Saturday, May 23, 2015


"Jho Low denies 1MBD link, frustrated London hotel buy" Malaymail Online
“Mr Low has never held any position in 1MDB or in the government of Malaysia. Mr Low was appointed as one of the many advisors invited by the stakeholders of Terengganu Investment Authority (TIA) to provide advice from Jan 2009 to mid-May 2009 given his market-based knowledge. 
“Mr Low has not been involved in TIA since mid-May 2009,” read the press statement carried by several news portals.
Yeah right. I did not read the whole transcript below and only append parts relevant to this post

Case No: 8690 of 2011  Date: 10 August 2012


50.  The Malaysian based investor was Jho Low, a businessman with some backing from a Malaysian sovereign wealth fund. Through an entity called The Wynton Groupoffers were made to the company and its shareholders in January and February 2011. 
135. Before dealing with the major events of January and February 2011, this is a convenient point at which to mention offers which were made and revised during that period by an entity called The Wynton Group (Wynton). As mentioned earlier,it appears that Wynton was controlled by a Malaysian businessman, Jho Low, and his brother. In mid-December 2010, advisers to Wynton made an indicative offer for the shares of the company. Mr McKillen met Jho Low and his advisers at Claridge’s on 29 December 2010. A revised letter of intent was sent to the shareholders on 3 January 2011, proposing an acquisition of all the shares on the basis of an enterprise value of £1 billion, subject to due diligence and agreement of documentation including warranties and indemnities. An accompanying letter from a Malaysian Bank indicated that it was intended to seek to raise up to £950 million of debt and/or mezzanine finance and £50-£100 million of equity. A further letter of intent dated10 January 2011 was sent to the shareholders.  
137.  Mr McKillen said in evidence:“The Malaysians offered an unrealistic finance package with £900 million debt and no one appreciated that it was realistic – nobody. I met the Malaysians and I did not believe they had the credibility to deliver £1 billion.”  
 138. In an email on 13 January 2011, Mr McKillen repeated his view. He wrote that “with regard to the Malaysian offer, I feel that to labour the company with £900 million of debt is in itself unrealistic”. The provision on 15 January 2011 of a letter from 1 Malaysian Berhad, an investment vehicle wholly owned by the Malaysian government, confirming its support for the offer, did not allay the concerns of the majority of the shareholders. A further letter from Wynton dated 24 January 2011 stated that the financing for the offer had “in principle” been fully underwritten by Malaysian government-backed investment funds. 
142.  In a further email late on 7 January 2011, Mr Murphy set out the reasons for accepting an offer of £900 million from the Qataris. These included “we don’t think Q will chip the price” and “we know Q can write the cheque unlike so many potential purchasers who are all talk but lack financial substance in the end.”Another reason, Mr Murphy mentioned, was that “we think the Viceroy/Wynton £1b deal is pure fantasy due to their plan to raise a £900m bond with a little over £100m equity”

“we think the Viceroy/Wynton £1b deal is pure fantasy due to their plan to raise a £900m bond with a little over £100m equity”.

Sounds familiar? 1MDB RM100 million capital, borrowings ballooning to RM42 billion. Never mind. I digressed. 

Back to the gist of the matter.

Possible scenario:
  1. Someone impersonated Low Taek Jho @ Jho Low
  2. The 1MDB support letter is a forgery. 
  3. It was the real Low Taek Jho @ Jho Low referred to and the 1MDB support letter is a forgery which means Jho Low is a liar and a crook.
  4. It was the real Low Taek Jho @ Jho Low referred to and the 1MDB support letter is genuine which also means Jho Low is a liar and someone at 1MDB is a culprit in collusion.
Low Taek Jho has no involvement with 1Malaysia Development Berhad (1MDB), said Datuk Seri Najib Razak.

The Prime Minister said, all decisions and transactions are made by the company’s management and board of directors.

“Low Taek Jho has never worked in 1MDB and all decisions and transactions are made by the company’s management and board of directors,” Najib said in a written reply to Wangsa Maju MP, Datuk Dr Tan Kee Kwong.

Dear PM Datuk Seri Najib Razak,

Get to the bottom of things. You have been fed lies by someone or more than someone in "the company’s management and board of directors"Get the culprits and put them in the slammer, when and where possible.

Its the right thing to do. 

Related link to Patrick McKillen "Case gave insight into Barclay brothers’ work" Financial Times.


Prohibition against improper use of company's property, position, corporate opportunity or competing with the company

(2) A director or officer of a company shall not, without the consent or ratification of a general meeting

(a) use the property of the company;

(b) use any information acquired by virtue of his position as a director or officer of the company;

(c) use his position as such director or officer;

(d) use any opportunity of the company which he became aware of, in the performance of his functions as the director or officer of the company; or

(e) engage in business which is in competition with the company,
to gain directly or indirectly, a benefit for himself or any other person, or cause detriment to the company.

