I refer to the local daily on 31st Dec 2007 quoting Najib, our DPM saying "The opposition’s promises to reduce oil prices if it were to form a government will only bankrupt the country".
Datuk Seri DPM, I would like to share with you on the same subject on bankrupting the nation on a bigger perspective. I came from a very poor family. My mother who lost her husband at the age of 35 years old had never remarried but maintained the role of a father and mother in a house. With having no land, no education and a meager income of RM145 dollars a month, we came out of poverty simply because of mother persistence and pressure that we must work to better ourselves.
My mother serves the role of the financial manager at home, managing cash flow and debt. On several occasion we had to borrow a bag of rice or flour but it she makes a point of repaying back. How does she goes about and bringing up 4 successful children despite the poor financial knowledge. The one that she thought me is to make the most out of a Ringgit.
In this context, I can say the present government financial, purchases policy and contract actually is the one that will bankrupt the nation. The government is effectively paying RM 3 for something that cost RM1 when in actual fact by virtue of volume, it could get it at the price of 80 cents. Let us look at the major transaction that took place in the last couple of years
a. Purchase of Sukhoi Jets using an intermediary company belonging to former Malacca Chief Minister - RM 1.8 bill. I was informed by the company staff (Nor) , who's also the Dato key person that the company made a clean profit of RM 900 mill of which is distributed to various funds held by UMNO top people. Logic will tell you that, in the history of this country military purchases it has always been on G to G basis and not trough a private entity who has no expertise except being a middle man. In any country it is the same. Don't give a cock and bull story that the supplier is giving the commission and they are the one who insist that they used an intermediary. We have the money, if we tell the supplier we only deal with principal, they will follow - those with money are Kings. They are the one calling the shots. When we can buy 24 aircraft, we just buy 12 and we include other mumbo jumbo's in the package.
b. Purchase of submarine. Again the same argument applies.
c. RMN ships - We spent RM4.5 bill but where are the ships. How come money is being paid to builder who has no experience and it cost 3 times more than buying direct in overseas. In actual fact only 2 ships were built and money for 6 ships has been paid. From what I gather in the media, the documents pertaining to this payments has disappeared at the company level as well as at Ministry of Finance level. What a coincidence.
d. MAS share purchase. Mahathir one says " Melayu mudah lupa". .. well Tun .. sorry to say not all Melayu has short memory. The government paid RM8.00 per share for 30% share that is held by Tajuddin Ramli when the prevaling market price is RM3.50. First of all the government is the golden shareholder in the company which has certain powers as dictated by the share holder agreement. There wasn't a need to pay RM8.00 for a company with NAV of less than RM1.00 (at that time). Even if has to accumulate enough share to effectively control the company, they should have bought from the various government related agencies like EPF who has 20% shares and other agencies like LTAT and the from the general public. When the prevaling market price is RM3.50, I think if the government offer RM5.00 every single citizen who hold shares in the company will sell the share to them. Instead they chose to pay RM8. What a joke.
Mr. DPM, I believe before we can claim that others will bankrupt the nation, the government of the day must examine its own records. It has clearly shown that it is in the process of bankrupting the nation with a one sided agreement with Toll concessionaires and other contract’s. What I have mention is only the Tip of the Iceberg. What intrigues me is that when the DG Audit can pick up purchases of cameras and other small things but they failed to look at bigger purchases.
Regards and best wishes,
Dr Mohamed Rafick Khan bin Abdul Rahman