigsaw.

Lets see if Khazanah has the balls to walk their talk.

And on MRT..true enough SPAD is now saying its open tender and Gamuda is just a PDP.See the spin..Gamuda is a partner nice guy who is helping the government.Fine..if they are doing free of charge.

However if they are paid a fee..then call for open tenders on the PDP..lets get the best team at the best price.

By the way...Gamuda bears the cost/time over runs >> are they providing a Performance Bond?5% 0f 36 billion is RM 1.8 billion.But for job of this nature and at this stage (design/routing not finalised) I think a 10% Bond is more appropriate.

How much the fee of PDP?Based on Bechtel Crossrail project its about 2 % or RM 720 mil for this MRT.Don't forget the RM 3.6 billion Performance Bond...

hahaha...the answer is always blowing with their wind

Anonymous,  24 December 2010 17:46  

Come on guys ...

Seriously do you think we Malaysians have expertise in ANYTHING?

Yes most projects are undertaken by foreigners especially the twin towers. We provided only the Money.

Now if the 100 storey building is purely built by Malaysians with Malaysian engineers, how many of you dare to enter the building?

I prefer anytime to have foreign experts to do the drilling folks. Just cannot trust Malaysian "expertise" least of all a govt owned one run by Govertment servants.

I dont for one.

Even local doctors also I am scared lah. Only the other day, I had an ear infection, the local doc gave me antibiotics and ear lotions and have to repeat that for next course again without improvement.

So went to a specialist, immediately he said... it was a fungus infection. It just took two days to cure it. Two weeks of bleeding ear for simple diagnosis !!!

Fungus infection cannot differentiate from bacteria infection.

Many areas we are going to the dogs lah. Just give up.

Hey .. it is time to own up .. you guys just cannot lah.

Anonymous,  24 December 2010 19:10  

Debates and neverending debates about the foolishness of BN gomen, but nothing change.

When prices of essential foods skyrock, we hear nothing from BN gomen, that it's going to affect the poor, the middle class and everyone except UMNO cronies.

We continue to hear of billions being throw here and there to build MenaraLangit, MRT, and all the fucky projects.

This country is going to the dog as it is governed by the BN dogs.

It sucks, really suck.

Jolly Jully

Anonymous,  24 December 2010 20:14  

Dato'

Fattening of the war chest is not, I think, only in terms of monetary devised by these plundering goons. What about that “feel good” ambiance?

Today, they announce 30,863 candidates scored straight As in this year’s PMR. The highest since 4 years ago it seems. Dare I say this is meant for the up and coming GE? “Oh yeah! The gomen is doing good what for the future of our children.”

If they had their way (and by crook they normally do), Malaysia would win over Indonesia in this coming Suzuki AFF cup. So that Ahmad, Ah Leong and Muthu sitting at their favorite mamaks would be cheering for awhile forgetting about the increased price of the teh tarik they are having.

Who is going to tell Ahmad, Ah Leong and Muthu parents, brothers, sisters, in-laws and friends in the kampong that the high rubber price is not due anyone’s efforts but due to the scarcity of material to make artificial rubber i.e, crude oil?

Believe me you, we are going to be dazed feeling good until the coming GE.

So, for the just-over SPM sitters, do pray very-very hard for the election to happen only after April/ May 2011 as straight As shall be coming your way.

condo in Philippines 12 January 2011 10:44  

I agree and you have a point there. Very interesting concept.

Paula M

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