Source: Malaysia People Voice
Since the Selangor-Talam’s RM676 million bail out was exposed, there is complete silence in Selangor government to the alleged “sweetheart” bail out involving the public interests. While Selangor government appears to have no answer to its White Paper and questionable valuation, a man came to their rescue and he seems to have full knowledge of the deal. Yes, everyone knows the man is Tony Pua of DAP, plays no role in Selangor government but an incredible role in the Dark Knight rises.
On 17 July, in defense to Chua Tee Yong’s shocking exposure on the bank interests of RM86 million incurred by Permodalan Negeri Selangor Berhad’s (PNSB) to rescue Talam, Tony Pua had confidently argued that PNSB is capable of undertaking RM230 million in loans and incur the astronomical interests for the land acquired from Menteri Besar Incorporated (MPI) because its financial position had improved after 2008.
“PNSB had recorded a profit of RM8 million in 2009, RM23.4 million in 2010 and RM28.4 million in 2011,” said Tony Pua.
This explanation by Tony Pua may convince some people on the street but for the people with financial knowledge, this is a big joke to them. Tony has obviously made the mistake of presumption.
The first fallacy of presumption by Tony Pua is that a company or in this context PNSB could obtain a sizeable loan of RM230m simply because it is recording profit. This remark has become the joke of the year to the financial people. Tony must learn that the primary factor the financial institutions consider in giving out loans is the strength of cash flows of the company and not the profitability. The basic accounting knowledge tells us that a company with profitability may not have the ability to repay the bank borrowing and interests as profitability is never equal to the cash flows.
Now, let’s take a closer look at the audited cash flows generated from operating activities by PNSB for years 2007-2010:-
|
2007 |
2008 |
2009 |
2010 |
|
|
RM’million |
RM’million |
RM’million |
RM’million |
|
| Cash flow generated/(used) from operating activities |
9.6 |
15.5 |
(0.3) |
423.5## / (8.2) |
## Based on the audited accounts 2010, the seemingly strong cash flows generated in year 2010 is contributed by RM431.7m advance from State Secretary, Selangor (incorporated) in the same year. Removing this exceptional item, there was actually negative cash flow of RM8.2m in operating activities in year 2010
By referring to above, it is clear that contrary to what Tony Pua has argued, PNSB could not afford to borrow RM230m loan from any financial institution on a clean basis in view that there is no consistent cash flow generated from its operations to service interest as well as for future repayment of principal.
What Tony Pua has failed to do in his defense of the RM1 bil fiasco is to disclose to public what and how much assets exactly has been pledged by the Selangor Government to the financial institution to obtain the loan of RM230m.
Last week, Tony Pua has cited PNSB’s balance sheets obtained from the Companies Commission of Malaysia (CCM) and showed that the state subsidiary had total assets of RM761 million and RM823.8 million in 2010 and 2011 respectively, compared to those of 2008 and 2009, which stood at RM111 million and RM115 million, when he is comparing total assets in 2010-2011 to total current assets for year 2008-2009! (please note that in elementary accounting, total assets consist of total current asset and total non-current asset).
After being pointed out by MCA Chua, Pua admitted that he did read the wrong line of PNSB’s balance sheet to make his claim. But he asserted that that does not negate his argument that PNSB was in better shape under the Pakatan Rakyat government’s rule.
However, What Pua failed to realize is that he has committed the sin of reading and plucking figures without analyzing them. To put it plainly, he never used his brain when referring to figures to support his claim. Anyone with common sense would have pondered on the alleged significant increase in total asset, wrongly computed as RM700m or 800% increase in a span of 3 years from 2008 to 2011, and would have noticed the error and made correction before making any conclusion.
It is a shame when he still refuses to admit he lacks the “thinking” skill and instead shamelessly and arrogantly challenging Chua to a debate!
Instead of apologizing to the people on his mistake of misleading public, he made another joke on 20 July 2012 to the people with even little financial knowledge.
