I have a gut feeling that Sime Darby Berhad, the world's biggest oil palm plantation company, is going to make history soon - for all the wrong reasons.
With an overzealous management, with some executives corrupt to the core and a Board of Directors which knew nothing about the things happening around it, the fiasco in Sime Darby is poised to become the biggest corporate scandal in Malaysia's history.
Therefore, those probing the financial scandal should not confine their investigations to the cost-overruns in Qatar and Bakun. There's more to it than meets the eye.
There are many other questionable deals which took place prior and after Sime Darby's merger with Golden Hope Plantations Berhad and Kumpulan Guthrie Berhad in November 2007.
I have some questions begging for answers:
1. What happened to the trading loss in China which had reached RM80 million at one stage? The Chinese buyers had refused to accept palm oil which was ordered when the price was high but fell when the shipment reached China? Why is palm oil being sold cheaper in China than it is in Malaysia? What is the actual quantum of investments of Sime Darby in China? Utilities Divison's Weifang operations, Jinning Port, Motor operations, property investments, etc. Has Sime Darby evaluated the country risks? Did Sime Darby over-expose itself in China? Was there a risk management report on China before all these investments took place? Were money paid to middlemen to secure projects?
2. What happened to the two AHTS (Anchor Handling Tugs) and one DLB (Derrick Lay Barge) which Sime Darby awarded to MLC Shipbuilding Sdn Bhd to build. Were these ships, worth RM155 million, ever delivered. Or was the RM155 million written off? Did Sime Darby call for tender before awarding the project to MLC? Does MLC, owned by one Redzuan Goh, have the expertise to build ships?
3. Why invest in plantations in Liberia? Is it worth taking the risk going to Liberia? Could Sime Darby have generated more money expanding/developing estates in Malaysia (ie Sabah/Sarawak) - less risk and still plenty of fertile land? Isn't it easier to deal with Sabah/Sarawak Government than the Liberian Government? What's the economic rationale of going to Liberia? This is despite the known fact that Guthrie started the Liberian project but got out of it twice due to civil wars. The Liberian Government is fragile. What if a new regime takes over and nationalises the Sime Darby project?
4. What is this special relationship with Brunsfield Group that enables it to secure many projects from Sime Darby. Among others, Brunsfield was given the contract to renovate KLGCC, to build Sime Darby's World Headquarters in Bukit Kiara, and The Oasis in Ara Damansara where the Divisional headquarters will be located. The total contract awarded to Brunsfield could actually be billions.
5. The sale of the land at USJ Elite Exit (now being developed by a private company - MCT). At what price was this land sold and what was its price when Sime Darby bought it? What is the market price now? Why was the land sold anyway? Is it to show income in an attempt to make losses elsewhere look smaller?
6. The Kuala Lumpur Golf and Country Club in Bukit Kiara now sits on a land leased from City Hall. Apparently, the Sime Darby management had agreed to buy the land from City Hall without the approval of the Board. To rectify the situation, a paper was submitted to the Board last week to approve the sales and purchase of the land in retrospect. It will be silly for the Board to do so, especially now when the Malaysian Anti-Corruption Commission is carrying out an investigation on Sime Darby. How much is the new facelift of the KLGCC going to cost?
I wonder if the Board is aware of all these things I have mentioned.
20 comments:
I don't know whether this comment will be published but for Sime Darby to emerge as the biggest corporate scandal it must surpass the RM 10 billion record registered for Perwaja.
The numbers cant even come close to that.
Ooh sorry, that one is ok right because the players are statesman's players?
Forgive the cynicism.
Its just the Mahathirists will scream blue murder at another mans folly but will bury their heads in when dealing with the RM 100 billion fiasco.
So one gets disappointed. Pls continue writing anyhow, better these scum are got rid of - the sooner rather than later
hebat... hebat.. hebat
banyak betul penyamun dalam sime darby... macam cerita ali baba
Dear Wenger,
Perwaja suffered losses due to many reasons, including of course, mismanagement. I quite agree. But the biggest loss came from the Gurun plant. To be fair, the management did not agree to the Government's demand for Perwaja to set up a plant in Gurun. It was a political decision. The aim was to create more employment for the people of Kedah. It went horribly wrong. The metal supplies had to come from Kemaman, Terengganu and the lorries ferrying them to Gurun had to ply the hilly East-West Highway. The lorries suffered wear and tear more often than they should. The cost kept going up.
Dear En. Ashraf,
Thanks for the reply. I reiterate the support in your rally against these BODs.
Good luck
Tuan,
saya merasa lega bila membaca diblog tuan mengenai 2 perkara yang terjadi di dlm Sime Property yang dulu dikenali sbg Sime UEP. Pertama hilangnya tanah Bukit Cermin dari asset Sime Darby dan kedua adalah kerjasama bodoh dan berat sebelah antara Sime dan Brunsfield.
At least ada lagi insan yang mcm tuan yang masih ingat dan masih concerned dengan apa yang terjadi dlm sebuah GLC dinegara kita. Ingatkan perkara2 sebegitu yang terjadi semasa regim yang lalu mengganas telah menjadi lipatan sejarah.
Saya masih ingat dimasa itu semasa negara dibawah naungan regim tersebut. Pertukaran CEO di Sime Darby membolehkan Sime Darby menguasai pentadbiran Sime UEP dlm 24 jam saja. Dlm 24 jam juga kesemua pengurus2 kanan di Sime UEP yang telah sekian lama menjaga dan mengurus syarikat Sime UEP dengan cukup experience dlm selok belok pembangunan hartanah ditukar serta merta dlm 24 jam.
