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Deposit will only be forfeited if there was no Force Majuere clause in the Sales and Purchase Agreement (SPA). Is such clause included in the M&A SPA? If not, could it be a money siphoning scheme that involved Temasek? A touch of Khairy's hand, perhaps?

When the Bank Indonesia Internasional (BII) issue was first raised in Parliament on May 28th, 2008 by YB Puad Zarkashi, the valuation on the deal was put to question.

Maybank purchased BII at 4.6 times of book value, which to YB Azmin Ali (PKR) is substantially above the 2.5 times market valuation for Indonesian Banks. It pissed many that Singapore's state-owned Temasek, exited with a capital gain of RM2.6 billion after holding it for nine years at the expense of Malaysia.

A subsequent bi-partisan MP briefing by Dato Abdul Wahid Omar was not convincing. Wahid who had just assume the post to replace Tan Sri Amirsham Aziz was understandably unable to answer all the enquiries.

The BII issue was first answered in Parliament by Tan Sri Nor Mohamad Yakcop. He basically gave a non-commital and non divulging answer to say it was a necessary business decision and the Ministry is supportive. And, he continued with the same stance after the rejection by the Indonesian authorities.

Surprisingly, former MBB CEO and non-Economist but leading EPU, Tan Sri Amirsham Aziz did not stood up to answer in Parliament. He was instead answering a leaked question from Khairy that caused an uproar in Parliiament.

In the second session of Parliamant, PM Department Minister, Dato Nazri gave a more detailed explanation providing comparative valuation numbers and names of other bidders to show the competitiveness of the bid for BII.

That answer may not be convincing for the more knowledgable market practitioner but was a sufficient political answer to thwart further criticism on the issue of valuation. The book value multiple is substantially higher than Azmin's earlier claim but it still doesn't justify the premium for BII and the market condition to the purchase is made.

Hmmm ... the stench of a conspiracy bigger than ECM Libra merger with Avenue Capital is pervading the air.

READ MORE HERE 

Comments (29)

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written by binarytan, August 10, 2008 12:30:03

You must find out what is the story behind this deal.

May be KJ is the middle man, he is always smart in doing all these dirty jobs for AAB family. May be najis also involve with his lovely old fat mama.

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written by binarytan, August 10, 2008 12:34:41

Just ask the PKR Zul to protest in this issue, he is capable in doing all the protest. Bring the banner of Ketuanan Melayu and tear the flag of MayBank. Only then we say monkey Zul has the ball. Fighting non muslim does not solve the problem of our country, idiot Zul. You are definitely on the wrong side for your idiot behavior and a shame for your party. Typical racist act of the century.

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written by ahmadneil, August 10, 2008 12:39:41

It's long gone! The money are already in PARIS for the Hari Raya shopping spree and the 40 footer containers are on the standby.The fatty swine is ready.

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written by panca, August 10, 2008 12:49:43

This is a very serious matter and it could involve stealing of the country wealth, siphoning of funds, money-laundering and ISA. May be more other acts violated here.

Who is the leader and behind the leadership of Malaysia???

When the New Leadership is in place all rocks must not be left unturned.

His Royal Majesty, DYMM YDP our King, must not allow those from the current tainted leadership to cheat the Rakyat and plunder the country wealth. They are finding venues to transmit out Billions and Billions of Malaysian Wealth out of the country.

Stop them. A full investigation be quickly launched!

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written by arazak, August 10, 2008 12:50:17

I suggest that the Minority Shareholders Watchdog Group (MSWG) chief executive Abdul Wahab Jaafar Sidek, to report this matter to the Singapore Corruption Agency as our own Malaysian ACA is hopeless.

If Abdul Wahab could not do this, any Maybank customer or shareholder can report this matter to the Singapore Corruption Agency.

I would like to see Khairy, Mat Nor Yaakop and the other greedy Maybank excutives thrown in Sigapore jail just like Nick Leeson.

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written by Zym Zym, August 10, 2008 13:37:46

Don't you ever come to my constituency. The moment I saw you, I will throw rotten eggs on you. Be WARNED!

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written by donplay, August 10, 2008 13:45:42

Three curious things.

1. BANK NEGARA

Why did Bank Negara not discuss with MBB first before making public the reversal of their earlier approval? Politics? Covering their ass? Surely Bank Negara should be working their ass off to ensure Maybank does not lose the deposit in an admittedly over-priced lousy acquisition move? Why in the 1st place did they approve the deal when it was so overprice?. When M'sian banks were forced to merge, BNM would not approve more than 1.5 times book-value for pricing

2. LAWYERS & SOLICITORS

In any major contract, if the Govt or relevant authority (in this case Indonesia) changes the rules after a contract has ben signed, and it affects adversely the parties to the contract, there is bound to be a legal escape clause that should allow Maybank to pull out. Are their lawyers sleeping on the job?

Or are some parties hoping the deposit - nearly RM 500 million - will be lost so they can earn a hefty commission or kick-bac?

