Why GLCs Will Never Go Bankrupt.

By Syed Akbar Ali

Someone raised the issue that there is an overbearing fear that GLCs will go bankrupt.

I beg to differ. GLCs will never go bankrupt. They will just become huge sinkholes and black holes where huge amounts of taxpayers money will disappear.

When Sime Darby could or should have gone bust because of their fiasco in Qatar and Bakun, the solution was easy. Before the sh*t hit the fan and the losses became public, just merge Sime with the much healthier balance sheeted Guthrie and Golden Hope. Abracadabra you have ‘the largest plantation company’ in the world or something like that. So GLCs will never go bust.

Khazanah Nasional Bhd paid over RM8.0 billion take over Parkway of Singapore. Their main assets are three hospitals in Singapore. However Parkway only owns a percentage of those three hospitals, approx. 35% stake. Over RM8.0 billion for 35% of three hospitals in Singapore? Malaysian taxpayers are going to get sick.

Then you have Malaysia Airlines. A commentor Little Bird said this in my Blog yesterday :

Please look into MAS 2009 Annual Report Pg 92 “http://malaysiaairlines.listedcompany.com/misc/ar2009.pdf”

You will notice that MoF (i.e. NMY) pumped in RM1.67 billions in 2007, RM 3.34 billions in 2008, RM 3.34 billions in 2009, thus a total of RM 8.355 billions were wasted on Roti Jala from 2007 to 2009, the best executive and now minister, money can buy.

Wonder who is the most stupid of them all, Jala, NMY who choose him or the public, for being so confused?

Well Little Bird, I did try that url. It said ‘disconnected’ or something. Tak dapat. Then I went directly to MAS’ website and went to their Financial Statements. That does not work either. They have a listing of the pages in their Audited Accounts. But if you click on pg 92 (as Little Bird suggested) it goes to page 195. Yes you can always go to the Registrar of Companies and find out. Maybe that is their idea.

According to Little Bird, the Government has pumped RM8.355 billion into MAS. So MAS will never go bust. Just merge them or keep pumping money into them.

In the banking industry, this has long been the practice. Did you know that in Malaysia a bank can never be allowed to fail? This is an unwritten policy. When a bank suffers too many bad loans (like many banks have suffered in the past) they don’t go bust. Their name gets changed. New shareholders take over, pump in new capital, change the name of the bank and life goes on.

Or banks just get merged. There was Southern Bank, then it was swallowed by Bank of Commerce. BOC then swallowed the much larger Bank Bumiputra. Then Bank of Commerce’s ikan bilis size subsidiary Commerce International Merchant Bank Bhd (or CIMB) swallowed the entire whale and became CIMB Bank.

So the GLCs will never go bankrupt. Don’t worry. They just become blackholes and sinkholes, sucking up huge amounts of taxpayers’ money. But they think it is NOT taxpayers funds. It is “my own money”. If that was true, it must also be true that your dad left home and climbed back into the tree tops.

Our country cannot take this amount of financial abuse for ever, no matter how much oil we have in the ground. Long before we run out of easy oil money, the country will break down. Todays papers indicate that indeed the country is breaking up.

Seven people died in yet another bus accident yesterday. This time the driver did not even have a license. How was he employed if he had no license? This is called the “tidak apa” attitude. Close one eye. Possibly bribery was involved too along the way to keep the Authorities from hauling him up. Now seven people are dead.

The dead are mostly the poor and the lower income who travel by bus. They are mostly Malays. Innalilaahi wa inna ilaihi raajiun. Jadi yang mati, yang rugi, yang jadi miskin, yang susah orang Melayu juga.

Then the Health Minister Liow Tiong Lai says that we need to set up a ‘helicopter rescue service’. Cool suggestion man. That is easily say another RM3.0 billion project right there. RM200.0 million to buy the helicopters and RM2.8 billion to go shopping lah. Siapa mahu dapat project?

