Some people can be affected by environment. Others are affected by their devotion and commitment. In failed ADUN for Pulau Manis Ariff Sabri “Sang Mangkuk” Aziz’s case, his better judgment apparently has been severely impaired trying to impress his new ‘Politics of Hatred’ masters.
Losing ground over FELDA — Sakmongkol AK47
September 10, 2012
SEPT 10 — What is happening to FELDA now, illustrates the state of our democracy under Umno. Settlers and employees got 200.6 million of the 2188.9 million shares to be sold.
The people representing the majority and overriding interest are the settlers and the employees. There are 112,635 settlers and 3835 employees. These represent directly the interest of FELDA people. They are the majority on whose backs and on whose name, this listing was supposed to be done for and benefits meant.
A question to FELDA people. Why get only 200.6 million out of the 2.188 billion shares offered and own the same from the 3.6482 billion of the enlarged share capital? That’s 5.5 per cent of the interest in FELDA. What Najib Razak and the government are doing to you is just cosmetics.
Because you are 116,470 strong you are bribed with RM15, 000, RM380 duit raya, 810 shares worth RM3685 at listing and that your sons’ and daughters’ PTPTN are being paid by the government using money that belongs to YOU. Najib will do anything to keep you corralled and addicted to the cocaine of handouts.
A question to Najib. If settlers represent your vanguard in the agenda to transform the economy, why assign only 5.5 per cent of the enlarged capital? Why not allow FELDA people through their KPF, own 70 per cent?
Because minority and moneyed classes control the actions and decisions of FELDA and the same with government.
So what has the FGVH issue got to do with the state of democracy under Umno? It illustrates that special interest groups determine our democracy instead of the wishes of the majority. The listing of FGVH has more to do with the agenda of the moneyed class than the agenda of the un-moneyed settler class.
Similarly the same is happening to the state of democracy under Umno. The country’s future is being determined by special interest groups who are self-selected and thrive on a single chosen issue.
When the FGVH shares rose up to near RM6 per unit, everyone said that was a testament of the confidence people have with FGVH. But who are the people exactly?
The “people” a nebulous and hazy term which could be infused with whatever meaning one wishes, refers to the various state governments that were asked to buy the shares and the various GLCs that Najib directed to buy FGVH’s stocks.
More important, the “people” are really the moneyed and special interest groups. And, of course, Najib alone represents the people and naturally he wasn’t shy to pat his own back. He must have been an accomplished contortionist.
Now that the price has gone down to around RM4.78, everyone who previously jumped up and down, says that the normal course in share trading. Going down is part of the normal course, but going up is taken to mean much more?
Our take is this: Going by the logic of the majority of us with only weak school certificates to vouch us by, the reduction in price, must be testament to lack of confidence. If the trending is more downwards than upwards, then lack of confidence is the stronger force.
We are not confident FGVH will take settlers to new heights nor are we confident Najib, Umno and BN can take our country to new heights. Najib’s only strategy in economics is to give out money, here, there and everywhere.
Right from the beginning, the listing of FGVH and the choice of the vehicle for listing of FELDA’s business interest was questionable.
There weren’t any settlers’ rep on its board. FGVH does business mostly overseas. Its business record was far from good or sufficiently good enough to inspire confidence that it can bring FELDA to new heights. It incurred continuous losses in its business most of the time and only made spectacular rebound on the profits near the listing date. FGVH may not do this, but we have heard of many cases where companies en route to listing cooked up the numbers.
Most of its profits came from the portion it owns in FELDA Holdings. Now what does FELDA Holdings do? The business done by FELDA Holdings is its brick and mortar business — planting of palm oil trees and selling CPO to the world. It wasn’t anything bordering on rocket science that seems to be preferred by FGVH.
FGVH wasn’t managing FELDA Holdings’ business. It was managed separately. If FGVH was managing FELDA Holdings and the company made profits consistently, then we can argue that perhaps, the profitability was due in part to FGVH management quality.
The facts are: FELDA Holdings made profits, its management was better. FELDA Holdings would be a better choice to buy out FGVH shares in Holdings. With FGVH out of the picture in Holdings, the other owner of FELDA Holdings — the KPF, representing settlers and employees’ interest can own 100 per cent. KPF, who then owns 100 per cent of FELDA Holdings, can hire a management company that can bring in more profits.
It was just paper shuffling. Ask investment bank A to come out with a proposal, it comes out with one that promises an initial listing price of RM5. Ask investment bank B, it comes out with a price of RM6. Hey, investment bank B is better.
A higher initial offer price means more money for the backroom boys. Those who have not soiled their feet in the plantations and perhaps may not even see a palm tree before.
Now that the price is going down, Najib is doing all the firefighting. That is the reason why Najib announced that FELDA is financing all the 91.2 million shares. He has read the writing on the wall. If he doesn’t finance the settlers, they will go up in arms. At stake are the 50 over seats in FELDA areas.
