Zarinah: ‘Gangster’ of Bukit Kiara

SC Chairman Tan Sri Zarinah Anwar

Securites Commission Chairman Tan Sri Zarinah Anwar has done it again. She is ‘terrorising’ the public in the her fiduciary duty of the being the boss of regulating body for the securities, capital and debt market industries in Malaysia. This time is about interrogating business writers.

This is about abuse of power andwrongful discharge of authority. This is probably not the first time.

Zarinah as SC Chairman must explain and be held accountable for the the ECM Libra-Avenue Capital highly controversial ‘merger in mid 2006. In late 2005, boutique stock broking firm ECM Libra had an ambition to be a full fledge investment bank and needed the universal stock broking license from the authorities, namely the SC. Shareholders and active players include then son-in-law of the Prime Minister ‘Flip-Flop’ Dato’ Seri Abdullah Ahmad Badawi, Khairy “The Most Powerful 28 Year Old” Jamaluddin and media-dictator Kalimullah “Riong Kali” Hassan had the ambition to ‘take over’ a much larger firm Avenue Capital Resources Bhd.

The problem is that ECM Libra had only a market capitalisation of RM 200 million versus ACRB’s RM 800 million. The disparity of the value between the ‘proposer’ and ‘target’ is so vast, in terms of capital and even clientèle. Hence, the ‘magic play’ begins. ECM Libra was purportedly pushing up its share price and the a two day all time market high was recorded as the ‘value’ price in the negotiations. It is still not adequate. Then it was said that advsior to the merger KN Kenanga ‘colluded’ in ACRB highly irregular impairment of goodwill of RM 296 million, to bring the value of the ‘merger’ to a more equal footing.

The ‘raping’ of ACRB’s shareholders’ rights went on further. The BOD of ACRB failed to furnish shareholders the right information and explanation when the EGM held for the ‘merger’ in May 2006. The ‘merger’ proposal was practically forced down the shareholders throat. Minority shareholders’ rights were violated. The most glaring is that ACRB did not make a mandatory general offer to the minority shareholders prior to the merger. Minority Shareholders Watchdog Group came out very strong opposing this violation of the minority shareholders rights, specifically provided under the Companies Act and Securities Commission Act.  And yet he ‘merger’ sailed through, almost without any real obstacle.

Reports were made to the SC against the ‘merger’. Nothing avail. At least 17 reports were filed by minority shareholders alone. At best, the complainants got an acknowledgement from SC  for their complaints. Even three police reports were filed. The commercial crime policemen without the necessary skills did the proper thing; They forwarded the police reports to the subject matter expert: The Securities Commission.

Guess what? SC did nothing. SC allowed the highly controversial and irregular ‘merger’ to go on. It was said because the Chairman Zarinah Anwar is then close to PM ‘Flip-Flop’ Dato’ Seri Abdullah Ahmad Badawi. She was appointed SC Chairman on 1 April 2006, ‘conveniently’ just prior to the ECM Libra-Avenue Capital ‘merger’.

The more recent is the case about MyEG Services Bhd. One of the players whose company comprises part of consortium which provided service for the online service provider for Malaysian Government counter services, one Singaporean Mr  Ong Soon Kiat pleaded guilty under Singaporean Sect 97 (1) of the Securities Industries Act in 1999. And yet S K Ong as a white collar criminal was an active shareholder and Chief Executive Director of Paxelent Corporation Bhd.

How could SC allow such a person hold position in a plc, moreover which was given wholesale business to provide online government counter services for the rakyat on behalf of the Federal Government? This serious breach of Securities Commission Act 1993 was actually notified to the SC in July 2008 but then again, non avail. Many believed that this is because MyEg Chairman Dato’ Dr. Noraesah Mohamed is very close and a relations to PM ‘Flip-Flop’ Abdullah.

It is as if SC is part of an organised and institutionalised ‘gangsterism’, in organised practice to protect the ‘inner circle’ of then corporate crooks close to PM ‘Flip-Flop’ Abdullah. Hence, the act of terrorising two business jounalists is just a tip of the iceberg as compared to ‘institutionalised gangsterism’ that Zarinah imposed upon the SC for allowing the anchovy-sized ECM Libra to take over the much larger whale shark ACRB. This is not withstanding other shoddy deals not yet uncovered.

Soon enough, bloggosphere will be coloured with these scandals. This must mot be good for Prime Minister Dato’ Seri Mohd. Najib Tun Razak whose third promise as UMNO 7th President acceptance speech is to combat corruption (and abuse of power).

*Updated 1400hrs

Published in: on June 27, 2010 at 09:38  Comments (20)