Wednesday, June 25, 2014

Datasonic pre-determined for fuel card contract?

In our posting seeking not to misunderstood Domestic Trade, Cooperatives and Consumerism (or the Malay acronym KPDNKK) Minister, Dato Hasan Malek [read here], this blog dropped a hint on an upcoming scoop related to an impending fuel subsidy management system said to be implemented on September 1st.
One source deep inside MOF suspect that it relates to the fuel subsidy card system that will be implemented and someone have been confirmed the contract. Her fear is that all these raids are only for show to get the public to agree. It will end the moment the fuel card contract is awarded.
Since TV3 in Bulletin Utama yesterday evening [try at here] reported Hasan Malek welcoming any suggestion to their on-going study but revealed that a decision is coming up soon, it  only confirmed the information of our MOF source.

Another source told us yesterday that the EPU under Dato Abdul Wahid Omar had pre-decided that the fuel card system will be used despite Hasan's invitation to any suggestions. In addition, the fuel subsidy management system has been guaranteed to a consortium led by Datasonic Berhad.

High government officials with vested interest and neo-liberals with insidious agenda are not interested to plug the leak on subsidised fuel to lessen the government subsidy burden but are only interested to make a buck out of public misery.

Agenda to abolish subsidy

It is strongly believed that the consumers' subsidy allocation will depend on their monthly income and car size used. In our past posting then, it was mentioned that many parties have reservation to the system.

Penang Gerakan expressed concerned to the possibilities of widespread abuse and smuggling and possibilities of system problems to consumers. [Read FMT here] There is the political opportunist opposition claiming concern for the poor. [Read opposition news portal Malaysia Chronicle here].

And, there are the self-centred neo-liberal capitalists demanding the total abolishment of subsidies based on the expected lax enforcement and exploitative consumer behaviour. [Read FMT here]

Extracting from FMT, Maybank research reported:
According to Maybank’s research unit, Malaysian taxpayers tolerate up to RM7.0 billion in subsidy leakages every year as the result of diesel and petrol smuggling to foreign countries.

The International Monetary Fund (IMF) meanwhile estimates that the top 40% of Malaysians that fall in the high-income group enjoy 80% of the nation’s fuel subsidies.

A total of RM24.8 billion is budgeted for fuel subsidies in 2014, but out of this, only RM3.5 billion is projected to benefit those in the low-income group after taking into account the leakages from fuel smuggling.

In reality only 14.1% of the fuel subsidy is benefiting the low-income group while 28.2% is lost to smuggling and the remaining 57.7% is enjoyed by the high-income group who have more and bigger capacity vehicles.
Just stop leakage

And the TV3 news reported that out of the 18.6 billion liter of Ron 95 petrol used last year, some 6 billion liter (or 32.25%) was misued.

Mingguan Malaysia dated June 15 (page 12) published the subsidy spent by government on fuel. There was a strange jump from RM9.065 billion in 2009 to RM20.275 billion in 2010 which eventually reached RM24.726 billion in 2012 and RM23.458 billion in 2013.

Given our 5% GDP growth rate and about the same growth rate of vehicle ownership, the value of leakage could be about RM15 billion or 62.5% against RM24 billion subsidy.

If there are seriousness on the part of KPDNKK, APMM, MACC, Police, and various enforcement agencies and authorities, the public does not need to suffer a higher energy cost from subsidies being taken away.

Both the low and high income voters can all savour the nation's prosperity.  However, the abuse by the greedy few and the lax by authorities and enforcement agencies are denying the rest of the population a comfortable standard of living.

No ploy of getting some half bake NGO with non existent network of members could convince the public. [Read of JMM here]

Have Wahid Omar considered this or he is in sync with the pro-IMF Maybank report to just simply abolish subsidies without thinking deep enough of the economic, political and social ramification?

