Who really made money from the RM 625.00/car subsidy pay out?

Recently, Government announced that the pay out subsidy for private cars below 2000cc, SUVs below 2500cc and motorcycles below 250cc be made on cash, via all the post offices in the country.

RM billions have been put aside for this exercise, meant to alleviate the burden of the much thought to be a ‘Flip-Flop’ decision of the exorbitant increase in retail price of petrol and diesel two weeks ago. The exercise was said to be decided by the ‘Cabinet technocrats’ Second Finance Minister Tan Sri Nor Mohamed Yackop, Minister in the PM’s Department (in charge of EPU) Dato’ Amirsham Aziz and Agriculture and Agrobase Industry Minister Dato’ Mustapha Mohamad (from his NEAC experience), in a discussion meant to address the issue of IPPs and the affect on electricity tariffs. Eventually, someone proposed to unlift all subsidies on retail petrol and diesel eventually and pushed for PM ‘Flip-Flop’ Dato’ Seri Abdullah Ahmad Badawi to announce hastily.

Maybe the public is not aware who are the shareholders of Pos Malaysia Services Holdings Bhd., the wholly own parent company of Pos Malaysia which has been given the authority and funds to channel these monies.

As of two years ago, pre-merger with ECM Libra, Avenue Capital Resources Bhd. owns 15.6% of Pos Malaysia Services Holdings Bhd. When the merger was successfully announced August 2006, which received approval of all the authorities (despite the attention drawn to the highly dodgy deal of ECM Libra merging with a much bigger firm and eventually took control), it was still believed that presently, ECM Libra still has the strategic 15.6% holdings of Pos Malaysia Services Holdings Bhd.

So who actually benefitted from this subsidy payout scheme?

If the amount is in the neighbourhood of RM 1 billion, then long term deposit with a commercial bank, Pos Malaysia or indirectly, ECM Libra would have made RM 39 million per annum or RM 106, 849.32 daily.

That is not including the management or services fee that Pos Malaysia charges the Government for this service. If the charge is just 1.0% of the amount, it means Pos Malaysia would have made RM 50 million per annum free income without incurring significant operations cost. If the pay out amount for the year is in multiples of RM 1 billion, then the profits will be realised will be on the same proportion.

That is definitely a great business model for the owners of ECM Libra, which include Riong Kali and Khairy Jamaluddin, two of PM ‘Flip-Flop’ Abdullah’s closest advisers!

Published in: on June 18, 2008 at 00:01  Comments (22)  

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22 CommentsLeave a comment

  1. Bigdoggy,

    Can you get this to Kid Jerlun:

    A Seven Line Verse That Rhymes With Ameen!
    (do you think any laywer will run for the presiden)

    Let’s hang the lawyers!!!!!!!!!!
    Let’s hang the lawyers!!!!!!!!!!
    Let’s hang the lawyers!!!!!!!!!!
    Let’s hang the lawyers!!!!!!!!!!
    Let’s hang the lawyers!!!!!!!!!!
    Let’s hang the lawyers!!!!!!!!!!
    Let’s hang the lawyers!!!!!!!!!!


  2. sad day for malaysian when Pak Lah ripped off the money openly. Pak Lah the grim reaper.

  3. Is Khairy back in ECM Libra Avenue too? how about the accurate shareholding of Kalimullah, did his reappointment entail an increment of his shareholding from the previous 5%? it’s 15.6%, strategic as it may be, it is arguably not substantive. and is it not too speculative to link the rebate payout to this business development?

  4. where else the payment should be made by government? i think its the best choice in term of there are a lot of post office all over Malaysia which increase the efficiency.

  5. Well anyway this I think is the newest modus operandi of Milking the rakyat.

  6. they are damnnnn clever.
    Clever in cheating the rakyat…

  7. Recently, my friend’s wife who is working at the post office complained that she had decided to quit her job. After claiming my subsidy money from her, i can say that she had a very good the reason for that.She is so busy everyday and you know why.If its true pos malaysia got a lot of benefits from this, so they should pay extra allowance or bonus for their employees. they should!

