Pak Lah

Pak Lah and his cronies screwed us again!

ECM Libra FInancial Group Berhad has a stake in Pos Malaysia Berhad (PMB) through it’s acquisition of Avenue Capital Resources in 2006. That deal left a bitter taste in the mouths of those knowledgeable in the financial world as it was a clear case of insider’s trading. Note that Khairy Jamaluddin was a Director of Investment in ECM Libra in 2004 before he tendered his resignation after this infamous debacle. However, Pak Lah’s closest crony, Dato’ Seri Kalimullah is currently the Chairman and Chief Executive Officer of ECM Libra.

Recently, PMB was given the job of giving out the cash rebates to replace of fuel subsidy. It is quite odd on why JPJ was not given this role but instead it was given to a postal service company. Instead of the more efficient and more relevant job function of the JPJ, these cash handouts responsibility were thrusted into the already mountainous variety of services PMB had to handle. The only defence that Pak Lah might see the appropriateness of this move is the many branches of post offices nationwide which the public can easily have access.

But now, let’s see how Pak Lah and his cronies get extra money out of this purportedly ‘for the rakyat’ act of selflessness.

For every transaction, PMB will get 10 sen commission on every RM10 of that RM625 and RM150 (for cars and motorcycles respectively). That means, for every transaction, PMB will get RM6.25 for cars and RM1.50 for motorcycles in the form of transaction fees.

There is about 11 million cars and 8 million motorcycles in this country at the moment. Let’s do the math :

RM6.25 x 11 millions = RM68.8 million (for cars)

RM1.50 x 8 millions = RM12 million (for motorcycles)

A cool total of RM81 million for the whole exercise per year. Even if we use pareto principle and apply the 80/20 ratio, RM65 million (80% out of RM82 million) would still fall in their hands. And this does not include the commission from RM200 subsidy to be given to each fishermen in the country!

With RM117 million already paid out during the first day, I wonder how much PMB will collect by March 2009. This role was given to PMB and not JPJ because PMB is a public listed company (read: profit oriented) while JPJ is government owned entity (read : no cost to public). It’s even funnier that those who own cars 2,000cc and above were told to claim their RM200 rebate from the JPJ, not PMB. Why is this? Well, there are not many people with cars above 2,000cc in Malaysia anyway. And JPJ do not impose any fees.

This cunning way of trying to ‘help’ the poor while at the same time enriching one self is very much prevalent in Pak Lah’s administration. What’s worse, they are emptying the nation’s coffers (from the Treasury) in the form of cash rebates and transfer a percentage of it into their own pockets (through fees paid into PMB and ultimately into ECM’s bank accounts).

And that my friends is how the poor get screwed to help the rich get even richer! (Orang kaya menjadi bertambah kaya kerana orang miskin).

These poor people did not realize that they had helped finance Pak Lah’s cronies indirectly

19 thoughts on “Pak Lah and his cronies screwed us again!

  1. I can’t understand the gomen logic… I am amazed at their audacity to profiteering at the expense of the rakyat suffering. Truly this government is cruel.

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  2. JMD,

    I need to ask: Am I right that the total value of those rebates( for cars under 2000cc and motorbikes ) is roughly 8billion?

    Now, if the 8 billion cash rebates is to help the rakyat deal with the increase in fuel prices, wouldnt it have made more sense if the 8billion was used to subsidize the price of petrol instead and avoid the need for such a steep increase? To me 8billion ringgit sounds like alot of money—maybe not enuf to maintained the price at the previous1.93per litter but couldnt such an amount be enuf to avoid the need for such a drastic increase to the current 2.70level ?

    Additionally, wouldn’t using the 8billion to subsidize our petrol prices be more effective in mitigating the effects of inflation compared to the handing out cash rebates? After all, one of the most insidious effect of rising petrol prices is the effect it has on raising the price of everything else–and wouldnt inflation hurt the poor most?

    JMD, i am not an economist so i need to ask: am i missing something here or are my questions legitimate?

    JMD : Yes your questions are valid. But highly unlikely that Pak Lah has the answers.

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  3. Morning JMD,

    That photo was the one I was referring to in my earlier posting on 15th June. I was saddened to the fact that they were being fooled but didn’t know up to that extend. Are you sure of this, maybe it ‘s mere coincidence. By the way did you attend the WEF yesterday? The arrogant PM had made a crucial statement regarding the date of tranferring his power to Najib. He is so thick skin, this man.
    May Allah SWT forgive me for saying this.

