Mahathir: living in a glasshouse and throwing stones
Mahathir is foaming at the mouth and barking about what he says is RM42 billion (now he says it is more than RM50 billion) of 1MDB’s money disappearing into thin air. But Mahathir refuses to respond to the allegation that in his time RM1,800 billion disappeared into thin air.
THE CORRIDORS OF POWER
Raja Petra Kamarudin
On 1st March 2016, Malaysian Digest ran the story titled ‘Is Tun M Trying To Shift Attention Away From His Troubled Proton?’ (READ HERE). Amongst what was said is:
According to industry sources, Proton’s top management is quite stressed out with Tun M taking his political circus onto Proton’s business platform, jeopardizing the delicate position of the company.
Allegations have surfaced that Tun M hogs the limelight at all Proton events, where he expects media coverage so he can use the platform to continue whacking Najib.
As highlighted by the Motortrader editor in his detailed analysis of Proton’s car failings, the Proton chairman is fully aware of the marketing failures of certain car model brands.
Market talk also suggest that Tun M kept disagreeing with former chairman Tan Sri Mohd Khamil that led to Kamil withdrawing himself from Proton and suggesting to Tan Sri Syed Mokhtar Bukhary to make Tun M chairman.
Soon after Proton announced its adoption of a new engine from the UK last month, Tun M had again took Malaysians to task for looking down on the national car.
“Proton is aware of the negative perception of its cars in the Malaysian market. This is especially among owners of imported cars. Nothing can persuade them to buy Proton cars. Certainly, pride in a Malaysian-made car is not with them,” wrote Tun M on his blog Chedet.cc.
With the national car company in such dire straits, perhaps it was a stroke of genius on Tun M’s part to kill two birds with one stone by diverting attention back to UMNO and PM Najib as well as buy the troubled national car company some time.
The gist of this report is: Proton has never been viable from the start, Tun Dr Mahathir Mohamad interferes too much in the running of Proton (or tries to micro-manage Proton), there were many bad decisions made (in particular with the marketing strategies), and Mahathir expects Malaysians to buy Proton cars just out of patriotism even if the cars are not that good.
Well, know one thing, people are prepared to be loyal or be patriotic just as long as they do not need to lose anything or have to spend money. If it has to cost them then they would prefer the ‘other person’ do it instead. And no one wants to buy a car just to demonstrate loyalty or patriotism.
The issue of MV Agusta is one classic example of how Proton may not quite know what it is doing. This was what the Penang Chief Minister, Lim Guan Eng, said in his press statement on 16th July 2008 and carried in the DAP website:
A Royal Commission of Inquiry into the RM800 million ringgit MV Agusta scandal to determine how Proton lost RM500 million when it could have earned RM300 million
DAP agrees with the call by former Prime Minister Tun Dr Mahathir Mohamad for a Royal Commission of Inquiry into the RM800 million ringgit MV Agusta scandal to fully disclose mismanagement and financial misjudgments by Proton Holdings Bhd, action against those responsible and new measures to be implemented against such weaknesses. This follows the shocking announcement by Harley Davidson Inc two days ago that it will purchase Italian motorcycle manufacturer MV Agusta, once owned by Proton Holdings Bhd, for US$109 million (RM352 million), making the total sale proceeds of RM800million.
Proton Holdings had bought MV Agusta in 2006 for RM368 million which it had then sold for only one euro (RM5) to an unknown company in Italy – Gevi SpA. In justifying the sale for one euro Proton had said here were no operational, engineering, and technological synergies between Agusta, the motorcycle maker, and Proton as a carmaker.
Proton bought a 57.75 percent stake in MV Agusta in December 2004 for 70 million euro (RM367.6 million), which was treated as goodwill and written off. However Proton lost more than RM500 million in the sale for one euro because it had to assume the additional provisions relating to MV Agusta in the accounts of the Proton group for the financial year ended March 31, 2006, amounting to RM136.2 million.
After MV Agusta was sold off for one euro (RM5), Gevi SpA sold Husqvarna, a division of MV Agusta which manufactures scrambler sporty off-road motorcycles, to a German company BMW for 90 million euro (RM450 million). Now MV Agusta has been bought by Harley-Davidson Motor Cycles of the United States for RM350 million.
Public interest therefore requires a full accounting from Proton on how it went so terribly until BMW can pay RM450 million for one third of MV Augusta and Harley Davidson pay RM352 million for the remaining stake which Proton sold only one euro at a loss of more than RM 500 million. Tun Dr Mahathir is correct to state that Proton appears to have lost approximately RM800 million by selling Agusta for only RM5 stating that the buyer of MV Agusta “invested one euro and made 160 million euro”.
Malaysians have a right to know what type of management can make such a decision that allows other foreign companies to benefit at our expense. Instead of losing RM500 million, Proton could have earned RM300 million if it had sold to BMW and Harley-Davidson. Proton has refused to answer despite Khazanah Malaysia, the Malaysian government’s investment arm, holding about 42.74% of Proton.
Public interest requires full accountability and transparency. Unfortunately Proton’s refusal to give full disclosure leaves requires an establishment of a Royal Commission of Inquiry into this RM800 million MV Agusta scandal in the interests of good corporate governance and social responsibility. Malaysians wants answers to this RM800 million question.
http://dapmalaysia.org/english/2008/jul08/lge/lge879.htm
Mahathir is still harping on the issue of 1MDB and the RM2.6 billion-donation from the Middle East. He is pretending as if this is the issue as to why Prime Minister Najib Tun Razak has to go (whereas the issue is really about his son, Mukhriz). Whatever it may be, said Mahathir, Najib has to be held accountable and must take responsibility for whatever happens in Malaysia.
If that is so then there are 1,800 billion reasons why Mahathir needs to be held accountable and must take responsibility according to what has been reported here, titled The Most Corrupted Malaysian: http://corruptedbarisannasional.blogspot.co.uk/2009/11/most-corrupted-malaysian_2343.html
The list of ‘crimes’ and the total amount it comes to is mind-boggling. And all this has been compiled into a book titled ‘Malaysian Maverick: Mahathir Mohamad in Turbulent Times’.
Barry Wain, the author of ‘Malaysian Maverick’, used to be the editor of the Asian Wall Street Journal (AWSJ). And Malaysians believe whatever the WSJ says, especially regarding 1MDB and/or Najib. So what Barry Wain wrote can only be 100% correct and the gospel.
On 15th March 2004, Time Asia wrote that Malaysia has suffered losses of US$100 billion due to corruption since the time Mahathir became Prime Minister in 1981. And that is just the figure for corruption and does not include wastages yet, which will then bring that figure to US$200 billion.
Yes, US$200 billion or RM800 billion then, which comes to RM1.8 trillion (RM1,800 billion) today.
Mahathir is foaming at the mouth and barking about what he says is RM42 billion (now he says it is more than RM50 billion) of 1MDB’s money disappearing into thin air. But Mahathir refuses to respond to the allegation that in his time RM1,800 billion disappeared into thin air.
More importantly, about RM100 billion (and some say RM200 billion) of this is supposed to have been parked under proxies who are acting as trustees for Umno. But then no one in Umno has seen that money. So where is it and who is keeping that money?
As what Mahathir said a few days ago: SHOW ME THE MONEY! Yes, show us that RM100 billion (or RM200 billion). We know you cannot show us the RM1,800 billion (or RM800 billion then) that has already disappeared into thin air.
And, today, people like Lim Kit Siang of DAP, who used to issue daily statements whacking Mahathir, are now literally holding Mahathir’s hands because they are united by a common cause — to save their bobois’ political careers.
