Thursday, March 22, 2007

KeranaMu Malaysia IV: Will Parliament Vanquish KJ in the ECM Libra Scandal?

Buruh, nelayan dan juga petani
Gaya hidup kini dah berubah
Anak-anak terasuh mindanya
Lahir generasi bijak pandai

Pakar IT, pakar ekonomi
Jaguh sukan dan juga jutawan
Berkereta jenama negara
Megah menyusur di jalan raya

Alam cyber teknologi terkini
Kejayaan semakin hampiri
Biar di kota ataupun desa
Kita semua pasti merasa bangga

Keranamu kami mendakap tuah
Keranamu kami bangsa berjaya
Keranamu kami hidup selesa
Limpah budi kemakmuran negara

Keranamu kami bebas merdeka
Keranamu myawa dipertaruhkan
Keranamu rela kami berjuang
Demi bangsa kedaulatan negara (ulang dari mula )

Keranamu Negara Malaysia
Malaysia...Terima kasih Malaysia!

-- Composers and Lyrics: Pak Ngah/Siso Kopratasa

"Saya kena jadi lebih putih dari putih (I have to be whiter than white)", said Khairy on the rostrum at the opening of the Paya Besar UMNO Division, a place not far from Kuantan. The crowd seemed to be eating from his hand as he claim he refuse offers to buy from foreigners and non-Malays and sold at a loss to another Malay, Tan Sri Azman bin Hashim.

That was on Sunday August 13th, 2006. A day earlier, Saturday August 12th, the news headlines were his sales of 10.2 million ECM Libra Avenue Berhad shares. On August 10th, the PAC Chairman stated the Minister of Finance (MoF) and Securities Commission official had abide to the various regulations and procedures.

Khairy claimed that the decision to sell was made independently, despite MoF and SC's clearance at PAC.

How coincident that the Merger announcement was made 2 to 3 months after his purchase of ECM Libra shares in December 2005? And, how coincident his sale was affected just around the time of the PAC enquiry and season of UMNO Division meetings?

Could the fact presented by those officials really absolve the questionable Merger?

The SC's presentation by its Chairwomen on August 10th concluded, as I translate below that:

1. The Mergers and Acquisition abide with the requirement in SC's Guideline
2. Avenue Capital & ECM Libra will benefit
3. An Independent Adviser (K&N Kenanga Berhad) was appointed to act as Independent Adviser for Minority Shareholders
4. Valuation of ECM Libra and exchange of shares were fair
5. The Merger was subject to the approval of both Company's shareholders

She seemed somewhat protected from rigorous questioning for reason being new in her job and was hurried to make way for the Ministry of Finance officials. SC, the most important authority in this sham, was not recalled again for the August 16th hearing.

Almost similar, the presentation by the Tan Sri KSU of Ministry of Finance, concluded:

1. The Merger did not resulted in the Government losing value in the short term
2. The Merger would enhance the value of Government investment in the long term
3. Both the shareholders approved the Merger in its EGM

Since the Tan Sri was not conversant with the detail, he was also somewhat saved from technical questions.

He did say it was decided at the official level and Dato Shahrir affirms, "Nampaknya peringkat pegawai sahaja (yang lulus)". Till today, we have yet to know whom? My sources say it's a lie.

The answers refuting all these claims, particularly the questionable valuation issues and the Independent Advisers advice, is in abundance on the Internet websites and blogs, like MyKMU, Malaysia Today, and

In "Follow the ECM Libra Money Trail to SC", I've focused on the SC and the mechanics of a fraudulent EGM. With SC's position well covered, Tan Sri Nor conveniently took refuge recently, "The Securities Commission had given clearance for the merger".

That's what he said but what did Shahrir said. "To say we are satisfied (of the explanation given) is not right since the PAC consists of representatives of various political parties. We all have a different degree of satisfaction." Isn't it obvious?

Aftermath Proved MoF and SC Lied

The biggest lies by both MoF and SC are demonstrable in the aftermath. Khairy's sales is mere politics and within regulations.

What about the sales by David Chua and Kalimullah at about the same time? David Chua sold all his shares. Dato Kalimullah confidingly sold his equity below 5% to escape declarations.

These two major shareholders are key individuals on the Board of Directors and Management. Shouldn't there be a Moratorium from immediate sales? Aren't they confined to sell within a prescribed time window? These is people-resource business and Moratorium is relevant.

