Azmin Ali Biadab!

Calon Timbalan Presiden Parti Keadilan Rakyat Azmin Ali merujuk kepada negarawan Tun Dr Mahathir Mohamad sebagai orang yang dah "tersungkur di Australia". Pemimpin yang sebegini lah yang kita ada dalam PKR! Cukup kurang ajar dan rendah martabatnya!

Biadab! Manusiakah Azmin ini?

P.S. Saya berdoa Tun Dr Mahathir akan cepat sembuh dan kembali ke tanahair secepat mungkin.

Sime Darby's forensic audit report will not be made public

Sime Darby Berhad has informed Bursa Malaysia that it does not intend to make public the forensic audit report on losses incurred by the group, which now runs into billions of ringgit.

In a filing to the bourse last night, Sime Darby admitted "possibilites of breaches of duties and obligations, and inappropriate conduct on a prima facie basis."

Here's the full Bernama report:

KUALA LUMPUR, Sept 20 (Bernama) -- Forensic and legal consultants have completed investigations into Sime Darby Bhd's projects in the energy and utilities division and submitted reports today to the conglomerate's board.
Four key projects being investigated are the Bulhanine and Maydan Mahzam project with Qatar Petroleum, the Maersk Oil Qatar project, the Bakun hydroelectric dam and the Marine Project.
In a filing to Bursa Malaysia today, Sime Darby said the investigations revealed possibilites of breaches of duties and obligations, and inappropriate conduct on a prima facie basis.
It said the board had resolved to initiate legal proceedings and had lodged reports with the relevant authorities.
The board has been advised to keep details of the report confidential and nature of such proceedings so as not to adversely affect the interest of the group.
On May 27, Sime Darby's energy and utilities division reported an operating loss of RM1,019 million for the first nine months ended March 31, 2010.
This was after recording provisions for the oil and gas and engineering sub-segments which amounted to RM964 million that was announced on May 13.
-- BERNAMA

I find it utterly ridiculous that Sime Darby has saw it fit not to reveal the findings to its shareholders. Sime Darby is a GLC and it is dealing with public funds.

I hope Sime Darby's shareholders attending the company's AGM on Nov 16, will demand that the report is made public.

Kenapa kes kehilangan yang lain masih tergantung? PDRM perlu jelaskan.

Seperti rakan-rakan blogger lain, saya juga ingin mengucapkan tahniah kepada Polis di-Raja Malaysia (PDRM) kerana telah berjaya membuat beberapa penahanan dalam kes membabitkan kehilangan jutawan kosmetik Datuk Sosilawati Lawiya dan tiga rakannya.

Tetapi hati kecil saya masih tertanya-tanya kenapa PDRM tidak dapat menyelesaikan kes kehilangan empat orang lain (dan mungkin lebih) yang kini diuar-uarkan oleh PDRM sendiri bahawa ianya mungkin ada kaitan dengan suspek-suspek yang sama. Malah, kes-kes ini dilaporkan lebih awal dari kes Datuk Sosilawati.

Saya khuatir umum akan beranggapan kes-kes ini tidak diberi keutamaan kerana ia tidak membabitkan individu berstatus tinggi?

Saya terkejut juga apabila membaca akhbar The Star dan New Straits Times hari ini (Sept 14) yang memetik isteri kepada salah seorang mangsa bahawa beliau telah membuat laporan polis kali KEDUA pada Sept 8, 2010. Malah, laporan itu dibuat di balai polis Banting.

M. Usharani datang ke Malaysia dari Chennai, India untuk mencari suaminya A. Muthuraja yang didakwa hilang setelah berjumpa dengan kedua-dua peguam yang juga suspek dalam kes Sosilawati. Kali terakhir beliau bercakap dengan Muthuraja ialah apabila Muthuraja berada di rumah suspek.

Saya hairan kerana walaupun sudah ada "lead", polis tidak dapat menyelesaikan kes tersebut. Persoalannya sekarang ialah apakah polis telah mengambil keterangan dari peguam-peguam tersebut dalam kes kehilangan Muthuraja? Bukankah ianya "Standard Operating Procedure" pihak polis untuk mengambil keterangan daripada mana-mana pihak yang terakhir sekali berada bersama mangsa?

Jika kes Muthuraja telah diselesaikan dengan penangkapan, MUNGKIN tragedi yang menimpa Datuk Sosilawati, pemandunya, peguamnya dan pegawai banknya dapat dielakkan.

PDRM perlu juga memulakan satu penyiasatan dalaman untuk mengetahui apa tindakan yang diambil (atau tidak diambil) diatas laporan yang dibuat oleh Usharani. Ini membabitkan nama baik PDRM dari kacamata antarabangsa.

Corruption cases: Why they just don't seem to stick?