    JMD : Yes thanks for highlighting me about the picture. No I did not attend the function as I doubt there would be any concrete breakthroughs.

    Thanks.

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  4. JMD~

    Even if I do not have interest in Pos Malaysia, I will not let JPJ do it.

    How many branches are there ? Even on normal days, I visited JPJ and the people in there are just ….

    With the rebate exercise comes in.. you will need to tear gas and water cannon down the the vehicle owners using FRU-lah.

    on the RM200, I felt that we probably do not even need to rebate them at all. If they can drive such big car, RM200 is just a sneeze in the drain, probably not even half the lunch expense of our oversized diabetic and heart disease wannbe Tuan-tuan Yang Berhormat and their cohorts .

    RM200 better off given to Paddy farmer instead or fishermen that catch out fish.
    🙂
    Woody.

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  5. JMD~

    Actually, in the past, government forced the oil company to sell low . Government compensate oil company between the selling price (to us consumer) and open market price.

    Now government allows oil company to float the oil price close to market price.Government pay less to oil company, Then compensate the consumer selectively. That is the rationale for this round of exercise.

    However, the channel it selected to rebate normal people does raise a few eyebrow like JMD suggested, a bit of hush-hush too. JPJ would have been a better candidate to handle it as it is part of civil service sector. But you pay a visit to JPJ and see the daily crowd there, let alone ask the JPJ to handle the rebate. They can’t even handle express buses well enough (that killed many, 2 accidents just as last week alone), can you trust them with your $$$.

    Postal in many countries are still part of civil sector. Just that ours in the hand of some private owner. You know who-lah

    Thanks JMD..

    Woody.

    JMD : That is why they must do away with these commission fees. This would silence any critics (myself included🙂 ) and Pak Lah would at least regain some tiny bit of credibility.

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  6. Pak Lah will screw us again and again, that’s for sure.
    JMD,
    any of the people in malaysia have a solution to stop this once and for all? Like using strike/mogok that UMNO was using against british in 1946.
    the common people has to do something that will set a chain reaction and disable Pak Lah government once and for all.

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  7. inilah dia kepandaian orang yang cerdik pandai, belajar ke luar negeri bercampur dengan orang putih,ada kuasa memerintah negara, ada kuasa menentukan keputusan negara, demi meraih keuntungan kroni-kroni sanggup menghabiskan wang rakyat dan cukai rakyat .bagaimanapun oleh kerana pemimpin ini orang melayu, diharap hasil keuntungan itu salurkanlah sebahagiannya kepada orang melayu terutama dalam bidang pelajaran pelajar melayu luar bandar (kampong-kampong dan masyarakat felda).kekuatan umno masih utoh dan kekal dari tangan pengundi-pengundi melayu luar bandar.harap PakLah/Khairi atau lain-lain pemimpin Melayu sedarlah dan insaflah serta muhasabah diri kepada Allah bahawa semua baik-buruk dan rezeki adalah dariNya.Jika tidak , bencana yang maha dahsyat akan menimpa negara dan rakyat kecuali hari kiamat.

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  8. Production kos untuk Petroleum sebenarnya sekitar USD20 usd per barrel…Itu bersamaan dengan RM0.60 seliter .. kalau ambik sekali dengan kos-kos keuntungan dan sebagainya sebanyak 70% sekali pun harga minyak petrol hanya patut naik sehingga RM1.50 paling tinggi pun…

    Off course kalau kita ambik kos minyak dunia memangla kalau kita beli kat Pasaran terbuka harganya = USD100++, tapi kalau ambik nilai production yang betul-betul at the pump, harga nya sekitar USD20 sahaja..

    Berdasarkan perkiraan aku, harga petrol kat Malaysia masih lagi boleh dijual dibawah harga RM2.70 seliter…Malah boleh dijual dibawah RM2.00 seliter dan masih untung, kalau ade inisiatif yang benar-benar ikhlas oleh kerajaan..

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  9. It shows that the average Malaysians are dumb stupid with simple math. Say the daily increase of petrol usage is RM 4 x 365 days a years = RM 1460 a year, while they are paid ONLY RM 625 but still smile and cheer. And in my case 4 return trips to Kelantan has already caused RM 600.
    It is a jewish thing, as there is as saying, these jews even they stab you, but still you would want say thank you.

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  10. JMD, enjoy your writings. Especially on this one.

    However, I think it’s all a bit of speculation isn’t it? And possibly based on false facts anyway (see comment by NoktahHitam), which may mislead the public even more than what the government is doing.