[ (2) Subs. Act A1299:s.7]

(3) An officer or agent or officer of the Stock Exchange who commits a breach of this section shall be—

(a) liable to the company for any profit made by him or for any damage suffered by the company as a result of the breach; and

(b) guilty of an offence against this Act.

Penalty: Imprisonment for five years or thirty thousand ringgit.

(4) (Deleted by Act A616).

(5) This section is in addition to and not in derogation of any other written law or rule of law relating to the duty or liability of directors or officers of a company.

(6) In this section—

"agent" includes a banker, advocate and solicitor, auditor, accountant or stockbroker of the corporation and any person who is or at any time in the preceding six months has been knowingly connected with the corporation and has information which

(a) he holds by virtue of being connected with the corporation;

(b) it would be reasonable to expect a person so connected and in the position by virtue he is so connected not to disclose except for the proper performance of the functions attaching to that position; and

(c) he knows is unpublished price sensitive information in relation to the securities of the corporation;

business judgment" means any decision on whether or not to take action in respect of a matter relevant to the business of the company;
[ Ins. Act A1299:s.7]

"director" includes the chief executive officer, the chief operating officer, the chief financial controller or any other person primarily responsible for the operations or financial management of a company, by whatever name called;
[Ins. Act A1299:s.7]

"officer" includes a person who at any time has been an officer of the company.


Wednesday, March 19, 2014

MH 370:Western Media and Assholes

With the greatest of respect to relatives of the passengers and crew of the fateful flight MH 370 no offense is intended, expressedly to them, for the use of explicit words for this post.

To them have always been my prayers and hopes.

Someone commented on radio, in relation to the missing jet liner, Malaysians always come together in times of crisis that affects the nation.

This is absolutely true.

The Asian financial crisis, man made without a doubt, Malaysians rallied with and together under the able stewardship of then Prime Minister Tun Mahathir weathered that stormy times.

Another person at the center of that storm was Anwar Ibrahim.

Which brings me to that first asshole, the same Anwar Ibrahim.

CNN reports and quotes the asshole, what else? Condemning the Government and its agencies in this widely acknowledged as unprecedented and difficult moment in time.

Only Anwar Ibrahim and the Western media have seen fit to be critical of our Government in handling the situation.

But what else is new? The asshole never change.

From the day I was made aware of missing flight MH 370, as one who has followed the events unfolding and listened to numerous statements made by all relevant agencies involved in the SAR and now search for the missing aircraft, I have never been confused or misunderstood all that is being said and done.

It is only the media, especially the Western media, who have twisted words and actions of those charged in handling this situation.

Again, we are the natives living in trees, the white man is always the master, of any situation.

Lest we forget, the white man has been the cause of more dire situations in the world, in recent time - wars and distabilisation of nations.

And yes, the first asshole like the white man of the west, jumps at every opportunity to deride our Govt, for cheap political mileage.

As, acting transport minister, Hishamuddin Hussein, rightly said, Malaysia too have sons and daughters on flight MH 370.

Even if there were no Malaysians on board our Govt would be doing the same - doing its very best in any crisis.

Thats why we are proud to be Malaysians.

Friday, March 7, 2014

Anwar Ibrahim Guilty of Sodomy

Opposition leader Anwar Ibrahim is sentenced to 5 years imprisonment.

Reuters reports,

"A Malaysian court convicted opposition leader Anwar Ibrahim of sodomy and sentenced him to five years in prison on Friday"

Ending his career as wannabe Mentri Besar kot.

Never mind, this vid is dedicated to Anwar's hardcore, and I mean hardcore, supporters.

The Reuter's report also had HRW deputy head, Phil Robertson, saying,

"It's truly a dark day for the Malaysia judiciary which has shown itself incapable of standing up straight when national political issues are in play in cases before them"

Yep, when the shoe fits.

This is what Phil Robertson also had to say,

Sunday, June 30, 2013

Post Election Talk - A Tom and Gerry Story

Free Malaysia Today's article, "PR could have won more in Sabah" has the following,
"Jannie Lasimbang, the Jaringan Orang Asli secretariat director, said the 13th general election outcome for the Tawau, Beaufort, Batu Sapi and Kota Marudu parliamentary constituencies would have been different, if the dubious voters were vetted."
Jannie Lasimbang was speaking at a Bar Council’s forum themed “Electoral Offences- Righting The Wrongs”.

We then have the "venerable" Karpal Singh, also at FMT, "Jusuf must apologise to Anwar" reported to have said,
“It can hurt Pakatan Rakyat,”
"rebuked Jusuf Kalla for issuing statements with racial innuendoes by publicly claiming that the 505 rallies only benefited enemies of Islam and Malays"
That just about says it all. Its not about dignity or ethics.

Its about the DAP and who would be the enemies of Islam and Malays.

Other than the Malay/Muslim based PAS and PKR, the subject of which Bapak Jusuf Kalla is critical of their de facto leader Anwar Ibrahim in an interview "Wawancara Penuh Jusuf Kalla", the DAP is the only predominanly and chauvinistic Chinese non-Muslim party.

