1MDB’s response to former Deputy Prime Minister is misleading

We just couldn’t believe the level of absurdity 1MDB had subjected the people with its response to Tan Sri Muhyiddin Yassin just now.

The fact that they had the audacity in hoping that the people are dumb enough to believe them shows how desperate they have become.

Below is their response to Tan Sri Muhyiddin Yassin’s press release. Our comments in blue:

1MDB notes the press release issued yesterday by Tan Sri Muhyiddin Yassin. The characterisation of 1MDB as a “debt-laden company” is misleading, as Tan Sri Muhyiddin, a former Cabinet member, knows full well that the value of 1MDB’s assets exceeds its debt.

If people googled “1MDB debt-laden”, they will find numerous business articles about how 1MDB is swamped with debt which they are unable to settle on time. If you can’t even pay your finance costs totalling about RM2.4 billion per year, surely your ‘assets’ means nothing regardless if it exceeds your debt. The important thing is, the government had to fork out RM950 million in standby credit for you and you had to beg a foreign company to give another USD1 billion just to service your debts. Back in 2014, you even begged the banks to extend the payment deadlines a couple of times.

All this makes you debt-laden. It is you who tried to mislead the public by saying you are not debt-laden eventhough all evidence pointed out that you are. Your gearing is so high, your cashflow failed you. Please get a dictionary to know the meaning of ‘laden’.

This fact is reinforced by the significant value indicated by local and international investors for the ongoing sale of equity in Edra Energy and Bandar Malaysia.

The fact that you have to be broken up into separate entities and have to sell the assets you had heftily required just to alleviate your worsening financial situation reinforces the reality that you are indeed a debt-laden and problematic investment company.

As a Cabinet member when 1MDB was formed, Tan Sri Muhyiddin is fully aware of 1MDB’s capital structure. With RM1 million in equity from its shareholder, the Ministry of Finance, 1MDB raised capital on the markets – which is the debt on the company’s accounts.‎ Many businesses, both in Malaysia and abroad, have used debt to successfully build their asset base. In 1MDB’s case, from RM 1 million equity, total group shareholder equity of RM1.7 billion was generated as of 31 March 2014.

Many businesses around the world are perplexed as to how a RM1 million company could haphazardly tried to amass RM42 billion worth of debts. That is like a person with just RM1 went on to borrow RM42,000. Indeed, being idealistic is an understatement. It is bordering lunacy. On top of that, you then could not service the interests. What you fail to tell the public is that by 31 March 2014 you incurred a loss of more than RM600 million. Can we know what is the loss for 31st March 2015? We can’t because you are repeatedly late in submitting your yearly audited accounts.

Notwithstanding the subsequent and ongoing challenges, which are well documented and acknowledged, 1MDB remains confident of generating surplus value as we progress with the rationalisation plan.

What good is an equity surplus when you can’t even service your debt? Experiencing repeated losses will eat up your equity eventually. Hence, you will not have enough cash to pay your debts and fund your operations. You were behaving irrationally in your business which in the end, as disaster looms, you need a debt rationalisation plan to undo your nonsensical business model. If the people did not make enough noise in 2015, you might trudge on and drag Malaysia into a financial abyss.

1MDB regrets that, despite repeated clarifications, certain current and former politicians continue to issue half-truths about the company. It is now clear that this is part of a deliberate and politically motivated attack, to ‎sabotage not only our previously planned energy IPO but the ongoing implementation of our rationalisation plan.

The one that being political is 1MDB. Constantly behaving like a politician in trying to give misleading explanation, half-truths and covering up your mistakes. For instance, your IPO was planned to take off in 2014 but was delayed several times long before ‘certain current and former politicians’ had begun to criticise you. The failure to list Edra Energy was entirely your fault. You yourself sabotaged your business model with your own absurdity.

Despite this, 1MDB and our 100% ultimate shareholder, the Government of Malaysia, are fully committed to executing the plan, as presented to Cabinet on 29 May 2015.

Out of several points the former deputy prime minister had said about 1MDB in his press release, you are only harping about the word ‘debt-laden’. Even then you failed in trying to disprove it. But it is good you have recognised that your 100% owner is the Government of Malaysia thus, you are ultimately answerable to the people. The people can ask you questions or call your bluff. And what is more important is to know who was responsible for the financial fiasco that had costs taxpayers billions in standby credit and losses. In the end it is the people who had to bear the cost of this rationalisation plan. Therefore coming back to the accusation that the former deputy prime minister had been misleading; who is it now that was trying to mislead who? If only 1MDB had been honest in conveying the truth, accepting criticisms and their failures, and at least have an ounce of accountability towards the public, then we wouldn’t have this huge ‘trust deficit’.

Thank you.

You might also want to read:

1) AGC confirms binned two Bank Negara requests for action in 1MDB case

2) Akaun 1MDB Tangguh 6 Bulan – Apasaja Berkaitan 1MDB Mesti Ada Tangguh-Tangguh!

3) Sue them all for 1MDB defamation, Tee Keat tells Najib after court threat against Liong Sik

4) Top debater slams PM as a ‘national disgrace’


#1mdb, #malaysian-corporate-matters

Isu derma RM2,600 juta makin lama makin merepek

Ya, sememangnya makin lama makin merepek alasan alasan yang diberi oleh mereka yang bertungkus lumus untuk mempertahankan kewajaran Najib Tun Razak menerima RM2,600 juta ke dalam akaun peribadi beliau di dalam tahun 2013.

Ada yang berkata ianya untuk keperluan pilihanraya, ada yang berkata ianya adalah derma dari penyokong Umno, ada yang berkata ianya derma dari negara yang dianggap sebagai abang angkat (brotherly nation), ada yang berkata ianya duit sebagai tanda terima kasih kerana melawan ISIS (pertubuhan pengganas dari Timur Tengah) dan ada yang berkata ianya untuk melawan pengaruh Yahudi dan DAP.

Saksikanlah betapa berubah-ubahnya cerita mereka dari permulaan kisah di mana pada mulanya mereka tidak mengaku ada wang yang dimasukkan ke dalam akaun peribadi perdana menteri! Inilah padah jika bercakap tidak berdasarkan fakta dan kebenaran.