Is there a serious flaw with the way corruption cases are being prosecuted? Are there anomalies in the law which make it technically easy for the accused persons to be let off the hook easily?

I raise these questions because it seems to me that far too many cases, especially high profile cases involving the Malaysian Anti-Corruption Commission (MACC) are being thrown out of court. If the subordinate court finds an accused guilty, the superior court takes an opposite position.

The latest being the acquittal of former Ampang Jaya Municipal Council (MPAJ) enforcement director Capt (R) Abdul Kudus Ahmad and former Pahang State Exco member Datuk Omar Othman. I am not suggesting that both of them are guilty or that they should have been found guilty. But it is rather surprising that in the case of Abdul Kudus who was charged with 30 counts of corrupt practices, not even a single charge stuck!

Datuk Omar was acquitted after a six-year trial. He was charged with abusing his power to award two village road projects to a company he allegedly had interest in.

After six years of trial (and a lot of tax payers' money, including mine spent), he was released.

I think the number of high-profile corruption cases which ended up in acquittals in recent years are far too many for to me to list down here. Given the frequency of these cases being thrown out of court, I wonder what is MACC's actual success rate of convictions after all avenues of appeal are exhausted.

And a bigger wonder is whether the investigation methods used by the MACC are in fact effective.

Stop intimidating bloggers!

Have our authorities lost their sense of humour? Or is this an attempt by the Attorney-General and Malaysian Communications and Multimedia Commission (MCMC) to intimidate bloggers.

I am referring to blogger Hassan Skodeng who will be charged at the Petaling Jaya sessions court tomorrow for poking fun at Tenaga Nasional Berhad and Earth Hour. Now it is also a crime to make jokes.

I have reproduced below what Hassan wrote, and let me make it clear that this is a joke...a parody, in case they decide to charge me too for reproducing the blogpost.

By Hassan Skodeng
TNB to sue WWF over Earth Hour

KUALA LUMPUR — Tenaga Nasional Berhad (TNB), Malaysia’s premier energy provider today announced that they were taking legal action against the World Wildlife Foundation (WWF) for organising the Earth Hour, a global movement that makes a stand against climate change by turning off all non-essential lights and electrical equipment for an hour every year.

In a Press conference, TNB president and CEO Dato’ Sri Che Khalib Mohd Noh said that the annual worldwide symbolic gesture, which this year would be observed this Saturday at 8.30pm, is nothing more than an ‘arrogant and thoughtless viral movement’ aimed to hurt power companies such as TNB.

CHE KHALIB: These people are inconsiderate. “Obviously these green-minded fellows think they’re really cute, organising such an irresponsible campaign,” said Che Khalib angrily. “They say ‘turn off your lights for an hour’ and people do. I bet that really makes them feel all powerful.

“What these western colonialists fail to grasp is how such drastic action affects the poor companies like us. One hour of unused electricity means an hour of wastage for TNB. Did you know that last year’s Earth Hour costed us millions in unrealised revenue?” asked Che Khalib, seething.

“How do you think that affected our production? We couldn’t exactly turn off our power plants just because a large number of Malaysians turn off their lights at the same time. So imagine all that wasted energy.

“This year, we expect even more people to fall for this global con-job,” added Che Khalib.

“So there’ll be more lights turned off. KL alone would be engulfed in darkness. Yes, sure, it may seem fun to some, running around in complete darkness. But that also means TNB would get less money. Tell me, what am I supposed to say to the kids of this electrical technician when we can’t give bonus this year?” asked Che Khalib, as he pointed to a TNB staff manning the lights for the Press conference.

He added, “In light of such inconsiderate actions by these tree huggers, TNB has no choice but to take legal action against the Earth Hour organisers, WWF. We’ll wait for our accountants to come back with the loss figure after this year’s Earth Hour, and we plan to sue them for that same amount. We may even add a hundred million ringgit or so, to teach them a lesson.”

Che Khalib also reminded Malaysians to ignore the Earth Hour, calling it a ‘cultural invasion, a concerted assault by extreme liberal forces aimed to destabilise poorer nations’.

“We are Malaysians, and we should be proud of our lights. Every night we should go out and see the beautiful sparkling lights in our city skylines. Don’t be ashamed of the lights,” said Che Khalib, as he unveiled a set of pictures showing the Petronas Twin Towers and the surrounding buildings consequently going dark during last year’s Earth Hour.

God knows how many people tripped over things and hurt themselves in the complete darkness, not to mention the number of bad people going around doing naughty things, knowing the authorities could not see them.

“Let’s reverse the order of these pictures this year, and fight for the rights to our lights,” continued Che Khalib. “Let’s unite as 1Malaysia, and tell these green terrorists that we will not go dark! We will not switch off! Let’s tell them that we love our lights!

