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Sakmongkol ak 47

Monday, 7 November 2011

Chairman Isa and the listing of Felda Global Ventures-1

Let’s talk about FELDA Global Ventures Bhd. It owns 49% of FELDA Holdings Berhad. 51% is owned by KPF. KPF looks after the interest of 220,000 felda families. It gives out dividends which you see the PM gives out at elaborate festivities. Its investment in FELDA Holdings makes money. Its own business forays overseas bombed. It’s the business arm owned 100% by FELDA that does international businesses. It hasn’t got a good track record. The subsidiaries of FGVH like FELDA Iffco Sdn Bhd, FELDA Global Technologies through Twin Rivers Technologies US (TRT), FELDA Global Ventures Middle East and  FELDA Global Ventures Arabia have all chalked up accumulated losses of around  RM500 million up to 2010.

What do the brain boxes at FELDA propose? They propose FELDA Holdings Berhad be absorbed into FGV and managed by FGV. FGV which has accumulated losses that of which reflects poor management and business acumen will now manage the business owned by FGV and KPF? The management team that loses money in FGV will manage a profitable business? That’s like asking a rat to look after the pumpkin. This must a new breakthrough in management science- the party that has fumbled is tasked to manage a bigger business.

So let’s talk a little about the coming IPO of FELDA Global Ventures Bhd. Let’s humor the sycophants. It’s touted as the next big thing to spruce up Malay economics. What isn’t? There has never been any economic initiative that is not described glowingly as a facilitator for the betterment of Malay economics. At the end of the day, the lion share in the IPO will go into hands of the select few. As to the economic facilitators regarded as a boon to Malay economics, usually, in the end, they fumbled and ended up in the hands of non-Malays. The redevelopment of KTM land in Sentul? That’s YTL country now, How is the equity breakdown? Or was the land given up in exchange for an elevated highway? The redevelopment the Sungai Besi Base? That will be a Middle Eastern enclave. The development of Sungai Buloh land? The only difference with FELDA is because the majority of settlers are Malays. That gives the corporate exercise a Malay flavor.

FELDA Global Ventures is going for listing. It hasn’t got credibility if it goes alone. So it absorbs FELDA Holdings SDN Berhad because it owns 49% of the equity. To entice the majority owner of the 51% equity, it made a sweetener allowing KPF to own 61% of listed FGV.

FHB makes money, FGV on its own doesn’t. They operate in different markets and therefore do not compete. If they compete, it’s a natural outcome that the weaker and less efficient will lose. That’s the law of free competition any way. If you force the weaker to team up with the stronger, that act may result in the weakening of the whole new partnership as the culture in the weaker organization can prevail. The culture of the city cousin (FGV) - more worldly and sophisticated will prevail over the hillbilly culture of the country cousin. We have to make this analogy so that people understand the possible outcome of the merger between FHoldings and FGV.

I find the arguments that the new company will benefit from better professional management and all that as facetious. The fact that FHB has done exceedingly well means that the management is alright. It’s definitely better than the cosmopolitan FGV because the latter is not doing that well. FHB should be allowed to buy out FGV and apply its superior management on the newly acquired asset. Probably FGV should be allowed to hold only 20%.

But before the listing can come to fruition, FLEDA must put its own house in order. Let’s see what’s happening in KPF which looks after the interest of 220,000 Felda families. A bigger rat is assigned to look after its money. Isa Samad. It’s the PM’s wish that Isa Samad, a close comrade in arms, be installed as chairman of KPF.

Let’s discuss the PM’s wishes. Its an interesting subject in itself. Not a few pro UMNO bloggers aligned to one particular individual put up a spirited objection when the PM announced he wished one Omar Ong be given a seat on the PETRONAS Board. The same people objecting to the wish of the PM then are now supporting putting up Isa Samad as chairman of Kumpulan Permodalan FELDA because it’s the wish of the PM. Very pious indeed.

But see the contradiction and hypocrisy? The PM wishes in both cases; but his wish in the first case is objected vehemently while his wish in the second case is warmly supported. So, what the PM wishes isn’t relevant. What is relevant is whether the person assigned gets the approval of the shadowy approval committee comprising of some pro UMNO bloggers. They didn’t approve Omar Ong and now they approve Isa Samad. We can’t operate government business through some clandestine secret society.

