Thursday, 10 May 2012

Durian Runtuh or Durian Mengkal?


FELDA settlers were described as “shedding tears of joy” by Bernama Online following the prime minister’s announcement today that they were to expect a windfall of RM15, 000 each following the listing of FELDA Global Venture Holding (FGVH).
Let me simplify the issue at hand. This is a bare knuckle fight between the bad guys (FGV) and the good guys (the settlers). Let’s face it- if Najib sides with settlers- he would ask FGV to issue 80% of the shares to settlers and settlers interests. Instead settlers get the smaller portion while the bulk goes to his corporate buddies. 
What did he agree to? This man who proclaims people first, performance this and that? Close to 2 billion shares are offered at RM4.65/share which will see FGVH  collecting some 9 billion ringgit. How is the earnings distributed? 60% to the minister in charge of FELDA who is Najib? 40% or RM billion to FELDA? Out of the 3.6 billion, FELDA uses 1.69 billion to pay the durian runtuh? And the remainder has to be used to pay off debts owed by FELDA such as the 3 billion to EPF? Then how much is left with FELDA to run the business that it owns? 

Is 400 million a year sufficient for FELDA to finance its operations and carry out its social responsibilities in FELDA schemes involving 220,000 people?

Only about 200 million shares were reserved for settlers and employees or an average of less than 2000 shares each. That shows rakyat di dahulukan is just all rhetoric and just glorified slogans. 1.8 billion Shares are offered to politicians, institutions, selected Bumis and so forth. 
Let’s cut through the corporate and political BS. The battleground is FELDA Holdings which is jointly owned by KPF and FGV. KPF is owned by settlers while FGVH is really a company owned by FELDA the GLC. FGV also has business interests overseas. It didn’t share the overseas businesses with KPF though. It thought it can make money without having to share with smelly settlers. They didn’t. They plotted to buy out the peasant interests by a strategy of corporate bullshitting. 
FGV is really determined to kick out the settlers. They can’t do it outright. To offend settlers is unthinkable. FELDA settlements offer UMNO and BN around 54 parliamentary seats. To offend FELDA people would hasten Najib’s journey to becoming the next opposition leader. Not that he won’t be there- his government’s ruinous public policies will ultimately install Najib as the opposition leader in the next parliament.  Meanwhile, we will let him utter- autobots! Transform. 
So they do it the `honorable’ and more refined manner. By proposing to list FGV and inviting KPF to participate. Sell the idea that FGVH has the business smarts to make more money. Bribe the peasants to agree.  Two surefire ingredients to entice innocent but gullible settlers. 
It’s a fight between the bad guys- FGV and the good guys- innocent peasants. The oppressor and the oppressed. This government headed by Optimus Prime the chief transformer sides with the oppressors. And the oppressors say they are surprised why the peasants are revolting.
The prize?  All the assets and revenue generating businesses under FELDA Holdings. Meanwhile FGVH does some businesses overseas- that part of the FELDA business which to some numbskulls gives dignity to weather torn settlers.
While FGV yield paltry numbers, FELDA Holdings generates some RM 3 billion a year. FGV gets greedy. It wants to own FH all by itself. How to? Call in the con-sultans. Devise a plan. Do a listing say the cons. The modern Hamman ( advisor to Pharoah) will kautim the Putrajaya Pharoah. 
What does FGVH do overseas besides providing the FELDA Mandarins the excuse to take long holidays with family in tow? Window shopping for Hermes bags and some imitation of Jacob jewelries? It invested in a slew of businesses- cattle rearing, technology etc etc. did it make money? It borrowed money in the first place. It lost a lot of money on its investments and has only lately shown some indications of profitability. I said some indications- because the numbers do not seem to add up. The costs of businesses are born by FELDA, the profit part is shown on FGVH’s books. 
That’s the background story.  More will follow.

29 comments:

Anonymous,  10 May 2012 13:12  

Dato, thanks for putting things in perspective. The web of deceit that only Umno and their crony con-sultans as you aptly put is able to twist and turn and spin to confuse the poor ignorant settlers that even the educated are waylaid. Najib is only doing what he does best, using the people's own money to bribe them while he and his band of robbers scooped up the major portion. Just hope the majority of the settlers are not fooled.

