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Sakmongkol ak 47

Wednesday 28 December 2016

Felda Settlers' Fight is our Fight too

FELDA was formed in 1956. It’s an experienced player in the palm oil industry. It has the knowledge how to conduct business. Such as taking over a company or buying stakes in an ongoing business.
The usual practice when taking over a company is to put a price on it and that is usually done by analysing its share value as quoted on the stock exchange. That was how FGV bought over the 51% share in FHB.  As to the share value of Eagle High, this has been talked about by others.
It is the contention of the general public, that if share value is used, Felda could have bought at a cheaper price or with the same money acquire a bigger proportion of the outstanding shares and even negotiate for controlling interests. As it is, Felda is actually lending money to Peter Sondakh.
The question now, why should an experienced player like FELDA abandon its well honed skills and  opt to use enterprise value? If so, why wasn’t this new found miracle method used in buying out KPF? KPF would have gotten a much higher price than it did. It was selling off 51% of the shares then.  
There’s a Malay saying on this. The monkey in the forest you breastfeed, the child at home starves. Eagle High is the monkey you breastfeed, KPF the child, you starve.
The felda settlers must fight for their rights taken away from them- their economic rights represented by the investment arm- Koperasi Pemodalan Felda. It receives income and reinvests it. It is their investment arm. From the streams of income, KPF was able to give out dividends, on average in the teens of percent. ( 15-18% pa). That is now gone. The right to livelihood must be defended.
Something was stolen from them. That is the injustice of it.
Secondly, it’s the institution of felda itself- set up in 1956 to provide, expand and protect the interests of settlers. This entails protecting what was given by state governments to Felda which, without settlers would not be given land for example, grants, and other facilities it received. This means, there is an integral link between settlers and felda. What hurts felda, hurts the settlers too.When FELDA is plundered, setllers are raped.
The link must be jealously guarded. Now, the institution is snatched away from them because some people want to restructure felda to become a vehicle making money for themselves and abandon the settlers.
As to the felda settler as an individual, he should not be treated in any special manner. He now lives under the same regiment as before. He harvests the land, sells the products to felda mills now taken over by FGV. The same regiment and the same arrangement. Except now he sells to mills owned by FGV , using lorries owned by FGV and sell at a price negated with FGV based on extraction rate of FFB. The extraction rate is the business between the seller and buyer. Just like before. If there are disputes, bring them to court.
So, lets be clear, the settler’s individual lot is not the focus of this fight- the individual lot like that of others outside felda, is fought under the general right for justice, good government, rule of law, democracy etc.It is a common fight which Felda settlers must join.
Setllers must support the fight for these as common citizens facing the same general predicament.  What is being done to Felda and KPF is because we have allowed a kleptocrat to rule Malaysia and violate the trust given him, abuse the power we entrusted him and defy the freedom we gave him.He has freedom to manage the country as he sees fit, but must realise the limits imposed. Even our Monarchy is a constitutional monarchy.
As to felda. the focus of this fight is grounded on;(a) the injustice of having a source of income stolen from them- KPF and the rights enjoyed by KPF previously, (b) the rape and dismembering of Felda the institution.
The FELDA settlers should now realise- no one wants to look after you. You are solely responsible over your destiny. You use social organisations, groups, government, to achieve collective aims which are not possible if pursued alone. Now that the government is against, victimizing you, you must align with political parties, NGOs and groups challenging the government of kleptocrat Najib.
The FELDA settler is responsible for his own lot and that is how he should be thinking. It’s by his own efforts alone, that he rises from the common crowd. He still is among the crowd, but he must have an uncommon way of thinking.
He has nothing to do with the listing of FGV because either as an individual or group, they don’t own a single share in FGV such that, what happens to FGV, either making money or losses is not their business.
But they have an indirect interest when the investment arm which they own- 220,000 of settlers, family members and FELDA employees are members of KPF. KPF is their enterprise- its being short-changed and arm twisted into giving up its share in FELDA Holdings.  Something belonging to you is stolen.
We join you in the fight to correct this injustice.  That was unconscionable. It deserves to be opposed. It remains a thorn in the flesh.
KPF- koperasi permodalan FELDA, the investment arm of FELDA settlers was removed from being a share holder in FELDA Holdings. The entire 51% share in FELDA Holdings was transferred to FGV. It was given a paltry sum of RM2.2 billion. How was this figure arrived then? Did KPF employ an independent assessor? Was enterprise value per hectare used at all? The representatives of the settlers who put up their hands in support for the transfer of share of FGV must be cursing themselves now. They are the real haramjadahs.
FGV went to to be listed earning almost RM10 billion from the initial public offering. KPF got nothing but RM2.2 billion from the transfer of its 51% in FELDA Holdings before listing. After listing not only it has lost the 51%, the 37% share promised to it in FGV also disappeared. Suddenly an entity called FELDA Asset Management Holding was put in place to manage the interests of FELDA settlers. But it got nothing near 37%. As at August 2016, FAHC share was 12.42%.  Koperasi Permodalan FELDA is registered as owner of 211 million shares which is equivalent to 5.89%.  if you combine KPF and FAHC’s share- it is only around 18%.
Where’s the fabled 37% promised to KPF? The 211 million shares are now worth RM337.6 million. AtRM4.55 the value was RM960 million. It has suffered a paper loss of RM622 million.
In order to understand how FELDA get itself into the present mess, we have to start from the beginning.
That will be the next chapter...