Isa Samad’s position as chairman of KPF( kumpulan Permodalam FELDA) is objected on account of several reasons. The refusal of some people in accepting the coup de tat has prompted them to make a police report. The appointment of Isa goes against the bylaws of KPF. KPF is subjected to its by-laws and rulings and the PM is also subjected to the law. 9 of the committee members must be elected by delegates at its general assembly. FELDA board appoints 3 additional members subject to confirmation in the general assembly of delegates. Bu the 3 appointed members of the committee must either be a FELDA settler or children of settlers, FELDA employee, wife or their children. A board member must also be a member of KPFB for at least 10 years. In either case, the 3 appointed must be either a member of FELDA settlers cooperative or FELDA employee’s cooperative.  Furthermore, he/she must a least be a cooperative member for a least 2 years and must come from within the governing board of the cooperative which he/she represents.

First thing first. Why is it necessary to appoint Isa as chairman of KPF? Clearly by the terms of the bylaws and rulings governing cooperatives in FELDA, Isa is disqualified. Dato Dzulkili Wahab has been doing a reasonably good job. Isa on the other hand, hasn’t got a good track record at managing assets. When he was MB for Negeri Sembilan large tracts of leasehold land were given to certain non bumi corporate figures and converted into freehold land. The state economic development corporation of which he was chairman didn’t fare well at all. Is he appointed chairman so that the PM can have a trusted person oversee the more than RM 7 billion money that KPF has?


Anonymous,  7 November 2011 at 12:01  

salam dato,

-there are many good and capable malays managers and professionals. but the problem were that all the businesses' managements are given to very stupid malays who got connection with umnoputra or umnoputra themselves.

-eventually all these businesses are sicked and to some extend may even failed. than these the chosen one stupid like a donkey malay managers obviously would employ non-malay especially the chinese professionals to help them running show. not because of the non-malay professionals could do wonder, it is all about to protect their own bad asses stupidity from being discovered by fellow malays subordinates and to prevent qualified malays from taking over their positions.

-as always after some time everything would go to the chinese, at a very cheap price and of coarse they all would be getting a fair share of the loots.

bruno,  7 November 2011 at 12:29  

Dato,only in Malaysia,the land of the bolehs can a man of Isa Samad's character and tainted reputation be appointed by the PM to be chairman of a GLC.It is like putting a fox in charge of a henhouse,or putting Thambi Chik as principal of a girls only school.It clearly shows that birds of a feather always flock together.That includes PM Najib too.All crooks getting their hands dirty inside the cookie jar.

Anonymous,  7 November 2011 at 12:34  

Dato Sak,

Lets look some "achievements" by Isa as MB of Negeri Sembilan which he could replicate in  Felda:

1. As new MB then, he promised new township in Ampangan - Seremban. It bombed. During DPM visit last month,  the place had to be spruced up clean to swipe the dirt left by Isa.

2. Pantai Port Dickson, lost its jewel crown as major tourist attraction. Water samples taken from the sea indicates high content of dangerous bacterias. Someone who want to test their body resistance, this is the place to do it.

3. Along coastline of PD, you can't miss many abandon projects. Soon many of these can be converted as museums or perhaps someone can organize house of horror trip as new tourists attraction.

4. Seremban town center( Convent old School)  has a large pond that fit to have mosquitoes build its own Roman empire. Also when you are in Seremban, you will be welcomed by countless numbers of traffic lights. Please be marvel by many potty plants that constantly replaced to fit its image as retirement town.

The list is too long to write. Would like to invite Dato and everyone to visit Seremban and other state tourist destinations to see how much NS progress the last 15 years. Thanks to Isa.

