Recently you may have read that the PM is waiting made a decision to loan 5 billion to Valuecap Sdn.Bhd after taking the Finance Ministry portfolio as capital injection to revive the sliding stock exchange. So what is wrong about it? Our leader is only doing what is right to save the economy from falling further. Any level minded leader with a heart would do what is natural for the rakyat.
Wait a minute some say they smell a rat some where!
According to Malaysiakini, 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 ( 2009).
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.
Tony Pua mentioned in Malaysiakini that "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!
This is interesting, why would Najib made that decision when Valuecap cannot even pay back the initial loan during bullish economy and how the hell are they going to salvage this 5 billion during the global economic meltdown. When you can’t even perform during good times how are you going to make it during challenging times. I guess the government is applying the “ Malaysia Boleh” spirit to show to the world how the Malaysian leaders are far better than their counter parts in overcoming the economic crisis!
Don’t we just love the Malaysia Boleh spirit! I am withdrawing my account two (2) immediately!
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4 days ago
1 comment:
Many companies (listed or not) issed bonds and professionals (accountants, lawyers, investment bankers, rating agencies) reviewed the prospects of payback. Seriously, how many did payback based on original forecast? Many did not default because of refinancing, not because of cash flow from original project. Those who did not manage to refinance got into trouble and I foresee many listed coy will be in trouble soon.
Also, if Valuecap is to repay its bondholders, imagine the sell off that's going happen and it's impact on KLSE.
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