Another Kayveas in the making? Dr M's steal...

Turn to page 5 of TheSun today, and see if there's some potential Kayveas rising from Gerakan's ranks...

Take the rap for condo
site crash, Fong told


KUALA LUMPUR: Gerakan Youth said yesterday
it wanted Human Resources Minister Datuk Seri Dr
Fong Chan Onn to take full responsibility for the
death of management consultant Dr Liew Boon-Horng,
who was killed by a falling iron mould
from a construction site on Friday.
Its vice-chairman, S. Paranjothy, said in a statement
that the ministry should have stopped work at
Block B of the Plaza Damas service apartments after
the construction company, MWE Advance Structure Sdn Bhd,
was found to have violated regulations and safety
at the worksite.
"The mnister was very well aware of the violation and
he should not feel upset, disappointed or angry
because the death of Dr Liew was due to his
inefficiency, negligence and lack of enforcement."

DESIDERATA: Strong words by little brother ... for findings of
"inefficiency, negligence and lack of enforcement", why did not Paranjothy and his pack go one step fruther: call for Fong's
resignation?

In Japan, ministers had resigned for smaller "wrongdoings" or omissions of duties.
Ah, Malaysia has abndoned its Look East Policy for some time now.

So let's see the wayang or opera or sandiwara taken to a higher level...


From the national news agency, where Desiderata
learnt his ABCs of journalism 101, but adapted it with X, Y and Zees!
January 03, 2006 23:49 PM

Fong To Meet Keng Yaik Over Gerakan Youth Statement


KUALA LUMPUR, Jan 3 (Bernama) -- Human Resources Minister Datuk Seri Dr Fong Chan Onn said Tuesday he would meet Gerakan President Datuk Seri Dr Lim Keng Yaik Wednesday over a statement by Gerakan Youth that Dr Fong should take full responsibility for the death of management consultant Dr Liew Boon-Horng who was killed by a falling iron mould from a construction site last Friday.

The Gerakan Youth statement was issued by its vice-chairman S. Paranjothy who also said that the ministry should have stopped work at Block B of the Plaza Damas service apartments after the construction company, MWE Advance Structure Sdn Bhd, was found to have violated regulations and safety at the worksite.

Paranjothy had also said that Dr Fong was well aware of the violation and he should not feel upset, disappointed or angry because the death of Dr Liew was due to his inefficiency, negligence and lack of enforcement.

Dr Fong, speaking to reporters after presenting certificates to participants of a chef training course organised by the Federal Territory and Selangor Ku Su Shin Choong Hung Restaurants Association here, said he would submit a comprehensive report on the accident to the Cabinet Wednesday.

Dr Liew, 35, died on the spot when a two-tonne iron mould fell on his passing car from the 20th floor of the building under construction in Sri Hartamas here.

His wife Joanne Loy Ai Lan and their driver Ahmad Harun Jajuli were injured in the bizarre accident.

-- BERNAMA

DESIDERATA:

Just to make sure there is no MISunderstanding about Desiderata's inclinations: I support Paranjothy's stand, promotes the prinmciple of Accountabuility ala-Japan so the "honourable" thing to do is "take responsibility" for misdoings and omissions under thy wings. What this 'honourable" thing to do is, let the bugger decide. Maybe he/she should do a first reading of Julius Caesar, or at least my Post yesterday for a quickie!

Just to make doubly asure there is no MISunderstanding2 about today's Post Title,, here's the thingy in fool...:(

Another Kayveas in the making? Dr M's stealING THE SHOW STILL!

Desiderata has in previous columns writ hthat Dr Mahathir Mohamad had always been a media favourite subject to cover. Even in absentia! His was the towering figure on the PWTC stage when the UMNO held an Annual Assembly, and the good doctor, then former prime Minister, was away overseas.

So the latest, the Proton management is not going off scot-free as even Desi has asked a few days back: Writing off RM313million and the Company says "It" would not affect its earnings?



--------------------------------------------------------------------------------
January 03, 2006 21:01 PM

Dr Mahathir And Mahaleel Question MV Agusta Sale

KUALA LUMPUR, Jan 3 (Bernama) -- Proton adviser Tun Dr Mahathir Mohamad and the former chief executive officer (CEO) of the national car maker, Tengku Tan Sri Mahaleel Tengku Ariff, Tuesday questioned the rationale behind Proton's sale of MV Agusta Motors S.p.A. for one Euro (RM4.50).

In a joint statement released here, they also raised several questions regarding the disposal that was announced by Proton Holdings Bhd in a filing to Bursa Malaysia last week.

