SCwatch


UNCOVERING ‘SKELETAL CLOSET’ FEARS INCREASE WITHIN THE UMNO RANKS : IS THAT WHY MAHATHIR IS SUGGESTING RE-THINK ABOUT FREEDOM ON INTERNET?

Mahathir was recently quoted that the Malaysian government should re-think about the freedom on the internet. Click HERE

And this is coming from the person who had guaranteed absolute freedom when he launched Malaysia’s Information, Communication and Technology frame-work …that was meant to attract investors to Malaysia.

Little did he realize the impact that ICT had and still has on the country…..and the world over!

An increasing number of Malaysians are obtaining access to information previously stifled so effectively by the UMNO led government.

With the help of the internet, Malaysians the world over get effectively un-censored news and analysis……for them to come to their own conclusion of things.

And it is in that context that we just could not avoid noticing the Malaysian Anti-Corruption Commission’s  announcement that Women Minister, Shahrizat Jalil has been absolved of any wrong-doing in relation to the National Feedlot Corporation fiasco that cost the taxpayers’ at least RM250m.

By the way, her husband had earlier on been charged for the same fiasco.

Even if we are to look at the provisions of the law, both Shahrizat and her husband are deemed connected persons.

So are they now telling us that the government awarded the NFC project to the Shahrizat family out of the ‘goodness’ of the government’s heart……if they had one?

Even if one is to claim that it was due to her husband’s ‘ability’……..one just has to look at his track record when he helmed the Technology Park…….and after that, the Malaysian Heart Institute, both of which had their fair share of ‘controversies’ during his time.

Maybe that’s precisely why the government gave the NFC project to him? Click HERE

It was equally noticeable that the MACC has re-opened their file on Azmin Ali, the Deputy President of Parti Keadilan Rakyat, the Anwar Ibrahim led party.

Say what you like, the perception is that the ‘guns’ are being honed at Azmin Ali….including his alleged sexual tryst…..aimed at discrediting Anwar’s prodigy!

At the same time, not only is taxpayers’ money being used by the UMNO led government to ensure they continue in government……..BUT of more concern is also the use of taxpayers’ SAVINGS!!

The government arranged RM9.0 billion financial papers to keep Malaysia Airlines (MAS) afloat is coming from the pension funds that include the Employees Provident Fund (EPF) and that of the Civil Servants (KWAP).

One should also notice that in the books of MAS, these monies will not be classified as ‘borrowings’…..rather they are deemed part of the share capital of MAS.

This means that Employees’ savings are being effectively invested in an  insolvent company.

If one is to read further into those ‘financial paper’ that is to be issued to the likes of EPF, MAS would have the right to with-hold payments of ‘interests’ without triggering any default!!

Not only that, the ‘financial paper’ will not be rated……a sad reflection of the dire straits MAS is currently in!

Don’t take my word for it…….read MAS statement to Bursa Malaysia about the terms of the ‘financial paper’ known as the ‘Junior Sukuk’:-

We are pleased to inform that the Securities Commission Malaysia (“SC”) has approved the establishment of the Junior Sukuk Programme and issuance of Junior Sukuk thereafter vide its letter dated 24 May 2012, which we received on 25 May 2012. This approval is subject to compliance with the relevant requirements pertaining to the implementation of the Junior Sukuk Programme as stipulated under the SC’s Sukuk Guidelines.

The Junior Sukuk is expected to be recognised as equity capital in its entirety and will serve to shore up MAS’ capital base.

SALIENT FEATURES OF THE JUNIOR SUKUK

·         Perpetual in tenure, where MAS has a call option to redeem the Junior Sukuk at the end of the tenth year and on each periodic distribution date thereafter

·         MAS also has the option to redeem the Junior Sukuk if there is a change in accounting standards resulting in the Junior Sukuk no longer being recognised as equity capital

·         Periodic distributions on the Junior Sukuk can be deferred at MAS’ option, where the deferred distributions are cumulative

·         The Junior Sukuk will be issued under the Islamic principle of Musharakah, while the principle of Commodity Musawamah will be employed to effect the deferral of the periodic distributions, if any

·         The Junior Sukuk will not be rated

·         Payment obligations on the Junior Sukuk will at all times, rank ahead of other share capital instruments for the time being outstanding, but junior to the claims of present and future creditor of MAS (other than  obligations ranking pari passu with the Junior Sukuk)

UTILISATION OF THE PROCEEDS

The proceeds raised from the issuance of the Junior Sukuk shall be utilised for MAS’ working capital requirements and refinancing of existing borrowings. 

This announcement is dated 25 May 2012.

 


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