“POWERRR… EXTREME!” he screamed, as powerful clusters of foglamps flooded the conference room with ultra-bright and hot light, temporarily blinding everyone present, and signalling the end of the Press conference.

Siapa dalang di sebalik demonstrasi di Jakarta?

Kita semua tahu hakikatnya. Di Indonesia, dengan wang sebanyak RM100, kita boleh mengupah seramai 10 orang untuk menganjurkan satu demonstrasi mengenai apa saja isu.

Bermakna dengan RM50,000 kita boleh mendapat 5,000 orang untuk mengadakan satu demonstrasi besar-besaran. Dalam erti kata lain, kalau ada pulus, semua beres.

Sebab itu bila ditanya, majoriti yang melibatkan diri tidak tahu pun apa tujuan sebenar demonstrasi itu diadakan.

Tapi persoalannya sekarang siapakah dalang yang membiayai demonstrasi di hadapan Kedutaan Malaysia di Jakarta serta Konsulat Malaysia di Pekan Baru dan Medan?

Kita pasti boleh mendapat jawapannya sekiranya kita mencongak dari persoalan pokok ini:

Siapakah sebenarnya yang mahu melihat Malaysia dan Indonesia bermusuhan?

Apapun, rumusannya ialah kumpulan penunjuk perasaan di Jakarta yang memijak Jalur Gemilang dan membuang najis manusia kedalam kawasan Kedutaan Besar Malaysia di Jakarta, cukup kurang ajar dan tidak bertamadun. Kemungkinan besar mereka mendapat bayaran lebih sedikit kali ini kerana terpaksa bersusah payah mengumpulkan najis manusia dan sanggup menggunakan tangan untuk menyapu najis itu ke dinding Kedutaan.

Dengan wang ringgit, semuanya boleh dibeli. Bisa saja!

Sime Darby's Forensic Audit Report please?

Today is the 19th day of August, 2010. Still no sign of the forensic audit and internal investigations report on Sime Darby Berhad's RM2 billion plus losses.

On June 15, Sime Darby chairman Tun Musa Hitam said:

"We will make the relevant disclosures as soon as the third phase or the forensic audit and legal investigations are ready, which are expected to be around the end of August 2010."

To be fair, Tun Musa did say "end of August". That gives him about 10 days more.

As I wait anxiously for the audit report, I wonder whether it will recommend punitive action against the entire Board of Directors as well as several senior management staff for their role in misleading the Government, the shareholders and the public in general:

To my mind, besides the Board, the following senior executives should be held answerable:


1. Sekhar Krishnan - The Group Financial Officer when Sime Darby ventured into Qatar and when the whole fiasco began.


2. Hisham Hamdan - The former Head of Group Stategy and Business - he vets through all investments. If he says no go, papers do not go to Board. All projects, including the Qatar projects and Bakun were okayed by him. He did not see the fact that Sime Darby was not ready for the projects in Qatar. It is strange that he is now tasked to lead Energy and Utilities Division.


3. Madam Tong Poh Keow who was appointed the Group Chief Financial Officer of Sime Darby Berhad on June 24, 2008 - She was Group CFO for year end June 2008 and June 2009 accounts - why did she failed to insist on provisions? Why did she sign the Statutory Declaration in the annual report saying that the accounts were correct?
In an Annual Report, the directors sign the Statement of Directors (s169(15)Companies Act). The CFO signs Statutory Declaration (s169(16) Companies Act) in accordance with Statutory Declaration Act 1960. So what is the CFO's legal position in making incorrect statutory declarations? In an Annual Report, the key sections are:
1) Corporate Governance Statement
2) Chairman's Statement - Nothing was mentioned in Tun Musa's statement in June 2008 and June 2009 in relation to E&U Division
3) Audit Committee Report
4) Statement of Internal Control - contains Board responsibility, risk management framework, etc
5) Directors' Report

Were the representations in the above sections accurate or misleading?

Since Annual Reports are tabled at the Annual General Meeting for shareholders, the Sime Darby shareholders, public at large, the Securities Commission, Bursa Malaysia, Minority Shareholders' Watchdog Group, etc were obviously misled. This is an obvious breach of the Companies Act.


4. Nik Muhammad Hanafi Nik Abdullah who was then Sime Darby's Head of Internal Audit. He failed to question the Finance and Accounts Department when it did not make provisions for the losses.

6. Foo Marn Hin, the former Head of Sime Darby's Risk Management. He was Head of Risk Management when Sime Darby venture into Qatar. He failed to warn the company about the risks involved in the Qatar projects, given the fact that Sime Darby lacked the experience and the expertise to venture into such projects at that point of time.