  8. If this is true, I only have one thing to say – may all Malaysians lay their curse on the perpetrators of such abusive use of power for self gains and interest. And may the curse befall on them and their future generations to come until all evil karma is repaid over time eternity! May these sinners and their future generations to come suffer in sickness and internal family turmoil amidst their ill-gotten wealth! Yes this is indeed a wicked and cruel curse but no more wicked and cruel than the sorrow and pain inlficted on Malaysians. What else can Malaysians do until salvation comes from a change in government for the better?

  9. Now…it makes sense…why Post Office which is the MOST inefficient service, is choosen…

  10. Nothing changes in Malaysia every decision made means money into somebody’s[cronies]pocket.Only god can save Malaysia now,possibly the sapp announcement is an early sign.then again only he knows.

  11. This makes me feel a bit sick.

  12. malaysia has no hope under BN and bodowi government.
    let’s sack BN and all his goons one and for all!!!

  13. Thanks for the revelations, bro!

  14. I also seem to read somewhere somehow that Khairy now that do not have any shares with ECM Libra.

    So is this another attempt to screw PakLah by using Khairy as the weakest link?

    I came to this after I read upon this blog post:

    “Any political commentator will know that these bloggers who make this allegations against Khairy are actually individuals who are part of an organized group out to discredit the PM and KJ is just a convenient target. But it is unfortunate that there will be many innocent readers who may not know of this high stakes game being played out to wrest the seat of the PM. It has nothing to do with cronyism,nepotism or accountability and transparency. It has everything to do with PLAYING THE GAME, and winners take all.”

  15. Here’s what we can do as citizens (the Boss)…

    SIGN THE DIRECTIVE to Malaysian MPs and ADUNs to push the government to build an efficient public transportation system ASAP.

    This is a very trying time, ONLY IN WORKING TOGETHER (political affiliations aside), we shall ALL survive. It is the Malaysians who make Malaysia. MALAYSIANS BOLEH!

    Watch this video:

    “Either we heal now as a team, or we will die as individuals. Inch by inch, play by play, till we are finished. We’re in hell right now. Believe me. And we can stay here and get the shit kicked out of us; or we can fight our way back into the light. We can climb out of hell. One inch at a time.”

    More ideas on how to push this campaign effectively, visit http://www.pahlawan.com.my

    Please help spread the word. Blog it. Thank you very much!

  16. I’m so sorry, i must have missed closing a tag. Please help to unbold the above. Thanks!

  17. […] Who really made money from the RM 625.00/car subsidy pay out? Recently, Government announced that the pay out subsidy for private cars below 2000cc, SUVs below 2500cc and […] […]

  18. […] If the amount is in the neighbourhood of RM 1 billion, then long term deposit with a commercial bank, Pos Malaysia or indirectly, ECM Libra would have made RM 39 million per annum or RM 106, 849.32 daily. READ MORE HERE […]

  19. Celaka betul!! BN knows this election is the worst in history and will eventually lost it’s simple majority. So before Pak Lah & beloved advisors lost their seats, they “gorek” rakyat money as much as possible by using more and more fancy ideas and plans…….. These people already lost their consciencious and no Allah in their hearts…. GREED MONSTERS!!

  20. A good Unveiling of things
    visit:www.seshdotcom.wordpress.com(for more Business and hot topics)

  21. here’s a thought, Dr M in his blog-post yesterday (19 June) said that his son-in-law has never been CEO of MTranz..and apologized “sincerely” for not penalising the company for the SOL to “happened” to be in that company. yet allegations of khairy and Kali being involved in ECM Libra Avenue is igniting all these talk of nepotism, and like I said in my previous comment..any proof of Khairy return? of increase of shareholding on Kali from 5%? just like M calling Sammmmie racist…u wanna be the pot or kettle? oooh, it doesn’t matter!

  22. […] jump from RM 1.92 to RM 2.70 mid last year. To alleviate the burden of high petrol cost, a subsidy scheme was introduced as a thought after and proven to be a […]

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