3. EX-MAYBANK MD

Why hasn't the MD of Maybank who signed the deal and is now a Minister giving any explanations?

Very curious goings-on indeed!!
http://donplaypuks.********.com

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written by Msian 2, August 10, 2008 14:03:59

Well, lack of meritocracies for too long & we have decision makers who can only do things in M'sia because they can cover up like our govt. So nothing to blame others for losing the millions.

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written by lynn, August 10, 2008 14:21:00

Inspite of the many articles on corruption being highlighted in the non-mainstream media, the govt still allowed this deal to proceed. What does this signal to you, esp. you bn supporters? Something stinks right there, to the tune of nearly half a billion?

Does the govt really believe the citizens are stupid & merely walking dead?

We really have enough of corruption in bodohland. So who was the guy who initiate the deal? We have the right to know. Was it KJ?

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written by partiotic, August 10, 2008 14:26:54

The opposition must debate on this issue, RM480 Million is hugh sum of money. The BN thought money can be printed by every printing shop in malaysia or at any home using our home printer. If that is so ok you can simply sign your contract, not need to use your brain. How can such hugh sum of money, no proper investication or study had been done before commit. It is just because it is not your money. Yes the RM480 million does't belong to the authority who make the committment. Sack them.

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written by dashuwang, August 10, 2008 15:09:48

Bank Internasional Indonesia (BII) was an unpopular old bank in Indonesia. The bank is losing money like hell because it was mismanaged by group of corrupted direksi2 (directors). Only its Bank Licence has the value.
Maybank knows that the deal is not going to succeed however the crooks representing Maybank are more happy to share the forfeiture deposits.

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written by mgeo, August 10, 2008 15:29:54

donplay, one more point:

4. INDONESIAN GOVT.
Why is no one including M'sian govt. protesting to Indon. govt., and failing that, initiating legal action in ICJ?

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written by DXB2008, August 10, 2008 15:39:15

Forget Malaysia - come to the middle east for better paid salaries http://1426.********.com/2008/...n-uae.html

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written by A MI, August 10, 2008 16:15:21

money is being shifted out ahead of Sept 16th. DAP and PKR check for other drain holes....plug them fast! That is why several bag men were put in cabinet by our "beloved" Bastradbodowee.
Why would a gomen official implicated in money laundering in Oz and subsequently removed from the previous regime be made a minister? Go figure!

TDM left our country less billions..more is being siphoned out now. The 2nd Finance Minster should be held accountable...in any other country an issue like this will get heads rolling...

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written by latihanQ, August 10, 2008 16:49:25

KJ on my mind! Fourth floor boys?

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written by budakindia, August 10, 2008 17:02:23

What happened to Ketuanan Melayu & Nazi oops NE policies in this? Well we just burned 480 millions just to "protect" that idea! How about buying a toilet bowl for RM10million each in the name of Ketuanan Melayu! Buy 10 and flush it down with your brains !

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written by Rozlan, August 10, 2008 17:04:46

Maybank purchased BII at 4.6 times of book value, which to YB Azmin Ali (PKR) is substantially above the 2.5 times market valuation for Indonesian Banks. It pissed many that Singapore's state-owned Temasek, exited with a capital gain of RM2.6 billion after holding it for nine years at the expense of Malaysia.

Guess where some of Temasek profit ended??? Anyway no prize for guessing correctly because the question was too easy..

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written by Tom n Jerry, August 10, 2008 17:05:04

All the current loop holes of corruption must be plugged immediately;BN members of Parliament be forewarned;your actions are all investigated by PR;no stones will be left unturned!

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written by Old Man Jasin, August 10, 2008 18:44:03

If the RM480 Millions are forfeited , then hang those involved by the tallest leafless tree under the mid-day sun and let them realize how ruthlessly they mismanage the shareholders' sweat and tear money to be wasted so mercilessly .

Take whatever action is necessary , and bar them from becoming a company director for the rest of their life .

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written by penangboi, August 10, 2008 19:16:31

Sometimes it comes to a stage for me to, as it were, throw in the towel. The underlying problems of all the issues which is beseiging our country are so rhetorically boring. Corruption. Abuse of Power, Racism, Religious Divisity etc etc.

Issues like this BII scandal, and it is a scandal of gigantic proportion, and past similar scandals in the like of Perwaja, MAS buy-back, etc are very quickly 'covered' up. The futility of digging for the truth is so glaring and causes me to 'throw in the towel'.

And the futility will continue if we as citizens do not do something about it. The missing 'check and balance' in our political situation is just not there to ensure that all such cover ups cannot just be tolerated anymore.

We need a two party political system in Malaysia. Be it BN, PKR or others, there should never be a majority stranglehold on government. Contrary to past belief that Malaysia is not matured enough to have true democracy, I strongly believe that it is not the maturity of the people in question here but the integrity of the type of politicians we have. And because of the very nature of the calibre of leaders we have there is an even greater need for 'check and balance'.

