Digest on Malaysian News

Minister in PM's Department Mohd Nazri Aziz revealed today that RM10.5 million was paid out by the government as ex-gratia payment (excluding pension) to six ex-top judges, including sacked Lord President Salleh Abas. The six ex-judges were sacked (dismissed) by a tribunal in 1988.

How much they received:
* RM5 million to former Lord President Tun Salleh Abas.
* RM2 million for the late Tan Sri Wan Suleiman Pawan Teh.
* RM2 million for George Edward Seah Kim Seng.
* Tan Sri Wan Hamzah Mohd Salleh, Tan Sri Azmi Kamaruddin and the late Tan Sri Eusoffe Abdolcadeer were paid RM500,000

The BN government insisted that the ex-gratia was valid because the former judges were asked to retire early instead of being fired. Only in Malaysia that you payback the judges that you sacked. Yet, the are piles of courts cases (maybe as tall as the Petronas twin towers) not being processed or closed for years. Talk about court efficiency and the screwed judicial system.

From Sun2Surf

Former Judges got RM10.5m ex-gratia
Husna Yusop

KUALA LUMPUR (Nov 6, 2008) : The government paid out a total RM10.5 million in ex-gratia to six former judges who were "sacked" in the 1988 judicial crisis, including RM5 million to former Lord President Tun Salleh Abas.

Minister in the Prime Minister's Department Datuk Seri Nazri Abdul Aziz, who revealed the quantum of ex-gratia payout, said Supreme Court judges the late Tan Sri Wan Suleiman Pawan Teh and George Edward Seah Kim Seng were paid RM2 million each.

Tan Sri Wan Hamzah Mohd Salleh, Tan Sri Azmi Kamaruddin and the late Tan Sri Eusoffe Abdolcadeer were paid RM500,000 each, Nazri told the Dewan Rakyat in his winding-up speech on Budget 2009 today.

At the same time, he said they were also paid pension and gratuity for the past 20 years with Salleh receiving RM5,102.16 monthly, Wan Hamzah RM6,508.59, Seah and Azmi RM5,916.90 each and Wan Suleiman and Eusoffe RM4,815 each.

Datuk Ibrahim Ali (Ind-Pasir Mas) then asked for the reason for their compensation as it has created a perception that the government under the previous Prime Minister has been wrong in making its decision.

N.Gobalakrishnan (PKR-Padang Serai) also interjected, asking whether the RM5 million was adequate for someone in a very high position like Salleh, who has suffered a lot from the decision, while the government could spend much more for other projects.

Nazri said the payment was not an admission of guilt on the part of the government, quoting a statement by Prime Minister Datuk Seri Abdullah Ahmad Badawi in April when announcing the decision to pay ex-gratia to the former judges.

He said the case involved the question of one’s honour and dignity, therefore no one could actually put a price to it.

Mahfuz Omar (PAS-Pokok Sena) then asked why were the judges granted with both pension and ex-gratia since they have been sacked from their service, adding to clear their honour and dignity the government should have set up another tribunal to clear them from the actions taken against them.

Nazri said they were found guilty by a panel of tribunal and they were asked to take early retirement , "not sacked".

"They were not sacked. They were asked to retire early. It’s like optional. At 66, you can (receive) pension. Since they chose to retire, the pension was paid. The Pension Department would not pay (pension) if they had broken any laws.

"They did not break any laws. So, the pension was paid. They took early retirement, so the pension was on," he explained.

Wee Choo Keong (PKR-Wangsa Maju) said: "All this while, I thought the six were sacked because all the newspapers had reported it as such. I don’t understand what the minister is saying.

"They were not sacked but asked to retire early? That’s not correct. They were in fact dismissed by the tribunal. The tribunal cannot ask them to retire early.

"The setting up of the tribunal was to sack them, not to ask them to take early retirement. Please don’t fool us. Since they also received pension, the RM5 million is considered too high."

Nazri said the panel was not set up to sack them but to look at the case and decide on a judgment.

"To sack is a judgment. To recommend early retirement is a judgment," he said, adding newspaper reports cannot be quoted as reliable sources for valid information.


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On Oct 20, 2008, Najib Razak, Deputy Prime Minister announced that the government will provide RM5 billion in additional funds to double the size of Valuecap Sdn Bhd to RM10 billion and to invest in undervalued stocks and protect investments in government-owned companies (or government linked companies - GLC).

First, the RM5 billion funds from the government is actually loaned from EPF (where your retirement savings and my retirement savings are kept). EPF has the cash and if those GLC stock are attractive then why not EPF make direct investment. Why have to lend the money to Valuecap so that Valuecap can invest in those GLC ? Maybe those GLC are sick and losing money and EPF knew that it is not going to be a profitable investment. However, lending RM5 billion to Valuecap would have government guarantee.

If those GLC are not making lost, why bother about buying their shares. After all, if they can sustain their business, they don't need capital injection. The only time there is a need for capital injection (or investment of fund) is when a company need cash for big expansion or need it badly for operating capital (e.g. a losing company running out of cash).