Tell me Mr Minister, who is going to make sure the helicopters do not fall out of the sky? Consultants? Boston can fly choppers ke? I thought they are good at flying kites.

Then Idris Jala reaffirmed his “Malaysia will go bankrupt by 2019” vision by saying that he will build 21 ‘Malaysia Malls’ overseas, mostly in China. This is part of the ETP, GTP, NKEA, NKRA, BS, C.R.A.P etc.

21 Malaysia-style malls around the world

PETALING JAYA: Twenty-one Malaysia-themed malls will be opened abroad as part of the 1Malaysia Mall Project.

“These 1Malaysia Malls will be opened in various countries including China, Vietnam and Indonesia, and will be occupied by Malaysian retailers,” said Minister in the Prime Minister’s Department and Pemandu chief executive officer Datuk Seri Idris Jala

So using our taxpayer’s money we are going to make the Chinese economy a ‘high income economy’ and create jobs in China for Chinese people working and doing business in these “Malaysia Malls”.

When all the hypermarkets in Malaysia (especially Mydin Hypermarket) are surviving by selling Made in China products to Malaysians, do we seriously expect to set up Malaysia Malls in China and sell ‘Made in Malaysia’ products to the Chinese?

How many billions are we spending on this “Malaysia Malls” anyway? RM1.0 billion, RM2.0 billion? RM3.0 billion? And who are the lucky cronies who will get these projects? GLCs again? Let me guess : they will use “their own money”.

Folks, do you think you or me can be the lucky ‘participants’ to get any of these “Malaysia Malls” contracts? We will have better chances of seeing a red crash helmet inside a Sikh temple.

But, being the optimist that I am, can the ‘Gomen’ pinjam to me say RM20.0 million only? I have an idea to build hi tech, post modern design, mini-malls (150,000 sf gross area) in urban neighborhoods around ‘small town’ Malaysia. Change the small town landscape a little. We can sell “Made In Malaysia”, ‘Made In China’, ‘Made In Korea’ goods etc. Apa macam? Boleh tak? Where can I go to isi the borang?

My mini malls can provide employment for Malaysian contractors, create ultra modern shopping environment for Malaysian retailers, create jobs for Malaysian retail workers, sell Malaysian products and stuff. And if the mall goes bust after five years, only RM20.0 million down the tubes ma. Boleh tak?

Folks, if you have time do read the comment by one person called Plus X-pert who posted some long comments at Rocky’s Bru some time ago. Its at the bottom of a post called Betollke?

According to Plus X-pert, Khazanah Nasional Bhd is engaged in building ‘waterfall debt’ or ‘cascading debt’. They borrow money by pledging the assets or cashflows of one company. Then they use the moneys thus borrowed to buy other assets. Then they pledge those assets and borrow yet more money to buy even more assets.

Are any of you old enough to remember a guy called Tan Koon Swan? In the 80s, he pledged shares in listed companies as security to borrow from the banks. Then he would take the money thus borrowed to buy even more shares. Then he would pledge those new shares (bought using the borrowed money) to the banks and borrow even more money and buy even more shares.

When the stock market collapsed, Tan Koon Swan eventually went to jail. He became a Born Again Christian and now lives happily ever after.

The moral of the story is : The story got no morals ma.

McKinsey, Boston Consulting Group, Khazanah, GLCs, Ali Baba & The Gang

By Syed Akbar Ali

Here is a news item from Malaysian Insider. The link to the full report is here. Here is an excerpt :

"Idris Jala denies paying consultants hundreds of millions

KUALA LUMPUR, Oct 29 — Consultants engaged by Pemandu are being paid from its budget of RM40 million and not the bulk of a RM729.4 million budget as alleged, said Datuk Seri Idris Jala today.

The Performance Management and Delivery Unit CEO and minister in the Prime Minister’s Department said claims that its operating budget for 2011 was RM729.4 million were “1,822 per cent exaggerated”.

The clarification came after DAP Bukit Bendera MP Liew Chin Tong issued a statement to the media last week saying Jala’s portfolio — dubbed “Kementerian Idris Jala” or KIJa — was a costly new ministry which would benefit international consulting firms.