From what Dato Idris Jala, who is due to retire from his Senatorship and Ministership, have been preaching against subsidy and pro-TPPA, corporate man Wahid will likely be subservient to the interest of the "company" over the "consumer and staff".

His concern will only be the Government's P&L and balance sheet.  

Pre-tender award

Our source said one Chinese businessman known as Chong have been going around telling everyone in the industry that the contract will surely go to his consortium. Thus other potential bidders should save their time from trying to put up a tender.

It could be his way of psyching his competitors. He is most likely to claim that Hasan Malek's statement in TV3 is merely a smokescreen. Already he claimed PM has confirmed awarding the tender to his consortium last week.

The consortium concerned is known as Fuel Subsidy Sdn Bhd and the main player is public listed company, Datasonic Group Berhad. [The company's Investor Relation webpage is here.]

The Managing Director of Datasonic is a reknown Accountant and close to Dato Seri Anwar Ibrahim by the name of Dato Hanifah Nordin. He is the largest shareholder of Datasonic. As of the 2013 Annual Report, he owns 15.49% and via his controlled company, DiBena Enterprise Sdn Bhd, he controls 26.99% of Datasonic. [See here]

DiBena was believed to have beaten Iris Corp Bhd, the creator of MyKad [read The Star here], for the second tranche of the MyKad contract. The Bumiputera company, DiBena procured the contract and the listed vehicle Datasonic was contractor for the 2010 contact and 2013 to 2014 extension. [Read here, The Edge here and The Star here.]

Together in the consortium are Ernest and Young (E&Y) and Innovation Associate (IA).

IA is a spin-off from Ernest & Young Cap Gemini when the partner, Dato Dr Hamzah Kassim left to be on his own.

Much have already been exposed of the opportunistic endeavour of Anwar sympathier and member of NEAC, Hamzah Kassim. [Search for previous postings.]

In a Bernama report dated June 23rd, Hasan Malek claimed to want government's procurement process be efficient and transparent in order to curb leakage and wastage [read here].

However from what was gathered, NEAC may have predetermined the system and company. The other 5 or 6 bidders can only work with Fuel Subsidy.


These information are revealed to pre-empt any such attempt for unethical and unfair practise. If there is really a need to rationalise subsidy over major crackdown of leakage, then allow everyone a fair chance so that the public can get the best at the least of cost.

There are other companies like Sapura and MEPS who could provide the payment gateway, infrastructure and transfer system.

As far as we are concerned, Government should not waste time to develop another more costly card system but use the existing MyKad.

For security of information, it must be only local companies and preferably locally designed system used.


berasiam said...

sudah letih agaknya kumpulan ini bersuara, mengkritik, mencadang, menyaran, memberi amaran dan sebagainya namun pemerintah terus buat bodoh dengan segala suara. pemerintah terus dibuai mimpi kononnya merekalah yang paling tahu dan lebih tahu apa yang perlu dilakukan dan sebaliknya. sekiranya maklumat ini benar, maka sekali lagi rakyat akan berasa tertipu secara terang-terangan bahawa emosi mereka dipermainkan untuk keuntungan pihak tertentu. lebih malang, pihak yang terlibat ternyata penyokong kumpulan penentang kerajaan yang berkuasa di peringkat pusat.

masalah penyelewengan subsidi bahan api bukanlah kebocoran kerana kereta besar membeli petrol bersubsidi. berapa sangatlah kebocoran yang disebabkan oleh pembelian sedemikian berbanding dengan masalah penyeludupan, diesel khususnya, yang melibatkan kerugian berbilion ringgit. memperkenalkan kad subsidi bahan api untuk pengguna runcit seperti yang dibayangkan tidak memberi kesan nyata untuk menutupi kebocoran. namun kad subsidi hanya akan menguntungkan pihak pembekal perkhidmatan. jika dihitung sepenuhnya, mungkin bayaran yang dikeluarkan kepada penyedia perkhidmatan adalah lebih besar daripada jumlah sudsidi yang mampu dijimatkan dengan cara itu.