Some one from the Finance Ministry or Bank Negara or Khazanah Nasional should advice the Cabinet to close down those GLC companies that are no longer viable. Instead, Najib is like main saham and trying to keep a terminally ill company living.

So is RM5 billion duit rakyat a bailout package for sick GLC or a gambling token for Valuecap to make profit for those undervalue stock ? Or some cronies have big shares in those GLC and the moment money are throw in their counter, the share prices will shoot up and those cronies will cash out their shares and make more money. Or has some one has convience the government to manipulate the market price of those share to make a quick profit. Main saham ler tu.

About Valuecap Sdn Bhd

ValueCap Sdn Bhd is like an investment arm of Khazanah Nasional. Valuecap has no website so the following info was extracted from Khazanah Nasional website. Established in 2002, Valuecap is a fund management company which was created to invest specifically in the Malaysia equities market. Owned jointly by Khazanah, PNB and KWAP, Valuecap’s key mandate is to undertake investments in equities listed on Bursa Malaysia on a portfolio basis, based on superior fundamental investment research.

Further reading:
* Shock and awe of Barisan Nasional typical economy
* Is this RM5 billion for main saham really necesary?
* Why Big E? Why?

From Bernama

Government Provides RM5 Billion In Additional Funds To Invest In Undervalued Stocks

KUALA LUMPUR, Oct 20 (Bernama) -- The government will provide RM5 billion in additional funds to double the size of Valuecap Sdn Bhd to RM10 billion and to invest in undervalued stocks and protect investments in government-owned companies, Deputy Prime Minister Datuk Seri Najib Tun Razak said Monday.

The government set up Valuecap, in January 2003.

Speaking to reporters after opening the Khazanah Megatrends Forum, Najib said that the government will leave it to the Valuecap on how to distribute the fund.

"It is up for them to decide (distribute the fund). They will look at the position assets that are undervalued today," he said.

Najib, who is also Finance Minister, said the government will also liberalise the service sector in response to manage the global financial crisis.

He said the specific sector will be detailed out and this will be based on the International Trade and Industry Ministry's proposal to the Cabinet soon.

The government hopes through liberalisation, it can attract more investments and generate more employment within the country, he said.

He said the Foreign Investment Committee (FIC) guidelines will also be reviewed to make it more attractive for foreign investors particularly in the property and commercial sectors.

Under the liberalisation, Najib said some of the investments and purchases might not have to get FIC approval.

"These are the elements of the stabilisation plan and we will do it in stages."

"I'm talking about the financial stability as mentioned by Bank Negara on the guarantee (for bank deposits) to ensure there is no credit squeeze and lending continue to be high in Malaysia, particularly to small-and medium-sized enterprises (SMEs)," he said.

Najib said these measures would also ensure government expenditures will continue to be at the present level.

"We are mindful that we have to take steps to ensure long-term competitiveness while we manage the short-term crisis," he added.

-- BERNAMA
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From Bernama

Additional RM5 Bln Fund For Valuecap Is Sufficient, Says Nor Mohamed

KUALA LUMPUR, Oct 21 (Bernama) -- The additional RM5 billion fund to be provided by the government to double the size of Valuecap Sdn Bhd is sufficient, says Second Finance Minister Tan Sri Nor Mohamed Yakcop.

He said the amount was decent money to buy undervalued stocks.

Valuecap is a fund management company which was created to invest specifically in the Malaysian equity market and is jointly owned by Khazanah, PNB and Retirement Fund (Incorporated).

"The RM5 billion is reasonable sum which is an addition to RM5 billion that Valuecap already has," he told reporters on the sidelines of the Retirement Fund (Incorporated)'s Hari Raya open house here, Tuesday.

He said there will be no more additional funds provided by the government at the present.

Nor Mohamed also stressed that Malaysia will not be going into recession this year and next year as the country had resilient banking and financial systems.

He also said there was plenty of liquidity in the market and many companies had strong fundamentals and good earnings.

"We will not enter into recession in 2008. We don't believe that we will have recession in 2009," he stressed.

-- BERNAMA
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From TheStar

‘EPF will profit from loan to Valuecap’

KUALA LUMPUR: The Employees Provident Fund (EPF) will make a profit from the RM5bil that it will lend to the government investment agency, Valuecap Sdn Bhd, to support the local stock market, said Second Finance Minister Tan Sri Nor Mohamed Yakcop.

He said this was based on the past performance of Valuecap which has grown its portfolio from RM5bil initially to RM8bil now.

“I believe that they (Valuecap) will do well and EPF will certainly get its returns.

“Valuecap has done well. It has a good infrastructure, good staff who know better about the market and have a knowledge of what is happening (in the global market),” he told reporters after giving closing remarks at the Khazanah Megatrends Forum 2008, here yesterday.

He said this in response to Deputy Prime Minister Datuk Seri Najib Tun Razak’s press conference yesterday that the Government would borrow RM5bil from the EPF to double the size of Valuecap to RM10bil.

