Here's another example of rich and well-connected bumiputera getting richer while the rest fight for crumbs.

Southern Bank as a result of the recent bank mergers finds itself having less than the required 30 percent bumiputera equity participaton and is now obliged to issue 280.2 million new shares to bumiputera investors.

In its proposal submitted as a resolution for the coming extraordinary general meeting (EGM), Southern Bank proposed to offer 171.2 million of the new shares ranging from 17.6 to 62.5 million each to four bumiputeras.

All of these people are already very substantial shareholders with shareholding in the hundreds of million and some of them are board members. The remaining 109 million new shares will be issued to 15 persons who are not named.

The offer price of the new shares comes with a 44 percent discount based on the five-day weighted average price up to April 30, 2004. Even based on the current depressed market price, each of the four bumiputeras is going to have tens of millions of ringgit presented to them on a silver platter if the resolution is passed at the EGM.

What is the justification for this proposal? None. Other than the rationale provided '...aimed at complying with the condition imposed by the Foreign Investment Committee (FIC) and is in accordance with the National Development Policy".

Any bets that the resolution will not be passed?