Don’t learn NOT to pay your debts

The prime minister said that Pakatan Rakyat are teaching people bad things, very bad things, such as debts are not to be settled.
Opposition teaching people bad things: PM

PEKAN -- Prime Minister Datuk Seri Najib Razak said today opposition political parties in the country seem to be teaching people bad things, even matters contrary to religion.
 Evidently, three bad things were that debts do not have to be settled, good deeds can be forgotten and promises need not be fulfilled, he said.
Well growing up in a country that is administered by Alliance-BN administration for more than 50 years, whereby we live and learned from education system, judicial system and kepimpinan melalui teladan set by one of the longest political alliance in power, I wonder where the bad teachers learn from?
Let’s look at some fine case studies which serve to “teach people” not to repay debts.

Fresh out of the oven at time of writing is this baby:
Pempena ordered to wind up
R. Nadeswaran
KUALA LUMPUR (July 8, 2012): The controversial and financially troubled business arm of Tourism Malaysia – Pembangunan Pelancongan Nasional Sdn Bhd (Pempena) – has ceased to exist.
Last month, the High Court ordered the company to be wound up and a liquidator appointed to manage its affairs.
Pempena, a subsidiary of the Tourism Ministry, failed to pay RM12.4 million for the purchase of 120 units of Hyundai Sonata for its taxi service.
Whoa, a subsidiary of the government can’t even manage to pay RM12.4 million for luxurious taxies that we Malaysians never get to ride. Gosh, while you and I put up with creaking Proton Ishwaras  and risk of being over charged by cabbies, and the government can afford a €114 million commission paid to Perimekar Sdn Bhd…surely RM12.4 million should not be a problem? Tourism ministry is rich enough to fork out a million for a FB page so this come as a surprise.

Another intriguing saga was the MAS vs Tajuddin Ramli court case. Both parties are linked to the federal administration as MAS is a GLC and in Tajuddin Ramli’s own words, he was “roped in for national service”. I believe him.
I suppose there is a debt to be settled following a court case and under the same umbrella, an agreed settlement has been reached
MAS settles suits with ex-chief Tajudin Ramli
Posted on June 22, 2012 by admin
Malaysia Airlines (MAS) has settled its three lawsuits with its former chairperson Tajudin Ramli.
It is learnt that in return MAS will receive as part of the settlement a piece of land in Langkawi where a Four Seasons Hotel was built.
The Kuala Lumpur High Court is understood to have allowed both MAS and Tajudin to withdraw the suits and counter-claim respectively.
Reading MAS’ Bursa Malaysia announcement on 16 February as depicted below…there is a claim hence debt per matter b) of RM74.6 million and Euro of 6.9 mil, roughly RM34.5million. Matter b) alone exceed RM100mil. Not sure how much is the total claim will be.

Being such gentlemen, the settlement has been reached out of court. On 25 Feb, MAS told Bursa that MAS will pay RM4million to get a piece of land and all other claims, i.e. debts, are dropped. MAS assure us that it will suffer no adverse financial and operational impact.

Wow, I do not have all the facts but that is one helluvaway to settle one’s debts. I can’t even not pay a single installmenton my car. If both parties are happy and being a listed company governed by strict listing guidelines and oversee by the federal government, who am I to doubt the financial viability of the deal?

All I can say is that it seems to a layman that a lot of losses are from flight and logistic operations being run so both party are fine with a piece of hotel land to make up for everything.
Let's muse and vote over this later.

 Yes, debts must be paid then. Let's look at this great example of MUST PAY
PKA ordered to pay PKFZ bondholders
July 28, 2010
KUALA LUMPUR, July 28 – The government has ordered the Port Klang Authority (PKA) to honour its final bond obligation of RM222.58 million to Freezone Capital Bhd (FZCB), despite the board’s ongoing suit against turnkey contractor Kuala Dimensi Sdn Bhd (KDSB).
In a statement today, the transport ministry said PKA would have to make payment to special purpose vehicles as set out in the payment schedule.
It was reported that the PKA board had decided to hold back on its final payment to FZCB, one of the four special-purpose vehicles (SPVs) that was established by KDSB, the turnkey contractor for the troubled Port Klang Free Zone (PKFZ) project.
KDSB is now facing a suit of RM1.4 billion by the PKA for, among other things, allegations that it had made bloated claims for work done on the project.

Listen here, if you get a cotractor to fix your house and he mess up the whole work, SHUT UP AND PAY HIM. Understand?
So that is debt management 101 for you from a federal administration that run into the following snowballing and growing Hutang Negeri Dalam Persekutuan.