5. Abdul Rahim Ismail, who was then the Chief Financial Officer of the Energy and Utilities Division. He should have known all along the extent of the damage.

More on Anwar, Wolfowitz and Al-Gore

My friend Pasquale has more about the unholy alliance of Anwar Ibrahim, Wolfowitz and Al Gore here

Anwar, Al Gore, Wolfowitz - birds of a feather!

Birds of a feather flock together. Just like ex-convict Anwar Ibrahim, both Al Gore and Paul Wolfowitz are tainted with scandals and therefore lack the credibility to even try to make each other look good. In other words, they lack moral ground.

So I am sure, those who read the joint article by Al Gore and Wolfowitz in the Wall Street Journal on Aug 3 asking their Government to interfere in the Anwar Ibrahim sodomy trial would have simply laughed it off.

Wolfowitz, as we know, had an adulterous affair with his staff Shaha Riza and rewarded her for her "services" with a handsome pay package. He had to beg and plead to keep his job as World Bank President.

Al Gore also had his fair share of scandals. At least two more women have come forward claiming that they were sexually abused by the former Vice President.

Shortly following the announcement that he was divorcing Tipper, his wife of 40 years, Star Magazine reported that Gore was in the midst of a 2-year affair with Laurie David, the ex-wife of Larry David.

Then came the sexual assault allegations. Massage therapist Molly Hagerty accused Gore of sexually harassing her in Portland, Oregon, four years ago -- and she showed off her semen-stained pants on the cover of the National Enquirer to prove it. Gore emphatically denied her allegations.

Hagerty reported the incident to the authorities in 2006, and again in 2009, but they closed the case. Earlier this month, the Portland police reopened the investigation.

And now, two unidentified women -- both massage therapists -- claim that Al Gore made some unwanted advances towards them.

And in Anwar's case, although the Federal Court had in 2004 overturned the sodomy charge against him due to technicalities, the court held that there was evidence confirming that Anwar did engage in homosexual activities.

Given these scandals, it seems comical to me that both Wolfowitz and Al Gore have come together to support Anwar. And they even have the gall to say that Anwar's sodomy charges are "trumped up".

Denying their scandals at all cost is all they can do now! And for that, they need each other's help.

Kalimullah and the plot to topple Najib?

Apakah bekas Ketua Pengarang The New Straits Times Press Datuk Kalimullah Hassan bersekongkol untuk menjatuhkan Dato' Sri Mohd Najib Tun Razak apabila beliau menjawat jawatan Timbalan Perdana Menteri dan Menteri Pertahanan.

Berikut laporan penuh yang disiarkan Mingguan Malaysia hari ini, 25 Julai 2010:

Kalimullah didesak jelaskan plot jatuhkan Najib

KUALA LUMPUR 24 Julai - Ahli Dewan Tertinggi Pertubuhan Pribumi Perkasa Malaysia (Perkasa), Mohd. Zahid Md. Arip meminta tokoh media, Datuk Seri Kalimullah Hassan supaya menjelaskan kaitannya dalam plot menjatuhkan Datuk Seri Najib Tun Razak semasa menyandang jawatan Timbalan Perdana Menteri dan Menteri Pertahanan.

Dalam temu bual bersama TV3 yang disiarkan menerusi Buletin Utama malam ini, Mohd. Zahid mendakwa, Kalimullah dipercayai mempunyai kaitan dalam plot itu.

Ini kerana, dakwanya, Kalimullah menyiarkan artikel yang tidak tepat semasa menerajui The New Straits Times Press Berhad (NSTP), mengenai bahan letupan C4 yang digunakan dalam kes pembunuhan model warga Mongolia, Altantuya Shaariibuu pada 2006.

"Dalam artikel itu, C4 ini kononnya hanya dimiliki oleh Angkatan Tentera Malaysia (ATM) dan perlu kelulusan tertinggi Kementerian Pertahanan.

"Berita ini tidak tepat kerana kita tahu bahan letupan ini juga ada di semua depot senjata Polis Diraja Malaysia (PDRM) dan penggunaannya tidak memerlukan kelulusan tertinggi.

"Kalau Kalimullah tidak mahu bertanggungjawab, tidak mahu menjawab, dan berdiam diri, dia jangan marahkan saya. Seluruh rakyat percaya beliau salah seorang yang merancang plot untuk menjatuhkan Najib ketika itu dan agenda itu berterusan sehingga sekarang," dakwanya seperti disiarkan dalam Buletin Utama itu.

Hari ini, Utusan Malaysia menyiarkan kenyataan Mohd. Zahid yang juga bekas Naib Ketua Angkatan Muda Keadilan Parti Keadilan Rakyat (PKR) mempersoalkan penafian Kalimullah kononnya beliau tidak pernah mendapat sebarang kontrak kerajaan sebelum bergelar jutawan.

