First it was Tony Pua. Now it is Rafizi's turn to grill Chua Tee Yong

As expected, MCA MP for Labis Chua Tee Yong has declined to debate with DAP MP for PJ Utara Tony Pua over the Talam debt restructuring deal despite his claims of massive wrongdoing by the Pakatan Rakyat-led Selangor state government.

Tee Yong, who is also the son of scandal-tainted MCA president Chua Soi Lek, has been written off by many pundits and members of the public as a 'sure loser' if the debate took place. At 32, Tee Yong may be the one of the youngest 'Datuks' in the country but his oratorical skills and ability to articulate himself still needs seasoning.

Threatening to expose more Talam misdeeds by Mentri Besar Khalid Ibrahim's administration, Tee Yong also declined to respond to another Pakatan leader - PKR's Rafizi Ramli - who had a day ago warned that he would expose MCA's links with Talam.

“I am not going to respond to his statements and threats,” the MCA-owned Star newspaper reported Tee Yong as saying.

Glaring errors

Tony had a day ago slammed Tee Yong for his huge mathematical errors over the Talam deal, which Tee Yong has yet to acknowledge. Tony challenged the Labis MP to a debate so that the Malaysian public could gauge for themselves and decide who was telling the truth and who was lying.

"Datuk Chua (Tee Yong) has become an embarrassment for the MCA as he stumbles from one mega-blunder to another. I call upon Datuk Chua to end his misery once and for all, with a public and open debate in any language, at a time and place of his choosing, even if it is held at Wisma MCA over the Talam Debt Recovery: A Billion Ringgit Bailout or a Billion Ringgit Mega-Blunder," Tony had said in a statement.

 
Khalid has also announced Selangor would appoint 5 accounting firms to review the Talam deal. Tee Yong has also failed to respond to this. So far, he has clung on to his claims, despite the errors pointed out to him.

This perceived lack of fair play has sparked great public annoyance with him for being a sore loser.

Father and son 'disaster team' for the MCA

The recent fiascoes hatched by the father and son team has caused deep rumblings in their party. Within MCA, a simmering revolt is already out in the open. The party has been fractious for years and after Soi Lek took over the presidency from Pandan MP Ong Tee Keat in 2010, there was a lull but only waiting for the storm to break.

Earlier this week, MCA elders were forced to use the party grapevine to warn against a purported plan by Soi Lek to sell 45-acres of land belonging to Kolej Tunku Abdul Rahman for RM100mil.

The rumor sparked massive outrage as not only was the college land considered a 'sacred trust' to be reserved for future expansion, the price tag was shockingly low. One pundit said it was at least ten times less than the market value given the prime location of the land in Setapak, Kuala Lumpur and accused Soi Lek of trying to benefit himself and his cronies with the deal.

Like his embattled son, Soi Lek has come out to deny the rumor - pinning the blame on arch rival DAP.

“The motive to destroy MCA is clear as the rumour was spread right after the DAP insulted the inception of TARC during the debate on Sunday as there are people who do not wish to see the success of TARC,” Soi Lek said in a statement on Friday.
Cowardice in Malacca too

Earlier this month, Soi Lek and team had also tried to discredit DAP secretary-general and Penang Chief Minister Lim Guan Eng with accusations of an extra-marital affair.

But instead of hitting Guan Eng directly, they did so through the Malacca state assembly, where Guan Eng's wife Betty Chew is the Kota Laksamana assemblywoman.

When Guan Eng challenged them to repeat their accusations outside the assembly where they would no longer enjoy legal immunity, Soi Lek and team did not do so for fear of being sued for defamation as they could not stump up the proof.

Boycott Petron to fight corruption

A PKR leader has suggested that a boycott of companies owned by BN cronies would be a more effective method of fighting corruption in Malaysia than depending on action by the police or MACC.

Malacca PKR vice chairman G Rajendran said he would start the ball rolling by launching a “Say No to Petron” campaign against the new petrol and gas company, which is said to be owned by Mirzan Mahathir, one of former prime minister Dr Mahathir Mohamad’s sons.

He told FMT the campaign would be initially carried out through Facebook and other social networking sites, but did not say when he would launch it.

“I’ll request Malaysians to boycott all Petron petrol stations to show our dismay over cronyism in Malaysia,” he said.

“Petron Malaysia Sdn Bhd, which has links with Mahathir’s son Mirzan, has taken over Esso Malaysia Bhd and all Esso stations are being rebranded to Petron.

“This is ridiculous. While the people are struggling, a few are enjoying a lavish life because of cronyism. Those who are related to powerful leaders are getting favours without any problems.

“I am really saddened by our system.”

Rajendran said cronyism, in his book, is just another name for corruption.