Suci Dalam Debu 10 May 2012 13:12  

Sir,

Najib has honed buy-elections to a fine art.

UMNO/BN will bankrupt this nation by the time PR takes over.

Melayu harus sedar dan insaf bahawa masa depan generasi akan datang terletak di tangan PR.

ZorroRemasked,  10 May 2012 13:24  

Sdr. Sakmongkol,

Heard another injunction has been filed in Seremban High Court to prevent FGV IPO. Got this news last night (09 May 2012).

By the way, got clearer info on the KPF EGM.

(1) Yes, it is true that the delegates voted for KPF to sell FHB to FGV.
(2) But, it was a conditional approval.
(3) There were 15 conditions.
(4) A letter to Isa Pendek was sent vis-a-vis conditions after the EGM.
(5) Isa Pendek replied no-go. Conditions cannot be met so they rescinded the offer to takeover 51% of FHB from KPF.
(6) Isa Pendek went on record that KPF would not be in as time is a constain.

Would provide more updates as and when I have time to "socialise"... Hahahaha...

Sekian.

Melayu Baru,  10 May 2012 13:50  

Assalamualaikum Dato' Sak,

What you said about PM is true - he only knows how to pay his way out of trouble. If someone can list down all his visits, and all the money he gave to wherever he goes, it would be in the billions, no?

So, let's rouse the rakyat wherever he visit. Tell them Santa Claus is coming to town. Let them demand whatever, for that is the way that this PM appease the people... not with solid plan.

His alphabet soup? Nothing but repackaged Malaysian Plan. And as usual with Malaysia Plan, there's the talk - but there's no walk.

Let us hit this PM where he feel is his strength - let's demand for money, benefits etc.

But time pangkah, remember that all the money that he pass around is mere crumbs to the scoundrels that gained many many many times more that what he collectively passed to appease the masses. Time pangkah, remember that we do not need a wimpy PM who cant lead. Remember that we do not want to leave the future of our country to the same gang of thieves.

It's hard - but if everyone who read this go out and do our part to convince the others, we can.

I lift my hat to you that now you are going around in ceramah circuit to convince the masses. May Allah bless you.

Melayu Baru

elizabeth 10 May 2012 14:11  

FGVH lease 350,000 hectares of plantation land at RM250 million a year.. a paltry sum of RM300 per acre. Considering OP land is selling for anything between 30k to 50k an acre, I suppose as the lessee, FGVH is laughing all the way to the bank. Poor settlers have been short changed by the CONsultants and our people-first PM. Yesterday's tears of joy and gratitude will soon turn in wailing of despair...

Anonymous,  10 May 2012 14:11  

Tax payers will have to pump more money to keep FELDA operating after this.

elizabeth 10 May 2012 14:13  
This comment has been removed by the author.
Anonymous,  10 May 2012 14:20  

Datuk,
Biarkan lah si lunchai di tanah rancangan FELDA itu terjun dengan labu-labunya.Nama pun Durian Runtuh. Apabila runtuh dahan itu tersungkur kebumi- dan tidak akan berhasil lagi. So that is all the settlers are going to get- just onetime.Knowing those settlers that money will gone in no time. After that Najib will dig the taxpayers pocket deeper to keep the settlers alive.

kampong lad 10 May 2012 14:41  

1. orang keluaq modal, untung depa punya. 2. najib is bapak transformer 3. santa claus cuma keluaq sekali/tahun, tu pun dia bagi apa yg ada kat dia...kalau macam ni dia pun tak tahan....lari malam oi!

Red Alfa 10 May 2012 15:20  

Salam Dato

What you are doing are what the MSMs as the 4th Estate should be doing - investigative journalism. Given today's, it must now be fardhu kifayah on good people like you and all who are aware of the prevailing kemungkaran to expose and inform in detail. May Allah SWT be pleased with your efforts!