Established in 2003, Valuecap is a fund management firm created to invest specifically in the Malaysian equity market and is jointly owned by Khazanah, PNB and Retirement Fund (Incorporated). - Bernama

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The Major of Petaling Jaya (PJ) City Council is one lucky fellow as he got to have his own official resident. And the council has allocated RM0.9 million to rebuilt the Mayor official resident. Look like the PJ Mayor social status is second to the state Chief Minister or Menteri Besar.

Instead of using the RM0.9 million, wouldn't it make more sense if the council just buy at new house. Sell the old land and buy new house and the council may probably make profit. That would relief the financial burden to the council coffer.

In addition, PJ Mayor is probably the only Mayor in Malaysia to have his own official resident as other cities Mayor has no such privilege.

From TheStar

RM900,000 for PJ mayor’s house

A TOTAL of RM900,000 has been allocated for building the official residence of the Petaling Jaya mayor in the Petaling Jaya City Council (MBPJ) 2009 budget.

The figure raised a few eyebrows during last month’s budget briefing with representatives from residents’ associations (RA) and Rukun Tetangga (RT) because RM871,900 was budgeted for the same purpose in 2008.

According to MBPJ public relations director Haniza Abdul Hamid, the budget for last year was not used because of amendments to the building plans.

“The house is the official quarters for the mayor. We had to tear down the existing house because of bad termite problems,” Haniza said.

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A rare advice from the Finance Ministry requesting government agencies to limit their spending and save public fund. Before the 12th General Election, Barisan Nasional has been on spending spree. A lot of unnecessary projects and activities were approved by the government without consideration that those cost is eating up the country's budget and deprived the fund from being use to benefit the poor.

Even now, the government is still lacking in controlling their activities. Some expenses even raised eyebrows and below is the top money wastage projects sponsored in full by the government:
* Sending the first angkasawan into space.
* Canceling the scenic third bridge link Singapore and Johor and end up compensating the contractor.
* Send Royal Malay Regiment to London to guard England Buckingham Palace.
* Buying special ink from India for the 12th General Election and not using the ink during the election
* Bail out of Proton
* Bail out of MAS
* Building Masjid Besi in PutraJaya
* KL-Singapore Bullet Train Project
* Multi-billion-dollar Multimedia Super Corridor (MSC)
* Port Klang Free Trade Zone


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Source: thestar.com.my/news/story.asp?file=/2008/4/21/nation/21013880&sec=nation (Apr 21, 2008)

Don’t waste money on needless luxuries, agencies told

PENANG: The Finance Ministry has instructed all government agencies to reduce frills when organising official functions to cut cost and prevent wastage.

Second Finance Minister Tan Sri Nor Mohamed Yakcop said a circular had been sent out earlier, but he was “renewing” the directive as a reminder to department heads.

Although the Government did not impose any limit on how much agencies could spend, he said they were advised to cut down cost.

“It is a moral thing. At a time when everybody is affected by price increases, government agencies should also take heed of the situation by not organising events on a big scale because this might lead to wastage.

“Government agencies should not hold events at five-star hotels, which is quite unnecessary and very costly.

“It is suffice to conduct events in a moderate manner but produce fruitful results. We should start saving money so that we can use the excess to help the rakyat,” he said.

Nor Mohamed was speaking to reporters after witnessing the signing of a memorandum of understanding (MoU) between Mimos Bhd and Mutiara.Com Sdn Bhd at the state Umno building at Jalan Macalister yesterday.

On the mid-term review of the Ninth Malaysia Plan (9MP), he said the Federal Government would be meeting with all the state governments for their feedback.

Prime Minister Datuk Seri Abdullah Ahmad Badawi had said on Saturday that the mid-term review would give priority to projects that benefited the people.

Projects under the 9MP in Penang include the Penang Outer Ring Road and the monorail.

Nor Mohamed also said that the global price increase for commodities and food was a blessing.

“The trend is a positive reversal for the agricultural sector because the global price increase can be translated into better income for local farmers, especially those in the palm oil industry,” he added.

Sheikh Muszaphar Sheikh Mustapha has proposed to the government to postpone Malaysia's second space mission (a tour). To me, the space program should be scraped altogether.

Sheikh Muszaphar being the beneficiary of the first space tour agreed that the tour cost the rakyat large amount of public funds.

Perhaps Najib has some commission from the Russian space tour company, huh.

Related posts:
* Najib wasted millions for the Kenot program
* Sending another space flight participant for vacation



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Second Space Mission Should Be Postponed - Sheikh Muszaphar

PENDANG, April 19 (Bernama) -- National astronaut Dr Sheikh Muszaphar Sheikh Mustapha has proposed that the government postpone Malaysia's second space mission.

He said the postponement was to allow the community to be fully exposed to the programme before the second mission could take-off.

"We need to learn a lot of things about aerospace and the community must have a good understanding of the programme.

"(Moreover) the space mission uses a large amount of public funds," he told reporters after launching Mara Junior Science College's astronaut programme and the astronomy and amateur radio club here Saturday.

Muszaphar said people at the grassroots-level should have a clear understanding of education, technology and skills in aerospace before the mission could be continued.

About 2,000 students, including those from Mara junior colleges at Kubang Pasu and Beseri in Perlis, attended the launch of the programme.

-- BERNAMA