In Sen Nalla and TS Isa , maybe PM Najib see vast potentials and talents on these individuals to put Malaysia future in their hands.

bruno,  7 November 2011 at 12:44  

Dato,the coming IPO of FGV will most probably be gobbled up by GLC's,as the public participation will not be very encouraging.A small portion will go to the public.Foreign funds will not want to get their hands dirty in this IPO,as they have been biten once too often with GLC's.

bruno,  7 November 2011 at 12:58  

Dato,in Umno money politics is no big deal.Or else how can a man found guilty of money politics be appointed chairman of a GLC,by of all people the PM,who in himself is the biggest player when it comes to buying votes.In other countries they will chained and hanged upside down from flagpoles.

Anonymous,  7 November 2011 at 13:01  

terlalu kompleks untuk melayu paham, so ok kan je semua

Anonymous,  7 November 2011 at 13:04  

Doomsday is coming! With the vultures hovering above, the sign of the end is near.
The law is immaterial to some people. It is only applicable to others but not the select few favored by the PM.
Pak Tua.

Anonymous,  7 November 2011 at 16:11  

All I can say at this point of time that is all about Malay business acumen, Malay interest, Malay future, upliftment of Malay economics etc etc.
As always when Malay interest is used as the raison de tat, it's the selected Malays who will enrich themselves. The poor will just salivate at the rich while giving them kumpang welcome when they visit their village and distribute crumbs before elections.
Then why may I ask the Malays are the poorest in the country after 50+ years of independence while Malays have been holding exclusively political power?
Need to go into Malay educational levels, Malay employability,Malay
global advancement.
When anything is done in the name of Malays, the common Malays lose.

Anonymous,  7 November 2011 at 16:26

TNB faces cash shortage.
See how Malays do business for bangsa,ugama dan negara?

You said enough about MAS. And there are many other nightmares as well.

OneMalaysian,  7 November 2011 at 17:27  

Dear Sakmongkol

My heart goes out to the poor Malays. They form the vast majority of the 40% of Malaysians with household income of less than RM1000 per month. Najib wants to help them. He said so in the now discredited New Economic Model.

How could these Malays ever be helped if the Felda Chairman is a man found guilty of corruption and in vote buying by his own party in 2004 and was forced to resign as a minister in 2005? How he got rich through illegal means when he was MB is generally known.

Yet the PM found it expedient to put such a person in charge of billions of Malay assets. Then again, we should not be too surprised by Najib’s judgment. In 2009 he allowed Isa Samad to stand in the Bagan Pinang by-election. Why? Maybe Najib thinks corruption is no big deal – every big shot in UMNO is the same, so why discriminate against Isa Samad? Maybe Isa is such a big-time warlord with a humongous war chest that Najib needs his support to stay in the top job. What ever might be the reasons for him to be associated with Isa Samad, it reflects badly on Najib’s moral judgment and values. It also reflects poorly on UMNO.

The merger of Felda Global Ventures and KPG makes no commercial sense. On this you are right. People who lose RM500 million should be sacked straightaway, not given more assets to manage. But these things happen all the time. Why? Because the real owners of the Felda assets – the poor farmers who have entrusted their future to UMNO and the government – are unable to understand all this sophisticated financial maneuvers. And they are not able to exercise their voting power effectively to boot out the thieves and management failures. UMNO and the government who actually own nothing have the absolute power over those assets. There is a real disconnect between asset ownership and its management. The current arrangement is totally unsatisfactory and will lead to more abuses by the trustees and managers. The poor Malays!

Melayu Baru,  7 November 2011 at 20:09  

Assalamualaikum Dato' Sak,

Sewaktu para elitis dan para perompak besar negara memikirkan cara untuk menelan hasil mahsul negara yang makin berkurangan, elok juga kita renung realiti kehidupan yang ada di Kuala Lumpur.

Kisah orang orang kecil marhaen yang tak tahu apa apa pasal FGV, Sungai Besi, FRIM, PKFZ, MinDef dan lain lain rompakan. Kehidupan pahit yang setiap hari dilalui oleh banyak lapisan masyarakat - di tengah tengah dada Kuala Lumpur, dan di ceruk ceruk kampung.

Mereka tidak perlukan ahli politik menjenguk sekadar ada acara lawatan sambil lewa, tidak perlukan belas kasihan yang direka reka dan tak perlukan publisisti murahan untuk meminta minta.