“There are thousands and thousands of complaints lodged with the Malaysian Anti-Corruption Commission (MACC) and the police, but nothing is done about them.

“So, the time has come to use a new method to fight cronyism.”

Petron acquired the oil refiner Exxon Mobil Malaysia Bhd in April, when it bought 65% of the firm, and now has full ownership of the subsidiaries Exxon Mobil Malaysia Sdn Bhd and Exxon Mobil Borneo Sdn Bhd.

It has since rebranded 580 former Exxon Mobil fuel stations nationwide and, it is learnt, will do so with 120 more stations by the end of the year.

PKR de facto chief Anwar Ibrahim recently alleged that Petron paid for the acquisition with money gained from the sale of shares in the San Miguel beer company.

Anwar has also raised concern over a deal between Petron and Malaysia Airlines System (MAS).
Petron has signed an agreement with MAS for the supply of fuel for the national carrier’s entire Airbus A380 fleet for six months.

[Source: FMT]

I guess PETRON petrol stations cannot be considered halal since beer money was used in the transaction.

Can BN take back Selangor?

The question above is one to consider objectively, and yes, we the people of Selangor will be questioning and prodding the politicians about their propaganda.

The state of Selangor, after all, is a very valuable state. It is the state with the largest population of both locals and migrants, at least until the Sabah RCI tells us otherwise. We are the state with the most number of cities. We are also the state with the highest income per capita in the entire federation.

The state also has the largest population of youths due to the concentration of tertiary education centres here both inter and intra state.

If we are to study the voting patterns in 2008, one of the major reasons for Pakatan Rakyat winning the state government was due to the fact that this state is well developed with better infrastructure in terms of access to alternative media. Alternative media being that which is available online.

And most of those who read online media as their main source of information and news are based mostly in the urban and suburban areas. If we were to analyse GE 2008, we would notice that the seats in the state assembly won by Barisan Nasional were in the rural areas.

This advantage for Pakatan has apparently been halved nowadays with the emergence of pro-government blogs and social media outlets.

In terms of lingua franca, most of the online news portals and alternative media outlets use English as their medium. In that sense, I do agree that GAPENA may want to look into asking Umno, at least, to tell their cybertroopers to stick to BM instead of their grammatically confusing English.

The cyberworld is full of grammar Nazis such as me. Good grammar is equally as important as your political selling points.

Studying the voting patterns of the Selangor population, we can detect that the swing towards PR in the urban areas was unanimous. Seats such as Kota Anggerik, which is predominantly Malay, as well as those in Subang, which is more balanced, all swung towards Pakatan.

At this point I wish to clarify statements by two former prime ministers, Tun Dr Mahathir Mohamad and Tun Abdullah Ahmad Badawi. While the upcoming election could be about “race”, it certainly won’t be so for the urban population since the last election showed no racial bias in these areas.

Now, with the idea set in place that the Barisan Nasional wants to retake Selangor, there are a few questions that they will have to answer.

For one, what is your state manifesto for this upcoming election?

This so-called manifesto was something promised since September 2011 but has yet to see the light of day.

Furthermore, is it true that Selangor must deal with the federal government, but to what end?

What benefits the Federal Territories may not be what benefits the state. The state is an independent entity that must have a symbiotic relationship with the federation. The state of Selangor is a sovereign state in a federation of many, but we would not appreciate being whored out like what is being done to east Malaysia. As such, what promises can the BN make that caters to the state that may not be beneficial for the federal government?

There is also a need to address the question of state policies. Would the policies brought forward by the current PR state government which benefits the people of Selangor still remain or will these be reversed?

Can the future BN state government guarantee a savings of RM1.8 billion a year and above?

Can they guarantee, similarly, the continued hosting of SELCAT hearings to address corruption within the public administration sector for the state?

Would you openly allow protests and local gatherings? To what end?

I’ve seen in Selangor protestors bearing cow heads, Khalid Samad’s portrait being stepped on, the state mosque being used for politics by NGOs linked to you, Barisan Nasional.

There are implementations by Pakatan which have brought a lot of benefit to the majority of people who reside in Selangor and I am pretty sure we are keen to maintain them or at least put them on the ballot for a referendum vote. And that’s the other thing. Would a Selangor state BN government work towards local council elections?

The state of Selangor is well placed to live up to its motto, promoting sincerity and diligence. Now it is clearly revealed that these two virtues were not taken seriously by the past BN state governments after SELCAT clearly highlighted how individuals serving state organisations and entities were abusing the state coffers. With this in mind and in view of the fiscal irresponsibility of the federal government run by the BN coalition, why should the people of Selangor want the same to happen to our state’s income?

Here’s the bottom line I would give to Selangor BN if they truly want to take back the state.