Hanya yang tertelan pil bodoh sahaja yang akan mempercayai alasan alasan tersebut.

Dan yang terkini, ianya adalah kerana rakyat Malaysia mengamalkan mazhab Ahli Sunnah Wal Jamaah!

Timbalan Perdana Menteri berkata:

“Saya sahkan derma itu dari Asia Barat sebab saya lihat dokumen itu dan berjumpa ketua pegawai pelaburan kepada penderma dan trustee (pemegang amanah) kewangan keluarga penderma itu. Saya tanya kenapa AS$700 juta didermakan kepada Malaysia.

Perlu diingatkan kepada beliau bahawa Malaysia tidak mendapat satu sen pun dari derma tersebut. Najib Tun Razak yang terima di dalam akaun peribadi. Adakah akaun perbendaharaan Malaysia yang mendapat RM2,600 juta tersebut atau pun akaun peribadi perdana menteri?

“Saya tanya kenapa perlu dibantu UMNO dan Barisan Nasional (BN). Dia bagi tiga alasan iaitu pertama, kerana Malaysia cukup komited dalam operasi anti keganasan dan jelas Malaysia ada Undang-undang Pencegahan Keganasan (POTA), Kanun Keseksaan, Akta Kesalahan Keselamatan (Langkah-Langkah Khas) 2012 (SOSMA), kerana kita tidak mahu ada pengganas yang ganggu,” katanya.

Lagi sekali suka diingatkan Umno dan Barisan Nasional tidak mendapat satu sen pun dari derma tersebut. Adakah wang ribuan juta tersebut disalurkan ke dalam akaun parti Umno dan BN atau pun telah disalurkan ke dalam akaun peribadi presiden parti?

POTA, SOSMA dan ancaman pengganas adalah di dalam bidang kuasa polis dan kerajaan. Sememangnya ianya adalah tugas kerajaan dan perdana menteri. Adakah berbillion bajet yang diperuntukkan untuk keselamatan negara setiap tahun tidak mencukupi? Adakah kita perlu menagih dan menerima bantuan dari negara luar untuk tujuan tersebut?

Dan apakah yang diperkatakan oleh undang undang negara apabila seseorang penjawat kerajaan menerima wang dengan banyaknya hanya untuk melaksanakan tugas? Ianya dianggap rasuah.

Definisi rasuah mengikut Suruhanjaya Pencegah Rasuah Malaysia:

Corruption is the act of giving or receiving of any gratification or reward in the form of cash or in-kind of high value for performing a task in relation to his/her job description.

Apakah yang cuba disampaikan oleh Zahid Hamidi sebenarnya? Amat pelik apabila terdapat penjawat kerajaan menerima wang begitu banyak di dalam akaun peribadi, ini dipandang mudah oleh menteri menteri kabinet yang lain.

Ahmad Zahid berkata, perkara kedua menurut penderma berkenaan adalah kerana Malaysia mengamalkan pegangan Ahli Sunnah Wal Jamaah dan penderma berkenaan tidak mahu terdapat mazhab lain yang menyeleweng daripada sunah Rasullullah. Menurut Ahmad Zahid, perkara ketiga adalah kerana komitmen yang jelas iaitu biarpun Malaysia adalah negara majmuk dan sederhana, namun, negara-negara Islam tetap mengiktiraf komitmen Malaysia yang memegang Sunnah Wal Jamaah.

Perkara kedua dan ketiga adalah perihal yang sama iaitu penderma telah menderma ke dalam akaun Najib Tun Razak kerana rakyat Malaysia yang sudah berkurun lama mengamal pegangan Ahli Sunnah Wal Jamaah dan cukup berterima kasih kerana rakyat Malaysia tidak lari dari komitmen untuk terus memegang pegangan tersebut.

Persoalannya, mengapa diberi kepada Najib Tun Razak duit tersebut? Adakah di dalam tahun 2013 setiap rakyat Malaysia yang memegang pegangan tersebut telah mendapat sebahagian dari derma secara langsung dari akaun peribadi perdana menteri? 

Di mana logik bagi seseorang perdana menteri mendapat kredit untuk kepercayaan agama rakyat Malaysia apabila beliau hanya menjawat jawatan tertinggi negara hanya sejak tahun 2009 manakala rakyat Malaysia semua sememangnya sejak dahulu kala lagi telah menganut pegangan Ahli Sunnah Wal Jamaah? Adakah perdana-perdana menteri Malaysia sebelum ini tidak komited untuk mempastikan rakyat Islam Malaysia memegang pegangan tersebut? Mengapa begitu merepek sangat cerita dongeng ini?

“Saya melihat dokumen yang original (asal) bukan fotostat. Saya lihat juga dari segi pemindahan kewangan,” tegas beliau.

Setakat melihat dokumen asal dari segi pemindahan kewangan sememangnya rakyat Malaysia sudahpun melihatnya kerana laporan Wall Street Journal telah pun membuktikan bahawa wang tersebut memang wujud di dalam akaun peribadi Najib Razak.

Walaubagaimanapun, rakyat Malaysia ingin melihat penyata perbelanjaan yang telah dibelanjakan untuk ketiga-tiga tujuan di atas. Di mana buktinya? Bagaimana kami semua ingin mempercayai bahawa setiap sen dari RM2,600 juta tersebut bukan untuk tujuan peribadi jika tidak ada bukti disertakan?

Rakyat Malaysia hanya mahukan kebenaran dan keikhlasan dari pemimpin mereka berdasarkan fakta yang ada.

Terima kasih.

Anda juga pasti ingin membaca:

  2. Terima RM1 Juta Dari Najib Satu Perkara Biasa – Siapa Lagi Yang Pernah Terima Duit Dari Najib Sila Tampil!
  3. The Ringgit’s problem is Najib. Najib’s problem is the ringgit
  4. Frequently Asked Questions on Corruption – MACC

Did Petrosaudi swindle 1MDB and steal our money?

Continue reading

#1mdb, #malaysian-corporate-matters

The chronology of 1MDB’s suspicious joint venture

Thanks to 1MDB trying to deflect the allegations levelled at them, the public now has received more information which finally shed light into the murky business deals which 1MDB was involved in.