Tuesday 27 December 2016

Buying Eagle High Plantations

FELDA has got this habit of talking big. It says the purchase of EHP at RM2.3 billion will not affect its commitment to look out for the welfare of settlers. 
Maybe so, but how will they do that? By just , as the Malays say- just do the teeth and tongue thing?  Gigi dengan lidah means just talk for the sake of winning the current argument. 
Up to now, we have not received or seen the year ending 2015 accounts of FELDA. And 2016 is almost over. It’s late by 1 year. It made losses as at end 2013 and 2014. So how will FELDA back up its big talk?
I am suggesting a more sinister plot which involves of course the MO1. Maybe it was he who set up eagle high together with friend Peter Sondakh. That was when he met Peter in 2014.
The initial seed money may have come from the loan from KWAP- RM4 billion where already RM400 million was used. We know this amount has been used. It was answered in parliament. 
Up to today, the government cannot explain how the loan of RM4 billion was applied and where the fund was appointed to.
It’s a nice story to build up. We actually don’t know.
So how will FELDA finance the purchase? It has no money. The income from its linkage with FGV is not coming because FGV is making losses. I hope they still get paid rental of RM250 million a year. If they haven’t spent the rental income, by now, they would have RM1 billion cash. But the year ending 2013 and 2014, did not suggest they have that amount of money.
So either, the balance from the RM4 billion will now be directed to acquire the 37% in EHP or FELDA will issue debt instruments. The later business model- described as fucked up by Johari  Ghani, Finance Minister # 2, is a favoured method by the PM. Felda will need to borrow more than RM2.3 billion. The government will agree to the issuance of bonds, giving them the government grantee needed.
Why do they need to borrow more than RM2.3 billion? Because it’s buying into a company with only 125,000 hectares of land planted. It still has to develop the balance 195,000 hectares. The cost of planting  a greenfield till production is around RM15,000 per hectare. Assuming FELDA’ share is RM5500 per hectare, Felda will have to put up RM 1 billion at the very least.
This is a bloody expensive piece of real estate to buy. Real estate, because FELDA is using a SPV- FIC Properties Sdn Bhd to buy RHP. 
But the PM must have it. If he does that, he cannot dismiss the suspicions that this is a purchase at an inflated price by at least 30%. The inflated portion will come in handy to buy votes in the GE14 said to take place in October or November 2017.  