Liew claimed that the total cost of “KIJa” was about RM6.19 billion for 2011, and an additional RM6.4 billion for 2012, of which RM 11.86 billion has been allocated for National Key Economic Area (NKEA) projects over the two-year period of 2011-2012 under a development budget.

The MP further alleged that a RM729.4 million operating budget was allocated for 2011 “which has mostly been channelled to international consulting firms”, referring to the prestigious global consulting firms such as McKinsey & Company and Boston Consulting that were involved in helping Pemandu formulate the Economic Transformation Programme (ETP) — a raft of projects aimed at creating an additional RM1.7 trillion in gross national income."

A written question has also been raised in Parliament by YB Wee Choo Keong about exactly how many millions have been paid by Khazanah Nasional Berhad in consultancy fees to all their consultants.

Todate there has been no answer to this question in Parliament (that I am aware of).

It is well known that Khazanah Nasional Berhad's favorite consultants include Boston Consulting Group and McKinsey.

We need to know exactly how many millions have been paid by Khazanah Nasional Bhd, by the GLCs or by any part of Government (Ministries, Departments, any part of Government at all) to Boston Consulting Group and McKinsey say over the past five years.

I hope both Boston Consulting Group and McKinsey will not hide behind mommy's skirts and come clean and true on this.

Please make public your revenues (consulting fees, claims and expenses, stationery and toiletries claims etc - this from my own experience) which you have derived from all GLCs in Malaysia, from all Government work, Government related work, Government Ministries etc over the past five years.

Dont be coy or shy. Just be transparent. Now is not the time to be hiding behind the ISA, OSA or to run back to the USA.

Ansari Makan Briyani Punya Pasal

By Syed Akbar Ali

Ansari Ismail, the Brader's candidate in the Sulu Sea has done it again - he fell into the sea. This is the second time in three days. Here is a picture of someone trying to pull the paunchy Ansari out of the Sulu Sea.

Here is a close up picture of Ansari. Ini muka mamak original. Nama pun nama mamak original Ansari. The brother has to ease up on the nasi briyani lah before he steps into the homes of the poor Bajau folks.

Ansari is blaming the BN Government for his falling into the sea. I say Babuji, if we look at the picture, the "bridge" is not even a bridge. Its a titi papan lah. And it is still intact. Obviously Ansari's body weight dislodged the planks from the edge, hence the dip into the Sulu Sea. Those titi papan are not designed for heavy duty vehicles ba.

Maybe Ansari should pay some compensation to the family for wrecking their titi. Ini sudah dua kali jatuh dalam laut. If I was a superstitious person, I would say this is a very bad omen.

I love the Sulu Sea. It is always crystal clear. Sipadan, Mabul, Selingan are all beautiful islands in the Sulu Sea. And the Bajau people are just such gentle folk.

If I fell into the Sulu Sea, I would go for a swim.

PRESS STATEMENT : Halt PKR election 2010 immediately

I just received this via e mail from Muhammad Firdaus Christopher, the Political Aide to Zaid Ibrahim. It says "for immediate release" so I am "releasing" it. Here it is :

(My comments below)

PRESS STATEMENT FOR IMMEDIATE RELEASE

29 October 2010

Halt PKR election 2010 immediately

We are gravely concerned about the manner in which the Parti Keadilan Rakyat election is being conducted by the Central Election Committee (JPP) and the party secretariat.

Today is the first day of polling where thousands of party members are eligible to vote at the polling centres in several Kedah and Kelantan divisions, which should have begun at 10:00 am. However, we have received numerous reports that members were unable to vote at several divisions this morning and many have left in frustration.

From the information we have received, the following problems were faced by local members at the respective divisions:

1. Kota Bharu, Kelantan: Although the ballot papers for the other positions were available, the polling did not proceed because the ballot papers for the position of Vice Chief of the Women’s Wing were not available.

