He cannot know figures others can obtain…what does it say about the finance minister?

and it took years to answer a question…

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PM: Why we sold MV Agusta for RM5

Yoges Palaniappan Sep 3, 07 5:36pm

The government today defended its decision to sell MV Agusta Motors to Italy’s Gevi SPA for a token sum of one euro (RM5). In a parliamentary written reply, Prime Minister Abdullah Ahmad Badawi said the sale was conducted only after a thorough study. “Among the things we took into account was Credit Suisse Boston’s research which showed that Proton needed to sell its stake in MV Agusta,” explained Abdullah, who is also finance minister. At that time, he added, Proton was going through financial hardship and could not afford to fund high-end motorcycle company Agusta. “Although Proton was the biggest shareholder in Agusta, it did not have full control over the management of the company,” he said, adding that Proton’s decision to sell off its stake to Gevi was right as Gevi had the financial capacity to continue funding Agusta. Proton had coughed up 70 million euros (RM330 million) for a 57.75 percent stake in MV Augusta three years ago. Abdullah was responding to a query from Teresa Kok (DAP-Seputeh), who had asked the finance minister to state the rationale behind Proton’s decision to sell Agusta for one euro to Gevi, since Gevi was purportedly able to sell one third of Agusta for 93 million euro (RM430 million). She also wanted to know the identity of Gevi’s board of directors and asked whether the government will set up a special commission to investigate the ‘mistake’ in Proton’s transaction. PM denies report Abdullah explained that the rationale of Proton selling Agusta to Gevi was to allow the former to focus on its core business, manufacturing and marketing cars. “Thus, the decision to sell MV Agusta is the best choice for the company’s operations and business,” he said. Abdullah revealed that Gevi’s principal is Allessandro Picollo, the former chairman of Agro Finance, a subsidiary to Banca Carige, an Italian finance and insurance company. The premier also denied that Gevi had sold one third of Agusta for 93 million euro. “Proton has conducted a few researches to date, and we have not made any discovery to support the claim,” he said. “Any question of transaction mistakes does not apply as Proton did not have any business relationship with Agusta when the sale was made,” he added. Husqvarna, which was part of Agusta, is considered one of the most renowned motorcycle makers in the world and a leading supplier of sporty off-road superbikes. ‘Yet they paid 93 mil euros’ Two weeks ago, former Proton chief executive Mahaleel Ariff told malaysiakini that BMW paid RM420 million to secure Husqvarna, which roughly makes up one-third of Agusta. This figure could not be independently verified by malaysiakini. He claimed that the remaining two brands – MV Agusta and Cagiva – and two factories belonging to Agusta was valued between 100 million to 150 million euro (RM470 million to RM700 million). Mahaleel said nothing had been done to increase the value of Agusta since Proton sold its stake as there were “no sales increase, no new products nor new patents”. “Put it simply, it was worse off when it was sold to BMW and yet they paid 93 million euros… (the present Proton management) on the other hand, sold the whole thing – three factories, three brands – for just one euro,” lamented Mahaleel today. http://www.malaysiakini.com/news/71918

Agusta sale: ‘Proton’s loss, BMW’s gain’

Andrew Ong and Kuek Ser Kuang Keng Aug 15, 07 6:43pm

Proton may have made a multi-billion ringgit blunder by selling its stake in Italian luxury motorcycle maker MV Agusta, said its former chief executive Mahaleel Ariff.

Mahaleel said that the purchase of Agusta’s Husqvarna-brand and its factory by German luxury automobile giant BMW last month was proof that the ‘old’ Proton management had made the right choice.

Husqvarna is one of three top Agusta’s superbike brand – the other two are MV Agusta and Cagiva.

Under Mahaleel’s stewardship, Proton coughed up 70 million euros (RM330 million) for a 57.75 percent stake in MV Agusta in 2004.

Following a change in Proton leadership, the entire stake was sold for a token sum of one euro (RM4.7) to little known company Italian company Gevi SpA.

Mahaleel told malaysiakini that BMW paid 93 million euros (RM420 million) to secure Husqvarna, which roughly makes up one-third of Agusta. This figure could not be independently verified by malaysiakini.

He claimed that the remaining two brands and two factories belonging to Agusta was valued between 100 million to 150 million euro (RM470 million to RM700 million).

Mahaleel said nothing had been done to increase the value of Agusta since Proton sold its stake as there were “no sales increase, no new products nor new patents”.

“Put it simply, it was worse off when it was sold to BMW and yet they paid 93 million euros… (the present Proton management) on the other hand, sold the whole thing – three factories, three brands – for just one euro,” lamented Mahaleel today.

It was a good deal

Quizzed about Proton management’s claims that Agusta was debt-ridden, Mahaleel said the Proton management then had manage to negotiate for a good deal then.

“When Proton bought MV Agusta, the debt was about 170 to 180 million euros (RM800-RM850 million). We negotiated and reduced the debt by about 40 percent. So the (remaining) debt was about 110 million euro (RM520 million). The debt was frozen for three years, which we then had to pay gradually.

“So that’s why we bought Agusta so cheap. We paid about 70 million euros (RM330 million) and the remaining debt is shared by all shareholders. Proton only 54 percent shareholder. We share roughly half the debt,” he added.

Quoting BMW motorcycle division chief Herbert Diess’ reason for acquiring Husqvarna – an off-road motorbike – Mahaleel said Proton had initially acquired the stake in Agusta because the latter had three distinct brands and a worldwide distribution network.

Reuters on July 20 quoted Diess describing Husqvarna as a brand targeted towards younger customers and the off-road and supermotor sector.

“This transaction also provides us with direct access to a worldwide sales network in the off-road segment,” said Diess.