That's one episode.

On February 9th, 2007, slightly more than two weeks before Tan Sri Nor Mohammed Yakcop's testimony at the PAC, the Government sold its entire 18% equity in ECM Libra Avenue Berhad to Tan Sri Azman's Company.

So, what's all these crap on long-term benefit for the Government's investment by having the Merger? The rationale for economic synergy and efficiency, Investment banking and cheaper entry cost, diversification, and export of financial services overseas?

What happened to the Company?

Profitability plummeted. With revenue only slightly higher around RM28-30 million per quarter from about RM20 million, the latest quarterly performance is a RM15 million loss.

Announced in September last year and completer end of October, 23% staff was retrenched. Wonder how many was Avenue Capital's?

MOF lied! SC allowed the lie!

There are decaying Police Reports in some stations somewhere against SC. Who will watch the Watchdog? This is what happens when the Implementor is also the Investigator. Any Merchant Banker wants to work with the Pollice?

PAC Absolve, Parliament Vapourise

Much hope on the PAC didn't happen. If anything that Shahrir manage to achieve, apart from leaving bread crumbs for Bloggers to read in between those lines, is to press for some form of Committee to monitor performances of these GLCs. That's monitoring the Ministers and Cabinet in political-speak.

What is to happen with the enquiry's finding? None was mentioned by Shahrir. He was blabbering over PAC's advisory role in running of GLCs.

As one former Parliamentarian told me, the PAC could only investigate and table at Parliament their finding, presumably in the current seating. But, there will be no debate on it. From the pre-session press comments, looks likely they will not hover over this issue.

PAC absolve, Parliament vapourise the issue. For Khairy, he is just happy his skin seemed whitening, without any whitening cream tip from Dato Khir Toyo.

Black Pigments Remain

Shahrir did say and to, "We also enquired about government concessions given to private companies, which had been listed and since they are listed, foreigners can buy into these companies, gaining advantage of the government concession."

That reminded me of Pantai and they have shares in Avenue Capital. The original local shareholder was disgusted with the manner of the Merger and sold everything. But he sold his Pantai shares to Singapore's Parkway that later need to have Khazanah to whiten Temasek's track.

Remember the MV Agusta you wish to up the bid more than 2 Euro? Who is the buyer for a Company, which reliable source put the hidden value at more than 300 million Euros? I would imagine this does not include the replacement value to develop the various technologies. Proton Chairman, Dato Azlan Hashim, should know. Could ECM Libra Avenue know? He is Chairman of Westcomb Financial Services that has links with ECM Libra.

ECM Libra was very much instrumental in the fund raising exercise of AirAsia, particularly its listing exercise. Surprise! Surprise, people! Check the owners of the new Tune Hotel at WIP, Johor. There is Dato Kalimullah, Lim Kian Onn, and Dato Tony Fernandez. Now they even sleep in the same bed with the clients.

How about the Whitewash Procedure for the fraudulent EGM? Well, the concept was used for the plantation mega merger without the M&A practices to get Minority Shareholders approval. Hereon, not only are Minority Shareholders sitting duck, they can't even quack.

There are those that do not agree ECM Libra is an Enron. I agree. I think it is worse than Enron. Allow me, a patriotic Blogger to sign off.

KeranaMu Negara Malaysia
Malaysia...Terima kasih Malaysia!

A Voice
Kuala Lumpur
March 22nd, 2007 10:30 p.m.


BigDogDotCom said...

What ever happened to the protest put up by MSWGB?

What ever happened to all those complaints forwarded to SC?

tokasid said...

Salam to Voice.

TQ for the Pink Floyd Another Brick in The Wall as your background music.

Its really sickening with all these lies and more lies to cover-up the going ons and abuses by Ministries,govt agencies and megaloegomaniac personalities.
What is more sickening is the majority of our people are so guilible and believe everything that the authority said.

Anonymous said...

good work! keep it up..but in bolehland nothing happens..:(

Anonymous said...

brother. what do u think is going to happen to ecm libra and its main actors? dont u think for as long as aab is still there the scandal is still well protected? by the way, the TMH piece was good. have u read my puisi? - salam.

pesanan said...

Dari Perlis sampai ke Sabah, satu2 di tiris hak kita.

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