Mudah mudahan ada cebisan kasihan untuk anak anak ini.

Dan kita terjemahkan pada tindakan untuk menjadikan azam untuk menolak korupsi, kolusi dan nepotisma yang menjadi barah untuk masa depan anak anak Malaysia.

Dengan keazaman ini, eloklah kita bekerja lebih keras untuk mengubah nasib anak anak ini - dan memohon kekuatan agar nasib anak anak kita juga tidak jadi sebegini hasil dibaham pihak bangsa(t)wan dan pemerintah/perompak besar yang dengan tembolok yang bengkak masih lagi mahu mencuri.

Esok, bila anak anak ini didekati mubaligh Kristian, jangan masing masing mahu menjadi hero untuk mengaut keuntungan politik.

Damn you, thief!

Melayu Baru

Tinta Hitam 7 November 2011 at 20:27  

Datuk Arif,

Selamat Hari Raya Eidil Adha.Kdg2 saya terfikir juga peneroka Felda ni mmg patut kena jual pun.Bila kami cuba hendak menerangkan kekorupan yg berlaku didl pentadbiran Felda dan UMNO mereka kata kami penyokong2 PR adalah penyebar2 fitnah dan "melawan kerajaan"..Mmg patutlah mereka kena jual.Sibodoh makan sicerdik

Anonymous,  7 November 2011 at 23:33  

//"...Esok, bila anak anak ini didekati mubaligh Kristian, jangan masing masing mahu menjadi hero untuk mengaut keuntungan politik. ..."// Tinta Hitam

Sangat pedih sekali dengan ironi ini, walaupun Yahudi dan Kristian sama-sama berdatukkan Nabi Ibrahim, Musa saperti orang Islam Malaysia tertentu yg telah bongkak,busuk,bengis dan barua kepada ketidakadilan dan kekejaman!

Siapa sebenarnya dah murtad?

My foot,  8 November 2011 at 23:55  

Dato', based on results FGVH is in a pretty bad shape. But if we just deep dive to the root of the losses, we should be able to discover that all of the bad projects came from Felda. They initiate all of this projects without proper due diligence exercise.

TRT was deem to be a failure even before it started. How stupid for an entity to bail out a dying company and on top of that start-up a new project in Quebec. And all of this happen under the nose of the so called 'doing a good job' Felda DG when he was the Deputy to DT. Two chaps graduated with ONLY Bachelor of Geography with Big Dreams.

flyer168 11 November 2011 at 08:39  

It proves that $$$ is always above Rule of Law, Corporate Governance, etc, including religion...

Same "Toxic" modus operandi...

Just to share this...

The Banana Republic of Iceland – YouTube -

You be the judge.


Anonymous,  11 November 2011 at 11:50  

Dear Dato,

What do you expect when you have top people running the corporation with the sole aim of enriching themselves without being punished - pandemonium !!!

Anonymous,  12 November 2011 at 18:20  

Are you sure My Foot that such big investment come from Felda?Do you know the there is limit that one civil servant can approved even the KSN himself is not spared from this rules. All this business decision come from PM and HE is the one directing Felda to purchase and go ahead with all this investment.Why involved the Deputy DG at that time?Why dont you mentioned Bakke Salleh (and later Sabri Ahmad) and Suzana Idayu?THEY did the Due Diligence,they fly to that places and meet with the TRT administration, they prepare the board paper and present and fight for the project to be approved and using PM approval for all the projects.Dont spin the truth here.If you try to kill Felda people themselves,they will open give away documents all the purchases or worst everything that they have done to support UMNO.After Felda people in 2011 alone help BN win 3 elections,now that they against something that they knew is up to no good, is it fair that they are now under attack by BN cybertroopers such as you?

Anonymous,  17 November 2011 at 22:35  

Dear anonymous who responded to my foot. Did you know that the directors of Felda Holdings are one and the same as Felda Global? Most of them are the civil servants or ex civil servants in Felda the land agency. Or maybe you mean to say all the directors were fooled by the incompetent UMNO side kicks working in Felda management reporting to the Board of Directors.

The civil servants in Felda are very honest? Give me a break. Check how much they earn in director fees?

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