Saturday, April 24, 2010

Primitive Pork-Barrel Politics & Mr Pink Lips


With Najib’s giveaways, BN must win big in Hulu Selangor

KUALA LUMPUR, April 24 — Barisan Nasional (BN) must win big in tomorrow’s Hulu Selangor by-election to justify Datuk Seri Najib Razak’s personal involvement in what he has called a referendum of his year-long administration.

In an unprecedented move, the prime minister himself has led the campaign to ensure MIC information chief, P. Kamalanathan, defeats PKR’s Datuk Zaid Ibrahim when night falls on Hulu Selangor tomorrow.

BN lost the seat for the first time in its electoral history by a razor-thin 198 votes in Election 2008, which saw the ruling federal coalition humbled in four states and 81 other federal seats.

BN has consistently won the seat with at least 8,500 votes majority since 1990, when Datuk G. Palanivel began the first of his four terms in the constituency the size of Malacca.

For the current campaign, BN has given close to RM60 million in a combination of projects and cash awards to win over the majority of the 64,500 voters in the traditionally pro-BN constituency, which comprises three state seats won by BN in Election 2008.

Anything less than a 3,000-vote majority, ironically predicted by independent Pasir Mas MP Datuk Ibrahim Ali, will be a slap in the face for Najib and BN.

[Read the rest here.]

Friends on the ground report that they found themselves within a few yards of Mr Pink Lips today in Kuala Kubu Bharu. The crime minister was emerging from the BN media center and walking towards his car. They were astounded at how low-key the unexpected encounter turned out to be. No jeers, but no cheers either for Mr Pink Lips. Truth is, his energy is DEADLY DULL... just like the entire BN campaign.



4 comments:

donplaypuks® said...

Bro

I'd apprecaite it very much if you would give max publicity to my letter to Mkini published todat at http://www.malaysiakini.com/letters/130103. It might help Zaid & PKR at HS and open the eyes of M'sian Indian voters:

"Maika share sale an election gimmick?

I refer to the Malaysakini report New firm takes over Maika Holdings.

The salient facts about G Gnanalingam's recent offer to buy out all Maika shareholders are as follows:

1. Maika's paid up share capital - RM125 million.

2. Gnanalingam's offer price - RM106 million or RM0.85 per share.

3. Oriental Capital Assurance Bhd's (Ocab) paid up share capital is RM100 million and as at Dec 31, 2008 it's audited NTA was about RM103 million.

4. Maika's investment in Ocab's share capital is 74.165% or 74,174,640 shares, ie, Maika is Ocab's holding company as it has both more than 51% equity shares and control in Ocab. Maika's CEO Vell Paari a/l Samy Velu also sits on the board of directors of Ocab.

5. Prior to Gnanalingam's buyout proposal, there were two other offers to Maika as follows:

a. RM129 million or $1.75 per share by Salcon

b. RM149 million or $ 2.01 per share by Usaha Tegas, the holding company of tycoon Ananda Krishnan.

The Salcon offer was frozen by a court order taken out by Nesa Cooperative, Maika's single largest shareholder who had objected on the grounds that Maika's 74% investment in Ocab had not been independently valued.

Nesa had recommended the investment in Ocab be sold by open tender. Nesa also revealed there were two other parties interested in acquiring Ocab's shares, one from Europe and another from Australia.

As to the RM149 million offer by Usaha Tegas, apparently Maika rejected this offer as it could not accept certain pre-conditions insisted upon by Usaha Tegas. What these pre-conditions were have not been revealed by Maika's directors.

In the light of the above, I demand the board of directors of Maika explain:

1. Why do they think Gnanalingam's offer of RM106 million is suddenly acceptable to them when they unequivocally know there are local market players in the insurance business and foreign parties who are willing to pay more?

2. Why are they unwilling to offer the Maika or Ocab shares for sale by open tender with a reserve price of say, RM150 million, given the Usaga Tegas offer? If as Gnanalingam says, Maika's debts are RM30 million, the net minimum proceeds of RM120 million would be a fair and handsome reward to Maika's shareholders who for some 20 years have received no dividends while there was a period when their CEO was paid a remuneration of RM15,000 per month.

As to Gnanalingam being quoted as saying he's doing 'national service', he contradicts it by saying he will need six months to find another financier which suggests he is looking at flipping the Maika/Ocab shares for a quick gain. So much for national service.

Financiers may do charity work and make sizeable donations from their profits and gains, but their natural predatory instincts mean they will always squeeze out the juicy bits of the best deals for themselves.

It seems clear to me, and for the matter any sane person, that the Maika/Ocab shares are worth a hell of a lot more than Gnanalingam's RM106 million offer.

The RM64,000 question is why Samy Vellu, Vel Paari and the Maika board of directors appear to be not interested in maximising returns to their long-suffering shareholders which include themselves by supporting the lowest offer?

Is there a deal behind the deal?"

dpp
we are all of 1 race, the Human Race

donplaypuks® said...

opps, forgot. thank you.

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~wits0~

Anonymous said...

my vote goes to PR simply because kamal is from mic ...oops, umNO !