    And on another note, is there a better mechanism for giving out the rebate? My own experience with JPJ has been disappointing.

    To the rakyat, all they want is the RM625 quick and easy. If it means somebody else profits from it…well, so be it.

    So the real question is…why the rebate in the 1st place? Total cost of rebate plus administrative hassle plus other things could actually be equivalent to the savings from subsidy cut.

    Tsk tsk.

    Anyway, do pay a visit to a grass-root weblog at

    http://umnodu.blogspot.com

    Supporters of opposition are definitely welcomed.

    Wasalam

    JMD : Well even if we follow NoktahHitam’s statement and discard my source of reference, then who is the Chairman of Khazanah Nasional? The main issue here is , why charge fees? And is the RM625 enough for the ordinary people. And I agree with your observation that total cost of rebate is near equivalent to subsidy saved. The govt is being ‘penny wise, pound foolish’. Here is the calculation I deduced:

    1. Penggunaan petrol in 2007 = 11 bilion liter.
    2. Penggunaan diesel in 2007 = 6.2 bilion liter.
    3. Anggaran subsidi petrol, 2008 = RM3.3 bilion.
    4. Anggaran subsidi diesel, 2008 = RM1.8 bilion.
    5. Jumlah kereta <2,000 cc, 2007 = 10.7 juta.
    6. Jumlah motorsikal, 2007 = 7.9 juta.
    7. Anggaran bayaran tunai kepada pemilik kereta, 2008 = RM6.69 bilion.
    8. Anggaran bayaran tunai kepada pemilik motosikal (<250 cc), 2008
    = RM1.18 bilion.
    9. Anggaran subsidi gas kepada sektor elektrik dan industri, 2008 = RM23.4 bilion.
    10. Anggaran subsidi oleh Petronas, 2008 (no 3+4+7+8+9) = RM36.37 bilion; hampir RM40 bilion subsidi yang dibayar untuk petrol dan disel sebelum ini.
    11. RM36.37 bilion TIDAK termasuk lagi subsidi kepada nelayan dan bayaran tunai bagi ikan yang ditangkap.
    12. Jadi tidakkah kerajaan dilihat sebagai ‘penny wise, pound foolish?’

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  11. Salam Jebat,
    Just curious with the authencity of the story. Perhaps you can enlighten me a little bit ok? I have just check out PMB annual report and I can’t found Avenue nor ECM as one of it’s share holder.
    Main share holders were Khazanah Nasional (32%), EPF and several other big companies but not Avenue nor ECM. Thank You.

    JMD : In 2001, I was partly involved (as consultant) in the reverse takeover of PhileoAllied into Pos Malaysia Berhad. That was an effort to privatise Pos Malaysia. As I remembered, PhileoAllied took control of PMB while at the same time, Khazanah bought some percentage into PhileoAllied’s ownership. PhileoAllied then changed its name to Pos Malaysia and Services Holding Berhad.

    Avenue Assets bought over the holding company of the former PhileoAllied in 2002 and in 2006, ECMLibra bought over Avenue Assets.

    http://findarticles.com/p/articles/mi_hb5556/is_200108/ai_n21956602

    Please refer to Pos Malaysia and Services Holding Berhad annual report in 2002 as well.

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  12. Saudara,

    TQ for an interesting post to aid citizenry thinking.

    May I publish an extract of your post in my website
    http://mylivingwall.com and direct my readers to read your full post.

    fyi, we publish selected blog posts of the day to help give multi perspective viewpoints to our readers.

    We are also setting up a bloggers directory for our readers’ ease of reference.

    Thank you.

    mylivingwall.com

    JMD : Thank you. Good luck and happy blogging!

    Like

  13. Aveneu Asset had substantial sharesin Pos M.

    Prior to the rape by ECM Libra, Avenue undergone a capital restructuring which gaveaway PosM shares it held to the Avenue shareholders and remove the goodwill from Avenue’s account (making it cheaper from the rapist to tkeover).

    At the same time, Pos had a crossholding with Avenue, so in effect Pos has some shares in ECM Libra Avenue but not the other way around.

    Don’t KJ had enough to answer already?

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  14. Avenue was a pretty well run company. LIke all these nationalization process, good people gets kicked around . Look at Sime Darby now. Some other plantations were doing better in yield per acre and creates a competion to out do each other. Since last years merger, i do not see this data being published anymore. Who wants to bet with me that the yield per acre has fallen?

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