Monday, June 08, 2009

Is the delisting of UEM Group to coverup a major loss?

Khazanah announced the appointment of Tenaga Nasional Chief Financial Officer, Datuk Mohd Izzaddin Idris as the CEO for infastructure group UEM Groups (UEM) from July 1.

Critics are saying why take the CFO of TNB, a losing concern. A good answer for simple deflection would be that the TNB CEO won the CEO of the year award.

Omar Ong and Ethos Consulting may have design CEO's KPI without Profit and Loss as part of criteria? Heard he is busy working on denying new Tan Sri Syed Hamid Albar the Petronas Chairmanship post. Wonder what about his Directorship in Petronas?

My source in TNB claimed Izzaddin is brother-in-law to Tan Sri Azman Mokhtar, the CEO of Khazanah and member of the Board of Director of UEM. Izzaddin got married after building a career with Malaysian International Merchant Bank (MIMB), and later free lancing as consultant with Ranhill.

He is the senior to former UEM World CEO and current Maybank CEO, Dato Abdul Wahid Omar. But the school is not MCKK or MC Gay Gay, as the joke these days, the Alma Mater of claimed brother-in-law, Azman.

There is no issue of his claimed family relation. The securities law does not consider brother-in-law as related party. If he is a suitable candidate and the process is transparent, it is quite alright.

[Note 9/6 11:00 pm : I was informed by Rocky Bru that Izzaddin is not the brother in law of Azman Mokhtar. Read here. As said in the para above, it does not change the main issue addressed in this posting.]

Being appointed CEO for UEM Group, it is a step-up for Izzaddin. Why does UEM Group need a former Merchant Banker to be CEO? Why not an Enginner since UEM is involved in many construction job abroad and locally? Why no more Accountant like former MDs, Dato Ahmad Pardas and Wahid Omar?

There is usually only one possible reason and that is UEM is facing a major problem with the Banks. They need a Banker specifically to solve issues with Banks.

For information, UEM had delisted itself sometime fourth quarter last year. UEM Land, which is involved with the Nusajaya/Iskandar project, took over the listing status of UEM World. Also being delisted are UEM Builders and CIMA.

With the delisting, UEM is controlled and answerable solely to Khazanah. UEM is not subjected anymore to the corporate governance rule of Securities Commission and Bursa Malaysia to announce every damn thing, except small office renovation, and stationaries and toiletaries purchases.

Is the listing intended as a cover-up? God knows.


But yours truly received a set of legal documents sometime back on April 27th. It is a filing made by the State of Qatar in their courts against UEM for failing to fulfill their part of a contract awarded to them in 2001. It is public document, thus it is not an OSA offense or civil defamation or whatever.

2001 was during the years Tun Dr Mahathir was a relentless salesperson of our nation. Malaysian companies secured much contracts and works from his effort. Now they blundered his efforts.

The filing may have been made a month or two before and for convenience, assumed as end February or early March 2009. The claim on the defendents jointly is for Qatarian Riyal QR 876,318,972 - 06.

To summarise the 13 page contract, the plaintiff which is the State of Qatar, claimed that the defendents Parsons International Ltd, UEM Group Berhad (then) and Qatar Insurance Company failed to fulfill the deliver and meet the specifications in the building of Salwa Road in Doha.

This figure does not include QR400 million expected to be levied on UEM and Group for the cost to complete the road the project. The financial burden on UEM and Group could reach almost QR 1.3 billion. How much would it translate to Ringgit? Could somebody help here.

UEM Land debut on the Bursa Malaysia on November 18th, 2008. By that time, UEM is no more listed. No news is heard of this claim.

According to little bird, UEM and Group have engaged a US-based legal firm with an office in Doha, Pattons Boggs to represent them. It seems UEM have been told of the Qatar Government intention to sue them as far back as March 2008 but they underestimated the Qatari and ignored at their own peril.

As of to-date, according to little bird, UEM account and operation in Qatar is frozen to tune of QR294 million. The breakdown is QR100 million in progress payment, QR87 million in performance bond, QR36 million in retention sum, QR60 million in plants and equipment and QR11 million cash.

In the latest twist of event, the Qatar Government will be issuing a warrant of arrest on Dato Ahmad Pardas, the former UEM Managing Director, Dato Ridza Abdoh, Managing Director of UEM Builders Berhad (then) and few other senior officials directly involved in the project.

