Umno Incorporated (part 3)
On 3rd August 1999, a ‘Settlement Agreement’ was signed between Nazri Abdullah and Mohd Noor Mutalib, the majority shareholders of Realmild at the time, and the company, Realmild (M) Sdn Bhd. The purpose of the Agreement was to ‘write-off’ the RM148 million ‘shareholders’ advances’ -- which was shown as RM182 million in the 1997 Annual Report but got reduced a year later. Hence RM34 million had somehow ‘disappeared’ over that one-year or so.
THE CORRIDORS OF POWER
Raja Petra Kamarudin
When Munir Majid (picture above) approved the injection of Realmild (M) Sdn Bhd into MRCB it was based on projected profits of RM70 million expected from projects in-hand and RM42 million from projects yet to be secured. It was the first time ever that the watchdog Securities Commission gave an approval based on the mere speculation that MRCB would most likely secure projects in the future. More importantly, the ‘injection’ actually ended up as a reverse takeover.
The whole exercise was touted as a management buyout (MBO) and the four people involved -- known Umno cum Anwar Ibrahim cronies (just like Munir Majid himself) -- were Abdul Kadir Jasin, Mohd Noor Mutalib, Ahmad Nazri Abdullah and Khalid Ahmad (picture below).
This was clearly not just a simple ‘Ali Baba’ exercise but a case of Ali Baba and his forty thieves. After the RM800 million Realmild MBO (see part 2 of this series), they injected the whole thing into MRCB and ended up getting a company worth more than a billion for nothing. That is the beauty of selling a bigger company with large liabilities to a smaller company. You clear your liabilities (the buyer takes over your liabilities) and you end up getting shares in the enlarged group free-of-charge.
One year after Anwar Ibrahim fell out of favour and ended up behind the walls of the Sungai Buloh prison, Realmild changed hands. Anwar was now out so his nominees -- Dato’ Ahmad Nazri Bin Abdullah and Mohd Noor Bin Mutalib -- were forced to sell off their interests in the company to another Umno nominee.
And this is where it begins to get even more interesting.
The former head of the Penang Malay Chamber of Commerce, Abdul Rahman Maidin (picture above), alleged that he lost RM40 million on the 7.101 million Realmild (M) Sdn Bhd shares he purchased, which were said to actually belong to Umno and not to the people he bought the shares from.
What happened thereafter appears to be very hazy.
On 3rd August 1999, a ‘Settlement Agreement’ was signed between Nazri Abdullah and Mohd Noor Mutalib, the majority shareholders of Realmild at the time, and the company, Realmild (M) Sdn Bhd. The purpose of the Agreement was to ‘write-off’ the RM148 million ‘shareholders’ advances’ -- which was shown as RM182 million in the 1997 Annual Report but got reduced a year later. Hence RM34 million had somehow ‘disappeared’ over that one-year or so.
But where did this RM182 million (or RM148 million) come from and whose money is it? And where did this RM182 million (or RM148 million: less the RM34 million ‘discount’) go after that? Furthermore, what do they mean by ‘shareholders’ advances’?
Apparently, this money was siphoned out to pay off Rahman Maidin’s debts of RM84 million. Hence did he really lose RM40 million as he claims or did he, in fact, make RM148 million (or RM182 million according to the 1997 accounts) as what the accounts and the Settlement Agreement show?
In return for this write-off, the outgoing shareholders of Realmild would receive 49% equity in Radicare Sdn Bhd, a company that was given the government concession to equip and commission hospitals and provide hospital support services that included clinical waste management, cleansing services, linen and laundry services, facilities engineering maintenance, and biomedical engineering maintenance.
Now, in the hearing more than two years ago, this Settlement Agreement was not declared. And it was not declared mainly because this was a cover-up for a fraudulent exercise to siphon out money. It was meant to camouflage an illegal transfer of funds. And you can read below the details of the Agreement, which definitely requires further explanation.
More puzzling is the statement in Realmild’s June 1999-2000 accounts where it states in Note 27: “Subsequent to year end the company disposed its entire equity interest in an associated company Radicare (M) Sdn Bhd, for a consideration sum of RM2.”
This means Realmild’s interest in Radicare was sold for only RM2. But the Settlement Agreement states a figure of RM147,970,621.40. So, is it RM2 or RM147,970,621.40?
This can only mean that RM147,970,621.40 was paid but only RM2 went to the company. The balance must have gone into someone’s pocket -- in this case that would be Rahman Maidin since he denies that he was Umno’s nominee or that the interest he held in the company actually belongs to Umno.
Something is terribly not kosher here and it looks like everything has not been fully declared in the court hearing of 2010. Rahman says one thing but the accounts show something else. And there are too many unexplained issues that have remained unexplained.
Was the Settlement Agreement, therefore, kept from public knowledge because it was a cover-up for some missing money and hence leading to something illegal?