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written by YSL, August 10, 2008 21:18:28

What ever the bids they revealed, it was just wayang kulit!! Anyone could have done and shared the deal !!!

Please check all Maybank Officers! They are living like a richmen changing cars, handphones, eating in expensive places, holiday every now and then and some are great womanizers!!

What happened to Maybank Auditors???

They have been rasuah too ???

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written by Eskay Lim, August 10, 2008 21:46:41

YES, this is a very good moment & opportunity for the PKR's Zulkifli and his Ketuanan Members to protest, threaten & demonstrate against Maybank's purchase of BII.
Knowing well the directors of Maybank is pouring a good RM480million into the drain (actually into someone's pockets).
This purchase at 4.6 times book-value is pure corrupt mismanagement.
Go lah Bang Zul. Protest lah at the Indon Embassy, Maybank HQ or wherever.
Lots of people will give support. Me too.

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written by Biztrack, August 10, 2008 23:34:34

How this happened is simply this .... our "Ketuanan Melayu" execs at Maybank kena snookered by those bloody Chinamen from Singapore la. Thats what you get for putting less than qualified people in places where they dont deserve to be.

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written by bbmars, August 10, 2008 23:42:41

donplay,
2. LAWYERS & SOLICITORS
In any major contract, if the Govt or relevant authority (in this case Indonesia) changes the rules after a contract has ben signed, and it affects adversely the parties to the contract, there is bound to be a legal escape clause that should allow Maybank to pull out. Are their lawyers sleeping on the job?
----------------------

This is nothing new, even SG GLC had experience this kind of things at the hands of the Indonesia Policy. This is the kind of risk you take investing in other countries. They had been warned too by their western consultants prior to their initial vesture outside SG. That's also why western countries are very cautious in investing in Asia as they themselves had been duped too many timws in the past. So nothing new.

SGTEl is facing this problem right now and have to sell off some parts of their share in Indonesia's Indosat and another Telco company to within certain percentage, even asked to pay penalty $xxxK as compensation for infringing the so call being a major share holder that can control and manipulate the telcom market in Indonesia despite many protest by Indoneisa's business groups and others doing business in Indonesia. What a joke, but do you know that the major share holder of these companies are none other than the Indonesia Gov, which holds teh majority? What I understand was, the Gov had initiated such a move when they were in need of $$$ to rebuild Indonesia economy and no one really intested in the deal as it was too risky until they talked to SG Gov.. Then this had to happened... From what I read, they are also investigating oter telco companies with foreign venture and a Qatar investment group is another one being hit in the same scandal. So for Malaysia, this is the real world out there and they are not the 1st, neither, the last.

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written by born2reign, August 10, 2008 23:55:40

Another fine example of Ketuanan Melayu and Zul of PKR, is this a case that deserves demonstrations and killing and obscene words? Silence is consent you know. RM500M for Najis, RM480M for KJ (or some UMNOputeras), what's the big deal, I'm sure their Muslim brothers can forgive these Muslims who sold out their Maybank deposits. Anyway, we all know that the rich ppl of Malaysia are pumping their money out of Malaysia, only the kampung BN supporters are still contented with some RM50-1000 handouts, kenduri-kenduri UMNO, etc. You guys are so easy to be bought.

Bank Negara is part of this whole smelly episode from the start, right Ms. Zeti?

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written by Richy, August 10, 2008 23:59:52

The Great Khairy? At this young age without putting any effort he could become a multi-millionaire or billionaire. SO easy for UMNO politician to make millions while their rakyat begging for assistance.

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written by InEffective, August 11, 2008 00:50:41

Financial Incest - nice.

Its too bad our rakyat does not even know they are being raped.

If you subscribe the approach of our governing politicians, which is that its actually better that the rakyat don't understand and can't recognize financial incest - they are happy in ignorance, why disturb them even if they are underwriting all the costs and risks.

For those capable of understanding and critical thinking, well - are you being financially raped ?

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written by OilMan, August 11, 2008 05:52:16

"Dato Nazri gave a more detailed explanation providing comparative valuation numbers and names of other bidders to show the competitiveness of the bid for BII."

Knowing BN the 'numbers' and 'names' of bidders can always be fabricated.

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written by ToeJam, August 11, 2008 09:53:50

written by Biztrack, August 10, 2008 | 23:34:34

How this happened is simply this .... our "Ketuanan Melayu" execs at Maybank kena snookered by those bloody Chinamen from Singapore la. Thats what you get for putting less than qualified people in places where they dont deserve to be.

Ignore the Indonesians and the chianmen from singapore. Just punish our maybank people. Hang enough of the "Ketuanan Melayu" for their stupid decisions and soon they will learn to be smarter.

Just like being a parent, if we always blame other children and never our own, for all their mistakes then the problem will never ever be resolved. Scold or cane our kids once or twice and they will learn and grow up right.

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