Among them were on who had offered to sell or buy the stake for one Euro, whether there were other bidders and if there had been an attempt to get the buyer to pay a higher price.

Questions were also raised on if there had been an announcement on the sale of MV Agusta, whether Proton approached only one bidder, and if other bidders were approached, had the bidders rejected?

They also sought to know who made the decision to sell, and an explanation from Proton on how selling an entity bought at Euro 70 million (RM315 million) for one Euro would not cause Proton to lose money as claimed.

Proton Holdings had announced that its wholly-owned subsidiary Proton Capital Sdn Bhd has signed an agreement with GEVI S.p.A., to sell MV Agusta. Proton Capital has a 57.75 percent joint controlled entity in MV Agusta.

Dr Mahathir had recently said that he was not involved in the decision to sell Proton's stake in the Italian motorcycle maker.

MV Agusta, a famed but struggling designer and manufacturer of the Agusta, Cagiva and Husqvarna motorcycles was bought by Proton in 2004. Its Agusta F4 1000 Tamburini is recognised as the best sports motorcycle in the world.

Dr Mahathir, the former Prime Minister and Tengku Mahaleel, whose tenure with Proton ended at the end of September last year said Proton owed its shareholders and the public an explanation.
As the two people most involved in the purchase, Dr Mahathir and Tengku Mahaleel said their credibility and honesty were at stake.

"We want to know the correct answers. The public too may want to know as Proton is a national project."

Dr Mahathir and Tengku Mahaleel said that the loss incurred by Proton following the sale should amount to RM315 million less RM4.50.

"Assuming that this relieves Proton from paying the loss incurred by MV Agusta over the 15 months at Euro 26.87 million (RM131 million), it would still lose the purchase price of euro 70 million by selling off at one Euro."

Due to the sale, they said there was no possibility now for Proton to turn around the company and regain its purchase price, if not make a profit.

"Of course, Proton will now not get access to MV Agusta engineering technology."

They added that Proton bought MV Agusta fully knowing that it had a debt of euro 230 million, which it does not have to pay for three years.

In addition, MV Agusta has assets in the form of two plants (in Cassinetta and Morazzone) and stocks of motorcycles.

"Losing automotive companies like Rolls Royce, Bentley, Skoda, Lamborghini, Aston Martin and many others have been bought by stronger companies and have been turned around.

"But the price reflect the assets and the brand. As far as we know they were not sold for one Euro," Dr Mahathir and Tengku Mahaleel said, stating that MV Agusta's four brands were of high value.

On Proton's ability to turn around MV Agusta, they said the building of a RM1.8 billion facility in Tanjung Malim without borrowing or capital injection from the government; and still left with over RM2 billion cash showed that Proton was a profitable company and it knew something about management to make profit.

Referring to the recent loss incurred by Proton, which was said to be due to provisions made for MV Agusta loans, Dr Mahathir and Tengku Mahaleel claimed that Proton Edar CEO Datuk Maruan Mohd Said had during a press conference admitted that the discounts given by Proton had affected Proton's profits.

"Unfortunately no figures were given. But apparently a total of 54,000 cars were sold in three months with rebates and large discounts which included free registration, free insurance, free first instalment payment for three months and free service.

"Roughly the discount per car would be around RM2,000 or more. At RM2,000 on 54,000 cars, Proton would forego RM108 million. The increase in the number sold cannot make up for the amount foregone."

Describing these figures as a reflection of a failed strategy, Dr Mahathir and Tengku Mahaleel said instead the loss was attributed to provisions for debts of MV Agusta.

"When provisions are made for bad debts, it does not necessarily mean that the debts cannot be recovered. Besides, how is the quantum determined?

"The debts of MV Agusta are frozen in any case and it need not be paid immediately. Has the amount provided been paid so as to reduce MV Agusta's debt or is it still with Proton when MV Agusta was sold at one Euro?" they asked.

Meanwhile, they also questioned the sale of MV Agusta to Gevi S.p.A as the latter is not a household name in the automotive industry.

"Is it a motorcycle company, confident that it can turn around MV Agusta, something that the sale by Proton implies that Proton has no capacity or ability to turn it around?"

Not having to pay euro 70 million will be an advantage for Gevi, they said.

-- BERNAMA

DESIDERATA: I would also like to see how the points and observation made by the good doctor, former PM and still Proton adviser, highlighted here, would be answered by the Proton management. But often in the steal of broad daylight, some people think the best winning strategy is: SILENCE IS GOLDEN...?
Or do I hear some murmurs of sandiwara from some of my ER?