To win back Selangor, an urbanite savvy state, requires the ability to be both moderate and independent, catering for Selangor first and the federation second and ensuring that Selangor remains the prime example of a modern state that others want to be. To do this, the BN coalition must speak up against moves by the BN federal government which does harm to the state, one of which was the cutting of PTPTN funding which was quickly reversed.

How many Selangor BN leaders spoke up?

If you cannot even speak up for the youth of Selangor, what guarantee can you give to us, the people in the state, that you will not become yes-men?

You know what? Screw that. Show me your one-year delayed manifesto.

[Source: The MI]

Our Sunday Girl - Sara

More on the Talam case by Tony Pua

We are still waiting for Chua Tee Yong's response.

A tribute to Malaysia's greatest musician - Paul Ponnudorai

Paul will always remind me of the contestant with the babyface look who appeared on the Bakat TV show in the early 70s.  After participating in the contest, he disappeared and was never heard of until the late 70s or early 80s when he started making the pub circuit.  During his many performances, I couldn't help but associate him with another local great, the late Terry Thadeuss, but then Terry was more into the heavy stuff while Paul's leanings were inclined towards unplugged pieces.  His audience was definitely captivated by his singing and guitar playing style which is so much Jose Feliciano-ish.

Read the rest, as it appeared in The Star today ...

Legendary Malaysian guitarist Paul Ponnudorai, 51, died early Saturday morning because of organ failure due to a latent infection.
Once described by Time magazine as “quite possibly the greatest musical interpreter of our time”, the Ipoh-born guitarist came to prominence in the 1980s as a sought-after club performer.

He has backed up a variety of local artists in the last three decades, including Sheila Majid and Sudirman, as well as played with a wide range of foreign stars such as Billy Cobham and Wynton Marsalis.

Right on Time, Ponnudorai's first album (of mostly covers but with a couple of originals), was released in 2005.

The guitarist's music ability was across the board and he was able to shine in all genres - from blues and rock to jazz and bluegrass and pop.

He was widely known in the regional live music scene and a highly respected performer.

The wake will be held Saturday from 2pm onwards at the Gui Yin Funeral Parlour at Jln 222, Petaling Jaya. The funeral is scheduled for Monday.

Ponnudorai leaves behind his 91-year-old mother Kamalam, four brothers, three sisters, nieces, nephews and a host of fans.

RIP Paul.  You will never be forgotten.

The business of Talam

 “Confusing” probably describes most of our initial attempts to get to the bottom of what the deal was between Talam Corporation and Selangor.

With a little diligence, clear thinking and attention to detail however, most mysteries can be unravelled and articulated efficiently.

This article attempts to explain in easy to understand terms the background and context of this issue, how Selangor recovered the debt owed to it by Talam, and how this debt recovery differs from the bailouts we have seen at the federal level.

In the beginning

The story begins in the late eighties and early nineties, with an engineer and project manager who worked in Selangor state subsidiary PKNS - one Chan Ah Chye.

This man later goes on to form Talam Corporation, and before long - possibly due to close connections with the ruling elite in Selangor, then headed by BN menteri besar Muhammad Muhammad Taib - becomes a major player in the Selangor property and development scene.

Over time, an extremely large amount of state land is alienated to Talam, who basically gets it for free. A strong imagination is not required to speculate in whose pockets any resulting profit eventually ends up.

Talam’s modus operandi seems to be to pledge this land to the bank in exchange for huge loans, which they then use to finance their development and profit making projects. In essence, since they got the land free, they have successfully achieved money for nothing (it is uncertain as to whether “chicks for free” were involved).

The ‘wise’ businessmen of that era believed in the dictum of never using your own money when you can use someone else’s. This heavy lending continued to characterise Talam’s business approach, and their loans consistently kept getting bigger and bigger.

Tumbling down

Of course, no student of recent economic trends is unfamiliar with the concept of a bursting bubble.

The financial collapse of the late nineties brings Talam’s debt-ridden house of cards crashing down. An overgearing of loans and inability to service them halts various half-completed projects, rendering them idle, half-built ruins.

Incredibly however, this does not prevent Talam and their political patrons from altering their basic modus operandi.

In 2001, under BN menteri besar Khir Toyo (right), three parcels of land are alienated by Selangor to Talam via their subsidiary Maxisegar Sdn Bhd, who undertakes to construct Unisel’s campus at an estimated cost of RM750 million.

It will probably come as no surprise that Talam failed to complete this project. By September 2006, the company had been classified as an affected company under Practice Note 17 (PN 17), indicating dire financial straits.

New sheriff in town

In 2008, when Khalid Ibrahim assumes the menteri besar’s post, he inherits a situation in which Talam owes the state and its subsidiaries (among other creditors), a great deal of money.

