Media Statement by DAP National Chairman Lim Kit Siang in Petaling Jaya on Wednesday, 14th February, 2001: Call for the cancellation of the RM8 billion bail-outs of Naluri's MAS stake, STAR and Putra and the channelling of the funds for more deserving purposes, as billion-ringgit stabilisation funds to assist the two million Malaysians hard hit by the palm oil price crisis =================================================== The following three reports in the past two days have intensified the public sense of unease and disenchantment over the accountability, transparency and integrity of the Barisan Nasional government with regard to various recent decisions it had made involving mammoth sums of public funds: · "Thanks to the controversial sale of its 29.09% stake in national carrier Malaysian Airline System Bhd, Naluri Bhd expects to stage a turnaround for the current year ending Dec 31, 2001 after suffering four years of losses. Naluri, which will be on a strong financial footing with negligible borrowings and some RM864.5 million cash after the sale and debt repayment, has identified two fast-growth industries which it may want to invest in." · "Sistem Transit Aliran Ringan Sdn Bhd (Star) and Projek Usahasama Transit Ringan Automatik Sdn Bhd (Putra) will continue to operate and manage Kuala Lumpur's light rail transit (LRT) systems despite losing ownership of their assets to the government. Sources said the government will lease back the operation and maintenance of the LRT to Star and Putra after acquiring the assets of the two firms for RM6 billion under its massive urban transport restructuring scheme." · "Time dotCom's IPO 75% undersubscribed - Time dotCom Bhd's initial public offering (IPO), the largest ever in Malaysia's history, has received poor response from the investing public. Applications were received for only 142.86 million shares, or 25% of the total made available for public subscription." Time dotCom's IPO fiasco has made Malaysians even more "unwilling buyers" in the deal involving the government's RM1.79 billion bailout of Tan Sri Tajudin Ramli's 29.09 per cent stake in MAS through Naluri and even more convinced that the RM8 per share paid by the government for the MAS shares, which is a hefty premium of over 90 per cent on MAS's last audited net tangible assets per share of RM4.18 at the end of March 2000 and 120 per cent above MAS's traded price of RM3.86 at the time of the deal, was such a gross overpayment as to tantamount to a criminal breach of trust and a heinous misappropriation of public funds. The announcement that STAR and PUTRA will continue to operate and manage Kuala Lumpur's light rail transit (LRT) systems despite being bailed out to the tune of RM6 billion by the government made the Malaysian taxpayers feel that they are the sole losers after having to foot the RM6 billion bill as taxpayers. Malaysians, regardless of race, religion or political beliefs, are entitled to ask why a select few are never losers as the taxpayers have always to foot mega-bills for their mismanagement, incompetence or follies as in the bailouts of Tajudin Ramli, STAR and PUTRA. Malaysians are entitled to stand up to declare with one voice: "Enough is Enough!" and that there should be no more bailouts for a select few, that the government can take over the 29.09 per cent MAS stake, STAR and PUTRA but not at the price of RM8 billion of taxpayers' money as the previous owners must take their full "appropriate haircuts" as laid down in the National Economic Action Council guideline for government bailouts. The RM8 billion bail-outs of Naluri's MAS stake, STAR and PUTRA should be cancelled and the funds channelled for more deserving purposes, as the establishment of billion-ringgit stabilisation funds to assist the two million Malaysians in the Felda, Felcra and smallholder schemes hard hit by the palm oil price plunge crisis. The crash of the palm oil prices from the average of RM2,377.50 per tonne in 1998 to below RM700 per tonne has created a crisis for a quarter of a million oil palm smallholders in the country who are more deserving of government assistance than Naluri, STAR and PUTRA. The Cabinet should set up a special task force to bring immediate relief and financial assistance to the victims of an unprecedented collapse in the palm oil prices. - Lim Kit Siang - ------------------------ Yahoo! Groups Sponsor ---------------------~-~> eGroups is now Yahoo! 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