ECM-Libra Avenue: PAC probe continues
Today, August 25, MoF officials are supposed to come back to the Parliamentary Public Audit Committee (PAC) with better explanation as to why the government-controlled Avenue Capital Resouces has fallen into the hands of a smaller outfit that took no cash to acquire it.
The cliff-hanger after the August 10 hearing was: Was there conflicts of interest in the transaction? Apparently, there are some latest developments in the last two weeks.
- PAC threatened with legal action
August 18, former premier’s aide Matthias Chang issued a lawyer's letter and threatened to cite PAC chief Shahrir Samad for contempt of court if the committee proceeds to meet tomorrow to continue its probe into the controversial merger of ECM Libra and Avenue Capital Resources. Shahrir had at the last PAC meeting said that the merger had met all statutory regulations.
Chang's letter said PAC's hearing could be subjudice to an on-going civil suit involving Chang and Kalimullah Masheerul Hassan.
Earlier, Kalimullah has implicated Chang for RM50 million in a defamation suit, while Chang counter-sued for RM100 million in damages. The cases are still pending.
- August 24, Shahrir told Malaysiakini that Shahrir said today’s meeting will take place as scheduled and he would not reply to Chang’s letter. However, he said the Finance Ministry, which has received a similar letter from Chang, will send Chang an official reply.
- On the other hand, Shahrir has offered Chang’s lawyer to attend the PAC meeting today. He said the committee could stop any discussion on matters which the lawyer deems as subjudice.
The Parkway-Pantai-ECM-Libra Avenue Nexus
Meanwhile, there is a twist to the controversial shareholding of Singapore-based Parkway Holdings in Malaysia-incorporated Pantai Holdings, in which ECM-Libra Avenue has a substantial stake. It's another case of controlling stake in corporate manoeuvres, and a foreign mainstream media took it upon itself to set the record straight through its Malaysia-based correspondent.
August 21, S. Jayasankaran wrote in Singapore Business Times that the Parkway Group's purchase of the controlling 30% interest in Pantai Holdings should be left alone as it is in danger of being scuttled by politics.
The headline reads: It's best to leave the Parkway-Pantai deal alone.
Quote:
One can hardly blame Parkway in this matter. Pantai is a listed company in a non-regulated sector which is why the deal went through on a willing-buyer-willing-seller basis without opposition or caveat from any government agency. So, the deal had nothing to do with government incompetence, omission or favouritism. At the heart of the matter is the political spat between Prime Minister Abdullah Ahmad Badawi and former premier Mahathir Mohamad. Parkway is caught in a political crossfire between the two camps with one accusing the premier of being soft on certain countries, of selling the family silver to foreigners. [...] Mr Abdullah is in an unenviable position because he's damned if he does and damned if he doesn't. If the contracts are simply cancelled, Malaysia gets a black eye in foreign investment circles.Unfortunately, this is hardly the right kind of signal to transmit for a country wanting to woo foreign portfolio investment. Malaysia has investment guarantee agreements with many countries including Singapore which basically reassures investors that they will not lose out if things are changed mid-stream.
And the Singapore Business Times ended the story with a typical Jalan Riong tone and manner:
If he instructs the concessions to be bought over by, say, Khazanah - which is probably the only party that can afford to buy it at a fair price - his critics will scream 'bailout'. Perhaps the best thing for the premier to do is to ignore it along the lines of an old Arab saying: the dogs may bark but the caravan moves on. And the premier can take a leaf out of Dr Mahathir's own book in this regard.
In 2001, Mokhzani Mahathir, his son who owned Pantai previously, sold the company to Chinese businessman Lim Tong Yong amid loud questions from the Opposition. The caravan moved on.
Comments
Trust Mathias trying to gag PAC. he is a real paty pooper. I beleive the MOF must answer some questions on why the deal went ahead.
On Parkway, willing buyer willing seller only if we can details on who financed Mr. Lim Tong Yong to purchase Mokhzani shares in the first place.
Posted by: sydput![[TypeKey Profile Page]](http://www.jeffooi.my/nav-commenters.gif)
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August 25, 2006 12:21 PM
PM Abdulah is in a dilemma over Singapore's Parkway Holdings Ltd 30 per cent stake in Pantai Holdings Bhd. which owns two government concession companies that come with shareholding restrictions.and both concessions are believed to be in breach of the requirement to have 51 per cent Malaysian and 30 per cent bumiputra shareholding at all times.
DESPITE the Difficulties, DEAL to STAY as in Arab saying: “the dogs may bark, the caravan eventually rolls on…” otherwise what is the message to foreign investors? Check out details at:
http://powerpresent.blogspot.com/2006/08/pm-abdullah-dilemma-over-singapores_23.html
Posted by: mwt![[TypeKey Profile Page]](http://www.jeffooi.my/nav-commenters.gif)
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August 25, 2006 01:16 PM