Blogger Hantu Laut nails Karpal on the head for "Rebuking Jusuf Kalla: Birds Of A Feather Flock Together" and also is of askance "BN Will Lose The Next Elections?"

Excerpts from the Bapak Jusuf interview and Hantu Laut from his latter article, which could not have been said better, relevant to my posting -
"Kemudian Anwar bangkitkan pengundi Bangladesh. Saya bilang sama Anwar, tak kan orang Malaysia tidak boleh membezakan percakapan, bahasa, budaya dan gaya orang Bangladesh. Tidak mungkin berpuluh ribu orang Bangladesh boleh dibawa masuk ke Malaysia dan menjadi pengundi. Ini tidak masuk akal" - Jusuf Kalla

"Gerrymandering is not an election offence. The electoral boundaries need to be redrawn every eight years and Malaysia's population in rural areas are sparsely distributed making equitable distribution of voters per constituency the same as urban areas impractical and a logistical nightmare." - Hantu Laut
Coming back to the Bar Council forum speaker Jannie Lasimbang together with Bapak Jusuf's remarks, I will refer this instances as phantoms or Tom.

With regards to Hantu Laut's comments on gerrymandering, I will call it Gerry.

Hence a Tom and Gerry story.

Up next, for Tom -
"The recorded data once again indicate a higher percentage of unidentifiable voters at urban areas and mostly around Kuala Lumpur" - National Voter Registration Audit Malaysia 2011

and Gerry - Gerrymandering in the US and UK.

Tuesday, June 18, 2013

AirAsia Bhd YE 2012 Bumper Dividend Hype

"Mike, I don't understand. Look, I don't have your brain for...big deals!" - Frankie Pentangeli when confronted by Don Michael Corleone in Godfather II
Not everyone has a brain for big deals and when writing in the matter vis-a-vis Airasia X and its IPO, I just could not believe it when I read this press release by Airasia Bhd.

You could say my jaw dropped.

Walking to the KTM komuter station on my way home yesterday, I was so engrossed just thinking to myself how in the world that could be in view of many skeptical opinions of the budget airline's "success" and by extension Tony Fernandes, an opinion which I also hold.

18 sen dividend, wow!

Perusing Airasia Bhd's 2012 annual report, I was resigned to the fact that it was indeed true.

Paying out Rm500 million in a single dividend is certainly something Airasia Bhd can shout about.

That is until I took a closer look at its income statement and lo and behold there is this little bit of info, see the screenshot below.

Minus Rm 1,160,370,000 from the net profit of Rm 1,831,338,000, and even though it is 20% higher than YE 2011 but taking into account forex gains again, then you get a clearer picture.

Its nothing to shout about but clever.

Clever and Tony Fernandes & Co, by virtue of their indirect holdings, pocket a cool Rm 115,200,00 from a bumped dividend.

Yes, I wish I had the brains for...big deals.

Airasia Berhad annual report 2012 source Bursa Malaysia.

In a related reading, Datuk Rocky wrote "Tony wants Khazanah to sack Malaysia Airports boss" and said, "I thought TMI made a mistake, that it was Tony Fernandez and not Tony Pua who made this call to the Government not to extend Bashir's contract"

Me, I am not surprised,
"I'm a huge admirer of Tony Fernandes" - Tony Pua

Monday, June 17, 2013

Airasia X Berhad IPO 2013 - FAQ

No, this is not the FAQ page for Airasia X Berhad's initial public offering.

Airasia X should have one, for the investing average Joe, to explain the accounting jargon.

I was taken aback by its public price offer of Rm1.54 and as an average Joe I see it as a whopping 1000% over it's par value of 15 sen.

The Airasia X Berhad IPO prospectus can be found here.

In the IPO prospectus and Airasia's website here, there is a recurring source citing of - Independent Market Research Report by Strategic Airport Planning Ltd dated 22 May 2013 (“S-A-P Report”)

If I were investing rather than betting for quick gains, I would not be so confident.

I may be wrong but the report I was searching for could not be found.

What could be found however, at an SAP Group website, where listed in its recent projects was on an assessment done for Airasia Berhad way back in 2004.

As I said I may be wrong but if this was Strategic Airport Planning Ltd that is being cited, would you place confidence in a company that does not update its own website?

The AAX Berhad IPO FAQ could include this "Independent Market Research Report dated 22 May 2013"

Added 1.15pm

What is interesting from the prospectus, in the Consolidated Income Statements P/L which determined the EPS for 2012, its profit was due to foreign exchange gains and was massive in 2010.

In my opinion, forex gains does not give Airasia X Bhd a true picture of profitability or actual EPS.

If we take away the forex gains of Rm43,599,000, because it does not factor as profit derived by company perfomance and is intangible, then the company would have made a loss of Rm9,749,000 instead of profit and its EPS would be a negative 0.0365 sen.

The same would also apply for the year 2010.