UEM Builders shares have been transfered from UEM World to the delisted and Khazanah managed UEM.

Is there any truth to this revelation? Khazanah Public Relation people that used to express willingness to engage bloggers, should answer for this.

Khazanah means "treasure" and we are talking here of a major lost of the national "treasure" or wealth. A proper explanation is due. If true, why is there a coverup from the investing public and taxpayer?

Naturally, the first response is to acknowledge or deny. The rest of the staggering 13-page document could be made available for public scrutiny, so please no cheap denial.

Tell us how are they to resolve all this. Little bird said the UEM people wanted Wisma Putra to slow talk with the visiting Qatar Emir some weeks back. However, they do not have anything tangible to offer should the Emir demand something in return.

Little bird said there is problesm in the Indian contracts too.

For Izzaddin, my oh my, what headache you are in for. Wondering now, if those complainants would like to have his new job?

Malaysians should pity PM Dato Seri Najib for inheriting sleepy former Khazanah Chairman's mess. Yet, Anwar wanted to propose a vote of confidence for sleepy. What an idiot!


* Edited 8:00 pm

34 comments:

Anonymous said...

najib kena pikir baik2, jangan2 Petronas pun hancur bawah Omar Ong. Suma kaki jual negara.

terjumpa pulak di sini pasal Omar Ong - [b]http://forum.mykmu.net/modules.php?name=Forums&file=viewtopic&t=26886[/b]

suma kaki kotor Zionis. Omar Ong kucing kurap.

Cina Melayu-wannabe Yahudi.

Non-partisan said...

It would appear of late there are so many things taking place so fast that one will in no time become obsolete if not of the well-informed bloggers. And the common denominator is Omar Ong of Ethos.

I am afraid that the government will have a lot of explanations to do...fast and convincingly.. once they become public knowledge not strictly confined to blogs' visitors.

This is ominous in a longer term.

Anonymous said...

Qatari 1.3 Billion is approximately 1.2 Billion Malaysian Ringgit. They think Qatar Goverment is stupid.....Hello .... Qatar is not Malaysialar... and the Law here is not for sale....Hopefully Gamuda dont end in their bad books for not being able to complete the airport project....hahahaha....Malaysia Bolehhhhhhhh

Anonymous said...

Voice,
UEM is full to brim with MCOBA men, every division is lead by little Stalin who will not listen to big Stalin, the CEO. Time for MCOBA cleansing by the new CEO.

Prof Awe Kecik

Anonymous said...

Habis lah .... going on like that where are we going to find any money left for my food or my retirement?

Anonymous said...

Prof Awe Kecik

This country have been messed up by these MCOBA boys.

They are the worst cronies of them all. Worse than UMNO, ABIM or other Old Boys network.

Today they are establishing themselves dominantly in PKR. Erdogan Kamaruddin Jaafar is a MCOBA.

MCOBA should have been limited for MCS - Malaysian Civil Service. They grew greedy when they left for the corporate sector.

SpotTheBloggers said...

YBHg Dato'

Sebelum ini ada blog Sime Darby Watch tetapi sayang telah tutup kedai. SpotTheBloggers mencadangkan agar sesiapa dapat mengwujudkan satu blog baru seumpamanya seperti GLC Watch atau PNB Watch yg dikendalikan oleh mereka-mereka yang punyai pengetahuan yang cukup ttg aktiviti GLC, PNB atau EPF. Rakyat perlukan maklumat dari sumber2 alternatif.

Sekadar cadangan. Tk.

Wenger J Khairy said...

Sdr Voicey,

First to answer your question, 1 Qatari Riyal is only 97 Malaysian cents, so the QR 1.3 billion is only RM 1.262 billion

Full rates at
http://converter-currency.com/qatari-rial-currency

Anonymous said...

Saudara A Voice,

Saya bukanlah MCOBA member tetapi saya meminta saudara menarik balik "MC Gay Gay".

Tindakan saudara menulis sedemikian adalah terlalu kebudak-budakan & tidak wajar sama sekali.

PemudaBerderai said...

To anon 6:19,

man... you are damn funny... anything goes wrong, blame it to the malaysian government... very easy huh...

Gamuda having the same problem for their dukhan project (not in terms of design, but inflation etc)... and delayed for both dukhan n ndia (airport)... go check it out for yourself...

