Its time for Malaysians to know the truth

It has been exactly six years since the biggest financial scandal during PM ‘Flip-Flop’ Tun Abdullah Ahmad Badawi’s tenure as the fifth Prime Minister, where MOF Inc sold off the stake in then Avenue Resources Bhd to then a middle seized stock broking house ECM Libra. Now, its time for Malaysians understand why there was so much opposition to the then ‘merger of an anchovy eating a shark’.

Then “The most powerful 28 year old” and “Son-in-law”, Khairy Jamaluddin was part of Kalimullah “Riong Kali” Hassan’s posse for the takeover which was full of controversy. In on going case between Riong Kali and lawyer Matthias Chang, Khairy who previously tried to dodge himself from going on witness stand under oath has now been ordered by the court to do so.

Khairy to testify in Kalimullah-Chang defamation case

January 04, 2012

KUALA LUMPUR, Jan 4 — Khairy Jamaluddin will testify in the hearing of a defamation suit filed by businessman Datuk Seri Kalimullah Masheerul Hassan against lawyer Matthias Chang, Bernama Online reported today.

The news portal reported that High Court Judge Datuk Asmabi Mohamad today dismissed the Umno Youth chief’s application to set aside a subpoena requesting that he testify as Chang’s witness in the suit.

She also ordered Khairy (picture) to pay RM3,000 in costs to Chang.

Khairy’s counsel Rashid Ismail told Bernama later that his client respected the ruling and was prepared to testify in court.

The court in December had allowed applications by Limkokwing University of Creative Technology founder Tan Sri Lim Kok Wing as well as former second finance minister Tan Sri Nor Mohamed Yakcop to set aside similar subpoenas.

Former director of South Peninsular Industries Bhd Tan Sri Azman Hashim, meanwhile, will also be testifying after he withdrew his application to do the same.

All were subpoenaed to testify as Chang’s witnesses in the ongoing hearing of a suit brought by Kalimullah, who is also the former deputy chairman of New Straits Times Press Bhd.

The trial continues on January 10.

Kalimullah filed the defamation suit on June 29, 2006 on the grounds that Chang had allegedly made slanderous statements against him on June 13 that same year, at a press conference, a report of which was published in the Singapore Straits Times through its Malaysian correspondent, Leslie Lau.

He is seeking RM50 million in damages, costs, interest and an injunction to restrain Chang from publishing similar words in the future.

Chang, previously a political secretary to former prime minister Tun Dr Mahathir Mohamad, also filed a counter-claim against Kalimullah on July 14, 2006, seeking RM150 million in damages, among other claims.

*************

The most important question that many should ask is why is Khairy, then the Vice UMNO Youth Chief and recently had to vacate his ultra powerful post as the Deputy Chief of Staff in the Prime Minister’s Private Office has been dodging from appearing on the stand under oath?

The merger was highly controversial. Amongst the issues are:

1. Undervaluation of Avenue shares

2. Overvaluation of ECM Libra shares

3. Unfair purchase terms on Avenue Capital to acquire ECM Libra subsidiaries

4. Improper justification by independent advisers: K & N Kenanga Bhd.

5. Improper EGM for ECM Libra for the approval of the merger

6. ‘Collusion’ of the various authorities in the whole scheme of things

ECM Libra’s shareholders account was valued at only RM 200 million was to merge with Avenue Capital which was valued at RM 800 million. As the gap is so huge, efforts were made to prop up ECM Libra’s market value and bring down Avenue Capital’s to a point where  goodwill was ‘impaired’ to the amount of RM 306 million, which is far more than the premium and reserve profit account combined. The impairment of goodwill  was not illegal, but irregular to common practice.

Post merger (which in actual fact should be called a ‘hostile take-over’), ECM Libra as the ‘smaller fish eating the larger fish’ took control of the combined company ECM Libra-Avenue and decided to drop the name ‘Avenue’ entirely. Shortly, SC issued a universal broking license and ECM Libra is now an investment bank. Naturally, Khairy by then he calls himself an ‘investment banker’.

Then another controversy happened. The manner the Avenue Capital Bhd. EGM was conducted on 17 May 2006 raised so many eyebrows. The minority shareholders raised so many questions on the ‘irregularity’  on the process of the merger, which include mandatory general offer (MGO) not conducted and ‘interested parties’ were allowed to attend and actually voted in the EGM. Minority Shareholders Watchdog Group made a protest for the minority shareholders for the irregularities.