Mohd. Zahid dilaporkan berkata, beliau hairan dengan penafian itu kerana dakwanya, VPI International iaitu anak syarikat kepada Efficient E Solutions yang mana Kalimullah merupakan pengarahnya, memperoleh kontrak bernilai RM216,090,927 daripada Lembaga Hasil Dalam Negeri (LHDN) pada September 2005.

Sedangkan, tambah Mohd. Zahid, dalam penafiannya baru-baru ini Kalimullah memberitahu hanya melepaskan jawatan sebagai pengarah di Efficient E Solutions pada 21 Jun 2006 iaitu selepas sembilan bulan kontrak diluluskan.

Sehingga malam ini, Kalimullah belum memberikan sebarang ulasan berhubung desakan Mohd. Zahid itu.

Kita masih menunggu penjelasan Kalimullah.

Kali oh Kali

Datuk Kalimullah Maseerul Hassan told Bernama yesterday:

"I am also not a director of Efficient E Solutions which I quit on June 21, 2006. I did not get any government contract in my life and am not a shareholder in VPI International," he said in response to allegations by Jaringan Melayu Malaysia (JMM), a non-governmental organisation (NGO)".

He said this in a statement denying that he was behind the funding of The Malaysian Insider, a news portal highly critical of the Government and the Monarchy.

But according to Jaringan Melayu Malaysia, the contract was from 2005 to 2010. This means, when the decison to award the imaging and data capture scanning service contract to VPI International Sdn Bhd by the Inland Revenue Board was made, Kalimullah was still a director of Efficient E Solutions.

Efficient E-Solutions then held a 20 per cent stake in VPI International.

I have lifted the following information from APANAMA.







How low can one go?

No Government projects, Kalimullah?

According to journalist turned multi-millionaire Kalimullah Maseerul Hassan, he did not get a single Government project in his entire 50+ years of life. At least that is what he told Bernama in a statement denying that he has any links with the news portal The Malaysian Insider.

This is the Bernama story in full:

KALIMULLAH DENIES INVOLVEMENT WITH 'MALAYSIAN INSIDER'

KUALA LUMPUR, July 21 (Bernama) -- Journalist-turned-businessman Datuk Kalimullah Hassan today stressed that he had never been involved with 'The Malaysian Insider', a news portal, in any way.

"I am also not a director of Efficient E Solutions which I quit on June 21, 2006. I did not get any government contract in my life and am not a shareholder in VPI International," he said in response to allegations by Jaringan Melayu Malaysia (JMM), a non-governmental organisation (NGO), yesterday.

JMM alleged that the backers of the news portal had defamed the government although they had profited from government contracts.

JMM's allegation was based on an inference that Efficient E-Solutions held a 20 per cent stake in VPI International, which won an imaging and data capture scanning service contract from the Inland Revenue Board.

Kalimullah said: "If JMM has evidence of wrongdoings, it should, as a responsible NGO funded by well-meaning Malaysians of high standing, hand over the evidence to the authorities, without further delay."

He also hoped that BERNAMA, as the national news agency, "of which I was once chairman, would act responsibly in future and verify such allegations before publishing them." - BERNAMA.

Yes Kali, we believe you! We are naive Malaysians. By the way, we also believe in the Tooth Fairy.

No point denying it when everyone knows that your friends Brenden Pereira and Jahabar Sadiq are running The Malaysian Insider. And what about the millions of ringgit made by Fox Media? Your friend/proxy Pereira was behind it. Didn't Fox Media make millions from the Government from event management and PR for the five economic corridors. Fox Media was even receiving a RM250,000 monthly retainer from Sime Darby Berhad, the highest ever paid to a local PR company. That only stopped after the bloggers started to make a fuss about it. Is this money being used to finance the highly-paid CEOs and writers employed by The Malaysian Insider?

Having served under Kalimullah in the NST, I have a lot of stories about this man. But I will keep that for another day.

Tahniah, Dato' Sabri!

Saya ingin mengucapkan setinggi-tinggi tahniah kepada bekas bos saya yang juga bekas Ketua Eksekutif Kumpulan Golden Hope Plantations Berhad Dato' Sabri Ahmad yang dilantik Pengarah Urusan Kumpulan Felda Holdings Berhad berkuatkuasa hari ini.

Beliau juga akan turut memegang jawatan Presiden dan Ketua Pegawai Eksekutif Felda Global Ventures Holdings Sdn Bhd.

Saya pernah berkhidmat dengan Dato' Sabri dari tahun 2004 hingga 2007 apabila saya memegang jawatan Pengurus Besar Hal Ehwal Korporat di Golden Hope Plantations. Pada masa yang sama, saya juga memegang jawatan Pegawai Khas kepada Dato' Sabri.