Mahaleel said Proton and Lotus were already two brands, but lacked the worldwide sales network which Agusta could offer.

“With an international network and five brands, we become a global company. That is why we bought MV Agusta,” said Mahaleel.

Heads must roll

Mahaleel said the individuals in charge of selling the stake in Agusta has a lot to answer for in view of the latest developments.

“The government and Proton management said Agusta was useless. But BMW is a very successful company. Why did they buy something which Proton say is no good? Are they more stupid than we are?” he asked.

According to Mahaleel, Proton was advised by Credit Suisse First Boston while BMW was advised by Progman Group and Borghesi Colombo and Associates. Both are esteemed investment advisors.

“But why did have vastly different recommendations?” he added.

Mahaleel is often remembered as the chief executive who turned Proton into the black during his seven-year tenure.

His contract was not extended on July 25, 2005. It was believed that the move was due to his close links with former Prime Minister Dr Mahathir Mohamad who retired in November 2003.

http://www.malaysiakini.com/news/71233

Pathetic…when Malaysians always need to seek justice on their own

why do we have a government…are they not doing anything for the people? Shouldn’t the government be doing everything for the people in terms of ascertaining justice for them – in the economy, social, and political contexts? Why must the people ALWAYS get to do their own fighting to get rights? We have a hopeless government – there are uncountable injustices happening to the people…Malaysians generally are not happy…well, the professors won’t be allowed to research on things that highlights the truth about Malaysians’ unhappiness…

One mark of a caring government is the absence of the people’s fighting for their basic rights… certainly it is not one of BN’s characteristics – it will achieve such absence in high handed manner – using the police, draconian laws, threat, pulling away benefits from people who show dissent, imprisoning them, muting them forcefully…so far from an islamic state!

Let’s NOT give the BN government any liberty anymore to harass, suppress, discrimnate, threaten the people in any way by putting in place the opposition in a stronger position in parliament and the state assemblies…so BN WILL NOT do AS THEY PLEASE AT ANY TIME.

VOTE FOR THE OPPOSITION!

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M’sian sues UK gov’t for ‘oppression’

Sep 3, 07 12:24pmMalaysiakini.com

One million pounds sterling for every one of the two million Indian Malaysians – an Ipoh-based lawyer is seeking this staggering sum of compensation from Britain for alleged failure to protect the minority community’s interests during independence talks. P Wathya Moorthy, who is also Hindu Action Rights Force chairperson, filed the suit against the UK secretary of state for foreign and commonwealth affairs last Thursday at the Royal Court of Justice in London. The suit captures the lingering resentment of the Indian Malaysian community over 50 years of independence with the claim for compensation based on their “pain, suffering, humiliation, discrimination and continuous colonialisation”. In his statement of claim, Wathya Moorthy also sought declarations that: Colonial Britain was responsible for the exportation of labour from India to Malaysia; The Reid Commission Report dated Feb 11, 1957 and the Malayan Federal Constitution prepared on the respondent’s defendant be declared null and void; The Reid Commission Report had failed to incorporate the rights of the Indian community; There has been gross violation, segregation, discrimination, marginalisation and apartheid of Indian Malaysians; and Article 153 of the Federal Constitution, which provides for Malay special privileges, is in contravention of the Universal Declaration of Human Rights and the International Labour Organisation legislation with regard to racial discrimination. In a press statement issued yesterday, Wathya Moorthy explained that the suit is necessary to let the international community know how Indian Malaysians have been affected. “The UK now cannot detach itself permanently or partially from colonial problems,” he said. “It had a moral, legal, social and political responsibility to ensure there existed fair governance throughout her colonies and any violation of rights must be attended to immediately before it becomes a menace causing (an) international crisis.” Long-standing issues Wathya Moorthy said it is an undisputable fact that the respondent was principally responsible for “illegitimate” export of human resources from British colonial India to serve their interests in Malaya. “Before independence was declared to Malaya, the peculiar position of the Indians was assured to be protected by the British government. But this assurance was never translated into action by the British in the creation of the Federal Constitution,” he said. “They have grossly neglected to discharge their legal and moral duties… The framework provided by the British government to Malaya resulted in severe imbalance and prejudice which are presently irreversible and beyond correction. “As a direct consequence the Indians today have effectively become the underclass citizens of Malaysia and remain colonialised forever. Moreover, there exist no mechanisms under the present governance to remedy the gross imbalance.” Wathya Moorthy said Indian Malaysians are now suffering as a result of being “colonised” by the current government with little chance of upward mobility. “(The Indian Malaysians have formed a) new underclass… and (are) under-privileged citizens of Malaysia and remain permanently colonialised by the ruling Muslim-majority government led by Umno,” he said in his statement of claim. He listed the government policies allegedly utilised against the community, including: Bumiputera special privileges Not fully aiding the 523 Tamil schools No affirmative action policies for poor Indians vis-a-vis similar policies for bumiputeras Denying Indians top- and mid-level postings in the civil service Demolition of Hindu temples Victimisation by enforcement authorities He argued that these problems are a direct result of the failure of the Reid Commission to safeguard the community’s interests. “(The colonial government) gave in to the Malays as a quick-fix solution to wash their hands off Malaya after having successfully used the Indians for their financial gains for 200 years,” he alleged. The Reid Commission was an independent body formed to draft the Federal Constitution – the team of foreigners received 131 memoranda from organisations and individuals. In February 1957, it submitted its working draft which was scrutinised by a committee comprising four representatives of the Malay rulers and four representatives of the Alliance government. The Alliance coalition – comprising Umno, MCA and MIC – was the predecessor of the present ruling Barisan Nasional coalition. http://www.malaysiakini.com/news/71882