1MDB’s strategy is simple. Deflect and spin their replies to give the impression that they had answered all questions. This very disturbing strategy is now a trend which will prevail in all of their press releases.

Even in one of their first business forays was mired with corporate abuse, misappropriation of funds and absence of corporate governance.

Below is the chronology of that business foray, the 1MDB – PetroSaudi venture. Note that since 1MDB issued this information via their press release on their own accord, we can believe that all the information given were hopefully true.

Now let us try to understand what had happened:

18 September 2009 – a JV Co was incorporated by PetroSaudi Holdings (Cayman) Ltd (“PSH”) with or without the knowledge of 1MDB.

25 September 2009 – assets (rights to oil fields) worth USD2.7 billion was transferred to JV Co and JV Co is now indebted to PSH, USD700 million for the asset transfer; with or without the knowledge of 1MDB.

29 September 2009 – 1MDB entered into the JV Co via the joint venture agreement and USD1 billion cash (RM3.4 billion) was pumped in immediately by 1MDB into the JV Co. 1MDB gets 40% while PSH holds 60%.

30 September 2009 – As part of the agreement, USD700 million (RM2.38 billion) was paid from that RM3.4 billion of 1MDB’s cash into PSH.

Why 1MDB agreed to pay money for a deal that was agreed before they joined in the JV Co, is unclear and of course, common sense dictates it was a stupid move.

This massive transfer of money happened in a period of just 12 days. Bear in mind that according to industry practice, an independent valuation of assets or any due diligence of this size will take on average, at least a month to complete.

Do note that the JV Co’s objective is to “seek, explore, and participate in business and economic opportunities which result in the enhancement and promotion of the future prosperity and long-term sustainable economic development of Malaysia. It is expected to actively make investments in the renewable energy sector.”

-slightly more than 5 months later-

March 10 2010 – 1MDB terminated the business venture stated above. It is not illogical to think that the whole thing was just a scam to siphon out USD700 million from 1MDB. Upon termination, instead of getting back the cash as any ordinary shareholder would get, the JV Co gave ‘murabaha’ notes in return for cash to 1MDB. In layman terms, since the JV Co do not have cash of USD1 billion, they issued an IOU papers to 1MDB to be claimed at a later date.

So the business venture ended. Logically any business deal should have stopped between them.

Sometime in 2010 – 1MDB gave the JV Co USD500 million (RM1.7 billion) for additional murabaha notes. 1MDB stated they are ‘investing’ in this JV Co which they had opted out back in March 2010. In other words, they continued giving money to this JV Co like a moneylender, in return for some more IOU papers.

May 2011 – 1MDB gave another USD300 million (RM1.02 billion) to the JV Co for God knows what reason, and the JV Co issued further murabaha notes in exchange for the cash. Note that 1MDB was not mandated to be a moneylender. Plus, JV Co was not incorporated to be a fund manager.

Up to this point, 1MDB has pumped in USD1.83 billion (RM6.22 billion) cash into a company which had done absolutely nothing. Did the JV Co make any active investments in renewable energy sector in Malaysia? Has anybody heard of 1MDB Petrosaudi Limited here in Malaysia? That is the name of the JV Co.

-13 months after the last tranche of money given to JV Co-

June 1 2012 – the USD1.83 billion was redeemed. We thought that FINALLY, 1MDB could get their cash money back but that is not to be. The JV Co converted the murabaha notes into share certificates of another shelf company called PetroSaudi Oil Services Ltd (“PSOS”)! The best part is, they revalued these IOU notes upwards to USD2.22 billion (RM7.55 billion).

This new value was agreed between themselves. Unfortunately, we do not know what PSOS does. And how did they come to the figure USD2.22 billion. If there was an independent financial firm assessing the value, we want to know which firm was doing it.

-4 months later-

September 12, 2012 – 1MDB sold their stake in PSOS just 4 months later for USD2.312 billion (RM7.86 billion). And their share certificates were magically turned into ‘units’ which then owned by 1MDB subsidiary called Brazen Sky. What is the relationship between Brazen Sky and PSOS is unclear. Brazen Sky is just another company newly incorporated by 1MDB in August 2012 to handle this massive labyrinth of paper trail.

Cash was given to JV Co. But 1MDB who supposedly get their money back only received non cash items called ‘units’ which was borned out of share certificates, which originally came from IOU notes.

Invest cash, gets units.

Invest cash, get dodgy units.

We can imagine a lofty business deal which was made by the billions were terminated just 6 months after it began but money kept flowing into that JV Co all the way to 2012.

What is more infuriating, 1MDB had the audacity to say that all their investments in the bogus companies gained a profit of USD488 million (USD2.312 billion minus USD1.83 billion)!

To all those who can’t think further beyond their self interests, that is USD2.312 billion worth of made up units, not cash. The profit of USD488 million was just paper profits.

1MDB should call up PSH to get back their cash worth RM7.86 billion back. But that is now water under the bridge. 1MDB have let PetroSaudi conned their money. Question is, what did JV Co do with all that cash?

The cow 1MDB had were sold to get beans. Not magical beans, but dodgy beans.

Note that these ‘beans’ are classified as Level 3 by their external auditor in terms of valuing their fair values. Level 3 is the lowest form of financial instrument where its valuation are derived from unobservable data. In layman terms, very difficult to determine its exact worth, or if they are worth anything at all.

The absence of governance, compounded by the intent to deceive will make any company lose money.

Can we not see the deceit and the shady multi-layered transactions made in order to cover up the money trail?

Can we once again see the money that was lost in the merry go round of schemes concocted by 1MDB?

We doubt it.

Otherwise, 1MDB could have easily paid their interests instead of getting stand by credit from the MOF or getting IPIC to rescue them. This is how 1MDB lost liquidity; for ‘investments’ they made in bogus companies.

Now who authorised all these transactions?

Maybe 1MDB could shed more light into this scandal. Mind you, this is not the only shady business deal 1MDB is involved in.

