PM Najib and the creation of a Plutocratic Oligarchy.

Did PM Najib ask UDA to choose Ecoworld over others? Now that is the most important question to unravelling the mystery of his New Economic Model. If he did, then this is what the NEM means- affirming the hold of the select few on the economic pie. The people have been duped into giving up their stake-holdership in the economy on the excuse; the wealth creating process is better suited to be carried out by the anointed few.

The people should rise and demand that wealth creating assets be placed directly in their hands. By people I mean the many more, who, if unrestrained  can also create wealth.  They should rise up and kick out this government which is slowly turning into a plutocratic oligarchy. (the few politicians and the wealthiest people).

The NEM is nothing more than the old practice of selecting and choosing who gets to win. Except, the picked ones are the same ones over and over again. SP Setia over and over again, Syed Mokhktar- Vincent Tans, YTLs- are all serial rapists of our economy. The NEM is just another name for crony capitalism.

Giving projects to the same pack of people seems to be addictive. That is what Najib means and more importantly understands, what market driven affirmative action is. It is a system of affirming the role played by the select few and the invisible hand that chooses them. Hence plutocratic oligarchy.

Bukit Bintang City Centre- Pudu Jail Land.
We have yet to see the details of the new business model. Perhaps it is the brainchild of the PM. Perhaps it is the brainchild of the new UDA chairman, Johari Abdu Ghani who told the UDA board of Directors, the decision as to who are going to develop BBCC, as a fait acompli.  He is reported to have said, that it is a directive from the PM. 
By the way, Johari Abdul Ghani is the person who said he does not need Chinese support. It now seems that promise was just empty brinkmanship. What he meant really was , he does not want the support of the Jinjang Joes, the Jalan Kelang Lama types. He sees no contradiction rubbing shoulders with the likes of Liew Kee Sin, Vincent Tan, Francis Teoh, and more. 

In the Everbright Model- UDA brings in Everbright International as turnkey contractor and divides the property on a 30:70 basis. Everbright comes in with the money and constructs the property and divides them with UDA with the provision that the properties meant for UDA are built first. There are no risks involved as the land which belongs to UDA cannot be charged to 3rd parties.

Under the Ecoworld Model we don’t know. UDA’s 40% is in terms of shares in the JV or in the form of properties constructed?  Does UDA need to come up with 40% of the funding? What is EPF’s role in this- is it performing the role of bankrolling the project and thus is given 20% share? How is Ecoworld chosen when it did not participate in the tender exercise carried out by UDA in September 2013? Why was the tender cancelled and suddenly we have the announcement that Ecoworld is the partner to develop the Pudu Jail Land.

Instead of being the landowner, UDA thinks it is better to have a smaller share- 40%. Give 40% to Ecoworld and 20% to EPF.

Here is the perplexing issue. Last time there were strong objections on plans by UDA to do a JV with a China GLC. It’s Chinese for God sake screamed the Malay-first-groups-  and the Bumiputeras are not called to propose the development.

Last time, during Nurjazlan’s time, UDA was in control of the whole development. It was the land owner and it called in a developer to develop the land. In return it got money upfront which was badly needed since UDA had no money. UDA did not have to come out with any capital- its capital is ownership of the land. In addition it got a number of units. Basically it’s the same when a land owner invites a developer to develop the land. The land owner gets some money upfront and a certain number of units.

So why should UDA depart from this model? What is so special about Ecoworld other than being Najib’s latest favourite developer? Why should it now partner with a pendatang( since all Chinese are pendatangs according to UMNO friendly ISMA and Perkasa). Liew Kee Sin is a Chinese and therefore a pendatang.  The Malay-first groups do not find anything disturbing now that UDA’s partner is a home grown Chinese?

So Najib himself is cavorting with a pendatang and down in the plains the UMNO hillbillies and yobos are shouting themselves coarse deriding the pendatangs. Here comes the boss and he passes instructions to UDA chairman Johari- give it to Ecoworld.

What then is the contribution of Ecoworld? The famed expertise of Lee as an accomplished property man? And what does UDA do- secure only 40% equity by giving up land?  Is UDA’s 40% better than whatever it got had it gone through with the JV with China’s Everbright? Does it get any money upfront? If it doesn’t than the makcik in Jaya Gading- an urban village in Najib’s constituency of Pekan- is smarter. As land owner she gets money and some units. 25%. Ad she has the option to convert some units into much needed cash at any time.

I want to see the Malay-first groups examine the details of the JV. Many of the strict requirements in the earlier aborted JV with China’s Everbright are gone. Where are the interest of bumiputera contracting firms participating in the JV? The requirement to build affordable residential units are said to be removed. Ecoworld is given a free hand to develop the property into the kind Liew Kee Sin is famous for- upscale and million Ringgit property. Malays can only salivate and contain their anger and envy.

Tan Sri Liew Kee Sin who controls Ecoworld will again be reaping huge financial gains after being affirmed as Najib’s private project delivery partner. Already he has been given projects such as redeveloping the land belonging to RRI , land in Cyberjaya and now the land over Pudu Jail.

The question is how has Ecworld been given this project when it dd not participate in the tender in September 2013? Where are the GLCs representing Malay interests side-lined in the opportunity to develop such a strategic piece of land?

These are the questions we want answered:

Why was the tender of September 2013 cancelled? The tender document itself cost RM25,000 and tenderers have to deposit RM1 million as earnest money. As I have said earlier, there was also a provision that companies shortlisted will be required to put up RM10 million as additional earnest money. Who instructed the tender to be aborted? What are the criteria used in selecting Ecowold? Why has Ecoworld been selected in such an opaque process? Why hasn’t other GLCs been considered as potential JV partner?

The most damning question is, has the PM and Finance Minister given the directive to Johari Abdul Ghani to select Ecoworld over others? Ecoworld is owned by Liew Kee Sin, Eddie Leong and the Bumi face- Rashid Manaf.

Now where is the walking stick wielding Tajudiin Rahman who beats his chest in parliament declaring pompously- ini UMNO, ini UMNO lah!. So UMNOlah the Bukit Bintang City Centre.