Gantinya adalah konco2 regim dari luar yang sepatah haram pun tak tau mengurus bisnes property development. Dari situ bermulalah segala hanky panky dlm syarikat tersebut.
Saya bersetuju siasatan rapi dijalankan agar mereka yang bersalah dibawa ke pengadilan.
Dengar kata MACC dah nak masuk Plantation pulak. Bagus la tu..boleh selidik dalam-dalam tentang prosedur procurement kat Admin dan Comms masa pre and post merger dulu tu..Mesti kecut perut jerung-jerung botak semua. Purchase barang ikut sedap dia orang je..
Salam pak, tumpang lalu, aja aja mau bikin ribut...masih ada lagi manusia sejati hadir dalam jaman ini ya pak? Masih concern apa terjadi dengan manusia sekeliling. I am really impressed by your story & concern; I should go for a soul searching journey and rethink about my humanity. The likes of always - small people are caught in between, then again I would like to see each & everyone who are no honest & corrupted being punish - like now on earth itself.
It is a matter of simple reason, I am quite good in forecasting what is going to happen next with this whole fiasco of this merger approved by the government - don't care from which regime, before or now - still the government approved of the merger. My main aim in life to prove my theory about human will at least be 90% correct. How the management & the board of directors become so daring into doing anything as they please – my answer - well not their money, so they don't care - the majority of the share-holders are the people (PNB & EPF) – they have to care what is going on.
Then again what do the people know by allowing their money to be managed by incompetence management team – who is the chairman of PNB and who is the chairman of simedarby? We can blame one person after another, Sabri Ahmad & the 4 others for the pre-merger losses, the China deal, the Bakun, the Qatar, the Brunsfield deal and what not - now Zubir, then Azhar with the rest of Zubir & Azhar’s team, then Musa Hitam & his board members & then it will come to the past & present government’s fault, but did anyone sincerely come out with a plan or an idea on how to overcome this messy losses & mismanagement of the company? What lesson learnt here? Nothing, zero, zilch!
I do not envy their status & the materials of anyone in these world posses, but when everyone I met were talking about the greediness of the human nature – the figures are unbelievable big in numbers, correct me if I am wrong, the people involved in Qatar, are they the same as the people who wrapped up Paremba for losses in Sudan? Those who employed them must be insane & those who want to believe that they can manage the project in Qatar, either they were crazy or have a hidden agenda? Then to manage this big GLC! Beside me being obsess getting my theory 90% correct about human nature, I want some answers beside my own theory. Some says Zubir was just executing what the board members want & the board were executing what the government want – I want to know the truth. It is not that I care much about what they did or what happen to the money, it doesn’t compute in my head where the money gone to – that will be their conscience as if I am given a billion ringgit or more now, I know where I am going to waste that money in a few second. The question is the money was not given to them to do as they please – they were given the amanah to manage a company to make it profitable for the benefits for the people.
The people who are responsible be punish is one story, then how to clean the tarnish name of this particular GLC is another subject. What now? Wait & see until the figure of 1.6 become 3.2...what a joke! I know it will not do me harm one way or the other, but what about the others? Those who are involve directly or indirectly have to wait – talking & laughing about this is another matter and the future of many people is in a bleak & grey area. I can go on & on asking about where the money gone to or what they did with it or question their integrity, guilty? They are all guilty – the management, the boards the government – all are guilty.
Look into Sime's operations overseas...heard some of their Indonesian estates were put up for sale by local Indonesians due to a dispute...isn't that material news for investors? The Head of Plantations must answer...
Where are the Sime Darby Internal Auditors?....zzzzz.....
OZZIE MESS
Camna internal audit nak function kalau projek yang bermasaalah itu diketuai biras CEO dan kroni EVP. Kesemuanya memandu BMW beberapa buah dan memiliki rumah jutaan ringgit. Bercuti ke Europe dan Amerika.
John Arkosi tuh India ker..atau aborigine Australia?
Heard there is another JV to own a junk vessel "GERIMAL". Is the JV executed properly? Old vessel at a very high price! Probably Older is Wiser, so old that the price is high.
Among contributing factor of Mearsk Oil Qatar loss is a JV with a company named Real Offshore Installation Company (ROIC). What makes SD partner the? Prior to agreement do the necessary been done? Why suddenly the JV been dissolve? What is the losses for this JV? Do the losses been absorbed by SD only or both party?
Wanga,wanga John Arkosi(Chief Auditor),please make haste to investigate or we send you back to the Australian outbacks!!!!
MANIAM a/l PONNUSAMY
Thank you for your post, Ashraf. As a former "C" Scholar, I am proud of what you have exposed here. Keep them coming!
Kenapa bangsaku macam ni.....aku malu menjadi melayu. Hakikatnya bangsa serumpun di Indo and Filipina pun sama.....
Kenapa Ikan bilis je kena? King Kadir Kaki Korrupt kenapa tak didakwa!
Hisham Hamdan and the barachi (Haris, Nizam, Macha,) need to be responsible as well. How can they endorsed the investment?
To those who know the truth, its more to it than just Zamri!! So sendiri tau, esok kita jumpa di akhirat laa...
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