You might also want to read:

1) 1MDB debt settlement by IPIC

2) The 1MDB – PetroSaudi joint venture agreement

3) The 1MDB – PetroSaudi moneytrail

4) The PM confirms 1MDB needed to be rescued and is in bad shape

5) Whistleblower caught yet 1MDB still not vindicated

6 Simple Questions Any Malaysian Can Ask 1MDB’s Board (by CiliSos)


Therefore we shall just talk about something serious in a light-hearted kind of way.

Below is an article by the website CiliSos which delved into the financial fiasco called 1MDB. CiliSos asked 6 simple questions for the government and 1MDB to answer.

Be careful CiliSos, the Prime Minister in his latest blogpost had said that those who question 1MDB (actually he was only addressing Tun Dr Mahathir) are motivated by self-interests, not Malaysia’s interests. Why are you so selfish CIliSos?

But since everyone are asking the same type of questions, it seems all of us the rakyat are selfish people.

Good work on the article. We love it. 



Before we begin, if you’re reading this and you’re still not very sure about what exactly 1MDB is, we highly recommend reading another article that we’ve written here.

If you’ve followed the news on 1MDB, you may have heard that its CEO, Arul Kanda Kandasamy, recently gave a breakdown of the RM42 billion debt of 1MDB.


In his statement, Arul Kanda shows us how much was invested in what. He shows us that the debt did indeed reach a total of  RM42 billion (RM41.8 to be exact). He shows us that we owe people a lot of money. Then he says this.

“We trust this clarification will help to clear any confusion on this matter.” – 1MDB CEO, Arul Kanda, as quoted by The Malay Mail Online


So we know we owe a lot of money is involved, we know we have a lot of debt, and we know where all this debt is from. Unfortunately, for most of us, these numbers are just numbers. We don’t know what they mean, we don’t know how they affect us, and we sure don’t know what’s at stake.

So Arul Kanda’s answers mean nothing to most Malaysians. (Full disclosure: Arul Kanda was also the school captain at our editor’s college)

Tony Pua (the guy who first brought all of this to light) stated that the answers from Arul Kanda do nothing to quell our curiosity but raise more questions and suspicions. And we agree, because we at CILISOS want to ask more questions as well.

So here are 6 reaally basic questions that should be answered by 1MDB to the rakyat.

1. Has 1MDB made any real money?

First, let’s define the term “real money”. Well, it’s money that came from actually providing a sale or a service. Meaning that it earned something by providing value to someone else.

A couple of news articles have pointed out that while 1MDB has been posting profits in their annual reports, these have not been due to selling or providing anything but from revaluation. Revaluation is basically the process of increasing or decreasing the value of assets ‘in case of major changes in fair market value of the fixed asset’ (click to read more).

Would you give our Prime Minister RM4000 to invest for you    CILISOS   Current Issues Tambah Pedas

How much of an impact does the revaluation have on the profits? Well, The Star reports that (as of 2014) 1MDB’s profits for the last 2 years have mainly been due to revaluation of their assets.

“For instance in 2013, 1MDB recorded a net profit of RM778.24mil, helped largely by property revaluation gains of RM2.7bil.” – The Star

Okay, but what about other profits? Has 1MDB made profits from anything other than the revaluation of their assets? So we tried looking for documents that talked about 1MDB’s profits.

First we found that Arul Kanda stated that the company’s earlier venture with a Saudi Arabian company called PetroSaudi had earned them RM1.78 billion. But then Tony Pua said that this money never came back to Malaysia. You can read how Tony Pua talks about where this money went here. So no real money there.


Besides that, news portal Malaysiakini has tried to obtain the financial reports of 1MDB’s profits but all they got were reports saying that there were profits. But honestly, what we want to see is what the profits are! 

And aside from these two, nothing else. So the point is that we still can’t find any profit that was, in a sense, real

2. Why did 1MDB invest so much money when it was already in debt?

Before we go into that, let us just clarify something with ugaiz. Contrary to popular belief, 1MDB is not a Malaysian sovereign wealth fund.


According to investopedia.com, a sovereign wealth fund is usually formed when a nation has excess money. Instead of keeping this money in the central bank (i.e. Bank Negara), a sovereign wealth fund utilises the surplus via investments.

(Ironically our other sovereign wealth fund, Khazanah Nasional, also doesn’t refer to itself as a sovereign wealth fund so we’re not entirely sure that we actually have one.)

1MDB’s official website states a major difference between them and a sovereign wealth fund is that a sovereign wealth fund is funded by the gomen and invests on its behalf. On the other hand, 1MDB, while fully owned by the gomen, raises and invests its own capital.


But for a company that has to raise and invest its own capital, to be RM42 billion in debt is a crazeeee situation to be in. How in the world does anyone even end up with a RM42 billion debt when you start off with nothing? As we’ve just talked about, 1MDB is NOT a sovereign wealth fund and has to raise its own capital.

So the thing here is, 1MDB did not have any capital to begin with.


In regards to whether or not investments companies generally borrow to invest, we spoke to a guy who wants to be known as FreeLunch, (a former auditor whom we last spoke to here and whom now we owe 2 free lunches) and he had this to say.

Most funds don’t take debt to invest. One of the Norwegian funds use profits from oil sales to invest globally on behalf of the government.

Funds like hedge funds accept money from individuals/corporations to invest, generally no debt. Private investment funds like those run by rich families take on surplus funds and use it to invest.” – FreeLunch

Which basically means that investment companies rarely if not never invest using debt. So why did 1MDB invest on debt?

Do visit CiliSos for the rest of the article and questions.

“The Importance of Being Earnest” by Dr. Awang Puteh

Just like the great masterpiece of Oscar Wilde, this article which was published in The New Straits Times today and written by one who calls himself Dr. Awang Bin Puteh revealed how comical double standards, ‘lupa daratan’, vanity, arrogance and hypocrisy thrive in the corporate world and among billionaires. And we thought these people living in the upper echelons of society could at least be humble, reciprocal and more reflective about their social standing and how they came to be.

A recommended read indeed.

The Importance of Being Earnest

CRONY CAPITALISM? It’s time for YTL boss to walk the talk and show ethical leadership by example

APPARENTLY, the negative trait of Melayu mudah lupa is not only confined to the Malays, but also to other ethnic groups in Malaysia. This is evident from the statement by YTL Corporation Bhd managing director Tan Sri Francis Yeoh when he commented  on crony capitalism a few days ago.