At RM4.55, FELDA will spend RM41,496,000. That’s RM41.496 million. It is a small sum to appease the 112, 635 FELDA settlers. And now has just up the ante, he says FELDA will pay all PTPTN loans of settlers’ children. We don’t know how much.
A number of inferences can be drawn from that. The fact that Najib has to continuously bribe settlers could mean support from settlers isn’t that solid. The additional fact that Najib has decided to finance the FGVH transactions and now pay for the PTPTN loans taken by settlers’ children can only mean that indeed support from the FELDA people isn’t as solid as he would want everyone believe.
Najib’s every move now reveals his true character. He hasn’t got a well thought-out plan and instead he makes it up as he goes along. I have to repeat myself: The settlers were supposed to buy the share with bank loan that came with a RM200 processing fee and a 5 per cent monthly rest. If I am not mistaken, the loan was supposed to be repaid in 6 months.
Otherwise imagine this. The settlers who have held on to their 810 shares must pay 810 x 4.55 = RM3685.50 plus RM200 processing fee. That is a total of RM3,885.50.
If they now sell at RM4.78, they earn RM3871.80. Each settler who now sells loses RM13.70.
That’s chicken feed. But RM13.70 loss represents the anger of one settler. And there are 112, 635 of them. If each settler family has 4 voting members, that will represent 450,000 angry voters.
So it is as I have said from the very beginning. FELDA and Najib were selling an abstract idea formed from illusions and unclear business strategy. It’s just paper shuffling designed in the end to enrich holders of large chunks of stock, the investment bankers, the hordes of consultants.
What new, ground-breaking businesses are offered by FGVH? Nothing other than planting more oil palm and opening up more estates. That’s, the very same business that has been done quite well by FELDA on their own without FGVH.
You change the management, tweaked here and there giving the impression that FGVH has evolved into something super. It’s all a corporate BS.
FELDA got RM10 billion. Najib gave FELDA RM5.99 billion. Where did the balance go? Most probably as promised by the FELDA CEO, the money went to the minister in charge of FELDA: Najib himself. The PMO got almost RM4 billion to play around to implement the principal economic strategy of Najib — giving out money to buy votes and allegiance.
Let’s see how votes bought stand up against votes given because of beliefs and convictions. — sakmongkol.blogspot.com
* Sakmongkol AK47 is the nom de plume of Datuk Mohd Ariff Sabri Abdul Aziz. He was Pulau Manis assemblyman (2004-2008).
And another one, a day later:
Tsunami over FELDA — Sakmongkol AK47
September 11, 2012
SEPT 11 — If my friend, Pirates of Putrajaya had been a little bit more patient, he will find his views on the FGV vindicated. Probably he underestimated the will of the government to use GLCs under its control to shore up the FGV price.
Nevertheless, his views will be vindicated soon and I and millions of others hope he will come back into blogosphere to share with us, his rapier sharp analyses.
What Najib is doing right now is just putting out fires. He forgot that it all needed but a single spark to light up the prairie fire.
He has given an advance of RM15,000 each to Felda family. I hear, full payment hasn’t been given out yet. Perhaps Felda will use its gain of RM5.99 billion to pay the balance of what has been promised by Najib. Felda pays unto itself using its own money.
He has given almost RM43 million as raya bonus. Each family got around RM382. That amount was useful to buy cookies, lemang , fresh meats and maybe new curtains for the missus. Because of the drop in FGV share price, he has also announced that Felda will pay for the settlers’ purchase of FGV shares. Once again, that will probably come from the RM5.99 billion.
Finally to placate the settlers’ anger, he has announced that Felda will pay for PTPTN loans taken by the Felda children.
That is his economic strategy. We don’t have to go the Chicago, Princeton, Oxford or Cambridge to do that. Not even Nottingham.
What was the real agenda really? Maybe all this corporate bullshit was about saving FGV. It has done extensive futures trading and had incurred huge losses. That was why some brainy people came up with the idea, the only way to save FGV was to have it buy out KPF’s share in Felda Holdings and go for listing.
At closing time today, FGV share was RM 4.68, earning the holders of the stock a premium of 13 sen. If Najib hadn’t come up with the brilliant idea of ordering Felda to finance settlers’ purchase, each settler ends up with a RM94.70 loss.
Actually FGV bought out Felda Holdings to save itself. It has incurred heavy losses doing futures trading. We don’t know how much FGV got by selling its shares. There was no cash payment involved as the purchase was financed by the issue of new shares which were sold to the public through the IPO. Part of the proceeds were used by Felda to pay its EPF loan amounting to RM6 billion. Then EPF is instructed to buy FGV shares, now it owns 7% of FGV bought for RM 1.2 billion. Foreign interests are selling down to cut down losses.
