TABUNG HAJI RM20 BILLION BAILOUT. IS THE GOVT BREAKING ITS OWN LAWS WITH ACCOUNTING GIMMICKRY?

by E.S. Shankar, Donplaypuks® intrepid correspondent for cooking the haj books affairs

It's one thing when a government of Kleptocrats breaks just about every law to cling on to power. Quite another when a government that is democratically elected to replace it, indulges in illegal sleight of hand and iffy accounting practice to rescue Tabung Haji (TH) in order to remain popular.

Let me say what many want to, but dare not even in this era of 'New Malaysia'. Ever since Tabung Haji was founded in 1963, it has benefited only one class of Malaysian citizens i.e. Malaysian Muslims. So, when it is clear that TH is very shaky financially due to a combination of poor government oversight, UMNO appointing ill-qualified cronies to its top management and internal and external fraud:

Why should Taxpayers' (MoF) money be used to bail it out? Why did the government not order $300 billion Permodalan Nasional Bumiputra (PNB) and other Bumiputra funds to come up with a rescue plan? Why were TH profits monopolised but now billions of ringgit of losses, being socialised?

How is it that a government on an austerity drive and acknowledged RM1 Trillion in total debt, liabilities and guarantees could find RM20 billion just like that for TH?

In any event, what is unacceptable in MoF rushing in where angels fear to tread with its RM20 billion rescue plan is:

1. Transfer of "underperforming" TH assets/investments at book value. As TH has admitted that these assets are currently giving a return of "under 2%", how is it legal for MoF to take over these assets at book value and not REDUCED market value?

2. More so as TH was deliberately in breach of Malaysian laws, i.e. accounting standards which require writing off impairment/diminution in value provisions in the Profit & Loss Account. This was illegally done to ensure its balance sheet was positive, fool the government into thinking it could continue paying dividends and protect UMNO/BN from Malay Muslims taking to the streets in protest BEFORE GE14 on 9 May 2018!

3. What about Real Property Gains Tax (RPGT) on the RM188.5 million 1MDB land? Conveniently waived?

4. Why should the MoF guarantee TH 5% return on assets, i.e. RM7 billion over the next 7 years, when it is now earning under 2% income? And what if in 7 years time, TH's RM20 billion of assets sink further? Who will bear the losses? Us? Again? Given these are dud assets, what is the likelihood MoF will ever make a profit on them? On its investment in FGVH alone, TH is losing more than RM1 billion.

5. On what basis does government have so much confidence in placing TH under Bank Negara Malaysia's (BNM) "supervision" when it failed to act promptly and decisively on more than RM4 billion of  money stolen from 1MDB that went in and out of Najib's personal bank account and massive fraud and failures at FGVH and Felda LKTP?

So, how did Finance Minister Lim Guan Eng allow himself to be arm-twisted into a dodgy deal and breaking the law by PM Mahathir? Why have DAP and PKR kept silent on this bailout? Why have Nurul Izzah, Wan Azizah, Azmin Ali, Rafizi and other top Muslims in PKR not condemned this bailout? Because, like the child marriage and female genital mutilation issues, one should not rock the boat in case the "natives get restless"?

When will the Pakatan Harapan government and politicians STOP doing the wrong thing by allowing UMNO and scum Opposition to pull out the "natives are restless" bogeyman card everytime instead of calling their bluff?

So, what is the right thing to do with the gigantic cock-up at TH? That's so obvious that it defies belief Mahathir and his Ministers have not worked it out:

1. Sack all the Directors and senior managers involved in breaking the law and charge them in court. Put them away under lock and key for 20 years. That will send a clear message to particularly Malaysian Muslims that crime will not pay and what's haram cannot be made halal by fraud and accounting gimmickry.

2. Carry out a new audit and revaluation of ALL TH's assets and liabilities and establish it's true financial position on a group basis. Many amateurs are looking only at TH's balance sheet and profit & loss accounts and not at the Group's financial situation and concluding that TH can afford to pay dividends.

A new audit/revaluation can be completed within a month, max two, especially as we already have the last (2017) audited accounts (by the Auditor General) and two reviews by Ernst & Young (EY) and Price Waterhouse & Coopers (PWC). It's not rocket science.

TH should classify its assets and liabilities under current and long-term assets and liabilities. That will give a much clearer picture of its ability to pay dividends. Amateurs, please take note. Ultimately, it's an entity's cash position that will determine how much dividends can be paid. No cash, no talk!

3. TH's Memorandum & Articles (M&A) MUST be amended so that in future it can only pay dividends IF its total Reserves are positive. No dividend should be paid based on unrealised profit on shares and other investments and land and properties. This would be a more prudent policy and in line with best practices in public listed companies.