Yeoh’s claims that he is successful because he is not a crony and doesn’t depend on government contracts.

He also went further, which seems tantamount to fanning the flame of racial provocation, by stating that non-Bumiputera small-and-medium enterprises (SMEs) “absolutely have no chance” to even fight “for the crumbs” as they are already at the low end of the food chain.

He delighted in lecturing us, delivered with a straight face and an affectation of pious conviction, that Malaysians are not taking advantage of our ethnic diversity, and we must introduce more open competition and encourage greater transparency in business.

Not unexpectedly, his statement evoked negative reaction from the public, and many reacted in disbelief to Yeoh’s hypocrisy given his companies’ close links with the government in the past as well as in the present.

Tan Sri Ramon Navaratnam summed it up aptly when he said that “people who live in glass houses, should not throw stones”. He further correctly stressed that Yeoh’s talking about getting rid of cronyism doesn’t sound right while his companies bagged lucrative government contracts through direct negotiations rather than open tender exercises.

Why the repetitive mantra by Yeoh despite YTL receiving all the government’s love and special attention all these times? We know that great wealth buys great political influence, but to insult the people’s intelligence with his sermon borders on brazen arrogance.

Maybe these kinds of people live in a bubble, and not surpassingly, those inside the bubble sometimes think that they can pull the wool over our eyes.

Nonetheless, let us address Yeoh’s arguments specifically.

Yeoh is adamant that YTL is successful because he is not a crony and doesn’t depend on government contracts. That is a bold statement.

Without government contracts, YTL would still be a small-time contractor. In fact, it is continuously the beneficiary of government assistance. For instance, in 1990, YTL was awarded an almost RM1 billion contract to build public hospitals.

Unless Yeoh suffers from amnesia, he could not possibly forget his big break in 1992 when the government awarded him the first licence to build, operate and manage power plants.

Without this lucrative concession, his company would probably be stuck as Syarikat Pembinaan YTL Sdn Bhd, a relatively small construction and property development company. This foray into the power sector vaulted YTL into the big league, where its pre-tax profit last year alone amounted to RM2.5 billion, versus RM30 million in 1991 before contributions from power operations began flowing in.

Importantly, most of the projects given to YTL were and still are heavily subsidised by the rakyat. His power agreement with Tenaga Nasional Bhd was so lopsided and utterly unjust that Tan Sri Ani Arope, the then TNB chief executive officer, submitted his resignation after refusing to accept YTL’s terms.

His “take or pay” agreement with TNB obligated it to take up YTL’s power output — priced much higher than what TNB could easily produce — whether the utility needed it or not, for 21 years.

Maybe that’s what Yeoh meant when he stated that YTL became successful via “innovation”, which ripped off billions in taxpayers’ money.

Has he also conveniently forgotten how he was recently awarded a RM10 billion contract by the Education Ministry to provide, among others, laptops to schools, despite YTL not being a computer maker, nor expert in education services? The contract irked member of parliament Zaril Khir Johari, who raised questions on this issue in Parliament. His 1BestariNet programme, which is to install 4G high-speed broadband to all schools, indirectly means that the rakyat are actually funding the commercial expansion of YTL’s YES 4G network. So much for innovation.

Yeoh was also borderline malicious when he said the non-Bumiputera SMEs had been discriminated by the government.

Well, I wonder where he got his statistics from. Analyses done by the Economic Planning Unit show that non-Bumiputera businesses, especially Chinese companies, took 80 sen for every RM1 in government contracts.

Even funding for SMEs benefited non-Bumiputeras the most, as data shows that Bumiputera companies accounted for about 30 per cent of the entire funding for SMEs last year.

To put things in perspective, the value of the contract YTL secured from the Education Ministry alone, for providing only laptops to students, exceeds the entire funding for all Bumiputera SMEs for the entire period of last year!

It is heart-warming to learn that YTL supports national unity. Let us, for a second meditate upon and closely scrutinise these nationalistic statements from Yeoh: “We should leverage on our different ethnic races in the nation and should start working together. We have been working for a long time like we’re in a tunnel. We have not learnt to work together. We have been separated and not looked at each other’s strengths. We do not celebrate our diversity.”

Such enlightened view should indeed be emulated by other companies! However, in the name of transparency, would YTL be willing to make public the ethnic diversity figures in YTL workforce, its board of directors, exco, senior management, mid-management and low-level positions?

YTL should also make public how much was sub-contracted to Bumiputera and Indian companies, compared to Chinese-owned companies.

Similarly, in the name of transparency, would YTL also make public its power agreements, which had enabled YTL to make astronomical returns at the expense of the people? Please allow public scrutiny of the agreements, as suggested by MP Tony Pua from DAP not too long ago.

Yeoh also argued that he is a true patriot, for he has “defended the present government’s concerted efforts to introduce more open competition and encourage greater transparency in business”.

This is commendable, but flies in the face of facts. How does YTL explain its willing participation in direct negotiations with the government on some of the most lucrative contracts? It was only last week that a YTL Corp wholly-owned subsidiary was awarded a power plant project by the Energy Commission via direct tender!

Maybe YTL can make a declaration to the public that it will no longer participate in direct-negotiations and cease altogether from seeking contracts from the government.

There is still time for redemption for a devout man like Yeoh to walk the talk. I am sure he would like to show ethical leadership by example.

Moving forward, we have to help Yeoh from backsliding from his recent epiphany, and to become the born-again corporate leader that he aspires to be.

I would urge the government to be kind to him by avoiding any dealings with YTL group, either in providing contracts, or using its products and services. The government should also exclude YTL from participating in any way whatsoever in the KL-Singapore High Speed Rail project, if the project is yet to be awarded to him. He sorely needs help from the government to wean him away from his old habits.

As for me, I will also do my little part. I will stop patronising YTL hotels, shopping malls and Internet service provider, among others. I am boycotting YTL and I suggest the rest of Malaysia follow suit.

After all, Yeoh proudly claimed that his company gets 85 per cent of revenue from overseas operations.