2. Tumpat, Kelantan: The ballot papers have not arrived as at 12:00 noon and the ballot boxes were also not ready. Thus, many members left for Friday prayers.

3. Langkawi, Kedah: The ballot papers arrived very late and registration of new members is taking place whilst the polls are ongoing, and it seems that some of these new members are being allowed to vote.

4. Alor Setar, Kedah: The ballot papers have not arrived as at 12:00 noon and many members left for Friday prayers without voting.

Three out of the four divisions mentioned above nominated Datuk Zaid Ibrahim for the position of Deputy President, and a sizeable number of members were mobilised to vote for him at the fourth division in Langkawi.

In light of these alarming logistical problems on the very first day of polling, we expect more serious problems ahead; especially considering that there are only 10 divisions polling today and there will be 79 more divisions polling during this weekend.

Although the JPP and party secretariat assured us that the election will be conducted professionally to ensure a free and fair election, the above problems have cast serious doubts on the entire election process.

After discussing these problems with Dr Molly Cheah (the Chairperson of the JPP) this morning, we are now even more disturbed as she claims that she is no longer involved in the management of the election process. Indeed, she said that she has no knowledge of the briefing of the candidates and/or their election agents that was conducted at the eleventh hour last night by the party secretariat. She also said that she regrets the problems faced by voters at the divisions mentioned above but she is unable to do anything about it.

In light of these serious concerns, the party election should be halted immediately and resumed only after all these logistical problems have been remedied. If the JPP and/or the secretariat proceeds without resolving these basic but fundamental issues, the party will lose the trust of its members and also damage its reputation as a party that fights for democracy and justice for all Malaysians.

Moreover, if the Chairperson of the JPP claims that she is no longer in control of the election process, then she should no longer hold on to the position and resign immediately. Similarly, if the party secretariat, which is under the responsibility of the Secretary General, is unable to perform their duties properly, then the responsibility for the conduct of the party election should be entrusted to others who can do the job.

Rashid Azad Khan - Election Agent, Zaid Ibrahim, Candidate for Deputy President

Muhammad Firdaus Christopher - Political Aide, Zaid Ibrahim, Candidate for Deputy President

***********************************************************************

Here are my comments :

Thanks Firdaus Christopher for sending me this. We last met at Tengku Razaleigh's house some months ago.

Much earlier, when PKR first announced that their party would employ the "one man one vote" system for party elections, I had predicted it would be the end of PKR. My reasons were slightly different but still valid.

I have also always held that Anwar Ibrahim's biggest problem is that he cannot think well.

I think when they invented shoes without laces, Anwar Ibrahim must have felt great relief. The brader is not too bright. Strategic thinking is definitely not one of his traits. The DAP's shortsightedness is better than Anwar's. PAS to has slightly better shortsightedness.

My point earlier was that if PKR has a 'one man one vote' system in a multi racial party, the Chinese and the Indians in PKR will be left out in the cold. PKR is a Malay majority party. Malays will vote for Malays, Chinese will vote Chinese and the Indians will be swinging somewhere. Since majority wins, it will become a Malay party. The Chinese can look up the word "sidelines" in the dictionary. The Indians can check out the word 'curry leaves'.

One man one vote in a multi racial party is just ethnic cleansing by another name.

I have suggested for UMNO to have a 'one man one vote' system. This will work in UMNO because UMNO is a one race party - like MCA, DAP, Gerakan and MIC. Now my fellow KIMMA mamaks are also in UMNO, which is no big surprise.

A few of us have been urging for UMNO to have this "one man one vote" system. It has had some effect because there is no more the 2000+ delegates system in UMNO. The pool has been expanded to include about 60,000 people who will vote at the party elections.

But this will not work in the multi racial PKR. Just wait and see.

But this most recent turn of events in PKR is not surprising. They have not even sorted out the logistics of running their elections. This is typical Anwar Ibrahim - let there be chaos. There is going to be major chair throwing over this one.