Complaints were lodged by so many parties, especially minority shareholders to SC for the ‘irregular’ processes, EGM and eventually announcements made through media, which some considered misleading. However, SC played deaf and dumb about it, so much so that the best that anyone got as a response was just a mere acknowledgment of complaint filed. Even Police reports were made to the Commercial Crime Division,which referred the matter back to SC as the ‘subject matter expert’ and never got a response.

The take over of Avenue Capital warrants ECM Libra to be issued a universal stock broking license. ECM Libra became what it is today, a boutique investment bank. The value of the company increased when ECM Libra was able to do what it could not do without the merger with Avenue Capital.

Securities Commission Tan Sri Zarinah Anwar also must answer for this.

Never the less, a lot unanswered questions about Khairy still until present day lurks in the minds of many and becomes a hot teh tarik point of interests.These loose ends which tantamount to the perception of  ‘practice of corruption and abuse of power’ are some of the issues many urbanites and educated Malaysians. Even the perception on his ascension to the UMNO Vice Chief in March 2009 was marred with controversy.

It’s time for everyone to know the truth.

Published in: on January 4, 2012 at 22:00  Comments (27)  

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27 CommentsLeave a comment

  1. truth? after ABU, maybe but not otherwise.

    • Agreed 101%!

    • Asalkan Berterusan UMNO.

      Tradisi Membela Rakyat.

      Memang bijak, Dulu, Kini dan Selamanya.

  2. Put simply: Avenue was meant for Dr. Mahathir’s son, but grabbed by Pak Lah’s son-in-law. So it becomes internal squabble within Umno.

    • Very correct, kosong. What you say is kosong. No basis, not an ounce of truth, never heard before. Merely kosong.

      Haba haba.

  3. I know not the intricacies of share valuation, under or overpricing of shares, share swapping and the like. But I sure do know my dislike for the “budak berhinguih” Khairy Jamaludin.

    I have read hell of a lot of comments against him. I agree with practically all that have been written against him. That he was found guilty of money politics by UMNO Disciplinary Committee prior to the UMNO Youth elections is very clear. Yet allowed to stand for the UMNO Youth Chief post. He won only slightly more than a third of the votes. Enough for him to get the post and make a mockery of it. A post that could have been used to strengthen UMNO’s position against the uncouth and desperate-for-power Opposition.

    I certainly believe in what is said of his involvement in the ECM Libra and other shady deals. The fler is not only teh tarik discussion topic at mamak stalls. But also at leading social Club and premier hotel lounges.

  4. MoF stole it (the Avenue shares) off the original owners in the first place. Daim and his cronies virtually had the Phileo linked owners sell those shares to him at gunpoint. Malaysia is just a playground for thieves all round.

    • Any teet in your woh? Any verifiable source for your info? Or just plucked from the teh tarik stalls?

      Haba haba.

      • LOL. I was in the thick of it then mate, in the thick of it. No teh tarik stalls here (Down Under where I sought refuge from such thievery) and the coffee places here don’t spoil the fresh air with such unpleasant conversations.

      • No wonder, you even lost your teeth. Can’t even say how, when, why and where you were “in the teeth of it”. Bluff only, Mister born loser.

        Wild accusations only, that’s the hallmark of you blokes. People write long pieces, giving at least explanations if not factual information, c/w facts and figures, here you come in with 1-2 sentences making shit statements. We don’t want the likes of you here. If you disagree, justify what you say, understand?

        Why not stay with the Abos there, you’ll get fresher air.

        Still homesick and wanna “converse” in a Malaysian blog here, ah? No need lah. Stay put and for good there, ok?

      • haha – resorting to name calling I see. I’m not sure that sort of response makes you look good.

        Make your own conclusions using whatever sources you wish.

        I feel sorry for people who feel the need to deride minority natives, but I guess that’s the way things are over there. Good luck.

    • You are right. It was supposed to sell it to a Mr Lee businessman in Hong Kong. One of my friend was supposed to be the CEO when the deal was completed. It was hijacked at gunpoint using political muscle. A lot of people in financial world knew about it The justice will only surface when there is a change of government.like all corrupted goverments in the world.

      • Maybe it was worth to do it. The initial option was selling it to Hongkies???

        Probably your friend didn’t tell you the whole story. The part that they’re actually much bigger & brutal pirates! Really, really bad ppl!

        Then again, who was the finance minister then? Who was the owner of Phileo allied to & support like hell then?

        Most importantly, why did this ‘analyst’ Tong Kooi Ong flee to Canada in such a haste?

      • BTEB, TKO did not “flee” to Canada. He went there much later. Some in the Phileo Board did “flee”, but can you blame them with Dr M and Daim on a witch hunt and looting spree? But yes, Anwar was in power shortly before and demonstrated all of the ills that UMNO continue to thrive on. So whether he ends up going to jail after 9 Jan is of little impact on the outlook for Malaysia.