serupalah dengan i-BRIM yang diteriakkan oleh najib dalam media saban waktu. yang untung besar daripada i-BRIM ialah syarikat takaful atau insurans. individu yang kaya ialah agensi yang digunakan untuk perkhidmatan berkenaan. kalau premiumnya RM350 juta, komisen yang diperolehi oleh agensi sekurang-kurangnya RM3.5 juta. sekelip mata menjadi jutawan sedangkan penerima BRIM terpaksa menerima kurang RM50 setiap orang. punyalah pandai menteri kewangan kita membantu rakyat jadi kaya sekelip mata. abitw tak pulak buat siasatan siapa agensi yang jadi kaya hasil i-BRIM 2014.

berbalik kepada subsidi bahan api, masalah utamanya adalah penyeludupan. kerajaan hanya mencetuskan kemarahan rakyat sekiranya rancangan kad subsidi diteruskan. soal gst pun belum dapat ditangani dengan ampuh, kerajaan mahu menambah beban dengan memperkenalkan kad subsidi bahan api pula. pergi kejar penyeludup-penyeludup itu terlebih dahulu, banteras hingga ke akar umbinya dan buat perhitungan semula. adakah berbaloi nak memperkenalkan kad subsidi bahan api yang akan membangkitkan kemarahan rakyat?

gst memerlukan beberapa tahun untuk diterima oleh rakyat. ketika itu kita telah di ambang PRU-14. Sekiranya kad subsidi bahan api diteruskan, banyak yang akan berlaku dalam tempoh sebelum PRU-14 dan kerajaan BN mungkin lebih sukar untuk meneruskan pemerintahan. dahulu, pada PRY-13, najib tidak mengendahkan teguran dan peringatan hingga hampir tersungkur, mungkin dia mahu terus dengan kedegilannya. biarkanlah.

Anonymous said...

Why not the the goverment just impose a fuel surchage on the road tax for various made cars. eg. Mercedes, BMW, AUDI,impose RM6,000 per year. Porsche, Ferari, Jaguar, Rolls Royce = RM10kper year as fuel surcharge. Also those 3000cc cars and above, additional RM1,000 per year. But I believed, these will not go through as these cars are also being driven by the YB's and theirs wives and childrens

Sang Kancil said...

What is the excuse for continuing with fuel subsidies?

Even Indonesia, which is running a budget deficit of 3% of GDP is trying to rein in fuel subsidies.

I think that only education and public healthcare should be subsidised in Malaysia. Nothing else.

Why cushion Malaysians against the "real costs" of providing fuel, electricity and water?

Hasnan said...

Just a simple fuel tax per litre is more efficient...consumption tax
Sapa pakai banyak dia bayar tax lebih

Anonymous said...

What I suggest is like this lah Sir. If you have a better proposal, best that you discuss it here.

Now, from your so-called highly placed source, you are saying this or that company is sure to get the project, or some chinaman going around spreading stories; how do you know that their proposal is not good? If it is not good, then how is your proposal better?

everyone is anxious. but you are not doing anyone any favour by creating more stories behind stories.

Fuelsucks S/B said...

Anon 11.20PM, if i read correctly, the blogger was highlighting issues of transparency and unfair advantage in the selection process. If you are asking how does he know Datasonic's proposal is not good, the question can be turned on its head: how do you know its good, unless of course, you are part of the consortium! Why done rather secretly and not openly? Why not list qualified bidders and give everybody a fair shake? Does the govt need more issues to rattle the public with? The Pasir Gudang power plant/SIPP direct award fiasco is just cooling down, for GOd's sakes. When will we ever learn?

Lanon Moden said...