What is even more pernicious and atrocious is the betrayal to Felda people. 360,000 hectares of land have been forfeited which could be used in future to create 80,000 new settlers.
It’s dark days looming over Felda and no amount of PR exercise can mitigate the anger that is shoring up. There is a tsunami looming over Felda. — sakmongkol.blogspot.com
* Sakmongkol AK47 is the nom de plume of Datuk Mohd Ariff Sabri Abdul Aziz. He was Pulau Manis assemblyman (2004-2008).
Lets get the first thing right. FELDA Global Ventures Holdings IPO was about Prime Minister Dato’ Sri Mohd. Najib Tun Razak’s transformation plan for rationalize, consolidate and transform all business activities under the FELDA Group, to be a world class plantation-based end-to-end corporate giant. The products are from the processes of upstream commodities into downstream products and value added finished products, which include for international markets.
As a ‘reward’ for the loyalty and commitment of 112,635 FELDA settlers since the 60s, on Budget 2012 Speech on 7 October last year Prime Minister Najib announced the ‘Durian Runtuh’, as the result of FGVH assets being rationalized and “unlocked its values”.
FGVH strong compliment is 22,000 staffs and 40,000 workers. The Group has 70 operating mills nationwide, with 16 million tonnes of fresh fruit bunch (FFB) per annum. Of that, its equally raw materials that came from FGVH’s own plantations, FELDA settlers and third party planters.
The listing of FELDA Global Ventures Holdings Bhd (FGVH) is a outright clear success. Within three months of the listing, the share price went up by 85sen or 18.7% of the IPO price. Considering the sheer size of the number of shares, having such a rapid increase is a demonstration of market and long term investor confidence. This was the same season global investment went down, demonstrated by the ambitious Facebook IPO slightly earlier.
Whether or not ‘Politically Bankrupt Malay Politician’ Ariff able to see, the ‘Bumiputra Agenda’ is very strong. The confidence in the FGVH plans to move its forward its entire chain of plantation-based business is very strong, backed by a sound track record.
Undoubtably, the ‘Bumiputra Agenda’ in FGVH is well covered. The IPO allowed 37% being allocated to FELDA settlers via FELDA Authority. FELDA settlers would be allocated 2.5% in the ‘Blue Form’ scheme where else FELDA Authority and FGVH employees and workforce will be allocated 3.0% under the ‘Pink Form’ scheme. On top of that, it is strongly believed that PNB will be allocated 7.5%, various Bumiputra investors and entities (through MITI) 9.5% and several institutions such as Tabung Haji would be allocated 5.0%.
That is effectively 64.5% holding in the name of ‘Bumiputra Agenda’.
FELDA is even extending their progress and growth of the 317 schemes to neighboring villages, so that the Prime Minister Najib’s ‘Transformation Agenda’ is being synegrised to other rural areas. It is by far an extension of the on-going New Economic Policy which his father Second Prime Minister Tun Abdul Razak Hussein rolled out in 1971, as a follow through of his 1960s aggressive rural development plan.
What Ariff claimed for FGVH to be in huge losses is totally a lie. FGVH is very profitable. In fact in 2011, the figure is RM1.37 billion. The instruction for EPF to acquire more FGVH shares is not substantiated.
The manipulation on Koperasi Permodalan FELDA (KPF) is something that Ariff needs to work on. It was some pivotal personalities within KPF senior management who sabotaged Prime Minister Dato’ Sri Mohd. Najib Tun Razak’s original plan to allocated 35% of the FGVH holdings to KPF. That is not withstanding that some KPF members who were agents of PAS via ANAK, took to court and had injunctions to stop EGM to accept proposal to inject FHB into FGVH for 35% of the holdings, twice.
Without the FGVH IPO, values were unable to be unlocked and thus ANAK was actually sabotaging ‘Durian Runtuh’.
There is no reason for the 112,635 settlers, their wives and average four children and their spouses to go against Prime Minister Najib’s leadership and not return BN to power. Probably Ariff and his Chinese Chauvinist masters could keep the score for all 54 Parliamentary constituencies which contain one of these 317 FELDA schemes in all states with the exception of Sarawak and Federal Territory.
For Ariff to impress his new masters by manipulating and lying about FGVH and rubbishing facts about how the Malays fail to benefit in a mega corporate exercise which should be dubbed as “ASN II” is really low. To be factually convincing would be a herculean task, especially when all the evidence is pointing not his way at all. This was actually his game, right from the start. Had Ariff personally checked, “FGVH IPO would affect personal holdings of FELDA settlers land”. This was one of his lies, compounded since late last year.
Probably by being an ADUN with FELDA schemes in his constituency, Ariff need not be a better Yang Berhormat for him to be a candidate and voted in again. Then again, he never was. A true “Haram Jadah”, par excellence!