“PNSB had a profit of RM28.4 million in 2011. The land transaction was done in 2010, which means the land transactions did not affect the financials of PNSB but added to its profitability” said Tony Pua.
This is not only another absurd statement made by Tony Pua when referring to PNSB’s profitability but, more than that, an insult to the intelligence of the people with even little financial knowledge.
One wonders whether this is the joke of the year 2012. For his information, any purchase of land cannot increase a company’s profitability immediately as it is a balance sheet item. Profitability of a company is neither measured by the value, size of land nor the number of land purchased. The profit of company will increase only if the land can be successfully developed where the revenue derived from the development exceeds the total cost of development including the cost of purchase. However, in very rare circumstance, if the purchase value turns out to be over and above market value and is therefore subject to impairment, then it will reduce profitability immediately even before the land is developed.
It is surprising to note that Tony Pua has also claimed credit that after Pakatan took over, PNSB’s cash assets were higher when there was actually a dubious advance of cash amounting to RM431.7m from State Secretary, Selangor (incorporated) in year 2010. Was it for rescue of PNSB’s cash flows?
What Tony Pua ought to do during the forum next week is to explain on the purpose of the advance, how was it funded by State Secretary, Selangor and how PNSB plans to repay. If there is still no proper explanation this time, he will be more like the Joker who thinks he can fool the people on the street rather than playing the role of the batman in the Dark Knight rises.
What they did was shifting the loss making companies / transactions out of the portfolio and then declare they had made profits with the holding companies.
Another method they did is to revalue the assets (actual market value or “otherwise”), inject it to another holding company who use these “assets” as collateral to get an increase in financing loans.
Profit and Loss must be read together with the balance sheets. What’s the purpose of high profits when you have pledged your under pants to the banks? More so, P & L is for the current year only. What about next year and years later? Or is it, we will find more creative accounting methods later.
Tony always said they did all this to recover the debt from Talam but is it worth to incur so much cost to get the lands. I am confused.
Tony, explaining financial data to public…
From a person that having his company busted out..
Hmmm..
All PN17 companies should seek help from the state government to take over all the borrowings and low value assets.
Only after they take huge loans and sucked the company dry…
Actually this is the second time Chan Ah Chye got bailed out by the Selangor Government. In both cases, he is the majority shareholder of Brisdale and Talam.
Read these and form your own opinions.
Dated: 18/8/2010
SHAH ALAM: Klang MP Charles Santiago, together with two house buyers, today submitted a memorandum to the Selangor state government, urging it to investigate a possible case of breach of trust involving Kumpulan Hartanah Selangor Bhd (KHSB).
Brisdale Holdings, the-then subsidiary of KHSB, had promised to compensate housebuyers on its township project in Bandar Armada Putra for its delays but it failed to do so after being wound up in 2008.
Santiago said KHSB should be held responsible as it was the parent company of Brisdale when the project was first mooted.
“I believe there is an element of corruption in the entire process. For example, Brisdale was bought by GMB for RM50,000 but Brisdale’s OUG club-house itself is worth RM7 million! How can you buy the parent company for such a cheap price?” asked the DAP leader.
http://archive.freemalaysiatoday.com/fmt-english/politics/pakatan-rakyat/9357-housebuyers-urge-sgor-govt-to-probe-developer-for-cbt
http://thestar.com.my/metro/story.asp?file=/2008/5/27/central/21366948&sec=central
BRISDALE SHAREHOLDING
Number of shares of RM1 each
Balance at Balance at 1.1.1999 Bought Sold 31.12.1999
Ordinary Shares in the Company
Datin Paduka Juma’ah Binti Moktar 30,000 – - 30,000
Dato’ Idris Bin Denan 10,000 – - 10,000
Dato’ Sulaiman Bin Samat 30,000 4,000 – 34,000
Tan Sri Dato’(Dr) Ir Chan Ah Chye @ Chan Chong Yoon – 5,723,000 – 5,723,000
Deemed Interest
Tan Sri Dato’(Dr) Ir Chan Ah Chye @ Chan Chong Yoon 2,397,000 – - 2,397,000
Ordinary Shares in a subsidiary
company,
Brisdale Resources Sdn. Bhd.