  

4. Immediately stop the filthy habit of appointing Party cronies to top positions in GLC's and Quango's (SPAD/SPAN/HRDF/MAVCOM, Plc Chairmanship etc). This is the main reasons these entities have lost hundred of billions of ringgit via fraud and pathetic, gross mismanagement. Recruit only qualified, experienced professionals and those with proven track records; forget race or religion. Never compromise on merit.

When this exercise is completed, I suspect TH will be in the red by about RM10-15 billion.

In the final analysis, it will not do to try and patch up stage 3 cancer at TH with electoplast and two panadols! The Pakatan Harapan government must take the higher ground and not allow TH to get off easy with fancy and expensive, guaranteed Sukuk Bonds/ Redeemable Convertible Cumulative Preferential Shares (RCCPS) and false accounting to facilitate the payment of unsustainable dividends. Do not pass the buck to the Taxpayer. It's time PNB was roped in to save their brethren.

refer:
Tabung Haji's nefarious ways to force government's RM20 billion rescue
Avoid 'financial engineering' to solve Tabung Haji's problems, gov't urged

MMC-GAMUDA GO FLY KITES! TONY PUA/LIM GUAN ENG PLEASE TAKE THEM TO THE CLEANERS!

by E.S. Shankar

Ex-PM Najib and Deputy PM Zahid Hamidi appear to be saying that because many got away with daylight robbery under Mahathir's 22-year Ketuanist Bumiputra era, they too should be allowed to go away quietly into retirement, instead of being publicly prosecuted for 1MDB/SRC's missing RM46 billion and their excessive, unaccountable wealth and probably spend a long time in Bamboo River Resort (to which name I own the copyright!).

Quick as a flash, now MMC-Gamuda has followed suit in warning the government of dire consequences if it went through with terminating them as Project Deliver Partner (PDP) for the underground portion of the RM16.71 Billion MRT2 contract. Does this false bravado have anything to do with the fact that a member of the Perak Royalty is both a director and shareholder of Gamuda?

The thieves, the plunderers, the toll highway robbers, the IPP mafia, the water pilferers and others have all started attacking the PH government, not for thievery and corruption, but for trying to rein in inflated public works contracts and to stop the bleeding. They have taken the cue from UMNO, Najib and Zahid. Bluff and counter bluff have been followed with UMNO's unprincipled credo - attack is the best form of defence.

But MMC-Gamuda is fooling no one. It was appointed Project Delivery Partner (PDP) by Najib via direct-nego, NOT through OPEN TENDER!

The fact that MMC-Gamuda so readily agreed to reduce the MRT2 price from RM16.71 billion to RM14.58 billion (12.75%) AFTER Tony Pua and Finance Minister Lim Guan Eng appointed an independent engineering consultant to sift through the numbers, tells us everything. There is an indication now that in fact the underground portion of the MRT2 contract could possibly be reduced by a staggering RM5.79 billion or 35%.

It is of course a well-known fact that under Bijan, the price of public works contracts could be artificially inflated to either facilitate "donations" to UMNO/BN and/or reduce 1MDB's humongous debts. Najib's (now cancelled by the PH govt) $55 billion ECRL contract had been gassed up with RM30 billion of fictitious scope of works. Much earlier, in 2002, the RM7.5 billion Scorpene Submarines contract had been primed with a RM 575 million fictitious "co-ordination and support services" fee.

So, to hell with MMC-Gamuda! Let the MoF terminate this ridiculously and obscenely priced contract and get a new one in place through Open Tender. I am for it even if it means a higher MRT2 price as it will put crooks and thieves in jail.

I assure you, 20,000 people will not lose their jobs, nor the KLSE crash if MMC-Gamuda were to be taken to the cleaners and shut down permanently. The Dow Jones did not sink into oblivion because Enron folded up or when USA was reeling under the US$700 billion sub-prime crisis. So, we must recognise MMC-Gamuda threatening Tony Pua/LGE and MoF for what it is - the empty words of those caught with their pants down and trying to pull a fast one on us.

MMC-Gamuda should also be taken to task for playing the racist Bumiputra card, while saying nothing or caring for non-Bumis who might lose their jobs. This was surely to stir up the hornet's nest among the natives!

So, Tony Pua, Lim Guan Eng, MOF and the PH government, you have been too kind to MMC-Gamuda. Give us the cue and we will march with you to MMC and Gamuda's HQ and tear down their walls to confiscate all those incriminating files and documents. You have the power, use it especially as it will be for honesty, truth and justice. The Rakyat will back you all the way.