Drama in the Sky- Felda buys Eagle High

Let the Felda settlers realised, they have been screwed. Felda set up by Tun Razak in 1956 is now plundered by the son. Najib promised manna from heaven to felda settlers when it is now raining brimstone from hell. No bonanza and no windfall.
It can buy a  a 37% stake in Eagle High Plantations but it cannot take care of the welfare of settlers who have been accustomed since 1956, being looked after by patronizing felda. Now Felda is abandoning its children and rushing to take care of Najib’s friend.
When I asked in parliament where has the money borrowed by SRC from KWAP- that elusive RM4 gone to- the answer came we have only spent RM400 million. Maybe that RM400 million has gone to pay the down payment in peter sondakh’s plantation and paid into buying a stake in the plantation. 
And maybe , its now convenient to redirect the flow of the balance into buying whatever stake in Eagle High and some into somebody’s private account. It is acceptable to just declare, we don’t know the money came into our private account nowadays.
Settlers should realise that Felda looks out after its own interest first. It looks out after the interest of its masters and its ultimate master- the PM of Malaysia, aka MO1, the embezzler in chief. Everyone in the world recognised Najib as one of the most corrupt leader in the world except the Malays in Malaysia. Well, at least the majority of UMNO Malays- the man who is placed there by God, who can do no wrong, is one of us, a fellow Malay and a fellow Muslim. Malay/Muslim above everything else.
That same sentiment was once displayed proudly by a race clad in brown shirts carrying Swastika flags.  Heil MO1!
Was it designed to give Malaysians a sense of comfort that now it is felda and not that going down down FGV that is now buying the 37% stake in Peter Sondakh’s Eagle High Plantations? Felda says triumphantly it is buying the stake at USD505m much cheaper than when FGVH wanted to buy it at USD680m.
But by not much. When the sale was USD680, our exchange rate was probably RM3.50 to the USD making the value at RM2.4 billion. Now our exchange rate is RM4.4 to the USD making the price at RM2.2 billion. A mere saving of RM200milion. It is no big deal which probably only involves Peter Sondakh to cancel the planned purchase of one private jet from the original 5 ordered.
Where is Felda getting the money to buy the 37% stake? By now, Malaysian should be wary and suspicious whenever MO1 announces to buy anything. Please don’t forget that he is ultimately the master of Felda and FGV. You people spoiled my idea to buy eagle high through FVH, I can buy it through Felda. That seems to be his attitude.
Does the reduced price give us comfort? It does not because it’s still a high price to pay for a 37% stake with no voting power. It’s like putting money into a friend’s distressed company. The share price for Eagle High just last month, in November 2016 was 212 rupiah. Felda is paying 580 rupiah per share.
Felda quickly came out with a disingenuous answer saying, they are evaluating the purchase price on the basis of enterprise value per hectare. This is like pissing on us. Felda comes out with a more refined term- urinating, relieving, etc. It is still pissing on us. 
The share price may not reflect the true value of the company. why is Felda siding with Peter Sondkah?
I thought, sound economics means we are always looking to buy at a cheaper price instead of looking at reasons to buy at higher price. Why does felda want to do this?
Its a stupid answer.  when you can buy at a cheaper price based on the share price, you are putting up more money to buy at some fiction price. What economics is this? At the price of 580 rupiah per share, the price which ought to be RM826million becomes Rm2.3 billion. How do you explain for the difference? Under the current climate of leaders stealing money, there is a strong suspicion the difference in purchase value is going into some people’s private account.
What is enterprise value? It means and suggest that, we put up a price we fancy and come out with an explanation later. Are we so hard up to get a 37% share of Peter Sondakh’s eagle high plantations? At the current share price, if felda is willing to spend a bit more , it can acquire 90% of the business, noting that we need to have an Indonesian partner in that country.