I know some of these PKR folks. Sorry guys - this is immaturity, childishness and just plain silliness. After the excitement is over, you can go home. Maybe find some other outlets to let go your "I dont know who I am" or "where I fit in" steam. It takes maturity some intelligence and a better understanding of reality to step up to the plate.

So what will happen at the end? I think Moses will have to appear with his magic staff and calm the tumultuous sea. Everyone will have to simmer down and Moses will lead them through the stormy waters. Meaning if the situation gets too out of control, the Brader may suspend the elections (which is what this Press Statement demands) and just appoint whoever to whatever. End of clown story.

The Importance Of Kalimah

By Syed Akbar Ali

As you all must know by now, I am the furthest thing from a lebai or an ustaz. Just to share some information about what the Quran says about “kalimah” or words. Kalimah means words.

In the Greek language “logos” means words. In christian theology much is said about the ‘Logos’ or ‘Words’. Some Christians say that Jesus son of Mary was “The Logos” or “The Word from God”. I once heard an Arabic expert and Quranic scholar from India espouse an interesting explanation of ‘Isa’ (‘Eesa’) which is Arabic for Jesus.

Anyway here is some information from the Quran:

“We said: "O Adam! dwell thou and thy wife in the Garden; and eat of the bountiful things therein as ye will; but approach not this tree, or ye run into harm and transgression." Surah 2:35.

This was the famous commandment from God, given unto Adam. This was speech (“We said..”) which is made up of words or kalimah.

“Then did Satan make them slip from the (garden), and get them out of the state in which they had been. We said: "Get ye down, with enmity between yourselves. On earth will be your dwelling-place and your means of livelihood - for a time” Surah 2:36

This was the event where Adam was duped by Satan. To do what? To go against the WORDS or KALIMAH which God had taught Adam. Don’t ask me why Adam could not go near that tree in the Garden, the Quran provides no information about the reasons for that commandment. Adam was just required to obey God’s words or kalimah.

Unfortunately Adam breached the kalimah or words that God gave him. However God did turn towards Adam and redeemed him. How? Through more words or "kalimah".

“Then learnt Adam from his Lord words (kalimah), and his Lord turned towards him; for He is Oft-Returning, Most Merciful” Surah 2:37.

To forgive and save Adam, God revealed to Adam even more words or kalimah. I am pointing this out to show the importance of kalimah or words from God for man’s guidance.

As Muslims we believe that this kalimah is the revelation of a book of guidance which we believe is the Quran (other revealed books were the Injeel, the Torah, the suhuf revealed to Moses and Abraham, see Surah 87:18-19).

Here is more about “kalimah” from the Quran :

“The word (kalimah) of thy Lord is complete in truth and in justice: None can change His words (kalimah): for He is the one who heareth and knoweth all”. Surah 6.115

Here the reference is specifically to “kalimah” or words. The words or “kalimah” of Allah are complete in truth and in justice. No one can change the “kalimah” of Allah.

There are people who do not obey the “kalimah”. They follow their own conjectures, they follow guesses. This is what the Quran says in the next verse:

“If you obey the common run of the people on earth, they will divert you from the path of GOD. They follow only conjecture; they only guess.” Surah 6.116

Could the Prophet have followed his own desires or his own fancies and said ‘this is also from God’ ? Not according to the following verses :

Surah 69:44-47 : “..And if the apostle were to invent any sayings in Our name, We should certainly seize him by his right hand, And We should certainly then cut off the artery of his heart. Nor could any of you withhold him (from Our wrath). .”

This is a very ominous threat issued against the Prophet. If he had invented any sayings and then attributed it to God, he would have been severely punished.

Just like Adam, the Prophet too was duty bound to obey the kalimah or words of God that were given to him. The Prophet could not invent his own words and then attribute them to God.

The original guidance from God to Adam was in kalimah or words. Adam’s breach was to go against God’s kalimah. Finally the redemption and the guidance for Adam was also in more kalimah. Hence the importance of the “kalimah” or words from God.