Deemed Interest
Tan Sri Dato’(Dr) Ir Chan Ah Chye @ Chan Chong Yoon 255,000 – - 255,000
The other directors did not hold shares or have any other interest in the shares of the
Company or its related companies during the financial year
TALAM SHAREHOLDING
DIRECTORS’ INTERESTS
According to the register of directors’ shareholdings kept by the Company under Section 134 of the Companies Act, 1965 in Malaysia, the interests of those directors, who held office at the end of the financial year, in shares in the Company and its related corporation during the financial year ended 31 January 2012 are as follows:-
At At 1.2.2011 Acquired Disposed 31.1.2012The Company
Direct interests
Tan Sri Dato’ (Dr.) Ir. Chan Ah Chye @ Chan Chong Yoon 40,730,592 – – 40,730,592
Chua Kim Lan 90,039 – – 90,039
Loy Boon Chen 462,900 – – 462,900
Indirect interests
Tan Sri Dato’ (Dr.) Ir. Chan Ah Chye @ Chan Chong Yoon 792,720,645 629,152,320 169,536,772 1,252,336,193 # Chua Kim Lan 28,125 – – 28,125 ^
Number of ordinary shares of RM0.20 each
# Deemed interested through his spouse, Puan Sri Datin Thong Nyok Choo, his daughter, Chan Siu Wei and by virtue of his interest in Kumpulan Europlus Berhad, Pengurusan Projek Bersistem Sdn. Bhd., Sze Choon Holdings Sdn. Bhd. and Prosperous Inn Sdn. Bhd. pursuant to Section 134(12)(c) and Section 6A of the Companies Act, 1965 in Malaysia.
^ Deemed interested through her spouse, Chin Chee Meng pursuant to Section 134(12)(c) of the Companies Act, 1965 in Malaysia.
Who is the MB of Selangor? Khalid or Tony Pua ??? What the f..k is this Tony talking and bullshitting on behalf of Khalid and Talam? Is he trying to prove to Anuwar that he can talk and therefore a must have MP for the coming GE? The more he talked, the more twisted bullshits came out. Typical of Pakatan shits.
Let me tell you tree-swinging monkeys something before you carry on jumping up and down in “righteous indignation”
There is not enough information either side has provided, if anything, it has only been cock and bull, smoke and mirrors that has been going on.
Porn Prince Chua’s figures are conjured from thin air and do not add to anything. Pua’s figures and “explanation” do not either.
What those of you (before you get too wet with excitement) interested in the truth should do is to press for all the information you need to make informed judgement and charges.
There seem to be no willingness to do so, maybe cursing and bitching is more fun and about all you can do.
Until you have better information – and you need really to press for that by open demands if not challenges in the courts, you can only grope in the dark and carry on cursing and bitching which only demonstrates laziness and bitchiness!
As it goes, Pua and others do not give the rat’s arse to what you are screaming about.
What you need to do is more than bitching and cursing – poke your demands for the truth right in the eyeballs of these characters.
Strike where it matters, punch hard – not froth at the mouth incessantly! – just how often do you need to scream you are ineffectual?!
Every other day, you have a rant about Pua, LGE, Betty, etc., the last one was about Boon Poh whom you invited to Phee on you! – you never did get nowhere with him either!
Surely, you cannot be so toothless, can you?!
Surely, you cannot be entirely without goolies, can you – effectively some kind of “eunuchs” your scUMNO/BN supporter monkeys like to label others?!
So, stop swinging off your trees, and swing into real action, my dear monkeys!
Throw some real good punches, knock a few teeth out from those faces grinning at you, don’t be so lazy just cursing till it is time to queue up for the “72 virgins” – you would be too lazy to do that too!
.