Oh, by the way, the deafening silence from some of the most vocal critics of crony capitalism in Malaysia is really puzzling.

Imagine if the same statement was made by a Malay tycoon, I am sure the deafening silence will become a raging tropical thunderstorm.

Maybe when a Bumiputera businessman gets a contract, it’s cronyism and unfair privileges. But when people like Yeoh gets it, it is innovation, market forces and meritocracy.


Korupsi, Kolusi dan Nepotisme (KKN) – THE ANWAR WAY

The latest development on the Kajang by election is that Wan Azizah could be the next Menteri Besar of Selangor. With this news, the nepotism practised by Pakatan Rakyat is truly institutionalised.

Anwar Ibrahim cannot accuse anyone else of practising nepotism and cronyism because Pakatan Rakyat, that loose coalition of convenience led by him is riddled with blatant instances both practices.

Lim Guan Eng, the Chief Minister of Pulau Pinang has a father who is the party leader of DAP. And now, we might have a Menteri Besar of Selangor whose husband is the party leader of PKR.

Perhaps, it is time all Pakatan Rakyat leaders from the top all the way to the bottom climb down their puny horse and admit that their coalition is much worse than Barisan Nasional. Worse, because they do not practise what they preach. Below is the list of cronyism and nepotism practised by Anwar Ibrahim since he was in power.


Written By Allan Chan

Anwar Ibrahim banyak bercerita tentang korupsi, kolusi dan nepotisme. Mungkin antara penyokong beliau, mereka sengaja tidak mahu lihat cacat cela kepada Anwar. Mungkin kerana mereka sendiri yang mendapat faedah daripada KKN Anwar. Dan sekarang, orang miskin dan orang biasa dikelabui oleh mereka-merekka yang mendapat faedah untuk menentang kerajaan yang telah memperkayakan mereka.

A good example is Anwar’s former private secretary Nasaruddin Jalil, who ran away to study law in Buckingham after he was implicated in a CBT case involving KUBB. Nasaruddin came back to become “vice-president of Mbf” – a politcal payoff by the Mbf group to Anwar, the finance minister. Nasaruddin became owner of an airline, was awarded the privatisation of the ambulance services (which charges the poor for services provided free previously by the Government), a finance company and many others.

Kamaruddin Jaafar – a research officer in the Prime Minister’s Department was made political secretary to Ghafar Baba on Anwar’s recommendations. Ghafar was in his own simple way too trusting. He brought in an enemy into the camp, little knowing that Anwar would one day use all information gathered by Kamaruddin to topple Ghafar as deputy prime minister. Betraying the trust of people is an Anwar trademark.

Kamaruddin was rewarded after leaving Ghafar. He became co-owner of listed company Yangtzekiang, later renamed Westmont. He became chairman and co-owner of many of Vincent Tan’s companies, receiving many privatisation projects, including Digicom, the cellular phone, the Linear City and others. Kamaruddin through his involvement with Charterfield, received six major contracts in the KLIA – a project chaired by Anwar Ibrahim. He became major shareholder in Kanzen after Anwar “persuaded” Chen Lip Keong to finance and guarantee the purchase of Kamaruddin’s shares. Kamaruddin became one of the richest Malays in Kuala Lumpur in six years from 1992 to 1998. In 1992, as political secretary to Ghafar, he earned a total of RM7,000 ringgit a month, including perks.

There are many others. The crude Ahmad Saad, Anwar’s deputy in the Permatang Pauh division. Since Anwar became finance minister, he did an MBO of Volvo’s Federal Auto Holdings. Ahmad Saad controls listed LBI Berhad.

Anwar’s secretary in the division – Ishak Ismail – controls Idris Hydraulics and Kentucky Fried Chicken. When the Lau brothers of Leong Hup Holdings tried to ouster Ishak in a boardroom battle, they were arrested by police. On whose instructions?

Anuar Othman of Kumpulan Pinang. The number of privatisation projects within Penang and the country that went to Kumpulan Pinang will astound Malaysians.

Sarit Jusoh, his former political secretary, who owns a piece of KFC.

Yusof Yusoh, or Yusof Perancis, his former private secretary, who has received licences for two Independent Power Plants in Sabah.

Azmin Ali, a private secretary to Anwar since he graduated in 1988. Living in a posh double story bungalow in Damansara Heights, chauffeur driven in a BMW – all on a salary of RM2,500 a month. Azmin’s wife, Shida. An executive director of Phileo Allied’s property divison. Paid RM20,000 a month by crony Tong Kooi Ong.

Nazeri Abdullah of MRCB. For being a close supporter, he became controlling shareholder in four listed companies – MRCB, NSTP, TV3 and Malakoff. Not to mention the numerous privatisations and IPPs he received.

Ahmad Zahid Hamidi – he was a staunch ABIM supporter from the early days. In five years – from 1993 after he quit his RM7,000 a month job as political secretary to Najib Tun Razak – controlled listed companies such as Kretam and Hexagon and became chairman of Bank Simpanan Nasional. His multi-million dollar house in Country Heights and his 10 luxury cars are an open secret.

Latiff Mirasa – from being private secretary to Farid Ariffin in the Health Ministry earning RM2200 in 1993, he became a very rich businessman in 1994. He used his money to challenge and defeat Farid for the head of the Bagan Umno division. Then Anwar made him an executive councillor in Penang after the 1995 general elections. But he quit two years later to concentrate on “his lucrative business”.

Ismail Munir – another ABIM man. Suddenly, he was awarded a RM 2 billion IPP project by Anwar. Another mega-rich friend overnight.

Salomon Salamat, a former political secretary. Overnight a shareholder in listed companies and a multi-milliionaire, barely months after leaving his RM7000 job as political secretary to Anwar Ibrahim.

Rahim Ghouse – a relative through marriage and Anwar’s divisional Youth leader. Suddenly a major shareholder in listed Abrar Corporation and its executive director. From no background in business to running a multi-million dollar corporation backed by Kuwaiti funds. It is no surprise Abrar is today on the verge of bankruptcy.