Public companies which have risen and prospered largely through  multi-billion ringgit public works direct-nego contracts financed by the Taxpayer, and who are ungrateful, should be taught a severe lesson for trying to hold us to ransom! 

Ref: 

Open letter from Tony Pua to MMC-Gamuda

MMC-Gamuda no longer contractor for MRT2 underground job

MMC-Gamuda: Termination of MRT2 contract will leave 20,000 jobless

STOP GIVING EXCUSES MAHATHIR, TONY PUA, LIM GUAN ENG & ANWAR. ABOLISH TOLLS, HONOUR THE MANIFESTO OR RESIGN!

by E.S. Shankar

Mahtahir is dishonest and wrong and Rafidah Aziz, stupidly wrong. Pakatan Harapan did not merely announce its pre-GE14 Manifesto but also printed and distributed copies of it. They talked it up and down the country to win votes. The Bumiputra agenda is also clearly spelt out in extremely great detail in the Manifesto and clearly has Mahathir's paw marks all over it.

So, for Mahathir to now publicly claim that he had not agreed with the issue of abolishing tolls, a cornerstone of the Manifesto, and that it cannot be done, is downright dishonest. It is also a betrayal of voters who, together with the pivotal issues of abolishing GST and prosecuting 1MDB wrongdoers, cast their votes against Najib and his UMNO/BN government of thieves, looters and economic plunderers, in exchange for fair play and justice.

What is even more disconcerting is the silence from Tony Pua, Lim Guan Eng, DAP, Anwar and PKR. They seem so intent on not losing their Cabinet posts and foothold in government that they are prepared to allow Mahathir to ruin the new government's integrity and election promises which we took extremely seriously. This is cowardly of them beyond belief when you consider that between PKR and DAP, they hold  nearly 70% majority in the coalition!

If Tony Pua and LGE are going to ditch abolishing tolls, the least they should do is publish the Tollcos valuations and buy-out costs and let us judge if they have really done their homework. There are many outside this politically entrenched bunch who do know as much, if not more, about Tollcos as them and are even capable of advising them how such a buy-out can be engineered to the government's advantage. That old mentality, UMNO's "government knows best", is, as has been proven after GE14, only fit for the ditch!

In any event, Mahathir, the architect of much of all our woes, is the man who crafted the crony sweetheart Tollco giveaway deals and contracts with their automatic toll increase and no-divulge OSA-classified clauses. He therefore owes it to us to find a way to abolish tolls and the Tollcos Mafia, come hell or high water.

In the interim, measures can be taken to reduce the Rakyat's toll burden. If I recall correctly, in 2008 Anwar promised us that should the Opposition with the GE, tolls would be halved the day after the elections! Even the Maju Group which made an offer to take over PLUS some two years ago, was shocked at the high maintenance costs incurred by our Tollcos. There is much fat there, the usual result of inflated sub-contracting out to cronies of the directors and CEO's, that can easily be trimmed and still give a fair return to the Tollcos.

It is clear to every Malaysian that Tollcos (just like the IPPs) have been raping us for some 30 years with inflated construction, running and maintenance costs. I bet that much of their financial statements will not stand up proper scrutiny, in the same way that 1MDB's audited accounts have been proven to be utter rubbish and fraud. 

All that is required is for the MoF and Income Tax Department to, for once, use their extensive powers truly for the Rakyat's benefit. They should re-audit all Tellcos and determine exactly how much they have been taking us all for a ride. If you add in the billions of ringgit these Tellcos have been using to donate money from shareholders' funds to the crooked UMNO/BN's war chest without securing approvals at their AGM's, there is a lot of room for the government to reduce the Tollco valuations to the bare minimum.

The Attorney General should also review all the Tollco contracts. When you add in the fact that these contracts were awarded by UMNO/BN's Ali Baba direct-nego method against public interest, I am confident that the Tollco valuation can be made "affordable" to the government. The government should not be afraid to stiff-arm them into submission. They deserve a huge dose of the same medicine they have been dishing out to us for so many years. Also, any payment to Tollcos can be staggered (with no interest) over the next 50 years to reduce the government's cash flow constraints.

So, I am suggesting a two-stage approach:

Stage 1. 

(a) An immediate 50% reduction of tolls.

(b) All toll maintenance contracts to be re-tendered out and overseen by MoT

(c) Tollcos are not to be allowed to make super profits, the rate of return to be restricted to say, cost + 15% or 15% on capital employed whichever is the higher. Toll rates will be revised up or down after each year's audited accounts have been posted.

Stage 2 ( to be completed by end 2019)

(a) Re-audit of all Tollcos for inflated costs, fraud, illegal donations to UMNO/BN.

