Friday, June 12, 2009

Only The Star reported on UEM statement

No other mainstream reported on the UEM Group statement yesterday.

Not even The Edge, New Straits Times, The Sun, and off course, not the vernacular Malay papers. Not sure, if the Chinese or Tamil report this. Will check on the daily Financial newspaper at the newstand later.

For NST, let's give a chance to Dato Ahmad Talib and Zainul Ariffin's first day in their new position at NST.

It is easy to get media attention from critics at the Government and politicans but it is more difficult with corporation, especially Khazanah or PNB companies.

They are usually on top of the situation with their corporate communication team. Corp comm people not only play the role to provide press statement and information on the company for a certain media objective, but maintain relation with reporters and editors.

They are mostly ex-media people, thus naturally cordial with their former colleague. This is not insinuating or accusing anything but merely stating reality or a fact of life. Probably there are other reasons this news is not published.

The point here is the public have a lot of negative views of Government and politicians, particularly on corruption and power abuse. They hardly scrutinised the public companies, and professionals, generally the private sectors? There is always the other side of a transaction.

If the mainstream media have their obstacles, bloggers must fill that gap. Come back Sime Darby Watch! Anyone for Khazanah Watch or UEM Watch?

Returning back to the UEM story, The Star report below:

UEM Group under scrutiny over Qatar highway job

By TEE LIN SAY
The Star, Friday June 12, 2009

PETALING JAYA: UEM Group Bhd has been under some scrutiny in relation to a lawsuit to the tune of RM840mil by the government of Qatar over a dispute regarding a highway project in Qatar.

It was reported that UEM Group received a set of legal documents from the state of Qatar on April 27.

The plaintiff, which is Qatar, claimed that the defendants – Parsons International Ltd, UEM Group and Qatar Insurance Co – failed to fulfil contractual obligations in relation to the construction of the Salwa Road in Doha.

The three defendants are being sued for 876.32 million riyal (about RM840.98mil).

A blog further claimed that a further 400 million riyal was expected to be levied on UEM Group for the cost to complete the road project, which was started in 2001, and that UEM World Bhd was delisted to cover up the potential financial losses.

“As this lawsuit involves UEM Group, there is likely to be no impact on the listed entity, UEM Land Bhd,” said one fund manager who appeared unruffled by the situation.

Sources said Datuk Izzaddin Idris, the newly-appointed managing director and chief executive offcer of UEM Group, was told of the ongoing issue when he was hired, and as such, was “aware” of the situation.

Izzaddin will be succeeding Datuk Ahmad Pardas Senin, who is retiring, on July 1.

Meanwhile, during UEM Land’s AGM on Wednesday, group chairman Tan Sri Ahmad Tajuddin Ali told reporters that UEM Group should be able to manage the lawsuit.

“We feel that we have a strong case to defend ourselves ... we’re just a contractor. It is the consultant that’s being sued but we are named as the second defendant,” Tajuddin said.

UEM World was delisted on Nov 18, 2008. Its listing status was taken over by property arm UEM Land, which was supposed to give investors direct participation to Iskandar Malaysia in south Johor.

The UEM group has a diversified portfolio of six core businesses – engineering and other services, construction, healthcare, environmental services, property and manufacturing.

3 comments:

Anonymous said...

A Voice,

Lots of Malaysian companies in trouble over there. One interior fit-out company has more than a year's worth of receivables and is struggling to stay afloat. But the local media and bloggers are keen to highlight the troubles faced by GLCs - especially when these troubles are clearly not caused by them.

The exception to the rule is of course malaysiafinance.blogspot.com . He is critical of everyone.

I think you do a good job of being neutral as well. Kudos!

Rocky's Bru said...

Bro,

I have to come to the defense of the NST here. The reason why Zainul/Ahmad Talib's newspaper did not report the story on 12 June, as you put it, is simply because they had reported it [I repeat, they had reported it] on 11 June, a day earlier.

I've cut and pasted the report. Go here for the link.

UEM: We can manage Qatar suit
Published: 2009/06/11

UEM Group should be able to manage the suit against it for a highway project in Qatar, its chairman said.

"We will manage because we feel that we have a strong case to defend ourselves," group chairman Tan Sri Ahmad Tajuddin Ali told reporters after UEM Land Holdings Bhd's annual general meeting yesterday.

It is understood that the Qatar Public Works Organisation is seeking damages, reportedly about 878.3 million Qatari riyal, against design consulting engineer Parsons International Ltd, UEM and Qatar Insurance Co over work on the Salwa International Road.

"We're just a contractor. It is the consultant that's being sued, but we are named as the second defendant," Tajuddin said.

He declined to comment further as the case "is now already in the courts".

A Voice said...

Tks Rocky.

I couldn't find it at the time of posting.

My Say