Monday 26 December 2016

FELDA Beli Eagle High boleh, bantu peneroka dilengah lengahkan

Banyak isiu felda dan peneroka hari ini. FGV rugi dan terus rugi. Ada rasa bangga mengatakan kerugian suku tahun ini kurang dari kerugian suku tahun dahulu. Memang rasionalisasi orang kecundang demikian.
Mereka mengaitkan prestasi ini dengan kelembapan ekonomi diseluruh dunia. Tapi ada beberapa bisness perladangan  lain yang berdepan dengan iklim ekonomi yang sama, tidak pula mengalami kerugian seperti FGV. Maka janganlah FGV mempersendakan intelijens kita.
Saya tidak hendak memukul keliling semak- apa berlaku pada felda atau FGV ialah dengan kehendak najib tun Razak. 90% FGV dikuasai oleh kerajaan.
Orang lupa bahawa Felda itu 100% milik kerajaan dan kerajaan melalui semua pemegang saham FGV, menguasai FGV 90%. Bolehkah apa2 yang dilakukan oleh FGV dilakukan tanpa kebenaran Najib?
Kerugian FGV ialah kerana mutu pengurusan nya; pelaburan yang merugikan serta penyelewengan yang berlaku keatas reseb tunai .  ia ada pelaburan yang merugikan. Ia melakukan pembelian bisness dan hartanah yang menyebabkan reseb tunai makin menurun.
Garis pemisah antara Felda dan FGV sangat nipis. Felda dan FGV hampir 90% milik kerajaan Malaysia. 10% sahaja dimiliki oleh warga asing. Tidak berguna kita bercakap mengenai felda dan FGV seolah olah ianya entity yang berlainan. Kesemua keputusan dibuat oleh kerajaan Malaysia dan bila sebut kerajaan Malaysia, keputusan dibuat oleh PM.
Maka jangan lah kita menipu diri sendiri- bila felda dan bukan FGV yang mahu beli 37% saham dalam syarikat Peter Sondakh, ia berlaku kerana PM mahukan ia berlaku demikian.
Disini akan mula masaalah kpada kta. Kita tahu bisiness model Najib. Ianya 1MDB sekali lagi.
Felda pula mengistiharkan akan beli 37% dari Eagle High Plantations dengan harga RM2.3 billion. Ini camera trick sahaja- selepas FGV kensel pembelian, Felda pula yang mengambil alih. Mengapakah ladang Peter Sondakh ini terlalu penting dan mesti dibeli seolah olah nya, kalau tidak beli, dunia akan kiamat?
Memang benar pembelian ini akan memberi akses kepada Felda kepada tanah yang belum ditanam dan akan membaiki profile umur pokok sawit yang mereka ada, tapi untuk membuka ladang baru akan menelan belanja yang banyak juga.
Jadi saya tidak fikir Felda akan pinjam RM2.3 billion sahaja. Mesti pinjam lebih. Kita berputar kembali kepada business model membangunkan perniagaan dengan menerbitkan debt instruments.
Felda menyatakan ia tidak menggunakan wang felda. Ia tidak ada duit, jadi bagaimana membiayai pembelian Eagle High? Apa maksudnya ini? Adakah felda akan berhutang dan meminjam? Kita sudah pun ada contoh satu bisnes yang dibangunkan diatas hutang. Ianya telah gagal dan hanya memberi peluang kepada beberapa orang merompak wang dari 1MDB.
Jadi bagaimana Felda membiayai pembelian ini? Bukankah ia memperolehi hampir RM10 billion dalam tahun 2012? Dan tentu ia mendapat pulangan keatas pelaburan2 yang dibuat oleh pengurus2 felda yang bergeliga otak mereka itu.
Tapi kita juga tahu, Felda berhutang dengan EPF sebanyak RM6.5 billion. Kos faedah bayaran hutang felda akan bertambah. Dan ini akan mengurangkan reseb tunai nya.
Setakat ini kita tahu sumber pendapatan Felda ialah pelaburan nya. Ia tidak lagi meraih pulangan dari ladang kerana ladang seluas 360,000 hektar tersebut sudah dipajak kepada FGV salama 99 tahun dengan bayaran pajak RM250,000 setahun. Iaitu, pendapatan nya sebanyak RM250juta setahun dan 15% kongsian untung operasi dari bisnes ladang FGV.Pulangan dari pelaburan lain semua nya teruk.
Obligasi keatas peneroka felda masih tinggi. Dengan memindahkan sebahagian tanggung jawab mengendalikan bisness kepada FGV, mungkin Felda hanya memerlukan RM1 billion setahun untuk mengurus peneroka dan bisness nya sendiri. Dahulu ia memerlukan secara purata RM1.7 billion setahun. 
Dengan pendapatan sekitar RM500-600 juta, setiap tahun ada defisit. FGV mengambil alih 30-40% kos bisnes felda. Jadi jika dahulu Felda memerlukan RM1.7 – RM2 bilion dana untuk mentadbir dan mengurus Felda, kali ini, mereka dapat jimat dalam RM680-800juta setahun. Tapi ia masih memerlukan sekitar RM1 bilion setahun dan dengan pendapatan RM500-600 juta setahun, masih ada deficit sekitar RM400 juta setahun.
Dari mana Felda mahu menampung deficit ini? Jika sekarang ia pemilik 37% Eagle High, pulangannya  setakat 37% keuntungan. Ia masih bergantung kepada kecekapan menjalankan bisness oleh Eagle High dan dengan tiada kuasa pengurusan Eagle high. Bolehkah 37% pegangan dalam eagle high memberi pendapatan paling tidak RM500 juta setahun?
Dengan penuh harapan menggunung, pengurusan felda dengan segera menyatakan, pembelian ini akan meletakkan felda ditempat yang stratejik. Mengapakah kita tidak yakin dengan kenyataan ini?
Kehidupan dibawah sinar FGV tidaklah menyuburkan badan. Peneroka yang menghantar BTB ke kilang2 FGV lambat mendapat pembayaran; kontraktor pengangkutan tidak dibayar segera. Peneroka dapat pendahuluan sara hidup( hutang) sekitar RM1500 sebulan. Ini bukan durian runtuh kepada peneroka. Wang durian runtuh RM15,000 satu keluarga dahulu sudah habis. Duit untuk tanam semula tidak mencukupi.
Kenapa felda memilih untuk beli ladang peter sondakh kawan Najib tapi tidak mahu bantu peneroka? Felda masih bertanggung jawab keatas si peneroka  sebab mereka dapat sewa RM250juta setahun dan 15% dari untung operasi dari bisnes perladangan FGV. Jika mereka ada duit RM2.3 billion, selamatkan peneroka dahulu. Beri mereka sara hidup lebih dari RM1500 sebulan.


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