Thursday, June 19, 2008

ACA Probes Pos Malaysia

June 19, 2008 18:24 PM

Pos Malaysia Confirms ACA Probe

KUALA LUMPUR, June 19 (Bernama) -- Pos Malaysia Bhd has confirmed the Anti-Corruption Agency's (ACA) investigations conducted at its premises on Wednesday.

"We cooperated with them fully. We have nothing to hold back or to hide," acting managing director/group chief executive officer, Datuk Abu Huraira Abu Yazid told reporters after the company's annual general meeting here Thursday.

Asked if the visit specifically targeted individual, Abu Huraira said: "It's just general. Whatever they confiscated, we also have a record of the items,".

He, however, said he was not around on Wednesday.


Mahathir apologist I am not, here's what Canine gigantis wrote:

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!

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