All the MSMs being owned and fully controlled by UMNO/BN are very into porno politics being instructed to help destroying those who oppose by all means of fitnah, the Mufti/NFC (also owned and fully controlled by UMNO/BN) are perversely determining our Islam with what is haram or not with the rakyats' claim in BERSIH 3

I don't hear the NFC saying the unchecked fitnah of Azmin/Anwar is haram?

Menghalalkan yang haram dan mengharamkan yang halal tidakkah pelaku dan ulama yang sedia bersekongkol menjadikan diri mereka kafir?

Bagaimana agaknya Islam mereka; UMNO totok yang menyokong buta dan mereka yang diupah jadi blogger/penyebar fitnah?

Anonymous,  10 May 2012 15:49  

dulu:
mengeluh tunggu durian tak runtuh2
kini:
menangis terima durian runtuh
masadepan:
melalak baru sedar rumahtangga, kampunglaman, wangsimpanan semua dah runtuh dihanyut gelombang transformasi Kera gerombolan

-average joe-
klakka-la.blogspot: DON'T HAVE A COW = TAKDE LEMBU?

Anonymous,  10 May 2012 15:58  

Durian runtuh? Ha..ha..durian runtuh atas kepala peneroka. Semua benjol-benjol.

Anonymous,  10 May 2012 16:12  

Najib says he cannot afford to make ONE wrong decision. Is this guy a clown? Anyone can count the wrong decisions.....from Bersih 2.0 to 3.0, from NFC, AirAsia/Mas flip flop, SBPA flip flop etc. He go ahead but later gostan because of pressure and ill-thought policy. His nickname is now Najib Gohead, Gostan.

Anonymous,  10 May 2012 16:21  

Najib is again using money. This time on a lavish function at the fame O2 Arena in London with lavish makan and entertainment. I fancy his lifestyle.

Anonymous,  10 May 2012 18:30  

BN wants another term to sort out the mess.

Anonymous,  10 May 2012 19:50  

High level command of English and good critcal thinking...but still have the mindset of umnoness

Anonymous,  10 May 2012 19:58  

Dato,
Will the poor peasants understand all these IPO related gobbledygook.
Do they know that they are being cheated in broad daylight?
Do they know Najib is stealing their golden goose?
Or will they vote UMNO for a miserable RM 15,000 which in fact is their own money?
Are Felda settlers stupid?

Kutu Kampung,  10 May 2012 20:23  

This gets too much for me, sorry. Me not good with nitty gritty figures. We know Sak is stuffed with other things and too busy to draw charts! :))

Will read details later.

What bugs me is value wise what is Felda Holdings(settlers) to GLC. They won mandate to list though I thought there might have been a technical caveat somewhere for settlers. Gomen is supposed to owe settlers money, too.

Anyway, thanks SAK. The pix of vampire rich sucking proletariat blood is clearly exhibited. Wish the 54 MP seats could flex muscles! :)) Otherwise, the mess would take longer to sort out but never fear ...it's a landscape full of painful lessons for future. You really could do several PhDs on this and glean old/ new issues.

This is classic immoral deranged capitalism strutting out on the catwalk!

Just too much have been lost considering other cases.

The point is we could easily have had good health, education and transportation/communication all paid for plus 99percenters pockets would jingle loud!

Equally not less insignificant, 1percenters would have had better security on their assets with a burgeoning and richer 99percenters. We won't be malu with the Singas south of the border.

Anonymous,  10 May 2012 21:18  

Najid political campaign strategy is all about money, money and more money.

Keep on splashing money, money and money for votes

Only rotten government will do that for short term gain, long term pain and suffering for the nation and public

bruno,  10 May 2012 22:05  

Dato,the older settlers in Felda are more of the less educated ones.They are the ones who thinks that they still owe Umno a living for putting them there.What they didn't realised is that over the years they were shortchanged for their harvests,amounting to tens if not hundreds of thousands of ringgit each.

Just look at IOI and their yields.Is there anything special about their planting skills, seedlings,fertilisers,insecticides,land and technology that the Felda settlers lack and Pertanian cannot come up with.I doubt,and the seedlings the other plantations used could be from Pertanian too.