Why the need to appoint 5 independent and renown auditor firms? No need to spend so much. Just get an ordinary one because they will not find any wrong doing. All transaction is properly done with documentation.
Just appointed an independent body to investigate and you will find lots of skeleton. This is a few point I can share after gathering some Market talk :-
1. Maybe when they bought the land in Lembah Beringin it is just RM30-40 thousand per acre. The buyer failed to pay the Balance of Purchase Price. Instead of terminating the S&P and probably they just need to pay back about 10% as Specific Performance compensation or as liquidated damages. The seller/vendor now got to buy back the land he sold at RM30-40K/acre at RM15/sf and that’s a whopping RM653,400.00/acre. Audit will find all the necessary documentation to substantiate the transaction. But to a lawyer there must be some breach of terms and condition.
2. No one will buy back his own asset at 15 times higher then the price he sold but the purchaser failed to fully pay him. And no one will pay higher premium to acquire an asset from a distress company.
3. Lord Jim even the UMNO monkeys when they stole the banana they still leave the skin to everyone. But in this case they left none. Tun M spent so much but we get KLCC, KLIA; F1, Putrajaya, Nusajaya, etc. But here we all pay our Ralyat money but get nothing.
May I add in
4. Why the state need to suume the RM676 million bank loan liabilities in order to recover RM392 million of bad debts. Now the state GLC have to pay the interest burden. As an Ex corporate figure Tan Sri Khalid should be able to think properly before endorsing the deal. Why he didn’t just take any land that value at RM392 million nett without the bank loan. Example just value the land at Bandar Puncak Jalil and take back land equivalent to RM392 million in value. A clean cut deal.
But now the deal sound so fishy and stink.
5. Someone that day jokingly told us that a Tan Sri who is a strong Buddhism follower fainted during a Europe trip and when he awake a delegation shouted that he is re-born as a new Christian. Jesus gave him a second lease of life. As for Trinity means The God; Father and the Sons so one should know who it belong to now. The Father and The Son and who is a Christian too. Guest who?
“The Father and The Son and who is a Christian too. Guest who?”
.
Who?!
Every other monkey in Malaysial walks around calling himself “Christian”, “born-again” or “didn’t die properly”, so why not just name the two?!
As simple as one in Penang; one in Perak and one in Malacca.
Dr Lee,
This is the standard retarded reply expected from a brain dead monkey we have been talking about.
Lay out all the facts and figures of the subject issue as Jasone and you did, but all this DAP monkey could respond is asking a question “who the Father, the Son are?”
Can never take this hypocrite Joker ahbeng’s reply seriously!
Edward’s the Backward!
Shows you I want to get all the details understood and do not leave anything to guessing.
The whole picture so to speak.
In other words, I am level-headed and do not react like those scUMNO/BN supporter monkeys jumping into a rage each time they managed to pick up one or two words to get excited over!
Explains why I can manage such great posts that really rub up the monkeys the right way.
“… even the UMNO monkeys when they stole the banana they still leave the skin to everyone.”
.
I consider that insulting, not a favour -
might as well do that in style,
“steal food and remember to wipe mouth”!
All Herr Mahahahitler’s projects were/are over-priced (not necessary) and not transparent. There were massive corruption and no accountability.
Khalid is being utterly stupid about the 5 auditors.
Worse still, he can’t defend himself and Pua has to do it ineffectually.
Worse still, Porn Prince Chua has not produced a good case for Watergate, he has effectively shafted himself with his cowboy “accounting” qualification.
What we need is those in scUMNO/BN government to properly put up a case by demanding all the information and take those who are incompetent etc to task – but the monkeys in scUMNO/BN are not doing that.
If there really is such a case as being tossed about, it is the best way to cut PR to size, the public demands to know – but why isn’t any scUMNO/BN monkey in a rush to stick the keris in?!
Opposition is all but tong kosong
Well if just tong kosong only tak apa
But they have taken/wasted rakyat’s money and given to cronies
Enuff
Show them the door
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