Thursday 9 February 2012

Two in One : SC and Medini (UPDATED)

February 09, 2012
KUALA LUMPUR, Feb 9 — The Securities Commission (SC) will revamp its top post with retiring Treasury chief Tan Sri Dr Wan Abdul Aziz Wan Abdullah taking over as non-executive chairman from current executive chairman Tan Sri Zarinah Anwar when she steps down at the end of March, sources say. 
   The Malaysian Insider understands that Zarinah’s regulatory duties will be taken over by Datuk Ranjit Ajit Singh, who is now the executive director of market supervision in the commission. It is learnt that Putrajaya felt Ranjit was most capable for the top job but there was concern the right wing in Umno may jump if a non-Malay took the post, leading the government to split the job to provide cover for any non-Malay getting such a post and placate the Malay ground.
“Dr Wan Abdul Aziz will come on board as non-executive chairman and Ranjit will be the top regulator,” a government source told The Malaysian Insider.

Another source said the government will make the announcement soon, including naming a replacement for Wan Abdul Aziz in the Treasury. “They’ve decided to split the SC post for accountability purposes and to provide cover for any non-Malays getting such a job while placating the Malay ground,” he said, adding that Zarinah was both chairman of the commission and also head of the senior management in the SC.
“So now, the top regulator reports to the commission,” the source said.
Singapore’s The Straits Times reported last week that Zarinah was stepping down as the SC chief next month after six years at the helm of the capital markets watchdog.
Her contract ended amid pressure over the market regulator’s role in conglomerate Sime Darby Bhd’s acquisition of a 30 per cent stake in E&O Berhad last August, where her husband was chairman of the property developer.
The Straits Times said government officials and financial executives close to the situation told the newspaper that “Prime Minister and Finance Minister Najib Razak will decide on her replacement in the coming weeks.”
“The E&O deal has put Tan Sri Zarinah in a tight spot. The reason is that her husband, who is E&O chairman, had raised his personal stock holdings in the company just days before Sime Darby’s announcement,” it reported.
State-controlled Sime Darby purchased its 30 per cent interest from three major shareholders — E&O managing director Datuk Terry Tham, Singapore’s GK Goh Holdings and a group of investors led by businessman Tan Sri Wan Azmi Wan Hamzah — at the end of August last year in a deal that valued E&O shares at RM2.30 a piece.
The purchase price represented a 60 per cent premium over the value of the shares in the company on the open market when the deal was announced.
The RM776 million deal triggered unease over the widely perceived coddling by the agency of large state-controlled companies at the expense of minority shareholders when exercising its authority on corporate takeovers.
The SC ruled six weeks after the deal that the plantation-based conglomerate did not have to make a general offer, prompting E&O minority shareholder Michael Chow to sue the SC for failing to compel Sime Darby to make a general offer for the rest of the shares, which would cost an additional RM1.8 billion.
This came despite a SC task force finding that Sime Darby was obliged to make a general offer for E&O shares after acquiring a 30 per cent stake in the property developer.
Singapore’s The Straits Times reported last week that the task force was of the view that a general offer obligation had been triggered as a new “concert party” was created between Sime Darby and Tham, who jointly controlled more than 33 per cent in the property concern after the deal.
Malaysia’s takeover rules stipulate that any party that acquires more than a 33 per cent interest in a public-listed entity must carry out a general offer for the remaining shares.
A general offer can also be triggered if a new party buys less than 33 per cent, but secures management control of the target company.

Apparently pro-BN bloggers, who had all these while been hantaming Zarinah seems to have started rejoicing at the news. Here is Big Dog's take on it, Another one bites the dust.
Opening up the Pandora Box, you said Big Dog?
Well, I would not be too quick at being happy if I were you.

Then again, Big Dog and the gang probably do not really know who is this person Malaysian Insider said is going to be the real one in charge of SC after Zarinah is gone - Ranjit Ajit Singh.

Jahabar's source was quoted as saying, “They’ve decided to split the SC post for accountability purposes and to provide cover for any non-Malays getting such a job while placating the Malay ground,”
Zarinah was both chairman of the commission and also head of the senior management in the SC.
I wonder, who is that Jahabar's source, who seems not totally happy about a non-Malay having only half of Zarinah's job after she stepped down.

Have the pro-BN bloggers ever wonder why the last three attacks on Zarinah and SC came from the pro-Pakatan Malaysian Insider and Singapore Straits Times?

Have they ever wonder where ST correspondent Leslie Lopez got his materials on SC from?

I smell something rotten all the way from the top-level of SC itself and all the way up to the MOF, causing those info leakages.

Then again a cat probably have a better sense of smell than a dog.