Lucky them that they have uem case to learn... and just for your info, do ask them to whom they ask for advices before they kick off with their projects in qatar... hehehe

Anyway, uem's projects do completed...and there are 2!!! Gamuda...??? not even one yet i guest... hahaha... i mean in qatar la...

and you better figure it out yourself who is the key personnel who runs the project (i mean for uem)... i guest u will shut ur mouth later on... hehehe..

plus, how sure are u that the law here in qatar is not for sale...???

A Voice said...

Wenger J Khairy - Thanks for the conversion. Allow me to do a little correction. I think it is suffice with "... the QR 1.3 billion is RM 1.262 billion." without "only."

That maybe nothing to Khairy and his political overhead, but it is a lot for me. I can survive more than 10 generations!

Anon 9:54 PM - Too late, it is already out there?

If you are not a member of MCOBA, why are you so sensitive? My friends and old timers of MCOBA - Dato Ghazali, Dato Azmi, and many Tan Sri and Datos and not to mention my MCOBA cousins and nephews can laugh away at this.

Are you PKR member? Lighten up la.

PemudaBerderai - If you are not too overly defensive, you shd realised that Anon 6:19 did not blame the Malaysian Government.

Anon 1:44 - It is not necessary to maki Omar Ong as Kucing Kurap. Do it in private la ... but do spread about the destructive michief of this arrogant egomaniac young man.

Anonymous said...

A Voice,

Perhaps you understand doing business abroad does not easy as it looks...eventhough when they award the job to you there's still a long way to go..on the case of UEM Builders's project in Qatar perhaps you should ask your little bird...who is suing whom actually? Do you know bureaucracy in Qatar is two times worst in malaysia? Also do you know the arabs were known to love breaking their promises? then you should check again with your little bird and make sure he/she do provide real facts not facts based on his/hers assumptions...cheers bro..

Jack

AWO said...
This comment has been removed by a blog administrator.
Anonymous said...
This comment has been removed by a blog administrator.
Wenger J Khairy said...

Point noted, anyway great to see you back in your element. Some of your replies are first class.

PemudaBerderai said...

Hey Jack,

You got it right man...!!! hehehe

To A Voice,

I am not defensive, but i am excited...!!! I understand it another way around... hahaha...

Maybe i read to much MalaysiaKini, Malaysian Insider and Kit Siang blog... hahaha... i need to tune my mind back... hahaha...

Anyway, UEM do have some explanation to do or else people will think otherwise... cauu..

Anonymous said...

UEM is a joke. Once the very top guy in UEM informed me about he needing someone of high caliber to put things right. So as a favour I recomended a few guys who were very good. He thanked me, but asked me if I could recomend a Malay guy instead because its the company culture . What ever that means!!!!!

A Voice said...

Anon 12:29 & Awo - Don't get personal and insult like that one la.

Too much name calling on the blogosphere lately. Sickening ...

I am removing your comments becasue I do not want to encourage it here.

Jack - Tks. Little bird is probably reading you. I understand what you mean.

My main contention is the coverup. Its the taxpayer and people's money. Its you and me's money.

Legal process is still on going.

However, I still wonder if the annual report put the matter as significant subsequent events.

Anonymous said...

I wan know whether my taxes paying some people luxury life.

On straight line for true all need for tiny lie to mislead.

PemudaBerderai said...

To Anon 3:59,

"UEM is a joke. Once the very top guy in UEM informed me about he needing someone of high caliber to put things right. So as a favour I recomended a few guys who were very good. He thanked me, but asked me if I could recomend a Malay guy instead because its the company culture . What ever that means!!!!!"

Maksudnya sama bila ada iklan keje kosong dlm suratkabar yang kata "for those who speak MMMMMMMM only"!!!! got it...???!!!

no need to be racist here please...


To Anon 6:30,

the "saman" is not a scandal and uem is not yet found guilty... there is still long way to go...!!! truth will prevail... dun worry... my advice is, get the true story and you will understand...

Anonymous said...

I think UEM is no longer run by MCOBA boys, the ANSARA guys has taken over when DS Wahid was the MD. Is it for the better? I don't think so but that is my opinion laaa.


Karipap pusing

Anonymous said...