Fifteen thousand ringgit and the settlers are shedding tears of joy.What Bernama online conveniently left out was that Najib and his sidekicks were shedding crocidile tears too.

In the 1990's crude oil was trading at below US$11 for years.Gold at US$220 for years.Today even prices of neccesities have shot through the roof.Just look at grains,cooking oil,sugar,milk etc.

Just explained to the settlers that if they were paid honestly for their harvest over the years,the things that they were able to buy then is ten to twenty folds different than today.With the money cheated from them they would have save and able to buy more land for themselves.

Instead thier money is being stolen by a small group of people,living the lives of luxuries,living in mansions,expensive cars and misstresses in tow.

The opposition have to made it simple for the settlers to understand,take it to their front door steps and forced the message into their heads.Things that effect the Malays,like NFC(beef) should be pounded into the minds of the rural Malays.

Let them know that fifteen thousand then can buy them acres of land,now maybe a banged up jalopy or a quarter acre of agriculture land.Some of them have been there for thirty to fourty years.If they were not shortchanged then,today they will be many many times better off.

Let them know that inflation has eaten away the value of the ringgit.Fifty years ago 10 cents was lika a 'goo chia len'(ox cart wheel)Now 10 ringgit can buy a cup of ice cream.

mat durian,  10 May 2012 23:38  

rm4.65 per share,that's eqv to around euro1.20 per share. the so-called fgvh strategic partners must be shedding more tears of joy than those felda settlers

alfred 11 May 2012 00:53  

Thanks for the good review. Sayang nya tak banyak Pak Chik dan Mak Chik Felda yang baca ruang ini. Kalau baca pun mereka tak faham. Yang penting disini mereka2 ini betul2 di bodohkan oleh Najib yang mengunakan media seperti Utusan Meloya, Berita Hairan dan lain2. Tahu2 esok tanah2 mereka telah digadaikan bila timbul masalah ekonomi merudum. Barulah mereka akan menyesal tak sudah. Berkarung sumpah serana akan ditujukan kapada Najib yang pada waktu itu sedang hidup mewah dengan kroni2 mereka. Salam

Anonymous,  11 May 2012 06:45  

Can these settlers coped with instant riches? Many an instant millionaires from lottery strikes have became paupers in a matter of a short time because they did not know how to manage finances. Wait until all the money is frittered away, then the settlers will realize they have squandered their lands forever.

Patrick 11 May 2012 11:32  

I think the nearest comparison of possible abuse that the simple-minded FELDA settlers can understand is the NFC/Sharizat case. The govt giving NFC/Sharizat RM 250M for a noble cause has been hijacked with no criminal case being pursued with clarity and transparency. There are many similarities that can be made and further extrapolated from the NFC with this FGV listing. But the opposition must be diligent in broadcasting this to the FELDA settlers to make sure they understand all these.

The opposition's strength in its thorough and efficient investigative efforts is useless if the intended target audience is not receiving all these hard-earned investigative news. What we, the urbanite voters, would like to see, is how is the opposition streaming all these investigative news to the rural voters? And how effective it is? Are the opposition using all means within their disposal for their efforts?

The urbanite voters would not want to waste its precious votes only to be succumbed by the rural voters indifference to change.

OneMalaysian,  11 May 2012 13:48  

Dear Sakmongkol

I suspect the settlers are not going to worry one bit whether it is durian runtuh or durian mengkal. They say, don’t look a gift horse in the mouth. But should the settlers be grateful to the government? And what should the rest of Malaysians who are not Felda settlers to make of this gift?

To answer these questions we have to look at how where that RM1.69 billion is coming from and we also need to ask what is it that the settlers have done to deserve this gift of RM15,000 per settler family that other Malaysians are not getting.

Remember that Felda Co-op, KPF, is not putting any of its estates or its shares in Felda Holdings into FGV, the IPO company. So no equity of any kind goes into the pot. KPF retains ALL its current shares (51%) of Felda Holdings (current main money earner) and it is keeping a tight hold on the 500,000 hectares of Felda land owned collectively by the settlers. So how come there is this RM15,000 windfall?