February 09, 2012

KUALA LUMPUR, Feb 9 — Khazanah Nasional Berhad yesterday denied allegations of questionable deals in the development of the ambitious multi-billion ringgit Medini integrated development in Johor. The questions were raised in two letters to the editor published in Utusan Malaysia and revolved around the decision of a Khazanah- and EPF-linked company to lease land to Middle Eastern investors in Medini in 2007 and the subsequent buy-back of the land by the state asset manager from the same investors — purportedly at a higher price just a few years later, enabling the investors to flip the land for a profit despite not having paid for it in full.
The letters also alleged the existence of a complex web of related party transactions, with the Khazanah subsidiary partnering with a foreign investor to lease Medini land to other Middle Eastern companies in which the same foreign investor has a stake.
Other allegations raised were that the Khazanah-linked company in charge of developing Medini had paid out massive dividends of RM475 million in 2008 despite facing cash flow issues, 25 per cent of which went to the foreign partner even though it did not deliver satisfactory results.
The company at the heart of the controversy is Iskandar Investment Berhad (IIB), in which Khazanah holds 60 per cent equity. The rest of the shares are held by EPF and Kumpulan Prasarana Rakyat Johor
IIB had partnered with UWI Capital Ltd, which is registered in the British Virgin Islands and an associate company of Dubai’s Jumeirah Capital, to created Medini Iskandar Malaysia Sdn Bhd (MIMSB). This was then tasked to develop Medini.
IIB has a 75 per cent stake in MIMSB with UWI Capital holding 25 per cent.
At the same time, IIB signed a deal worth US$1.2 billion (RM3.6 billion) with a consortium of Middle East entities led by Abu Dhabi based Mubadala Development Company and Kuwait Finance House (KFH) to develop Medini.
One of the letters claimed that the controlling stakeholder in UWI Capital also owned a 10 per cent stake in Mubadala and KFH, which allowed him or her to realise profit from both the seller (MIMSB) and the buyers (Mubadala and KFH), and questioned the wisdom of IIB partnering with the foreign entity.
Khazanah said in its statement that it was normal for investors in large scale projects to ask for land to be returned if the schemes failed to deliver the desired returns, adding that it was an important feature to attract first mover investors.
“It also gives flexibility to investors to change their commitment levels and appetite for investments for long-term projects like Medini, which will take 25 years,” said Khazanah.
Khazanah said UWI Capital was invited to help develop Medini based on their track record of structuring, promoting and large infrastructure projects in the Middle East.
The state asset manager said that UWI was asked to be an equity partner and was not just a land broker, and also entered the deal with land valued at RM10 psf (per sq foot) as compared with RM7.30 psf as valued by CH Williams Talhar and Wong in 2006.
Khazanah noted that the letter raised questions as to why it would deign to partner with a company that was registered in the British Virgin Islands as if such companies had something to hide, and said that registering in tax havens was standard practice for all serious investors, including Khazanah.
It also defended UWI, saying that the company only received a net dividend of RM43 million after reinvestment.
Khazanah said that a large part of the land that had been returned or bought back from the investors was later resold by IIB at a 23.7 per cent premium.
In December last year, Sunway Bhd teamed up with Khazanah to buy 276.4 hectares of land in Medini for RM745.3 million.
Khazanah added in its statement that as a result of the global financial crisis, IIB and MIMSB had chosen to restructure rather than postpone projects in Medini but the Middle East consortium remained investors.
Noting that the letters had called for tighter monitoring of Khazanah, the state investor said that it had always practised the highest standards in corporate governance, including the establishment of independent executive and audit committees.
IIB was also in the news last month when it was reported that a former senior vice-president of an IIB subsidiary pleaded guilty to soliciting for bribes related to the Iskandar Malaysia development project.
Mohd Amin Suhaimi, husband to former IIB chief executive Arlida Ariff, was also charged with three counts of soliciting and taking bribes from a construction company to secure a tender worth RM40.8 million to build a boarding school in Pulai.
Arlida, who was headhunted by Khazanah, was removed from her position in 2010 amid speculation of alleged irregularities in the award of infrastructure contracts.
Medini is a 2,230-acre international mixed-used development, which is one of the core components of the Iskandar Malaysia special development zone in south Johor.
Among the major projects in Medini are Legoland, which is slated to open later this year, and a RM3 billion iconic wellness township to be developed by E&O and Khazanah and Singapore’s Temasek.

I'm now going to sit back and see how this thing developed.....err, MACC boys and your job properly ya.....don't let me down, ok?


  1. The Medini fiasco is indefensible, heads in Khazanah must roll, starting with the senior most management entrusted to do their job with the highest integrity.

