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