(b) Review of all Tollco contracts by AG.

(c) Compulsory acquisition of Tollcos by MoT.

(d) Abolishing of tolls and tollcos.

The argument that EPF members will lose out if PLUS is taken over and abolished by MoT holds no water. Firstly, not all EPF members use toll roads, so why should they be the only ones to benefit from PLUS profits? Besides that, some sacrifices are needed in the interest of the greater good i.e. the 30 million citizens of the country.

As for Rafidah, okay, I give her some credit for speaking out against Najib and his ex-government of thieves. But, there is still a huge cloud floating over her head from the multi-billion ringgit AP scandal of the early 2000's. I do not need any advice from those who stood by silently and profited personally while Mahathir ran riot with his racism, Bumi crony capitalism and Ketuananism then. And yes, Manifesto promises do matter and Mahathir, DAP & PKR will renege on them at their own peril. Enough is enough!

MAHATHIR SPINDOCTORS MALAYSIA SOVEREIGN FUND KHAZANAH LIKE A KELANTAN TOP FOR CONTROL! PROTON 2 DISASTER - HERE IT COMES! by E.S. Shankar

by E.S. Shankar

We must always be suspicious of prime ministers with doctrinaire agenda and a long, long history of manipulative tendencies (read as lying with tongue-in-cheek).

THE TRUTH ABOUT KHAZANAH'S PERFORMANCE

Let us look at the audited FACTS.The truth is Khazanah is on very sound financial footing, as follows:

1. Fixed & current assets of RM93 Billion

2. Govt guaranteed borrowings of RM50 Billion, creditors of RM2 billion. So net assets (93-52) of RM41 billion, represented by share capital of RM12 billion and accumulated reserves of RM29 billion.

4. Market value of investments - RM157 Billion, net worth after borrowings etc - RM116 billion.

5. Compounded average net Return on Investment ROI) of 9.6% between 2004-2017, which by any standards must be reckoned to be good.

The truth is also that ALL investment and sovereign funds, e.g. Singapore's Temasek will, every now and then lose money, big money. In 2016-17, Temasek lost RM$129 BILLION (assets RM$1 Trillion). Refer: http://statestimesreview.com/…/gic-make-record-losses-at-l…/ . No one has a 100% positive performance record.

So, Khazanah losing RM3 billion (it did later recover RM1.5 billion) in UBS shares or RM80 million in a lingerie business is a red herring put out by Mahathir and new Economic Affairs Minister Azmin Ali. It's par for the course. You can't just talk about losses and oh, so conveniently leave out that fact that the market value of Khazanah's assets grew from RM65 billion to RM116 billion between 2004, when Azman Mokhtar took over as MD, and 2017. RM1.508 billion represents only 1% of Khazanah's current RM157 billion investment portfolio value.

MAHATHIR LOST US OVER RM100 BILLION

If we add up all the losses ratcheted up by Mahathir during his 22-year tenure as prime minister - BNM forex loss, Bank Bumi, Proton, Maminco, Mimaland, Perwaja, MAS etc - it will exceed RM100 billion!

So, why has Mahathir undermined Khazanah by manipulating the removal of its MD & entire Board of Directors, while pretending it had "deviated from achieving its Bumiputra objective" when in fact, we have Permodalan Nasional Berhad (PNB), set up in 1978, to cater solely for his skewed "affirmative action program" in favour of the majority Bumiputra? Since when was Khazanah a Bumiputra fund?

What gives with the 93-yo sly manipulator, Mahathir?

MAHATHIR'S PROTON 2 CASINO GAMBLE

Is it an accident that Mahathir has been talking up Proton 2? I think not. I think we are seeing a P-Q4 chess move by which he hopes to pad Khazanah with his nominees to either:

1. Buy back 100% of Proton 1 from DBR-Geely, OR

2. Start a fresh Proton 2, AND possibly, 

3. Buy out or put Perodua out of business.

Is it about developing a core of automobile engineers for the long-term? I think that will be a complete waste of Khazanah's precious capital, given our small population and that the giant auto MNCs can roam the world for outsourcing their automobile and spare parts production. Besides, the auto industry is going through a revolution switching to electric cars and eventually, solar powered ones. It would be better to develop the solar, water and alternative green energy business with our limited resources and capital.

So, is Khazanah once again going to be Mahathir's whipping boy for his favourite hobby, the ill-planned and ill-fated, Proton, by once again dipping into the Taxpayers' pockets which have already been seriously looted to bare threads by UMNO?