Saya memang kagum dengan kebolehan dan ilmu pengetahuan Dato' Sabri yang begitu luas. Banyak yang saya pelajari dari beliau. Beliau juga ialah seorang individu yang tekun, amanah, jujur, warak serta mempunyai hubungan yang begitu akrab dengan stafnya.

Dato' Sabri yang pernah menyandang jawatan Pengerusi Lembaga Minyak Sawit Malaysia (MPOB) dari tahun 2007 hingga April lalu, mempunyai pengalaman luas dalam industri perladangan.

Beliau telah berkhidmat dengan Golden Hope Plantations selama 20 tahun dan dilantik Ketua Eksekutif Kumpulannya pada tahun 2004 sehingga ianya digabungkan dengan Sime Darby Berhad pada tahun 2007.

Beliau juga adalah bekas pengerusi Persatuan Minyak Sawit Malaysia (MPOA).

Dato' Sabri mendapat pendidikan awal di Kolej Melayu Kuala Kangsar dan meneruskan pengajiannya ke peringkat Ijazah Sarjana Sains dalam bidang ekonomi pertanian di University of London.

Beliau juga mempunyai diploma lanjutan dalam kajian antarabangsa dari University of Rhode Island serta menghadiri program pengurusan lanjutan di Oxford University.

Dato' Sabri menggantikan Dato' Mohd Bakke Salleh, yang juga mula menjawat Presiden dan Ketua Eksekutif Kumpulan Sime Darby hari ini.

Saya pasti Felda akan mencapai kejayaan demi kejayaan dibawah kepimpinan beliau.

New FELDA Group CEO

An announcement of the new Group Chief Executive Officer of Felda is expected tomorrow (Thursday, July 15).

The person, whom I cannot name just yet, is certainly most deserving. He has had an illustrious career in the palm oil industry and well respected by industry players.

The Government certainly made the right decision in appointing this person to helm Felda.

I have no doubt he will take Felda to greater, dizzier heights.

Announcement on Monday?

The Sime Darby Berhad board is meeting on Monday, June 14. I heard that some kind of announcement is expected. I doubt it is going to be as dramatic as the Board members accepting responsibility for the RM2.03 billion losses and resigning en bloc, like most of us would like to hear.

Perhaps the announcement of the new President and Group Chief Executive?

Stay tuned to this blog. I may be able to give you a headstart.

Sime Darby board must be accountable, says Kadir

My former boss and prominent journalist cum blogger Datuk A. Kadir Jasin wrote an interesting piece in his blog Other Thots. I reproduce the full piece here:

MONDAY, JUNE 07, 2010
Isu Sime Darby: Hukum Seorang, Hukum Semua
A Kadir Jasin

[Komen menggunakan pengenalan anonymous TIDAK AKAN DILAYAN. Sila gunakan nama sebenar atau nama samaran. Jikalau menggunakan anonymous, sila nyatakan nama di penghujung komen. Ulasan yang mengandungi unsur fitnah, hasutan, perkauman dan bahasa kesat tidak akan disiarkan. Ulasan yang terkeluar daripada tajuk tidak akan diberi keutamaan.]

URA-URA Kelab Penyokong Kerajaan Barisan Nasional (BBCBN) hendak mendesak kerajaan agar tidak lagi melantik pesara sektor awam menganggotai lembaga pengarah syarikat-syarikat berkaitan kerajaan (GLC) ada baik dan buruknya.

Laporan media massa mengatakan cadangan itu diuar-uarkan (bukan war-war) berikutan kerugian besar yang dialami dua GLC iaitu Sime Darby Berhad dan Pos Malaysia Berhad.

Timbalan Pengerusi Kelab, Bung Moktar Radin, memberitahu portal berita The Malaysian Insider dia akan membangkitkan perkara itu dalam sidang Dewan Rakyat yang bermula hari ini.

“Kalau mereka tidak berminat (menerajui syarikat-syarikat besar) jangan paksa mereka memegang jawatan pengarah khususnya di syarikat-syarikat besar dan ternama macam Sime Darby,” kata Ahli Parlimen Kinabatangan, Sabah, itu.

Sebarang usaha untuk mendalami kefahaman mengenai kerugian atau prestasi buruk GLC, khasnya oleh Parlimen, adalah dialu-alukan. Malah ia satu kewajipan.

Namun adalah tidak adil dan tidak tepat menyalahkan ahli lembaga pengarah (ALP) yang terdiri daripada bekas pegawai kerajaan sahaja. Tindak-tanduk pengurusan pun wajib didalami juga.