Way back in the mid 80's, the government awarded a 'highway' contract to a suspended and less known counter called United Engineers Bhd...Daim, then MOF, played a key role to get UEM listed using a back door listing...i was a small fry in a local merchant bank then...we were busy preparing loan documents and proposals like making roti canai at mamak store for the big guns...yep..it was all related to UMNO crooks...Halim Saad was then a no body boy who worked as a marketing rooky....His education is nothing to shout about before becoming Daim's blue eye boy...yes, he was lucky because he was working with Daim's company, Maluri...so were the rest of Daim's boys...Some people managing UE then made a lots of money and the contract costs to built the PLUS went up through the roof...initially it was estimated about $2.5 bil only, but because of those crooks, the cost multiplied quickly...so now we , all Malaysians, become the suckers...look at the amount of toll you guys have to pay now...
In away I am glad I am not in the country now...now my new country gives me a better opportunity than my homeland does....yes I have a nice paying job now and I am happy to be away from the land I used to love...sad..at least I can earn an honest living..not like those idiots who have a little brain who just relies on political masters or tricks to steal people's money...if those idiots think they are so good.... hey, try and apply a job with your qualifications any US company here...I bet none of those idiots who ran UE will even qualify for the first interview...so folks, these guys are blood suckers, not professionals!!! What goes around will definitely come around. Finally the sand castle meets the tide....Cheers suckers!!!

Anonymous said...

Dear All,

I hope UEM will fight till the end, cause its clearly not their fault. Teach the CAMELS and enlighten them who they really are...Just CAMELS !!!

Anonymous said...

Anon 11.44,

Wow, you are really lost your Malaysian / Asia good values already lah?
Ya, US company are so great with all the big boys going bankrupt, dozens of bigest banks being bailed out with tax payers' money, few morons swindled millions of people's money with pyramid scheme and all kinds of fraud, screwed up the whole world, creating global economic turmoil, boombing any country they wish to, toppled any government they like, dump anybody into Guantanamo, blah,blah,blah.. However, finally, the sand castle really meets the tide.... good luck with your loved country..

Anonymous said...

hy, moderator of blog should be trusting all what lil bird or whatnot talking.

even internal politics could lead to diffrent stories suiting own's agenda of diminishing reputation.

jacks right.. please cheack your information.. this could lead normal people into bias perception.. credibilities please.

an update follows rightly so because many people love to hear and talk but none less do jobs. gossips? this is jokes..

internal engineer

Idongo asrama said...

anon 9:23 am

Who the f**k care if it is ansara, old putera, vioba, staroba, or sekolah dato kelana jelebu?

No one can fill up the whole organisation with their friends.

So obvious this anon is a MCOBA. Point blank I tell ye that MCOBA are the biggest practitioner of cronyism which essentially denied other qualified Malays and Malaysians.

I just can't under this thing about MCOBA ganging up till late in their age. Tak boleh diusik pun.

What are you guys?

Homosexual lovers for life protecting each others????

A Voice said...

Internal Engineer - Lets not doubting thomasses. Its the cheapest trick ... very novice political cybertrooper answer.

Work work la ... blog blog la ... Friday nite friday nite la ...

We have many facets of our lifes. By focusing on one, does not mean defocusing on others.

Karipap pusing & Idongo asrama - I knew releasinbg karipap's commnet will invite a response.

It is too brutally true what Idongo asrama said about no one can fill up all their friends in an orgnisation as big as UEM.

I notice aspirant applicants wearing that maroon tie for job interviews hoping to be spotted by another marooner.

But what do I care?

Junah said...

Hi A Voice,

Re your comment: "I notice aspirant applicants wearing that maroon tie for job interviews hoping to be spotted by another marooner."

I'm just curious are u from the Group?

No offence ya, fren.

A Voice said...

Junah - My alumni is unimportant in this blog. So is my name, my identity, my background.

Anon 12:29 & Awo - As one anon comentator getting personal with me was saying my CV is unimpressive. I am just typical wiseguy who talks to much and criticise a lot.

My reply is my CV or my professional background is unimportant. If I were to get spiritually deep, I am totally unimportant and irrelevent in the bigger scheme of things.

Without any of my identity or details openly flauntered in the open, it is only my posting that is left to be judged, reviewed and commented upon.

Then about being wiseguy and ever critical, there is such a profession called critic.

Be it film critic, food critic, literary critic, social critics, academic journal critics, etc ..., they serve a purpose.