This money, I think, comes directly from the proceeds of sale of FGV shares by FELDA the statutory body, a company owned by government and run directly from the PM’s office. FELDA is selling 1,208,890,000 shares to the public, institutions and to certain MITI approved Bumis. Your guess of RM4.65 per share is quite near the estimate by merchant bankers, who estimate RM4.20 to $.40. Let’s say it is RM4.50 per share. So government gets RM5,320 million, and pays out RM1,690 million to the settlers. This is a gift, pure and simple. But why give only to the lucky folks in Felda?

The answer is that this was intended as a bait or sweetener to induce the 110,000 settlers to part with all their 500,000 hectares of land and also pump in their 51% holding in Felda Holding into the FGV IPO. However, the settlers balked at parting with their land and the 51% shares. But the inducement or windfall had already been promised. It cannot be withdrawn because the GE is just around the corner. So an inducement to make FGV a much more substantial company – 850,000 hectares instead of current 350,000 hectares – had simply morphed into an unvarnished election bribe.

For the rest of Malaysia, what do they get? 419,537,000 shares will be offered to MITI approved Bumis, the usual rent-seekers. This constitutes 11.5% of the enlarged capital of FGV. The settlers get pink or blue forms to apply for just 91,204,000 shares or 2.5%. Institutions both local and foreign get to apply for 1,495,742,000 shares or 41% of the FGV capital. Other members of the “public” get to apply for 72,963,000 shares. I shall leave your readers to judge if this is a fair package.

The Felda got a good deal, more than they had bargained for – something for nothing. UMNO paid a big bribe out of public funds. And the rest of Malaysia other than some lucky, well-connected Bumis, got virtually nothing.

Anonymous,  11 May 2012 13:54  

sir,

bolehkah diterangkan bagaimana bahagian 60% dan 40% itu dikira?

tq

Anonymous,  11 May 2012 23:55  

These same hardcore UMNO supporters, however, those good and honest ones aside; many with sub-zero mentality, now basking in the short- term feel good effects, are unworried about the nation’s deficits and bankruptcy looming, will also be the ones who will be crusading against deficits in the near future, when it means the umno- bn government will have to increase all kinds of taxes on all rakyat, which include affecting every civil servant, regrettably the middle and bottom segment will suffer the pinch more. Loss of secured employment, lesser working days, or optional retirement and a long list of personal, family and community pains may not be an option.

The capitalists, being capitalists,and the umno elites will navigate their businesses, pleasures, still shop and play in luxury, elsewhere in such climate, leaving behind high unemployment and social insecurities; young people from the felda scheme, from both the rural and the urban areas, being unemployed, prolonged, and more business failures in the private sector as well. Do they care ?

And the UMNO leaders, cronies shout down the infamous jargon a lot of hyper bodoh cool youths berlagak elite retort dengan biadap at their parents, God - fearing step- parent(s ) or guardians - that rakyat must earn their respect, or we show them to the exit, we have become fed - up and demand them to earn our respect which will never come on their way again in GE 13.

Anonymous,  12 May 2012 09:57  

Saks, thanks for the good preview. Agaknya sampai bila bangsa Melayu telah, sedang dan akan di tipu oleh penyamun2 dalam UMNO ni. Yang epelik nya Melayu2 ni tak belajar2 dan tak serik2 ditipu oleh gerombolan2 panyamun ni.Betul juga cakap2 bangsa asing yang otak Melayu ni lembab, tak berapa cerdik,pandai tak bertempat dan semua yang negatif. Dah diberi tahu akan manipulasi jahat gerombolan ni pun masih tak sedar2 lagi. Bak orang cakap bodoh tak boleh diajar. Itu lah dia otak Melayu hari ini. Dah rosak teruk dan 'twisyed'.

Anonymous,  12 May 2012 10:01  

Thanks Sak, good review and analysis.Jika Melayu2 ni tak faham2 juga memang mereka ni dah macam orang kata memang bebal dan sudah rosak otak mereka.

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