Kita ambil contoh Sime Darby (SD). Ia sudah beberapa kali mengalami masalah yang menyebabkan kerugian berbilion ringgit. Mungkin ramai sudah lupa kemuflisan Sime Bank dan kerugian besar SD pada akhir tahun 1990an.

Sebenarnya kali ini SD tidak rugi. Malaj bagi separuh pertama tahun ini ia mencatatkan RM1.113 bilion keuntungan. Yang rugi lebih RM1 bilion itu adalah operasi minyak dan gas di Teluk Parsi dan pembinaan penjana elektrik hidro Bakun.

Kerugian operasi ini menjadi isu sensasi kerana SD baru sahaja menelan dua syarikat Permodalan Nasional Berhad (PNB) yang lain iaitu Golden Hope dan Guthrie Corporation.

Apabila penggabungan ini diilhamkan ketika pentadbiran Abdullah Ahmad Badawi dan didalangi oleh CIMB Bank atas nama Synergy Drive Sdn Bhd. pada tahun 2007, ramai yang menantangnya, termasuk PNB walaupun secara diam-diam.

Sebelum penggabungan, ketiga-tiga syarikat perladangan PNB itu beroperasi dengan menguntungkan walaupun ramai ALPnya terdiri daripada pesara awam, termasuk Pengerusi PNB, Ahmad Sarji Abdul Hamid.

Tetapi apabila SD siap digabungkan dan diuar-uarkan sebagai syarikat perladangan kepada sawit terbesar di dunia, bekas Timbalan Perdana Menteri, Musa Hitam, dilantik pengerusi dengan Ahmad Sarji sebagai timbalan.

Bukan Musa sahaja yang menjadi pengerusi atau ALP GLC. Ramai lagi ahli politik, sama ada yang bersara atau masih cergas, menjadi pengerusi dan ALP GLC. Jadi jangan salahkan ALP yang terdiri daripada pesara awam sahaja.

Malah ada ALP yang terdiri daripada orang politik sangat teruk. Ada ketua dan timbalan ketua bahagian yang tak tahu apa-apa pun (clueless) mengenai perniagaan dilantik untuk dapat elaun. Jadi Bung Mokthar wajib juga bahaskan peranan ALP yang terdiri daripada orang politik.

Khusus mengenai SD, saya lebih cenderung menganggapnya sebagai syarikat amanah Bumiputera dan bukan GLC. GLC milik semua rakyat Malaysia tetapi agensi amanah seperti PNB adalah milik Bumiputera.

Saya kata begitu kerana majoriti saham SD dipegang oleh Skim Amanah Saham Bumiputera dan PNB. PNB adalah agensi amanah Bumiputera.

Mengenai pelantikan menjadi APP ini, kita kena juga tanya, siapa yang lantik mereka kalau bukan kerajaan sendiri? Akibatnya, jadilah mereka pengarah bebas yang tidak bebas.

Pada satu masa dulu, SD mempunyai apa yang dipanggil International Board of Directors atau Lembaga Pengarah Antarabangsa yang terdiri daripada orang kenamaan Asia dan dunia.

Saya pernah beberapa kali dijemput oleh Pengerusi SD waktu itu, Allahyarham Tun Dr Ismail Mohd Ali, untuk makan tengah hari bersama mereka. Salah seorang yang saya masih ingat adalah Sir David Li Kwok-po yang kini berupa pengerusi dan ketua eksekutif Bank of East Asia, Hong Kong.

Jadi, dalam hal SD ini adalah tidak patut menyalahkan dan menghukum seorang sahaja iaitu ketua pegawai eksekutif, Ahmad Zubir Murshid.

Keseluruhan ALP dan pengurusan kanan yang membantu Ahmad Zubir wajib dipertanggungjawabkan. Begitu juga juruaudit luar jika mereka gagal membuat catatan (qualification) dalam audit tahunan mereka.
Posted by A KADIR JASIN at 8:11 AM 27 comments

Tun M: Sime Darby Board must be held responsible for losses

The Board of Directors of Sime Darby Berhad must take responsibility for the RM2.03 billion ringgit losses inccured by the group.

Former Prime Minister Tun Dr Mahathir Mohamad said the Board had fiduciary duties to shareholders and therefore, could not claim ignorance to the events that led to the massive losses.

Such an excuse, he said, did not make sense, as he himself was aware of Sime Darby's losses from as early as 2007.

Dr Mahathir said while the Group Chief Executive was responsible for the losses, the Board of Directors should also be held liable.

“If it had happened in another country, the Board would have resigned by now”, he said.

Dr Mahathir said this in an interview with TV3 this morning.

Subsidy cuts - shouldn't the corporate sector sacrifice too?