Urban legend has it that when Talam was called in to explain why they have never endeavoured to pay their debts, the sheepish reply given was, “No one ever asked us to.”

Thankfully for the citizens of Selangor, there was a new sheriff in town.

Corporate finance is not only an area of expertise for Khalid (left) - it is a passion. With great gusto, he set out to solve this problem, and recover that which was owed by Talam to the people of Selangor.

The problem was undoubtedly challenging, but after some work and careful strategising, a plan was set into motion.

The end goal was simple: to leverage the assets still held by Talam to repay the debt Talam owed to the Selangor and its state subsidiaries.

The technical nitty-gritty

Making this happen was a technically complicated process that required considerable financial acumen.

The summary is this: firstly, the debts that were owed by Talam to Selangor state subsidiaries were properly booked and accounted for - something that, very suspiciously, had not been done before. Once these debts were acknowledged by all parties, the debts were consolidated and transferred to one state subsidiary - Menteri Besar Incorporated (MBI), which was then responsible for collecting the debts from Talam in the form of land and cash.

The rest of this section explains how this was done. It is a boring and complex explanation, but I list it here for the record and for those interested.

Talam owed RM392 million in debt to three Selangor state subsidiaries: KHSB, PIYSB, and PNSB. After acknowledging and booking these debts, the next step was to have another state subsidiary, Selangor Industrial Corporation (SIC), purchase these debts from the other three companies.

A loan from CIMB Bank of RM 392 million was given to SIC to complete this purchase. In November 2009, the state exco and legislative assembly both approve a grant of RM392 million to MBI, who then use the funds to purchase the original consolidated debt from SIC. SIC then uses those funds to pay off their CIMB loan.

The end result is as simple as the transaction itself is complex - without any major or excessive transactional expenses, Talam now owes the same amount of money to just one state subsidiary, instead of the original three.

Restructuring and successful collection

It is important to note that at no point are funds transferred from taxpayer monies to Talam. Funds have instead only been transferred from one pocket of the state to another.

This differs wildly from federal bailouts of corporations like Indah Water Konsortium, MAS, or the Putra/Star LRT, where taxpayer money was injected directly into companies that had probably lost untold amounts via mismanagement, corruption and plundering.

The transfers in the Talam debt restructuring allowed for a structure in which there is a clear acknowledgement and accounting for the RM392 million owed by Talam, and a single company for them to pay it to.

The story does not end there.

Another extremely important milestone in this tale is that MBI has in fact already succeeded in recovering all RM392 million in debt owed by Talam.

For those who would like to keep score, this recovery came in two forms.

RM340.88 million was recovered via acquisition of land and assets: 1,322 acres of land in Bukit Beruntung worth RM150.28 million, 2,264 acres of land in Bestari Jaya worth RM105.3 million, 400 acres of land in Ulu Yam and 60% equity in Ulu Yam Golf & Country Resort worth RM22.2 million, 134 acres of land in Danau Putra worth RM52.1 million and five office units in Menara Pandan worth RM11.1 million.

The remaining RM51.12 million was collected in cash: RM12 million from sales of land in Puncak Jalil, RM5 million in cash assignments from EON, RM7.68 million in payments by Unisel for earthworks, RM9.04 million from the sale of 25.94 acres of land in Bukit Beruntung, and RM17.4 million from sales of 218 acres of land in Bestari Jaya.

Go ahead, count it - it's all there.

Facts trump hype - again

How can we summarise this? For more than a decade under BN, one corporation owed the state hundreds of millions of ringgits.

Within a year or two of taking over, Khalid managed to collect on these debts, instantly increasing the amount of money available to spend on welfare programmes throughout Selangor.

Scandal?

Yes, it’s a scandal that Talam was allowed to get the free lunch it did under BN, and it’s a scandal it took this long for to create the change in government that succeeded in cleaning up the mess.

It would be insulting to suggest that this article is titled specifically in the hopes that Chua Tee Yong (left) would take the time to carefully peruse the facts within. Nevertheless, perhaps he may find the exercise beneficial in his longer term efforts to maintain what little credibility he has left.

Said credibility is shrinking at about the same rate at which he is reducing the amount of money claimed to be ‘misused’ by Selangor - from RM1 billion, to RM260 million, to RM42 million. Before long, he may have to measure in sen instead.

Perhaps Chua fancies himself a Rafizi Ramli. What he fails to understand however, is that Rafizi’s exposes are not just all about ‘glamorous’ press conferences and big numbers. Behind every expose is a ton of hard work and solid research.

Behind Chua appears only to be blind ambition that extends far beyond ability, and a shameful mainstream media that think that hype can overturn facts.

[Source: Mkini]