Khazanah 'must explain' RM5bil loss
A DAP parliamentarian has asked the Finance Ministry and government investment arm Khazanah Nasional to explain their involvement in Silterra Malaysia Sdd Bh, which posted a loss of RM1 billion last year.
A DAP parliamentarian has asked the Finance Ministry and government investment arm Khazanah Nasional to explain their involvement in Silterra Malaysia Sdd Bh, which posted a loss of RM1 billion last year.
This is compounded by the alleged loss of RM5.17 billion that Khazanah Nasional is said to have invested in the semiconductor wafer manufacturer since 1994.
At a press conference in the Parliament lobby today, Petaling Jaya Utara MP Tony Pua called for accountability over Khazanah’s involvement in the Kedah-based company.
Pua, also the DAP national publicity secretary, described the losses as “disastrous” and pointed out that the company had only raised revenues of RM461 million and RM551 million respectively in 2005 and 2006.
“What is most fearful is the fact that Silterra is seeking an additional RM8.5 billion for its expansion efforts,” said Pua, citing a November 2007 press statement by the company.
“Khazanah Nasional and the Finance Ministry must explain in Parliament the extraordinary losses incurred to date; whether Silterra can continue to be viable and, if so, what are the critical measures being put in place to rescue its subsidiary from the ‘intensive care unit’.
“Do we have what it takes to compete in this particular sector, or would it be more beneficial for Malaysia to lay emphasis and invest in high-technology sectors which it actually possess competitive advantages?”
The issue was initially raised last week in Parliament by Labis MP Chua Tee Yong.
RM5 billion bailout of Valuecap slammed
Pua also expressed concern over the "mega-bailout" of Valuecap Sdn Bhd, a company set up in 2002 to invest in shares to help shore up the equities market.
The company, with the support from the government, had borrowed RM5.1 billion from Khazanah, the Employees Provident Fund and Permodalan Nasional to invest in the stock market.
According to Malaysian Insider website, the recent RM5 billion injection into Valuecap was not intended as "additional" investment to support the flailing stock market as suggested by new Finance Minister Najib Abdul Razak.
Instead it was a rescue package for Valuecap to repay its original multi-billion ringgit debt, which is due in February next year.
Citing documents, the website said that Valuecap's bonds were due to be repaid in February 2006, but the company was given another three years.
"Clearly in this case, the purpose of the RM5 billion ‘loan' from EPF to Valuecap as instructed by the finance minister is a clear case of a mega bail-out of Valuecap whose investment lifespan has already ended nearly three years ago," lamented Pua.
"We will like to call upon Najib to immediately cancel the RM5 billion injection into Valuecap, particularly if after nearly six years since its inception, it has failed to even protect the principal value of the stocks despite the fact that the market has enjoyed a spectacular bull run til early this year."
Pau also demanded a full and immediate explanation on Valuecap's inability to "repay" its initial loans from EPF, Khazanah and Permodalan Nasional.
Fewer draws, please
On a separate matter, Bagan MP and DAP secretary-general Lim Guan Eng said he had suggested to the Finance Ministry that the main lottery players - Magnum, Pan-Malaysia and Sports Toto - should reduce their 10 weekly draws to six.
“In view of the economic recession, the number of lottery draws should be reduced from 10 times to six times a week," he said.
"I think 10 draws a week is too many. Why let these betting companies earn so much?"
