Thursday, June 27, 2019

On Governor Bank Negara Nor Shamsiah's never again an 1MDB: Nice sentiment, but what about EPF,OSK and RHB in Melbourne?

by Ganesh Sahathevan

Bank Negara governor Datuk Nor Shamsiah Mohd Yunus speaks at the presentation of the central bank's third quarter performance in Kuala Lumpur November 16, 2018. รข€” Picture by Razak Ghazali
The new  Governor of Bank Negera, Nor Shamsiah, has been quoted saying:




“We cannot allow another 1MDB event to recur. This 1MDB affair has put a spotlight not just on Malaysia but also on banks in a number of other countries. And that is why we have the Financial Action Task Force (FATF) recommendations.

“In countries that are assessed against that raft of recommendations, FATF wants to see the areas of improvement a country needs to undertake in order to strengthen controls against money laundering. You should read the report on Malaysia and the report of other countries. Most authorities have taken action against their regulatees.

“It was a useful exercise for us because we did recognise that while we have a good preventive framework, there are areas that we need to strengthen. These include controls and governance in the banks as well as the prosecution system in Malaysia that needs to target more high-risk crimes.”

Meanwhile, this issue remains outstanding, even as the Australian property market declines: 



Saturday, April 15, 2017

EPF's Melbourne project: RHB extended a loan for the benefit of its director Ong Leong Huat-Bank Negara ought not have approved this transaction, MACC cannot pretend this elephant does not matter

by Ganesh Sahathevan

Previously reported on this blog:
EPF will finance OSK's Melbourne development with AUD 175 Million (RM 525 Million) in borrowed money.after providing Ong Leong Huat & family AUD 154 million and a AUD 38.2 Million upfront profit

As reported yesterday the EPF's AUD 175 million contribution has been provided by three Malaysian banks, including RHB Bank: 

Further research has shown that the EPF probably sought Australian dollar funding from Malaysian banks CIMB Bank Berhad, OCBC Bank (Malaysia) Berhad and RHB Bank Berhad ,very likely because Australian banks would not fund the project


Ong Leong Huat is also a director of RHB Bank and RHB Investment Bank.The details are provided on the RHB Group website, extracted and copied below:



Image result for ong leong huat































































Tan Sri Ong Leong Huat @ Wong Joo Hwa (“Tan Sri Ong”) was appointed as a Non-Independent Non-Executive Director of RHB Investment Bank on 20 November 2012 and was subsequently appointed as the Chairman of RHB Investment Bank on 23 January 2013. On 27 June 2016, Tan Sri Ong was re-designated as a Non-Independent Non-Executive Director of RHB Investment Bank. He also serves as the member of Board Nominating & Remuneration Committee.


Tan Sri Ong’s other directorships in public companies include RHB Bank Berhad, OSK Holdings Berhad, PJ Development Holdings Berhad (Chairman), OSK Property Holdings Berhad, OSK Ventures International Berhad, KE-ZAN (Holdings) Berhad. He is also a trustee of OSK Foundation.

RHB Bank has extended a loan for the ultimate benefit of a director.MACC and Bank Negara investigation and prosecution ought to follow.
END 


Wednesday, April 12, 2017

OSK's fast profit of AUD 40m will not turn into a long term gain for EPF:Sharil is not providing any guidance on potential returns from its Melbourne investment,instead promises all will be well......

by Ganesh Sahathevan





Shahril: ‘We have a fair number of assets in Australia.’
Shahril: ‘We have a fair number of assets in Australia.’




Shahril of the EPF was quoted by The Star, justifying its recent investment in Melbourne:

The Employees Provident Fund (EPF) is optimistic that its latest venture into the Australian property market will yield long-term returns, despite speculations (sic) that the housing sector is headed for a glut. 
EPF chief executive officer Datuk Shahril Ridza Ridzuan said the project would span over 15 years.
“Australia is a market that we’re comfortable with and we’ve been there for a while already,” he told reporters on the sidelines of the IFN Forum Asia 2017, yesterday.
“For a fund like ourselves, given the long-term liabilities that we manage, the key focus for us over the past few years is to build a solid infrastructure and property assets, and in the property space we’ve very much focused on long-term assets with 10 to 20 years of yield.”


These are very nice sentiments, but EPF has already handed Ong Leong Huat and family a profit of about AUD 40 Million (not bad for about 3 years work) , As previously reported on this blog:


OSK buys Melbourne property for AUD 145 Million, promises gardens in the sky,and gets EPF to pay AUD 154 Million for 49% in a market that is expected to collapse


EPF will finance OSK's Melbourne development with AUD 175 Million (RM 525 Million) in borrowed money.after providing Ong Leong Huat & family AUD 154 million and a AUD 38.2 Million upfront profit

That AUD 175 Million loan that the EPF has so generously taken out in favour of Ong Leong Huat and family , helping them finance the project which they still control (they own 51%) will lead to an immediate CASH outflow at the EPF in interest payments.


The income stream, can only be in dividends, which the 51% decides, and only if there is a profit. Keep in mind that those in charge of a project can get money out of it so many, many , may different ways ; management fees are just the start. And remember, the Ong's have already made AUD 40 million, or about RM 120 Million.

This statement is meant to fool contributors, and seems not very likely in the case of this project:
“For a fund like ourselves, given the long-term liabilities that we manage, the key focus for us over the past few years is to build a solid infrastructure and property assets, and in the property space we’ve very much focused on long-term assets with 10 to 20 years of yield.”


END 

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