Subsidy cuts are inevitable. Let's accept that. Eventually they have to go. The Government cannot go on subsidising everything under the sun. It's going to impact the country's economy, although I doubt that it's going to be as dramatic as Minister in the Prime Minister's Department and the CEO of the Performance Management and Delivery Unit(Pemandu), Datuk Idris Jala put it.

I don't think any Malaysian in his or her right mind wants to continue to see Singaporeans travelling to Johor Baru to fill subsidised petrol or to shop simply because it's cheaper. Similarly, we don't want to see the Thais or Malaysians up north smuggling petrol and subsidised goods into Thailand to make quick profits. Every Malaysian would agree that this should stop.

It is a sin to allow foreigners to benefit from this at the expense of the country's economic well-being.

It is a fact that the Government of today led by Datuk Seri Mohd Najib Tun Razak is saddled by the deficit accumulated over the years. It's important that the deficit which now stands at almost RM300 billion is reduced or better, cleared, so that our vision to become an industrialised and a high income nation by 2020 can be realised.

However, my concern is the poor. The Government has to device a strategy to ensure that the hardcore poor and the vulnerable group do not end up poorer. While we vigorously pursue the developed nation status, we should not allow the disparity between the rich and the poor to widen. Poverty does not sustain stability and hunger does not sustain democracy.

The Government must be seen to act. The poor must be protected at all costs. One way is to introduce minimum wage. We have been arguing about this for a long time, but we are not getting anywhere.

By paying low wages, the rich employers are in fact, being subsidised. There are a few plantation companies in Malaysia which choose not to become members of the Malaysian Agricultural Producers Association(MAPA) so that they do not have to subscribe to the National Union of Plantation Workers (NUPW) basic monthly salary requirement. This is an outright exploitation of workers.

There are also discrepancies in other areas. One which quickly comes to mind is the energy sector. If the Government is considering a tariff hike, then Tenaga Nasional Berhad must re-negotiate its contracts with the Independent Power Producers (IPPs). Currently, power produced by the IPPs are being forced down TNB's throat, although it doesn't really need it.

TNB's current reserve power margin stands at 44.7 per cent. It may require about 20 per cent reserve for emergencies, but the remaining 25 per cent is left idle. This is absolute waste of money.

Granted that there is a contract between TNB and the IPPs requiring the former to buy the power produced by the latter, irrespective of the need. But all contracts can be re-negotiated. Even at the absence of a clause in the contract which allows re-negotiation, there is a provision in the Law of Contract which allows it.

I am sure, after many years, the IPPs have recouped their investments and have even made a lot of profit. As such, during crunch time, the IPPs should demonstrate good corporate citizenry by agreeing to re-negotiate their contracts. This is national service, so to speak.

For the country's sake, the IPPs should be flexible. If the country's financial position takes a dip, they too will suffer.

How do we explain to the rakyat that TNB is making the rich IPPs even richer by buying power that it does not need? How do we explain to the rakyat that they have to pay higher electricity tariff while at the same time, TNB has reserve power going to waste. Does it make economic sense?

If the Government is asking the rakyat to tighten their belts, it should do the same with the corporate sector.

My argument also extends to the highway toll concessionaires, while they make billions of ringgit, they insist on raising the toll each time the rates are up for revision. They insist on doing so even during a crisis.

During difficult times, all including the corporate sector, must sacrifice. The rakyat alone should not bear the burden. WE are after all the nation.

The Sime Darby fiasco - the biggest scandal in Malaysia's corporate history

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.

Sime Darby's losses reach RM1.3 billion

The provisions for losses incurred by Sime Darby Berhad's Energy and Utilities Division have now been raised to RM1.3 billion.

Announcing the company's third quarter results for Financial Year 2009/2010, its acting Group Chief Executive Datuk Azhar Abdul Hamid said the figure was not a final one.

The excerpts of the Press Statement issued yesterday:

PROVISIONS OF RM964 MILLION IN THE ENERGY & UTILITIES DIVISION
The Energy & Utilities division had reported an operating loss of RM1,019 million in the first nine months of the year. This was after recording provisions for the oil & gas and engineering sub-segment in 3QFY2010 amounting to RM964 million that was announced on 13 May 2010.

The breakdown in the provisions totaling RM964 million is as follows:

RM200 million for the Qatar Petroleum (QP) project;
RM159 million for the Maersk Oil Qatar (MOQ) project;
RM155 million for the Marine project;
RM450 million for the Bakun project;

Inclusive of the above provisions, the total provision for the four projects at the end of the third quarter amounted to RM1.3 billion. These provisions are based on the current best judgment of the forecast cost to completion of each of the projects. The QP project was completed and handed over in August 2009. The MOQ project is expected to be completed by the end of the year. Negotiations on cost recovery in all four projects are ongoing.

NEXT: What really happened to Sime Darby's investments in China