Every person giving a critic and making it heard are playing an important role in nation building. They are practising their democratic rights as a citizen.

Critics can come in many forms and with many intentions. Be it to highlight to the authority of corrupt and improper practices.

Or critics with alternative prepositions or what they called as constructive criticism.

Why not destructive criticism to destroy corrupt and evil characters out to destroy our society and nation?

Off course, preempting the Government from future problems is also constructive criticism.

Teacher's pet said...

Voice

You may have clarified that Izzaddin is not a brother in law of Azman Mokhtar but he is given special treatment.

He did not finish top 5 in the list of 10 interviewees. Some board member/s on the remuneration comittee called him a useless bugger.

They were forced to take him as instructed from upstairs regardless of whatever opinion the committee had of him. Thir role was only to be rubber stamp to show there was a process and find justification for his appointment.

This Izzaddin has in the past been rejected by few organisations like MRCB, DRB, and also Ranhill before joining TNB.

Doesn't posses the right character. Brown nose and occasionally obnoxious. Was told of a famous incident whereupon this no 2 man in TNB yelling direct to the lower staff loitering at the hallway over petty things.

Off course, to the right people, he can adjust to be friendly, diplomatic and courteous.

In TNB, he prepared a paper for himself and CK to get a massive pay raise. This is indicative of self centred tendency.

He is not appropriate to deal with an endemic problem in UEM. The market knows UEM is gangbanged by top managment through their cronies and subcon.

Najib beware!

Anonymous said...

The Chairman of the UEMG Remuneration Committee is Datok Rahim Bakar. Post-privatization, he is also the EXCO looking after UEMB & OPUS.

Khazanah instructed him to take in Izzaddin at all cost.

Later in a closed discussion with some of the committee members, Datok Rahim Bakar branded Izzaddin "a useless bugger".

He can deny he actually uttered these words. He's more than welcome to do so.

The 8-Billion-Dollars question is WHY on earth did Khazanah instructed a practically useless bugger, which he is by the way, to spearhead such a "impossible" task of turning around UEMG??

Unless of course, he is there to provide cover for the mismanagement of the company by his Employers & to ensure NO ONE above him will be prosecuted.

After all, Izzaddin can be considered amongst the first of "Creative Accounting" CFO's in the country.

It was understood, the top candidates considered for the top post were MRCB Group Managing Director Shahril Ridza Ridzuan and Datok Mohd Radzif Mohd Yunus, CEO of IJN. Both known to be a straight talking no-nonsense, China-man type corporate leaders.

While Shahril was believed not interested in the post, Radzif is not too keen on the micro-management style of Azman Mokhtar which is the roots to the hapless position of the GLC's under Khazanah currently in at the moment.

Little Bird

VIJAYASHANKER said...

UEM through its wholly owned subsidiary UE DEvelopment India Pvt Ltd is facing a RM200million arbitration in Bangalore, India. The claimant is another Malaysian company who is UEM's sub-contractor. Anyone knows this? UEM project in Hiriyur has suffered huge lossess due to poor rates. Who is responsible? Concerned

Anonymous said...

UEMB cover up completely on India issue,Ridza did up date the board what is going on, he get monkey's like Thomas simon to adjust the book. Government should audit UEMB, In India UEMB owing many contractor. Ridza lies that he doest owe any money but this matter will up soon. He tells my colleague to drag the matter to another 3 years till his contract is over. He blame old management but he is the main culprit. The chairman so dump listen to Ridza story. please wait the real story will out soon. Ridza enjoying the wang rakyat by flying in the first class to visit daughter in Korea, Thomas is covering up all the expenses. Why he need the body guards, UEM owe's every subcontractor in town. I work with UEM for past 5years . look like with Ridza as MD no future. we all need government to realise the decission to appoint Ridza is disaster to UEM Group, only His crony are benefited multi million.

Anonymous said...

hi, I read most of the comments and I agree with some and I disagree with some. Overall UEM is trully a big joke. Izzadin is not the right guy to be there. The person must have sense of loyalty not only to received salary to make their poket bigger. Izzaddin is lack of sense of business. He didn't feel the spirit of ownership. Sitting at that post you must have loyalty towards your country. I agree that the KPI of all the CEOs must be revamp. Izzadin made a lot of mistakes. Person like izzadin you can easily pick from the street. I know that because I work with him.

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