Tong Kooi Ong – a young stock-broker, a whizz-kid, who packaged the MRCB deal for Ahmad Nazeri Abdullah. He was given the Central Co-operative Bank, now Phileo Bank, and now controls three listed companies through Anwar’s largesse. All within a period of five years. Tong could threaten Securities Commission chief Munir Majid with impunity. With similar impunity, he refused to join the Malaysian Stockbrokers Association, the only non-member in the industry, because he had direct access to Anwar.

And then, the family.

Father-in-law Dato Wan Ismail – director and shareholder in many listed companies, including Stamford College.

His daughter Wan Fairuz, sister of Wan Azizah, received 2000 acres of land in Batu Berendam, Malacca. Her former occupation? Photographer of Bernama news agency, earning RM1200 a month.

Anwar’s sister, Farizun Ibrahim, a housewife, with no experience in business. A co-owner of the Gianfranco Ferre franchise together with his adopted brother, Sukma Dermawan.

His father, Datuk Ibrahim Abdul Rahman. Chairman and substantial shareholder of IOI Berhad. Dato Ibrahim was awarded 50,000 hectares of state land for ranching by the Sabah Government over whom Anwar exercised tremendous influence. Received bumiputra share allocations in many listed companies.

His brother, Rani Ibrahim. Deputy head of Bagan Umno division. Deputy chairman of Olympia, a gambling company which obtained gambling liciences for Sabah from the Finance Ministry despite objections from the Sabah Government. Recipient of many bumi share issues.

Brother Marzuki Ibrahim. An operator of a petrol pump. Received licence to operate another two petrol pumps. Received bumi shares in listed FACB Berhad.

Brothers Idrus Ibrahim, a teacher, and Rosli Ibrahim, no known job, but driving in Mercedes Benzs and living upper middle-class lifestyles.

Anwar does not practise cronyism or corruption. Malaysians are being asked to believe that all those named above and many more whose names are not mentioned here but who, having been ordinary Malaysians like the rest of us, suddenly live the lifestyles of the rich and famous. Only because they knew Anwar and were his friends or relatives. What then is KKN?


#anwar-ibrahim, #reference

Kicking people when they are down – the NUFAM way

MH370 is a tragedy that had happened without anyone could have imagined. The mystery and the repercussion that surround it has called the entire nation to unite in the face of a national disaster. We must stand strong and pray that the family members can receive some closure so that the grieving process can start as soon as possible.

So that the nation can heal, so that the people can look forward for a brighter future ahead.

But some quarters, even before the plane is found; even before investigations have been concluded, had scoffed at the people who are tasked to find the plane. We do not need this kind of insensitive people and their vile derision to weigh us down further. To our surprise, we have our very own Malaysian citizens that are leading the way in ‘kicking people when they are down’.

After Anwar Ibrahim rode CNN’s back in criticising the Search and Rescue efforts by the government in the recent article which can be read here, a similar unsavoury voice is heard today in the form of NUFAM:

Malaysian Airlines CEO’s head must roll, says union

The National Union of Flight Attendants Malaysia (Nufam) has called for the resignation of Malaysia Airlines chief executive officer Ahmad Jauhari Yahya following the prolonged MH370 disaster.

Nufam, which has long been at loggerheads with Ahmad Jauhari over workers’ issues, said that the latter’s resignation could restore public confidence in the airline.

“(Nufam) believes it is the right thing to do now as this even has brought tremendous impact on the aviation industry in this country…

“Since the Flight 370 tragedy (happened) under his watch, it is rightful for him to step aside and allow someone else to take over his position,” Nufam said in a statement.

It said that Ahmad Jauhari must also step down following two other incidents involving MAS flights – the incident in Kathmandu, where a flight was hit by flying ducks and in Hong Kong, where a flight en route Seoul had to divert to due to generator failure. (Really NUFAM? Flying ducks and generator failure? If it weren’t for the MH370 story, these two incidences wouldn’t make any headlines. Does the CEO of BMW have to resign because people who drove it went into accidents?)

It added that airline staff has also “lost confidence” in the way Ahmad Jauhari has handled the crisis which entered its 19th day today.

Following the Hong Kong incident, Nufam also released a statement urging MAS to ensure stringent safety checks on its aircraft, citing cabin crew concerns.

The union has been at odds with the management prior to the crisis, with its president and several office bearers sacked or suspended following criticisms against MAS.

In the first place, it is an open secret that NUFAM had tried to wrest control of MAS union from the original employees union of MAS – the MASEU.

MASEU has the biggest membership of flight attendants in MAS, and NUFAM the newcomer is believed to just trying to make itself relevant. This statement by them came as no surprise at all given the fact that their modus operandi in usurping MASEU’s voice in the past has been less than pleasant.

Fact is, NUFAM does not have any credibility to talk on behalf of MAS’ employees. Which made the above statement as a whole, rife with ulterior motives. Just like Anwar Ibrahim’s behaviour, the nation does not need people with hidden agenda to bog us down further with unnecessary politicking. Everyone is coping to the best they can.

We must give support in order to see this through.

Support  and words of encouragement for the those involved in SAR. Prayers and well wishes to the family members.

Thank you.

#mh370, #public-transportation, #sour-grapes

Anwar Ibrahim is using #MH370 pilot as his chess piece

What can we say about Anwar Ibrahim?

He had recently announced that Malaysian government is accusing the captain of the missing #MH370 flight as a potential hijacker.

This act which can only be described as an utterly vulgar political misinformation and distortion of facts, is a genuine act of desperation befitting someone who is grasping for any political mileage.

To make matters worse, CNN is now a party to it.

What he just did, not only unfair to the running investigation, but also disrespectful to the family members of the pilot,  Captain Zaharie Ahmad Shah (53). Anwar Ibrahim had just used this unfortunate event and the unlucky pilot as one of his political chess pieces to further his sadistic agenda.

There is no realm outside the realm of profanity can best describe this latest manoeuvre of his. “Despicable”, “rotten”, “shameful” could not capture the very essence of what he had just did.

In the interview linked below, Anwar Ibrahim asserted his disinformation efforts by saying it is unfair for the Government to say that the pilot would commit such a thing (hijacking) without any investigation.

