- In my previous post of the same topic, I wrote about holding the bull by the horn where I wrote about reviving NFC. I didn’t want to touch on the issue mismanagement and SJ the wife of NFC Chairman. She is “only the wife of the chairman” and “mother to the CEO and Executive Director”. Since RR continuous and trickling expose, I guess the power brokers in BN realized that PR probably has a lot more than what they had thought. For that a series of sequential action, press release and drama took place. MACC who was initially a reluctant observer suddenly swung into action. I quote Kit Siang (LKS) tweet “MACC major casualty of Shahrizat/ CattleGate scandal – living proof it is not independent professional until political masters signals probe” . Why do I sense that LKS is probably right?
- Over the last 48 hours, MACC announced the formation of a task force, the RMP made a press release that a “Dato” has been nabbed, Khir Toyo was found guilty and NFC office has been raided. Khir Toyo said that he has been made a scapegoat. I agree with him. Clearly he had to be sacrificed to save the pack. With unsettling Felda issues, it is obvious that NFC issue has to be resolved. Earlier this week, PM office had to release a denial that SJ had resigned and that happened before NFC swung into action. I guess since the fellow UMNO member’s advice to SJ has not been heeded, and then the power brokers have to make another sacrifice. Obviously it wont is a cattle. It is better to lose one lady and one man than to lose the entire country. Could it be that the power brokers is trying to protect the ex Minister of Agriculture?
- The walls are closing in fast on SJ. In this case I believe the investigators would not be able to link the “wife to the business of the husband” but to save BN/UMNO they have to sacrifice SJ. The way to do is threatening to hang the husband and children high and dry. No mother will just look and do nothing. It’s a matter of time and I predict, SJ will step down as Minister and will maintain as Wanita Chief until GE 13. She might not even be field as a candidate. A bit unfortunate though but that is the life in politics. The question is who will pull out the knife first? In this case, someone already pulled the knife and it is not SJ.
Nice observation dr. raffick…merry x’mas and a happy new year to you
Selamat Tahun baru… lama tak comment
loose74,
ellesse already said she is ignorant on NFC. so, she will stay away from this issue. afterall, it is indefensible in whichever way you see it.
“afterall, it is indefensible in whichever way you see it.”
mmc… It is defensible. Please read this case of Pesaka Astana Sdn Bhd at this link below:
biz.thestar.com.my/news/story.asp?file=/2010/7/8/business/6625242&sec=business
Judge: Adviser, arranger of private debt securities just as liable as issuer
By FiNTAN NG
fintan@thestar.com.my
Court decision will impact future private debt security issues
PETALING JAYA: In a judgement that will likely send ripples in the private debt securities (PDS) market, the High Court ruled that the adviser and arranger of such issues were just as liable as the issuer for losses suffered by bondholders.
The Singapore Business Times in a recent report said the judgement by Justice Mary Lim, based on an RM149mil lawsuit filed by 10 local financial institutions against bond issuer Pesaka Astana (M) Sdn Bhd, would “radically raise the bar on standards governing private debt issues in Malaysia.”
Although Pesaka Astana and related companies, which were associated with Rafie Sain, had entered into a consent judgement in favour of the financial institutions back in 2008, the lawsuit was unprecedented because it also named the deal’s independent advisers as defendants.
Others named in the suit included Mayban Trustees Bhd and KAF Discounts Bhd, the arranger of the deal, both of whom have opted to go to trial.
Malaysian Rating Corp Bhd chief executive officer Razlan Mohamed said the case underscored the importance of corporate governance.
“I think this case goes to show that the parties advising the bond issues, including the rating agencies, have to emphasise the importance of governance,” he told StarBiz.
According to the newspaper, the plaintiffs’ core argument was that they had gone into the deal on the basis of an information memorandum by KAF Discounts that was “false and misleading” while Mayban failed to exercise the necessary care and due diligence expected of a trustee.
Lim said in a verbal judgement that the plaintiffs had depended on the information memorandum to make informed investment decisions.
She said the information was in the memorandum and “therefore it is KAF’s liability in the event of any misstatement therein.”
In a statement to StarBiz, Mayban said it was reviewing the decision made by the High Court on June 30 in awarding judgement against it and another defendant in a suit filed in 2005 by holders of the bonds issued by Pesaka Astana, and “is actively considering the appropriate course of action.”
Mayban said the judgment delivered by the High Court “has no impact to the business operations of the company and that it has in place a strong team of professionals with priority chiefly on protecting the interest of all stakeholders and upholding best standards of service and management practice.”
Meanwhile, Aberdeen Asset Management Sdn Bhd managing director Gerald Ambrose said it looked like a clear case of a misallignment of the advisers’ and investors’ objectives.
“The judgement is a landmark because the traditional rule of ‘caveat emptor’ has been overruled as the adviser and arranger of the issue were also held culpable. The judge has ruled that the original issue documents were misleading and that the trustees were irresponsible,” he noted.
The local financial institutions had filed the suit in late 2005 against Pesaka Astana, a company that supplied fire-fighting and military vehicles to the Defence Ministry.
The company had defaulted in September 2005 on RM140mil worth of Islamic debt securities issued in April 2004.
According to the newspaper, despite the consent judgement, nothing had been paid and the decision by the court took as long as it did due to claims and counterclaims by various parties.
The 10 plaintiffs included Malaysia Discounts Bhd, CIMB Bank Bhd, Abrar Discounts Bhd, Avenue Invest Bhd, Bank Muamalat Malaysia Bhd, Commerce Life Assurance Bhd, Malaysian Assurance Alliance Bhd, Southern Investment Bank Bhd, Universal Trustee (M) Bhd and BHLB Trustee Bhd.
The Singapore Business Times said the suit underscored a newly-found ruthlessness in Malaysian financial litigation as at least two of the litigants on both sides of the suit were government-linked companies.
“Malayan Banking Bhd and CIMB are both majority state-owned and might have resorted to quiet, and state-brokered, mediation in less competitive times,” the newspaper said.
The RM 250 Million that the NFC fiasco involved is actually a relatively small amount of money compared to many of the other abuses of power that link back to BN/UMNO.
But it is one that has been exposed in the first instance by the Auditor General, so the authorities can’t use the “No such problem” defence.
Agree that is extremely small but this is something that orang kampung can understand! UMNO survived last GE onslaught because of orang kampung. With NFC they can relate the issue better. That is why PR is taking this issue all over the kampung.
I am still searching for that youtube where old pakcik left his cow to die in Tenang to support UMNO. How sad!
Ellese,
Please don’ spin this to their advantage! Gotcha!
Raffick,
Just come up with a good documentary……enjoy!
Raffick,
Just like Ramly Thamby Chik…….aiyaaa…..
What I find funny is the newspaper’s report: “A 45-year old businessman, who is a Dato’ ……”
What is that supposed to mean? A Dato’ is a different sub-species of human being, or are they above the law or are they not supposed to commit any wrong-doing? This kind of wording is always there whenever one of these strange creatures make the news for the wrong reasons.
MACC independence is a half half. There are ppl there who genuinely wanna clean the country. These ppl r pushing for MACC to go after NFC. They got their way. It will be too damaging if words go out tat BN wants to stonewall an investigation.
I think the husband n kids will be protected from legal troubles but condos prolly has to be forfeited like toyols mansion
they will be protected as long as shahrizat resign.
They will be OK. BN cannot risk a faction war now.
rare? medium rare? medium? guess it just went from rare to medium… well done would most likely be the next post Dr?
tak faham!