Blackrock and MAHB. Tales by an unknown Malaysian. No. 14.

1. As an economist, I looked at the black rock-MAHB issue differently. In my mind, black rock shouldn't be faulted for planning or deciding to purchase equity from MAHB.
2. From the perspective of politics, there has been a universal condemnation on black rocks planned or consummated purchase of equity in MAHB
3. Bloggers, vbloggers, politicians have written extensively on this issue.
4. For instance, the blogger, finance tweeter has written an exhaustive and well researched article on black rock. Readers are recommended to read that article. Hishamuddin Rais, a man whom I admired since his UMSU days, have spoken many times on this issue.
5. Politicians of various shades spoke on this. Dr Mahathir the Great has spoken on this .
6. Almost all are united in their condemnation of BR's purchase. Perhaps justifiably so because of BR's umbilical links to Israel. For various reasons including security .
7. Umno is understandably quiet on this issue. Either it doesn't know or because it worships money especially if the money is gotten free or secured through the Najib method. Or unless the buyer is KK Mart.
8. I cannot add any more to these persuasive arguments. I am a 'samdol' from this political perspective.
9. The UMNO and Dr Mahathir s prescription on the MAHB problem is predictable. MAHB should go to Putrajaya , bowl in hand as money from the government to bail it out. That's the UMNO and Dr Mahathir way out .
10. This is where the economist in me disagree with TEM. I will ask the following questions.
11. The basic question is this. Why is it necessary for MAHB to sell an arm and a leg? Why why?
12. To me that means MAHB is a losing concern, a badly and improperly run business.
13. If it lost money because it was badly managed and improperly run, then it deserved to gobroke. If MAHB had gone to Putrajaya and asked nana non to have it bailed out, that would have been unconscionable
14. That would be asking taxpayers to pay for the reasons that caused MAHB to lose money in the first place. Tiu sama lu!
15. As an aside, all government owned companies which lose money shouldn't be allowed to see the finance minister alone. They must appear before a parliamentary financial aid committee to justify their request. The committee must then have the request debated in parliament.
16. You cibais, don't think it's that easy to fleece taxpayers money. By the way, what happened to sapura energy? Has the government bailed them out on the quiet? News about it have been hushed hushed .
17. It's a consolation that MAHB didn't go to Putrajaya and asked nana non to bail it out. Or if did go to putrajaya, the government showed them their 2 fingers .
18. MAHB was incorporated as a private limited company. It's a profit centre, if it makes losses , it deserves to die as per free Enterprise system.
19. MAHB did the next best thing. Go into the market to find parties to buy up equity in MAHB. The found a buyer by the name of black rock.
20. You want money don't u? So why does it matter if black rock has got Israeli pedigree? If you are not happy, ask the 10 richest Malaysian companies to buy up 30-40% equity in MAHB. Out of Uber patriotic reasons.
21. Any incoming investor will want most of the old management team members in MAHB removed, because they were the ones who caused MAHB to lose money in the first place. That would be the right thing to do, what?
22. The Mahathir and the UMNO way of solving the MAHB issue is to have the government bail out MAHB. The media would be screaming, bail it out, it's a bumiputera operated outfit.
23. I don't think the same vigor and agitations would accompany MAHB if it were a company run by Mr poh kee mak or Mr tong Sam pah.
24. I am a Malay too. But I don't suffer nor do I subscribe to the 'melayu Uber alles' mentality .
25. Which is, that the CEO and most of MAHB's management team must mandatorily be malays. If they are no good and competent, they ought to be replaced by other abler and competent malays or even better non Malay Malaysians.
26. Our priority is MAHB not being trapped by the ethnicity claptrap. We, after all don't care whether the cat is black or white, as long as it catches mice .
27. Why do I not care at all if the CEO is not a Malay? Because having a Malay as CEO is no sure recipe for success. He doesn't bring with him a sure guarantee of success more so if he is incompetent.
28. I am fed up of the racial stereotyping, very vigorous when describing non malays, but deliberately leaving out the stereotype description of the malays.
29. The full stereotype phrases should read:- kalau tak membelit bukan India, Klau tak menipu bukan cina, kalau tak rasuah bukan melayu , melayu yang paling rasuah ialah UMNO. Instead of limiting the stereotype description to non malays only .
30. The UMNO and the Mahathir solution to the MAHB issue is predictable. The government MUST bail out MAHB because it's run and operated by bumiputeras, albeit incompetent ones.
31. Prompted by the ' melayu Uber alles' mentality, some people insist that old bumiputera management be retained, refusing to acknowledge that this team was responsible for MAHB's loss in the 1st place.
32. Or if they are replaced, they are replaced by the same privileged and incompetent mofos . Not by abler people
33. Following the old way, the outcome is inevitable. The business will be run by incompetent fools and be mired in corruption. Remember the steriotypical description? Kalau bukan rasuah bukan melayu
34. It's not always good to be always proud of your ethnic lineage! A little humbing and reality check is always in order. What is the word usually used by apologetic liberals? Ah yes, muhasabbah diri!
35. We have to swallow the bitter pill. Whenever a government owned business is led by a Malay hegemonic group, imbued with melayu Uber alles mentality, the business will usually fail. Look at MAS, felda, tabung Haji, felcra, risda, LTAT etc .
36. It has come to the point of incredulity hasn't it? MAHB has a monopoly over its business and yet it failed . It's forced to sell it's equity to raise capital. That reveals a lot about it's top management and MAHB. Its top management is incompetent and MAHB is poorly run.
37. The elements constituting its stature as a poorly run company are possibly many. Incompetent top management, profligate spending ( MAHB could have its own panamera brigade) bad investments and hear this, rampant corruption. At the back of top management's mind, it's spend baby spend. Not enough can always ask nana non.
38. Let's not be maniacally vociferous about black rock , let's also be the same about the causes forcing MAHB to sell its equity.
39. In the end , if you don't manage money, manpower, business strategies, you will be forced to sell your Birkin handbag .