That was pure lie. In every press conference, we were told that investigations are being made by the authorities and all sundry know that the government have not suspected anyone. They are investigating all credible leads and all passengers and crew members are subjected to thorough investigation. No witch hunt, no finger pointing.

But Anwar Ibrahim thinks that everything is all about him.

He is saying that the government is attacking him about his connection with the pilot just to cover up the ‘incompetence and failure’ in handling the crisis. So far, in all the PCs involved, nobody from the authorities had attacked him. His name was never mentioned.

The CNN reporter failed to raise the issue that the speculation was first brought up by a UK tabloid. In fact, the reporter stupidly asked Anwar Ibrahim why did the government throw this kind of narrative to the public when in the first place, the government of Malaysia is not doing that at all.

Is CNN employing run of the mill reporters these days? Must be. Since they could swallow whatever Anwar Ibrahim is pushing down their throats with glee. If they want to contact the government, they should just get the facts from the press conference directly.


The Daily Mail article

But CNN is acting like a below average news network – not doing its research and homework. The speculation that the missing pilot could have a political motive was hatched by a UK tabloid called the Daily Mail. In that said article which was actually filled with speculation, conjectures, unverified information from unnamed sources, Daily Mail had alluded that the pilot could have hijacked the plane.

This story is the basis of rumours which is then used by Anwar Ibrahim to make a wild allegations towards the government. And of course we have The Star and all their stupid editors lapping up the conspiracy theory by republishing the story for Malaysians to read.

The fact is, all aspects of the missing flight are currently being investigated.

Anwar Ibrahim must stop being delusional and paranoid. We think he is losing the plot. All megalomaniacs will suffer this kind of downfall in credibility. He must admit that in this particular crisis, he is not relevant. What kind of input can he provide to help find the missing aircraft?

Like the wise saying goes – “if you have nothing good to say, better not say anything at all”.

A guide on what not to do during the #MH370 crisis

There are so many speculations on the recent crisis pertaining flight MH370 which could distract and hamper the search and rescue activities currently underway in the South China Seas.

Fortunately, the management of this crisis has been handled very well by Malaysia Airlines and the relevant authorities. With the Department of Civil Aviation taking charge of the search and rescue missions, it is commendable on the part of the agencies involved to remain professional in their duties.

The management of the crisis could have gone either way and it is a mark of true professionalism that Malaysia Airlines so far is on the dot in the proper procedures in handling this serious incident. Below is an article from the Business Insider which could have been taken as a case study on what not to do during an aviation crisis.

Asiana Airlines Needs Serious Help With Crisis Management

As the FAA and NTSB continue to investigate the July 6th accident in which 3 were killed and 182 were injured at San Francisco International Airport (SFO), crisis management experts are scratching their heads at the perplexing response of Asiana Airlines.

Crisis Management protocols

When there is a crisis, the proper procedure is for PR-savvy company representatives to talk with the public through the media to reassure them that everything is being done to investigate the cause and insure the safety of the airline and the wellbeing of its passengers.

The idea is to get ahead of the story and make current and future customers as comfortable as possible in doing business with the Airline. As Korea’s second biggest airline, Asiana needs to make every effort to take care of its passengers and protect its reputation while allaying the fears of the flying public.

Asiana’s response

Asiana, however, has done the opposite of what crisis management protocols suggest. With the exception of a brief apology to victims and families a day after the crash, Asiana has been largely silent. When CEO Yoon Young-doo arrived at SFO airport 3 days after the accident, he declined to comment. Even more surprising, the airline did not have a trained public relations representative accompany the CEO to address the media either. The following day, six of twelve flight attendants appeared at a news conference, but none of them said a word, and some hid their faces. It appears they don’t know that when you are silent, many in the public think you are hiding something. While lawyers often recommend you don’t talk, marketers know that silence is the opposite of what a company faced with such a crisis should do.

Attempt to silence passengers

What’s even worse is the Airline has instructed passengers not to talk with anyone. On Wednesday, CBS This Morning featured a story about the Xu family who told reporter Carter Evans in an interview he taped on his iPhone that the Airline controlled nearly every aspect of their lives and told them not to speak with the media. In fact, when the reporter arrived at their hotel, airline security tried to prevent him from speaking with the family. Since these efforts to stifle the media appeared on camera on a major news broadcast, they supported what the Xu family was saying and raised further suspicions about Asiana.

Pointing fingers

Even though the pilots involved in the crash were novices landing and supervising the landing of a Boeing 777 at SFO, they pointed the finger at the automatic speed controls of the plane. According to the head of the NTSB, there are no signs of failure of the automatic speed controls or other automatic flight equipment on the plane that crashed. Such accusations by the pilots do nothing to inspire public confidence – especially since the early evidence points to pilot error as a potential cause of the accident. Also, the fact that this is the first fatal accident involving a Boeing 777, which has a record of being one of the safest planes in the sky, makes the finger-pointing even more suspicious.

Risky Business

While flying is the safest form of travel, it is a risky business for those involved in making and flying the planes. When bad things happen, the best companies can do is to quickly figure out the problem and be forthcoming with customers. What can any business learn from this latest incident involving Asiana Airlines? Employ the fact procedure to protect your reputation.

    • Admit the problem, and apologize if necessary (do not “point the finger” at others because it is likely to compromise your credibility).
    • Limit the scope (in this case put the incident in perspective and provide data that shows that flying on a Boeing 777 from Asiana is very safe).
    • Propose a solution so it will not happen again (if it is found to be the cause, a more rigorous training and pilot supervision program would be the solution).

If implementing the fact procedure is premature

In a case such as this when the cause of the accident is not yet known with certainty, the airline should not be silent as Asiana has been. And, it should not try to control what the passengers say to the media. This just fuels suspicion. It should make it clear to the flying public that it (1) is doing everything in its power to cooperate with the investigation and (2) will continue to do whatever is necessary to insure the safety of its airline and the wellbeing of its passengers.

Since Asiana has proven to be inept in this crisis, and some believe this may be a cultural issue, it should hire US crisis management experts for advice to protect its reputation going forward.

Read more: http://www.businessinsider.com/asiana-airlines-accident-response-continues-to-be-just-plane-stupid-2013-7#ixzz2vY1AbuMP