The thumbs up news on Khazanah Nasional in the latest 2012 Auditor General's Report makes us feel like throwing up. A little over a week ago, Khazanah was given a global award by Frost & Sullivan in San Francisco when PM was there to officiate their new office.
Will not be surprise if it is a designed public relation excercise. Such self glorification is a cheap way to hoodwinked the public as to what is really happening in the mysterious and secretive Khazanah organisation.
Suspiciously, it could be another Tan Sri Nor Mohamed Yakcop scheming. Nor Yakcop is Khazanah's Deputy Chairman and Chairman of the Management committee, and he has lots of free time.
Auditor General's praise
Today's report below:
Report gives Khazanah thumbs upThe praises Khazanah received from Auditor General's Report is on steady stream of annual income. Obviously, Auditor General was not looking at Khazanah critically to say "cash flow was stable and it's investment performance was good."
KHAZANAH Nasional Berhad was praised in the 2012 Auditor General's Report for its good financial performance in the last four years.
The report stated that for the financial years ending 2009, 2010, 2011 and last year, the government investment arm had recorded an annual income of RM640.7 million, RM1.215 billion, RM5.692 billion and RM1.562 billion.
It found that Khazanah's cash flow was stable and its investment performance was good.
As at Dec 31 last year, its realised asset value was RM13.177 billion (12.2 per cent) compared with RM108.194 billion in 2011.
Apart from investments in the country, 10.5 per cent of its portfolio comprised investments in foreign countries, such as India, China and those in the Middle East.
"Up to Dec 31, 2011, Khazanah has direct shareholdings in 86 subsidiary companies, including special purpose vehicles and investments in 13 associated companies, amounting to RM25.048 billion and RM22.189 billion," the report stated. - NST 3/10/13
From the report alone, one will realised that there had been a significant drop in national income from RM5.692 billion in 2011 to RM1.562 billion. This drop came about after a rise from RM640.7 million in 2009 which happen to be the beginning of Najib's administration to RMRM5.692 billion.
The reason is not difficult to identify as the drop in realised asset value or in easier to understand parlance, income from selling of asset or divestment dropped. For 2012, the "realised asset value was RM13.177 billion (12.2 per cent) compared with RM108.194 billion in 2011."
Remember that we have been saying all a long that Tan Sri Azman Mokhtar and Khazanah only knows how to sell and take profit from the investment effort of past management.
Secondly, the return on investment is from "analyst" Amokh's investment portfolio of RM25.048 plus RM22.189 billion, to make it RM47.237 billion. Against annual income of RM1.562 billion, that is only 3.307%!
Aiyoyo ... keeping money in EPF or PNB or some Unit Trust Scheme or fot that matter Bank's Fixed Deposit makes more money than this organisation led by an ACCA and CFA Tan Sri.
All along Azman Mokhtar have been deceiving us that he is responsibly managing the rakyat money and blogger's are only making allegations that are merely, to use Goh Wei Liang's term, "perception manipulation and deceptive."
Just like the perception that Khairy was the agent to sell harta kerajaan during Pak Lah's administration, that habit dies hard.
Khazanah is only good at buat duit dengan melelong kerajaan. Most of their investments fail. For instance, what happenned to the whole RM1 billion food fund in which the idea was stolen from my friend now based in the Middle East?
As indication, remember back to Tun Mahathir's posting here on tuna cowboy plan. The boat dumped at Langkawi Boustead dockyard was called Jeannie May. Khazanah was conned into buying an overpriced from Amin Shah which was never suited and did not qualify for licensing for tuna fishing.
Then there is the marketing arm venture for marketing agriculture product led by Amokh's friend Harun Johari. It is waiting to fail. We know of some former executive there.
Syed Akbar blogs a lot of Khazanah investment and his answer when posed with the list of his failed investments was the same "cash flow was stable and its investment performance was good." He said, "we win some and lose some" like some two bit fund manager.
Khazanah's listing of medical investment was a hodgepodge of bad investments starting with Pantai Medical. When they purchased the Singapore and Turkey hospitals, one corporate player told us that he bought it at RM3 million per bed. The overrun Shah Alam hospital will be completed finally at RM750,000 per bed.
Khazanah under Tan Sri Anwar Aji was established to undertake strategic investment and not so much focused for return only. We can distinctively remember during it's establishment of 90s or early 2000 that it was meant to invest for Malaysia's future growth sector.
Thus the claim that it is too secretive and a vehicle for bailout. Read Jikon Lai here and Asiaviews 2004 article here. Has it finally reached to the point Khazanah has to open offices abroad like in San Francisco?
Frost & Sullivan award
To give some credibility or better still, to whitewash the event, Frost & Sullivan gave them an award.
Khazanah given global awardDemi Negara wrote about the award here and Jebat here but we have a different angle.
Monday, September 23, 2013
SAN FRANCISCO: Khazanah Nasional Berhad, the strategic investment fund of the government, has been conferred the Global Award for Visionary Innovation Leadership by Frost & Sullivan for the pioneering work it has done to catalyse and propel the economy in Malaysia.