Well, there goes our hopes of putting an end to the RM2-4 billion Ali Baba Approved Permit (AP) rent-seeking Mafia business and cheaper, quality imported cars.

There's no limit to Man's bloated ego. So, they say. Mahathir may just prove that right, again!

NB

Khazanah's summarized audited 2017 Annual Report ( details of it's investments etc are not included in this version) - http://tkr.khazanah.com.my/…/wp…/uploads/2018/05/TKR2017.pdf

MAHATHIR, ZAKIR NAIK AND THE ISLAMIC CARD!

by E.S. Shankar

THE ZAKIR NAIK DILEMMA

It has now been officially confirmed by India's Ministry of External Affairs spokesman Shri Raveesh Kumar, that they had submitted to Malaysian authorities way back in January 2018, a formal Extradition and Mutual Legal Assistance (MLA) application relating to Zakir Naik, an Indian citizen.

So, the statement in recent days by PM Mahathir that Zakir Naik would not be deported to India because “he had committed no crime in Malaysia” and also on the grounds that “he might be victimised” in India, must be taken for what it is. It’s an insulting, stinging slap in the face for India, a long-standing friend and ally of Malaysia, with DNA, religious, cultural and social connections and associations going back more than 2,000 years!

More than that, we have the right to ask Mahathir if "Islam, the religion of the Federation", entitles Zakir Naik to preferential consideration and treatment by him. Many may well ask him if wanted non-Muslims on the run from their home countries to Malaysia, shall be accorded the same, o' so enlightened and progressive consideration as Zakir Naik, or more likely, deported even before they unpack their bags.

In his early years as PM, Mahathir had to deal with the 1983 Bumiputra Malaysia Finance (BMF) US$1 billion fraud and corruption scandal. No one was ever charged with any crime here in that sordid episode which included the tragic and brutal murder by strangulation of a Malaysian Malay auditor in Hong Kong. Mahathir buried it all by saying “no crime was committed in Malaysia” as did Najib recently over the 1MDB/SRC $46 billion fraud fiasco.

MAHATHIR'S LOGIC

First, let’s look at the logic of Mahathir defending Zakir Naik:

1. Supposing Najib were to flee to UK, would Mahathir accept the British position that they would not deport Najib to Malaysia as he “might be victimised”?

2. Supposing Macau or Hong Kong refuse to arrest and deport Jho Low after an Interpol Red Notice were to be issued, would Mahathir accept their argument that he had “committed no crime” there and that he would not get a “fair trial” in Malaysia?

3. Would Mahathir accept it or go ballistic were Indian PM Modi to say that Malaysian police raids on Najib and Rosmah’s house and condominiums and confiscation of money, jewellery and assets constitute draconian dictatorial acts and witch hunt victimisations?

THE CHARGES IN INDIA

India is proposing to take Zakir Naik to court for charges relating to:

1. Fomenting religious conflict and radicalizing Indian youth under the Unlawful Activities Prevention Act (UAPA).

2. Alleged role in terrorism funding.

3. Alleged massive money-laundering.

4. Alleged undeclared land and properties worth 104 Crores or about RM60 million.

Zakir Naik thrice failed to answer India’s National Intelligence Agency (NIA) request for him to come in for questioning, as a result of which his Indian International Passport has been revoked by Indian authorities.

Before taking what is perceived by many as a Ketuanist and bigoted stance, Mahathir should have asked himself some simple questions:

1. Is India recognised as the world’s largest democracy with similar separation of powers as Malaysia for nothing? Unlike Najib’s regime, there is no international outcry of any kind that PM Modi has subverted the Chief Justices, Courts, Attorney General, PAC, Auditor General, Anti Corruption Agency Chief, police and security agencies etc., to serve a massive criminal looting agenda and cover-up.

2. India has 180 million Muslims, the vast majority of whom are happy to live there. That’s about 12 times the Muslim population of Malaysia. Modi has many major problems to solve in India and needs a Zakir Naik controversy like he needs a hole in his head. Why would he deliberately choose to create any problems for his premiership, Party and administration by being accused of Islamophobia?

3. Zakir Naik, 52, born and bred in India, was allowed, without any discrimination, harassment, interference or mistreatment, to graduate as a medical doctor. He later became a multi-millionaire in India with his Islamic Research Foundation (IRF) lectures and related income during his adult years. It defies logic that India would suddenly go after him without sound and solid, good legal reasons.

MAHATHIR'S SOFT SPOT

Mahathir of course, has a history of protecting and/or supporting Muslim terrorists. Indonesian Abu Bakar Bashir was convicted of conspiracy in the 2002 Bali bombing. Earlier, he had fled to Malaysia where he was offered 17 years sanctuary between 1982 and 1999 by Mahathir. In 2011 he was sentenced to 15 years jail for supporting a Jihadist Training Camp.