    SPRM do not need to wait for a report to start their investigation rolling, the smell of rotting fish is sickening.

  2. hehe..the explanation given in UTUSAN too the end of teh day aku pun tak tahu apa yg mamat tu rambling kan..

    letak gambar satellite...medini dulu dna sekarang

    aku baru je pi lalu area medini..well still mcm padang jarak padang tekukur kur kur kur..lor....

    muo mari: bandar di raja....hehehehe..

  3. Budak Gelang Patah9 February 2012 at 17:57

    Pasal Medini,

    Truth doesn't need long explanation.

    Lies need twisted words to portray as truths.

    I smell shit whenever I drive passing through Medini.

    Johor Civil Service, Nusajaya

  4. hahaha lawakla penjelasan Khazanah dalam Utusan tu...macam org tgh meroyan kena soal...'telus' abis

  5. Rasanya surat yg dihantar kepada utusan tu bertajuk 'hartanah medini mencurigakan', apasal pulak khazanah jawab 'medini capai kejayaan besar'. Tajuk jawapan pun dah salah. kakakaka. Isi jawapan lagi lah tak menjawab soalan yg dikemukakan. Totally out of context. Does Khazanah really think we are stupid like them?

  6. Karenah Nasional Berhad10 February 2012 at 23:30

    BigCat, aku pun tak berapa paham bila baca surat tu. Maklumlah, aku sekolah pondok saja. Aku rasa daripada orang yang tak berapa paham macam aku ni buat kesimpulan yang bukan-bukan, lebih baik bagi SPRM siasat samada surat Khazanah tu betul ka, klentong ka. Aku rasa itu baru betul, daripada aku berteka-teki dalam kesamaran.

  7. Sdr,

    Jangan dipersoalkan sangat artikel Sdr Asuki tu kerana dia hanya sekadar melaksanakan tanggungjawabnya menyalurkan fakta-fakta yang perlu, mengikut pandangan dan tafsiran organisasi tempat dia bekerja.

    Isu pokok di sini ialah mencari dan menilai akan kebenaran, kesahihan, ketepatan, kejelasan akan segala fakta yang ditimbulkan serta tiadanya unsur-unsur mengelirukan berhubung dakwaan yang tidak begitu menarik untuk didengar dan diceritakan.

    Ini penting bagi mengelak dan membanteras sehingga ke akar umbi sekiranya benar berlaku sebarang unsur penyelewengan, salah laku, rasuah kerana semua itu akan menghancurkan negara dan menyusahkan rakyat.

    Dengan cara ini juga, dapat dinilai adakah urus niaga yang dibuat adalah secara berintegriti, bertanggungjawab dan beramanah, adakah keputusan mengikut perkiraan betul dan secara bijaksana, bukan untuk kepentingan sempit.

    Setiap keputusan pelaburan yang besar dan penting, apatah lagi menggunakan pula dana rakyat, akan memberi impak besar kepada negara dan rakyat terbanyak.

    Satu perkara yang pasti, dalam apa juga isu yang ditimbulkan termasuk yang dibincangkan secara khususnya ini, ALLAH menjanjikan bahawa kebenaran tetap akan timbul juga, dalam apa bentuk dan sifatnya, manakala kebatilan ditunjukkan balasan setimpal di atas muka bumi ini.

    Sama ada sedar atau tidak, terlalu banyak contoh yang telah ditunjukkan oleh ALLAH dan diceritakan dalam AL-QURAN mengenai kemungkaran dan kebatilan yang telah dilakukan oleh umat manusia di atas mukabumi ini dan telah pun diberi balasan.

    Cuma kita saja sengaja tidak mahu melihat dan mentafsirnya dengan menggunakan minda yang tajam dan hati yang tenang serta dalam suasana yang berlapang dada.

    Carilah kebenaran, fakta tepat dan betul serta pastikan kesahihannya supaya tidak timbul fitnah dan tohmahan, sekali gus mengelak ada pihak-pihak yang teraniaya.

    Perangilah kebatilan supaya kita sentiasa berada di landasan keimanan, tidak tergelincir dalam memenuhi hawa nafsu yang tidak pernah terbatas.

    Pandangan ini mungkin tidaklah terlalu ideal dalam konteks mencari kebenaran dan kesahihan fakta berhubung isu yang ditimbulkan kerana kita diberi akal untuk berfikir dan bertindak.

    Kekuatan akal berasaskan keimanan membolehkan kita mengawal hawa nafsu daripada sebarang tindakan yang merugikan dalam kehidupan di dunia yang dikira amal makruf dan nahi mungkarnya untuk menjadi bekalan untuk kehidupan yang kekal abadi di AKHIRAT nanti.