The pretigious award acknowledges Khazanah's leadership role in transforming government-linked companies (GLCs), expanding the Malaysia brand regionally and globally, and its visionary approach to economic development through Iskandar Malaysia.
The award was presented to Khazanah's Managing Director Tan Sri Azman Mokhtar by Chairman of Frost & Sullivan, David Frigstad, and was witnessed by Prime Minister Datuk Seri Najib Tun Razak at the opening of the Khazanah Americas Incorporated office here on Sunday.
Among those present were Communications and Multimedia Minister Datuk Seri Ahmad Shabery Cheek; Second Education Minister Datuk Seri Idris Jusoh; Science, Technology and Innovation Minister Datuk Dr Ewon Ebin; Johor Menteri Besar Datuk Seri Mohamed Khaled Nordin, and director of the San Francisco mayor's office of international trade and commerce, Mark Chandler.
Met by reporters later, Frigstad said this was the first time the firm had conferred such an award.
The firm, based in Mountain View, California, had done a two-year study before deciding to confer the award.
He said the firm had made a comparison between Khazanah and other similar GLCs from all over the world, and was very impressed with Khazanah's best practices in terms of satisfying the needs of its stakeholders, citizens and investors.
"We hope the award would inspire other governments to put people first," he said in an apparent reference to 'People First. Performance Now' policy implemented by the Malaysian government.
Frigstad also believed that Khazanah would come up with many more big ideas based on what they would learn from innovative companies in the Silicon Valley here.
Khazanah, entrusted to hold and manage commercial assets of the government and to undertake strategic investment, is involved in various sectors such as power, telecommunications, banking, healthcare, airport management, infrastructure, leisure and tourism, property development, broadcasting, investment holding, and technology.
As of May 29 this year, Khazanah's overseas investments represented approximately nine per cent of its total investment portfolio of RM135.9 billion.
On a see-through basis, the percentage is bigger and represents approximately 35 per cent of Khazanah's investment portfolio.
Najib, who is on a working visit here and to New York, will chair the 3rd Global Science and Innovation Advisory Council meeting here on Sept 23.
He will also chair the 7th BIO-International Advisory Panel meeting and visit Silicon Valley, which includes a tour of the headquarters of Twitter and Google.
The matter that struck us about this award was that this award was conferred for the first time and teh firm had to do "a two-year study" to make "comparison between Khazanah and other similar GLCs from all over the world."
To be fair to Frost & Sullivan, they do give out best performance awards in Malaysia. Read here.
But why do a two year study? Who pays for it? We are suspecting Khazanah.
Interestingly, Frigstad complimented the government's "Rakyat didahulukan, Pencapaian diutamakan" motto.
To understand why they mengampu, google for Frost & Sullivan and Malaysia, one will come across getting consultancy jobs from PDRM, PEMANDU, etc. They complimented because they are seeking jobs in the land of plenty for Mat Salleh Consultants in Malaysia.
They claimed to be investing in a game changing bet in Khazanah's Iskandar. [Read here.] Scratch my back and we scratch your's?
Finally is getting an award from Frost & Sullivan really significant? Read history of Frost & Sulllivan here and tell us if it is a major big company to have 2002 sales at US$45 million?
Frankly, they are just another claiming to be a "leader in the fields of market research, executive training, and consulting."
Khazanah's presence in gay Frisco to be near Silicon Valley is appreciated but will Khazanah benefit immensely skill-wise and knowledge-wise by being there?
Frost & Sullivan knows Khazanah people hardly do much work but are dependent on con-sultans. They knows Khazanah is a goldmine for consultants and they have subsidiaries positioned for Khazanah's needs.
Bayar saja ...
Deputy Chairman free time
Their consultants will splash their entertainment expenses on Khazanah. Thus this leads to the question as to why do Khazanah needs so much expense account for all their staff. The lifestyle also comes with taste for expensive arts.
Read Jebat here on Khazanah's spendthrift ways. Their executive spend RM1.26 million on credit cards to paid by Khazanah directly instead of on claim and approve basis. Khazanah spend on 93 artworks worth RM6.4 million in which 55 artworks worth RM3.05 million are not displayed.
Is that what they do at Khazanah? Menipu seolah-olah rakyat didahulukan ...
All this is happening because the free Deputy Chairman, Nor Yakcop is busy. The shares of his son's company is shooting up the roof.
Why would son's company go up the roof?
Organised MTEM and get association of Malay Contractor's contract?
My blood boil to see this. Our friend had been in the business for 20-30 years and some newbies with contacts come in to gooble up contracts. Contracts related to Khazanah's skandar project.
That alone does not excite share prices usually.
Explains....Chairman and Deputy Chairman son cooperating together. If you wish to give anak a head start, why use public company vehicle? It is so transparent for others to see. Letih nak jawab masa pilihanraya nanti.
And below is happening at Danga Bay.
Read in Tenggara is Southeast here.
How could Auditor General and Frost & Sullivan be giving such praise and award to Khazanah?