In 2001, Nur Misuari, Head of the Moro National Liberation Front (MNLF), fled to Sabah, Malaysia, after a failed coup attempt against the Philippines government. Mahathir deported him back to the Philippines but admitted “we provided support for him in the past for his bid on autonomy that saw the creation of Muslim Mindanao.”

THE MORAL VACUUM & ROLLS ROYCE

But there is of course more to it than the Islam-at-any-cost mule-headedness. There is now that disease that also afflicts the US, that staying in power is more important than upholding fundamental principles. So, many in UMNO, BN, PAS, Perkara etc., would not come out and condemn serial liar and multi-billion ringgit defrauder Najib and his administration of thieves. This is not realpolitik. It is pure, unadulterated human greed.

Mahathir is clearly afraid that come 2023, the Pakatan Harapan coalition government will shed sufficient Malay Muslim votes to lose the General Election. He is succumbing to the fearmongering by UMNO, PAS and other Malay right-wing losers that the Malays will only take so much, if at all, a Chinese Finance Minister, an Indian Christian Attorney General and a Sabah Christian, albeit a Bumiputra, Chief Justice. The notion that the Malaysian Malay will NEVER EVER be ready for complete meritocracy or equality is a proposition supported by Mahathir himself.

Millions had thought that with the PH election victory, the 1970 New Economy Policy with its peculiar affirmation action almost totally in favour of the majority Malays/Bumiputras, would finally be consigned to the dust bin. That it would be replaced with non-racial meritocracy and income means-tested affirmative action economic sharing and distribution policies. However, Mahathir shocked us by saying that it has to continue with no fixed time limit, until the Malays too could afford to ponce around London in posh Rolls Royces, as do one or two Malaysian Chinese. Mahathir is not stupid, but is given every now and then to brain fades and making outrageously stupid statements.

The majority of the parents of all the relatively few Malaysian Chinese, Indians and others who go to London or the West for higher education, have had to slave, scrimp and save for a brighter future for their children. They have been forced to do so by the NEP. There were no ready made government handouts for them. Do you know what is really pathetic? It is that our government itself admits that the 23% minority Chinese have been contributing the most to our income tax revenue that powers our economy!

So, Mahathir should stand up for the right principles and deport Zakir Naik at once to India to face the democratic rule of law and courts of his country of birth where he lived uncomplainingly and in more than comfortable prosperity, protected by it's law and order authorities for 50 years. If the system there is good enough for the majority of 1.2 billion Indians, it’s good enough for Zakir Naik.

Embrace the right principles and we will all prosper by leaps and bounds. The Malays/Bumiputras will have nothing to worry about as they are the majority and ones who have been in control for the past 48 years and will continue to do so. Top civil serpent Zakir Naik sycophants in Putrajaya will openly rebel? I say ruthlessly sack every single one of those traitorous bastards who conspired with Najib to openly loot and plunder public coffers.

To Lim Kit Siang. Lim Guan Eng, Anwar Ibrahim, Dr. Wan Azizah, Nurul Izzah, Gobind Singh, M.Kula Segaran and other PPBM, PKR, DAP, Amanah and Warisan MPs who think that challenging Mahathir on the Zakir Naik fiasco would be rocking the boat too much too early, my view is simple and straightforward. Sacrifice principles for political expediency and see the total collapse of PH. And Mahathir is neither a God nor perfect. If every policy is to be implemented with an eye on whether the the ultras, fundamentalists and Ketuanist Umnoputras will accept it or not, PH is already finished.

Continue with defending the indefensible, Dr. Mahathir, and Malaysia will hurtle in the direction of Iran, Iraq, Libya and other such doomed countries. And the Malays will be destroyed by a brand of Islam that’s not in the Quran. Playing the Islamic card in this new dawn would be dangerous back-tracking!

ZAKIR NAIK COMMITTED NO CRIME & DID NOT INTERFERE IN MALAYSIA'S INTERNAL AFFAIRS?

Choose wisely and act quickly for tomorrow you might need India’s assistance where a Malaysian terrorist is concerned. Why on earth would you entertain someone like Zakir Naik who is quoted as saying:

“How can the building of churches and temples be allowed when their religion and worshipping is also wrong? Thus we will not allow such things in our country!”

AND:

“Suppose there is a Muslim leader…maybe he is corrupt vis-à-vis another Muslim leader who wants to join hands with the Kaffir to come to power. Who should you select? There is no two doubts at all. You have to select the Muslim even if he is corrupt, no problem! He will get his punishment on the day of judgement because being corrupt is a major sin in Islam. I am not supporting him, but for you as a Muslim, if you support a Kaffir non-Muslim, Allah will not help you.