On the other hand, Pakatan Rakyat, with no experience, instigated a debt recovery from Talam Corporation Berhad in Selangor. A debt previous not recorded in the accounting books of Selangor state government companies and incurred in the good old days....too bad, a bean counting type of MB took over and ordered a composite repayment of cash, land under charged and land not undercharged
Financial buffs can read it here

Further up north, there is this result showing......
You too can be like Penang, Guan Eng tells Malaysia
By Shannon Teoh April 01, 2012KUALA LUMPUR, April 1 — Lim Guan Eng has called on Malaysians to vote for Pakatan Rakyat (PR) if it wants to see Penang’s success replicated in their states as speculation mounts of a general election this June.
Penang attracted the most manufacturing investments of any state in Malaysia in both 2010 and 2011 with RM12.2 billion in 2010 and RM9.1 billion last year.

Lim has also claimed that Penang’s public debt fell by 95 per cent to RM30 million at the end-2011 from RM630 million in 2008 with budget surpluses every year since taking office.
Yes, Pakatan very bad lah....stirring up new options and scenario to confuse people....why make people have more choices when they go to the poll.....  > <"


  1. What is wrong to have a fair and clean election, Najib ? Why are all the scumbags and parasites from Umno are so much against that idea ? Must you all remain in power with deceits and dirts, just look at Mubarak now or better still Marco, Gaddafi and Suharto just to name a few.

  2. Aren't the Govt issuing perpetual bonds (sukuk) to finance MAS etc. Here, they are up-front saying they will borrow money from you promising not to repay :-)


    Thousands of students taking the PTPTN loans also never pay back the government. Raayats have to tanggung mah!!! I bet you also never pay!
    written by singhkris, July 10, 2012 12:45:46

    Mr Lee, there is a one more case which is actually quite shameful one. The logger in Pahang who won his court case against the state government. The state has refused to pay. Will someone in UMNO stand up and say that this is a noble thing to do?

    1. very good observation, Singhkris....yeah one example that I missed and won't be the last one!

  4. YIP KUM FOOK: Pempena ordered to wind up
    Posted on 8 July 2012 - 09:55pm
    Last updated on 9 July 2012 - 12:05pm
    R. Nadeswaran
    KUALA LUMPUR (July 8, 2012): The controversial and financially troubled business arm of Tourism Malaysia – Pembangunan Pelancongan Nasional Sdn Bhd (Pempena) – has ceased to exist.
    Last month, the High Court ordered the company to be wound up and a liquidator appointed to manage its affairs.
    The winding up petition, which was undefended, was moved by Kah Bintang Auto Sdn Bhd after
    Pempena, a subsidiary of the Tourism Ministry, failed to pay RM12.4 million for the purchase of 120 units of Hyundai Sonata for its taxi service.
    According to court papers filed at the High Court registry, Kah Bintang claimed Pempena failed to pay the money ordered by another High Court in April last year after a protracted hearing in a breach-of-contract suit in which both parties were represented.
    Following the judgment, the law firm representing Pempena, Ringo Wong and Associates, discharged itself and Messrs Hafirizam Wan and Aisha Mubarak was appointed its lawyers.
    In his affidavit, Kah Bintang managing director Datuk Robert Wong said letters of demand which were sent by registered post in September last year to both the registered and business addresses were returned.
    However, the same letters sent to four of its directors – Datuk Yip Kum Fook(Who is bad name in Buddhist, MCA GOMBAK), Datuk Donald Lim Siang Chai, Syed Abdul Rahman and Jaigani Jaafar – were acknowledged as received.
    Having had no response, Kah Bintang published advertisements of winding up in two national newspapers and hearing for the petition was set for June 13.
    Pempena was not represented at the hearing and accordingly, the court gave the company 14 days to pay up or be wound up. As of June 27, no monies were forthcoming and the liquidator is to be appointed in the next few days.
    Meanwhile when contacted, Lim, who is the deputy finance minister, told theSun that Pempena's directors had given the company's chief executive officer instructions upon receiving notice of the winding-up petition.
    The CEO had been told to instruct the lawyers to file a defence, but they did not, said Lim who did not respond to further attempts at getting clarification.
    Pempena was set up in 1976 to carry out tourism-related business and development.
    Over the years, it hit the headlines after various bad deals came to light, resulting in massive losses for the company.
    In 2009, an independent audit ordered by the ministry showed only a few of the 24 companies invested in by Pempena showed profits in the past three years.
    On May 29, theSun reported that Pempena's stake in the controversial loss-making restaurant Awana Chelsea in London had been sold.
    It had previously closed its doors on similar outlets in Beijing and Hyderabad.
    According to the auditor-general's report tabled last year, Pempena's venture in opening the London restaurant had brought "dismal results", raking in only £13,000 (about RM64,000) in 2007, far from its annual target of £520,692 (RM2.5 million).
    The report also noted that Pempena had yet to get any returns from its RM3.73 million investment.

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