Apepon langkah yang diambil janganlah membebankan rakyat. Contohnya, penggunaan kad pintar baru hanya akan melibatkan kos tambahan. Selain itu, ape pula peranan Pos Msia dalam konsortium bersama Datasonic seperti saya terbaca dalam akhbar? Adakah melibatkan rakyat kena berbaris mendaftar di pejabat-pejabat pos agaknya? Ini semua tidakkah hanya akan menyusahkan rakyat?

Walhal isu utama dan paling menekan ialah penyeludupan. Maka fokus lah kpd kaedah yg akan membenteras penyeludupan dgn segera. Sebab itu saya terfikir: apakah pihak2 yg disenaraikan itu kesemuanya berpengalaman di dalam sistem pengurusan bahanapi atau hanya melihat kpd laba yg boleh dikaut?

Anonymous said...

First and foremost whatever items subsidised by our government are only meant for Malaysian of ALL walks of life.

We have a lot of foregners coming and overstaying and enjoying these subsidised items and their presence could be the cause of the subsidy budget to increase every year besides the presence of profiteers polfirating the system. Lack of enforcement and enforcement agencies in cohort with these pirates is another contributing factor.

To deny owners of luxury cars based on the luxury brands is also not a fair approach as some might have bought them when they were having good income before retirement. After retirement they have limited income but to deny this groups from enjoying the fruit of their labor is totally unfair.

The government had established all kind enforcement agencies and should focus to ensure they acted honestly, diligently and with high integrity as these are the root cause of unsruplous misuse of the subsidies.

Anonymous said...

Sirs, Robots, electronic cards etc will not solve the problem of lack of enforcement by human beings eg. civil servants. This can only lead to the collapse of the whole new system sooner or later. If governing is so easy we do not need 50 Ministers and 2 million civil servants. We just employ one fellow to press the button !

Anonymous said...

Fuelsucks S/B said...
Anon 11.20PM, if i read correctly, the blogger was highlighting issues of transparency and unfair advantage in the selection process. If you are asking how does he know Datasonic's proposal is not good, the question can be turned on its head: how do you know its good, unless of course, you are part of the consortium! Why done rather secretly and not openly? Why not list qualified bidders and give everybody a fair shake? Does the govt need more issues to rattle the public with? The Pasir Gudang power plant/SIPP direct award fiasco is just cooling down, for GOd's sakes. When will we ever learn?

6:35 PM

You're beating around the bush. So, how is KPDNKK's proposal better? Or how is it not better with respect to current arrangement? Come on lah, don't be so childish, don't have to accuse me of being part of 'the' consortium. The point that I raised is legitimate.

Anonymous said...

swineSiapa Datasonic yang konon bagus sangat ni ? Siapa BOD dia ? Ada tak bijak pandai IT dlm company ? Ini dapat kontrek Mykad dan passport, semua sub-contract kat orang lain. Kalu berniaga atas angin, orang bangla pun boleh. Apa kepakaran dia ? Apa pengalaman dia dlm bidang fuel subsidi ini ? Dimana dia tempat yang sudah dilaksanakan ? Tapi kalu ambik dulu kemudian sub kat orang lain maka Menteri telah diperbodohkan. Tanya berapa kakitangan Datasonic pun dah cukup nak tahu samada pandai atau cekai. Ala kenapa la bodoh sangat ! Letih kepala otak. Yang pandai selalunya diam saja yang tak pandai ni yg banyak bising konon pandai tapi bodoh.

Sebenarnya sudah ada sistem untuk penyelesaian isu subsidi minyak yang terbentuk beberapa tahun yang lepas dan telah dibayar oleh Kerajaan. Sistem itu sekarang milik kerajaan. Hanya kerajaan tak jadi implement sistem tersebut ketika itu sebab hampir pilihanraya. Hairan kenapa Pak Menteri membisu tentang kewujudan sistem ini walaupun ketika itu dia sendiri terlibat dalam projek tak jadi buat. Bukan tak boleh buat tapi tak jadi buat. Kenapa nak belanja beratus juta ringgit lagi. Pakai yg sedia ada ni.

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