If you are joining a coalition party with a non-Muslim, it is hundred percent clear-cut, a person who tells you to support a Muslim who joins hands with a Kaffir, there is no two doubts. Allah is very clear in Surah Imran, Chapter No.3, Verse No.28, that let not the believers choose the unbelievers’ preference to a believer. Allah’s help will not be with you….But if a Muslim takes a non-Muslim as his his partner to come in power, he is going against Allah and it’s a much bigger crime!...In no way can you take the help of a non-Muslim as far as power is concerned…in no way let them sit on your head!"

Dr. Mahathir, do you seriously think Zakir Naik has not interfered in our internal affairs and politics or committed any crimes in Malaysia, brainwashing naive, weak and impressionable Malays, young and old, with his utterly despicable moral morass? This is called radicalising! He is virtually telling you that you and PPBM have committed a HARAM act in partnering PKR and DAP and are anti-Islam and anti-Allah! He is as cunning and evil as they come!

So, PM and PH, please boot Zakir Naik back to India TODAY. Do not give him the space and time to spread his poison and pollute our citizens' minds any further. And if any Ministers, top civil serpents in Putrajaya, PAS, Perkasa and others wish to follow him to India, so much the better!

And lastly, Dr. Mahathir, the Malays are ready, and have been so for a good ten years at least, to stand on their own two feet. It is people like you who are holding them back and keep saying they need crutches and handouts for you to hold on to power. Give them back their self-esteem and pride TODAY.

MALAYSIA AIRPORTS HOLDINGS BERHAD (MAHB) - ANOTHER MONOPOLY GLC THAT NEEDS A REVIEW? by e.s. shankar

by E.S. Shankar
($ represents Malaysian Ringgit)

MAHB was incorporated in 1992 by the GoM and given a monopoly licence to build, operate and manage all airports in Malaysia. It was listed on the KLSE in November 1999 with the GoM holding a golden share. Khazanah holds 33% of MAHB shares, EPF 10% while about 43% is held by foreign investors.

Today, it operates 39 airports including 5 international airports of which KLIA and KLIA2 both at Sepang, Selangor are the jewels in the crown. It has also expanded operations overseas to Turkey where it owns 100% of the licence for operating and managing the Istanbul Sabiha Gokcen International Airport (ISG).

The KLIA site alone encompasses 22,165 acres. MAHB'S licences for KLIA, KLIA2 and designated airports are as follows:

1.  25 years from 2009-2034 in Malaysia

2. Additional 35 years from 2034-2069 in Malaysia. This extension was granted in December 2016. The rationale for this unusually long extension has not been explained by GoM, given that it was granted in the run up to the general elections.

3. 24 years from 2008-2032 for ISG, Turkey.

MAHB's profit after tax, though fair, have not been spectacular over the last 20 years, given its monopoly and support from the government. In particular, we should take note of the results and statistics over the last 3 years:

A good portion of MAHB's income is derived from Passenger Service Charge (PSC) which is  imposed by law on all air travellers and is subject to increases based on 5-yearly reviews. Currently, the charges are Domestic $11, ASEAN $35 and International $73. 

It also receives a portion of charges which are included in the PSC even when travellers DO NOT use the KLIA Express Link. MAHB also charges GoM 4.5% - 7.5% on construction charges for airport expansion. 

A review of MAHB's monopoly is necessary for the following reasons, besides the fact that it has an extremely low and unacceptable return on assets employed as stated above:

1. When KLIA2 was mooted, an Air Asia-Sime Darby consortium had proposed to the GoM for it to be awarded the design and construction contract. However, GoM gave the rights to MAHB at $1.7 billion. Close to completion, it was revealed that the costs had more than doubled to $4 billion. The opening was delayed to early 2014. A PAC inquiry concluded that it was nonsensical to claim that KLIA2's main customer, Air Asia, was to be blamed for the incredible cost escalation. CLICK HERE - PAC SLAMS MAHB OVER KLIA2 and HERE - DAP QUESTIONS MAHB.

However, MAHB's 2014 audited accounts show that $5.4 BILLION was transferred from Capital Work-In-Progress to Terminal Building, of which $4 billion was related to KLIA2 construction. So, what was the true cost of KLIA2, including interest, plant and equipment, fixtures and fittings and commissioning costs? Particularly since it has been criticized as being user unfriendly and described as a "cattle barn"! (Wherever we find the grubby fingers of Najib and his ex-government of thieves, we often get peculiar answers to straightforward questions. E.g. How much does a Proton cost? Answer: Excluding the engine, seats and shell, the ignition and exhaust system costs are the lowest in this part of the region!!!).

