Tuesday, March 14, 2006

Selangor GLCs lost RM286 million


This is another nightmare for Selangor after the “developed-state-flood” in Shah Alam on February 26 and the “developed-state-stench-water” incident.

The 2 state owned companies, Kumpulan Perangsang Selangor Bhd (KPS) and Kumpulan Hartanah Selangor Bhd (KHSB), recorded a pre-tax loss of RM97,904,000.00 and RM188,780,000.00 respectively for the year 2005, totaling RM286,684,000.00.

The financial results of both the companies were provided to the Bursa Malaysia on 28.2.2006.

Selangor state government investment arm, Kumpulan Darul Ehsan Bhd (KDEB) owns 53.10% of KPS shares and KPS owns 52.07% of KHSB shares. However, only KPS and KSSB which undertake the infrastructure and utility and property business of KDEB are listed at KLSE.

Being the chairman of the conglomerate having the motto “Excellent KDEB, Glorious Selangor”, the Selangor Menteri Besar, Dato Seri Dr Mohd Khir bin Toyo has to account to the people as to why KDEB and its 2 subsidiaries had miserably failed to excel in 2005 and instead suffered the humiliating losses. Selangor had recorded an economic growth of 5.2% last year and it is ironic that in such a conducive economic environment, the state investment arm itself had stumbled.

The much acclaimed manager and former President of Petaling Jaya Municipal Council, Dato Haji Abdul Karim bin Munisar (picture), who after a pre-planned early retirement was appointed as the President of KDEB and executive chairman for both KPS and KHSB since September 6, 2004 did not seem to perform up to the mark.

Be it as it may, as the state reserve had constantly decreased from 1997 to 2004 for a total of 75%, the further losses suffered by the state investment arm had certainly raised the alarm to the incapability of the state government. Khir Toyo as the leader should be the held responsible for the poor performance of the state owned companies.

21 comments:

mwt said...

This is just shocking but true. The loss must have been syphoned off to the pockets of those pulling the strings.

moo_t said...

KPS cost of sales take away 80% of the revenue. It is unimaginable.

Not to forget that KPS "administrative cost" are 71 millions, which is rediculous! I cannot think of any business in the country with such high administrative cost.

Anonymous said...

that's the problem here,
every crony digs from national coffers!

Anonymous said...

this reminds me of the old folk tale of "Emperor's Expensive dress"... what S'gor state failed to realise is that it attained the status of the most developed state on one hand and the most badly managed state on the other hand.By the time we succumbed to the fuel hike...now we have to ponder what on earth happened to the RM286 million and the RM286 million question is :- whos is teh major benefector???

prl said...

This is one of the many examples of where the fuel increase money has sunk into. It is to plug holes like this with its attendant corruption and cronyism that taxayers have to "subsidise". Will the government come clean and explain such corruption!

NSTPravda said...

Ah! Welcome to the Gallery of some of the beneficiaries of your hard earned non-subsidised petrol dollars and other rates and levies that you've paid to your friendly state government. Semua-nya OK!

yamatasan said...

This is out and out corruption and abuse of privilge by the management. Mismanagement cannot and does not realie in these kind of losses. These people ceratinly know what they are doing.

KoSong Cafe said...

Huge losses in spite of favourable and conducive business environment, especially where government approvals are concerned.

Expensive tastes in posh buildings, offices and luxurious cars at the expense of the company. Ada gaya, tiada mutu?

A common feature in our Malaysian public listed companies is that capital expenditure is likely to be higher than market prices, while disposals are lower, how could we expect profitability?

Years ago, I was told by an old broker that directors are pro-active in creating purchases and sales of assets and companies because there is a lot of money to be made!

Anonymous said...

the problem is they didn't have expertise and just pass the business to contractor to do it. " Leave it the technical to expertise, we just manage it" . Some more, i don't understand why they employ non-corporate figure to be a CEO of the company. By looking at the background, the CEO come from government body and of course the culture that he bring will be same as government which is different from public sector.

Anonymous said...

The problem lies on the mismanagement of the Selangor Government.Mohamed Khir Toyol does not really know how to manage the state and he was an ordinary dentist who was handpicked by Mahathir to slot in to replace the previous Mentri Besar.He did not care of the flora and fauna of the state and it was a shame to claim Selangor as a developed state when flood created a havoc at shah Alam recently.

Anonymous said...

Spend, spend, spend,....basic principle of effective political management.
Losses, losses, losses,....elements that the public have to endure for making wise judgement during elections.
So why we worry????

Don'tPlayGod said...

286 million ringgit? Seeing GLS's are in the habit of losing billions, 286 million can be considered excellent result for a GLC.

Of course, the rakyat has to bear the losses. But then this has been so for past decades. So what's new?

Anonymous said...

Politician in the helm of power spend, then tax payers at the lower rung of society have to bear the cost!

Anonymous said...

Look at the MB- third world mind and yet claim to be most developed state. MB should be telling people to recycle instead of continue to dump or build incerators. Recycle and cycle man if not Selangor will become the most dumpsite state. Most Rubbish State.

Anonymous said...

DEWAN RAKYAT: Abdullah as Justice Bao?
Reports by M.K. Megan, Leslie Andres and Eileen Ng

March 16:
--------------------------------------------------------------------------------
OPPOSITION leader Lim Kit Siang today said that only a team modelled after the Chinese mayor and his loyal lieutenants could fight corruption in Malaysia.


He noted that Justice Bao was ably assisted by Zhan Zhao, Gongsun Ce, Wang Chao, Ma Han, Zhang Long and Zhao Hu.

"Who are our premier’s Zhan Zhao, Gongsun Ce, Wang Chao, Ma Han, Zhang Long and Zhao Hu?" he wondered in his speech debating the motion to thank the King’s opening address.

Lim said that without a team, Justice Bao would have found it tough to wage a fight against corruption.

"Similarly, without his team of anti-corruption campaigners, there is nothing Abdullah can do to make a dent on the scourge of corruption. However, well meaning he is, he would only be a lone and helpless voice."

Anonymous said...

apa mau heran? Mas lagi banyak rugi. TNB yang monopoli pun rugi. Bisnes biasala maaa ada untung ada rugi. bukan macam lawyer sapa rugi pun dia tetap untung.

Anonymous said...

please consider to create a blog in Chinese since quite a lot of your supporter are chinese educated.

Anonymous said...

Another tactic they use is to get the state SEDC to undertake projects, and sell it off for a pittance to favoured cronies.

See whether this can be uncovered in the RM286m loss making performance!

Bangsa: Malaysia. said...

I am getting the feeling that there is a competition amongst the big businesses especially GLCs to see who can make the biggest loss (read who can best screw the rakyat and get away with the most creative excuse)

Leading contenders
1. MAS
2. Proton
3. Telecom
4. Bank Islam
5. Perwaja
6. EPF

And the laggard - Petronas - disqualified as its reported RM35.0b profit cannot be substantiated.

Anonymous said...

Lost 286mil? Why dont this people just invest in pasar malam, im sure pasar malam can make profit more money instead of losing money. Our money....burned again.

Joanna said...

What a bomb?!?! RM286,000,000.00!!! Imagine this money can be used for the poor people's benefit. I am so sad that the BN has not even looked into this (if this is true, any concrete proof?). Hei, wakeup, BN, time to do yoour job!!

Maybe the money has been used for the election, look at all the TV and radio ads?!?! And also the money used to buy votes. Come on, every knows about this.

Hopefully our faith to vote for BR/BA will bring about change. A TRANSPARENT government.