        A thief is a thief, no matter where they’re from or live. At least the “thieves” from HK would have paid more “reasonably” than the MoF nominees who virtually stole it, at gunpoint of course.

      • Aiyyya teetwoh, you really think readers will simply believe what you say, innit? Just state your contrary views in here and expect to get away thinking a few may believe you, without giving any indications how you were privy to the “witch hunt and looting spree”, “thievery”, “sell shares at gun point” etc. What the ….

        Your brief profile says you were a lawyer, gave up your practice here and went down under. Surely you know – if you really were a lawyer – about proof, evidence, witnesses to information, at least “statements giving reasons to believe” what you say. I shouldn’t waste further time on you but I think you must be told these and not make wild accusations.

        I, too, have reservations about past goings on as said by Professor Edmund Terence Gomez and Jomo KS in their books but even they relied a lot on deductions and news reports not denied etc rather than hard facts. Yes, they were academics, but you claim to be a lawyer, man.

        Where got meaning talk talk only like at mamak teh tarik stalls? if not contrary views, you don’t have to prove or justify anything. But on what you said, you jolly well do, Mister.

      • You’re an interesting person, Nono. So this is a law court or a tribunal of sorts is it? LOL. Or maybe an academic forum? LOL again. Not a mamak teh tarik stall? Could have fooled me. I hope not all comments you read were so laden.

        And by the way, I didnt give up practice to come Down Under. You might want to read those 2 few lines again. Reading something twice (no matter how short) sometimes works wonders for some.

  5. I wonder why KJ is so kebal. Did someone in Najib’s gov protect him?

    • Najib’s problem is never about directly protecting KJ. Its more about his failure to apprehend ppl in UMNO like KJ.

      Just like he didn’t do anything to Kak Ijat, when everyone else finds the NFC scandal is so nauseating.

      Then again, when Najib ascended to Premiership after Slumberjack was successfully ‘forced out’, the former didn’t apprehend anyone who were voted in during the 2008/9 part elections. It was an open secret the amount of corrupt practices that goes around UMNO, across the board. Even common UMNO members loathe this!

      The nation blamed ‘Level Four Boys’ for Slumberjack’s poor management failure and total negligence. Who should be blamed now under Najib’s watch?

      Unless Najib consciously did allow the reminiscence of ‘Level Four Boys’ still roam around, calling the shots like right now.

      Rakyat no longer accept that KJ had been and still is being left out of Najib’s administration. They want to see heads roll. Just like Khir Toyo’s.

      • How is Najib going to apprehend this KJ when he himself is doing the same. ” Who to prosecute Who” when “Who does Who did”

  6. Hey Bozo nono shut up you moron…

    • Wat, got no point ha? Tatak motat mau ciakap ka?

  7. I hope KJ will also spill the beans on MISC and Mahatirs sons.

    • why wait for sikitol to do it for you. If you got balls then just do it and spill the bean. or is it just cakap kosong. bloody bodoh

      • I agree with you he’s bloody bodoh.

        Of course, he’ll just make wild accusations, put out half truths and innuendos. Like that takda gigi woh above. He’ll just accuse wildly, then simply say “Make your own conclusions using whatever sources you wish.”

        Of course the conclusion is: he’s the son of a gun. Cabut lari down south to see how the cookie crumbles, as the Aussies say. I agree he should just stay put there, and for good.

    • Memang betul bodoh piang!

      Ceta ni dah lama settle.

      Ini modal Reformasi, yg dah basi, “Dah lama, dah”. Kalau nak ulang lagi penjelasan ceta ni, cam BigDog panggil Aspan/Sang Mangkuk = ‘Bankrap Politik’.

      KJ nak spill the beans apakebendanya???

      Masa MISC diambil alih, KJ cakap Melayu pun pelat! Ini zaman masa jadi host Dateline Malaysia NTV7 dgn Azlaina Othman Said dulu, dia cakap Melayu pun lom fasih lagi.

      P/S: Agaknya rumah bodoh piang ni lom dapat siaran TV lagi masa tu!

  8. […] the original post: Its time for Malaysians to know the truth « The “thirteen million plus … Tags: ali, its-time, jam, kalimullah, khairy, khairy-jamaluddin, malay, malaysia, malaysian, […]

  9. […] Box’ being opened and look into all ‘unsolved mysteries’ in the past. Probably Malaysians now could know the truth and ECM Libra Kalimullah “Riong Kali” Hassan and then Vice UMNO Youth Chief could be […]


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