A review of the entire KLIA2 cost should focus on whether there were properly conducted open tenders, who were awarded contracts and on what basis, variation orders and if costs were in line with market rates

2. There are too many sweetheart concessions given to MAHB:

(a) The 35-year licence extension for KLIA and KLIA2.

(b) Profit of 4.5% - 7.5% on construction contracts when it has a monopoly licence.

(c) Entitlement to charge for those not using the KLIA Express Link.

(d) The concession to "settle Residual Payment to the GoM in a manner that would not significantly deplete Group cash reserves and take into account the Group's Reserves and business plans". Such a giveaway would never have been conceded in an open tender licence.

(d) Another unusual entitlement - recovery of certain costs for "incurring marginal losses arising from socio-economic and GoM policies" referred to as MARCS.

3. MAHB's debt:equity ratio is about 80%. However, there is no explanation why finance costs for 2015-2017 averages an incredible 11%!!!

4. MAHB is ranked 48 out of the top 50 for aero revenue. Without a shadow of a doubt too, KLIA and KLIA2 are light years behind the facilities and standards established by Singapore's Changi Airport which was ranked the top airport in the world for the 6th consecutive year. Malaysia ranks 44. CLICK HERE.

5. MAHB's employment policy is not sufficiently inclusive:

(a) Management - 86% Malay, 8% Chinese, 4.5% Indian, 1.5% East Malaysian.

(b) Executive - 92% Malay, 2% Chinese, 4% Indian, 1% East Malaysians, 1% Others.

(c) 17 Directors of the company - 15 (88%) including the Chairman and CEO, Malay and 2 (12%) Chinese.

(d) 28 directors of subsidiary companies - 21 (75%) Malay, 2 (7%) Chinese, (18%) Indian/Others

An examination of the audited accounts of Petronas, PTPTN, Khazanah, Tabung Haji, FGVH, EPF, Socso and many other GLC's and Statutory Bodies will show a similar bias in employment policies.  After 48 years of the New Economic Policy (NEP) and affirmative action favouring the majority, it's time for all these GLC's to switch to meritocracy.

MAHB must however be congratulated for its high level of transparency and disclosures in its annual reports as well as its minimum 50% profit after tax dividend payout policy. This is reflected in its share price which is trading at about $8.75, PE ratio of 28 and market capitalization of $14 billion.

6. In 2014 alone, MAHB invested over $2 billion in acquiring the balance of 80% in ISG Turkey. It has about $10 billion to recover from ISG concession and licence rights and terminal building costs. The CEO's 2017 report says that the Turkey operations lost $237.5 million before tax. There should be a thorough review of this overseas foray, given that Turkey has not exactly been the most stable country in the world for many years now and its future is much in doubt. In chasing the extra ringgit, has MAHB bitten off more than it could chew?

Source: MAHB 2017 Annual Report. CLICK HERE.

MALAYSIA 9TH MAY 2018 GENERAL ELECTION RESULTS & STATISTICS BY FEDERAL AND STATE SEATS! by e.s. shankar

by E.S. Shankar

Here are some detailed analysis not available anywhere else:

1. Federal seats by Party

2. Federal seats by States and Party

3. State seats by Party

PETRONAS LISTING TO RAISE RM450 BILLION TO REDUCE RM1T NATIONAL DEBT ANYONE? by e.s. shankar

by E.S Shankar

PETRONAS LISTING! Prime Minister Mahathir talked about a plan to reduce our RM1T debt by RM200 Billion. I would like to suggest a Petronas Listing to raise money and reduce debt to manageable proportions.

Based on Petronas 2017 profit after tax of RM45B and a moderate PE of 20, it would have a valuation of 45 x 20 = RM900 Billion. CLICK HERE.

If we list 30%, then we could raise 900 x 30% = RM270 billion.

However, the market will probably recognise a higher valuation, based on cleaning up Petronas balance sheet, cutting out fat and wastage and the much talked about and pending Saudi Aramco listing.

Aramco is valuing it's company on it's oil reserves @ some astronomical valuation of US$40 Trillion! But, there is considerable resistance at that pricing. CLICK HERE.

But, I reckon Petronas, as a new lean and mean fighting machine, could possibly be valued as high as RM1.5T, which @ 30%, will give us RM450 Billion to play around with.

I have emailed Tun and Finance Minister Lim Guan Eng with this suggestion. They have probably already been thinking along the same lines and have started working on it. What do you think?