The Government of Malaysia has continued to place a interest of UMNO cronies above which of typical Malaysians as it continues to bail out privatized H2O companies by taking over their debts as well as granting them one more loans.
Puncak Niaga Holdings Bhd has voiced upon 1st November 2011 which a Government, around a unconditionally owned subsidiary of Pengurusan Aset Air Bhd (PAAB) Acqua SPV Bhd, has concluded to acquire all Redeemable Unsecured Notes (RUNs) with an superb worth of RM328.12 million. The RUNs are radically debt instruments released by Puncak Niaga in 2001.
As partial of a bailout exercise, Puncak Niaga gets to defer its annual monthly payment amends by 5 years to a debtors, now a Government of Malaysia, from a original date of eighteen November 2011. There is no alternative in isolation association in Malaysia, solely for well known cronies of Barisan Nasional (BN), which can enjoy such preferential treatment.
This is upon tip of a 20! -year RM 110 million loan recently postulated by a Federal Government to Syarikat Bekalan Air Selangor Bhd (SYABAS) upon 17th October. SYABAS is a 70% subsidiary of Puncak Niaga as well as a loan is meant for a siren replacement plan which is ostensible to be within a scope of SYABAS's benefaction agreement. In a SYABAS loan agreement, a association is not usually since a preferential 3% interest, it is usually compulsory to commence amends of a principal installments in a 3rd year of a loan. On tip of which a interest accrued upon a loan shall usually be upon credit in 10 equal installments commencing 2022 or 10 years after a loan is granted!
The above loan is upon tip of a "back-loaded interest giveaway unsecured RM320.8 million loan" postulated by a Fe! deral Go vernment to SYABAS less than 2 years ago in Dec 2009. For this loan, SYABAS is usually compulsory to commence amends with amounts less than RM5 million until 2025, with a overwhelming residue upon credit usually from 2026 onwards! And as a statement implies, a loan is utterly interest-free as well as requires positively no collateral from Syabas.
That's not all Acqua SPV Bhd had acquired all holds released by a Selangor state H2O concessionaires for a volume of RM6.5 billion in May this year. According to a Financial Daily, a marketplace source had confirmed which "in terms of price, a buying back is during 94.49 opposite mark to marketplace worth of usually 54.54 during a finish of last month". It is bad enough which a Federal Government has motionless to bail out a Selangor H2O concessionaires, though for it to pay a whopping 73.2% higher than a marketplace worth of these holds borders upon being vast as well as an abuse of taxpayers' money.
The persistent need to bailout a privatised H2O companies in Selangor proved a unmitigating disaster of BN's privatisation practice which usually served to profit its cronies as well as confiscate a rakyat. When these companies were profitable, nothing of their dividends were accrued to a Government, but! when th ey are incompetent to pay off their mountain of debt it is a BN Federal Government who will come to their rescue with tax-payers' money.
What is worse is a fact which a Selangor State Government had offered both a Federal Government as well as a H2O concessionaires a approach out with its restructuring proposal where a ownership of a latter earnings to a state supervision in sell for a fortitude of their debt burden. Instead a Federal Government had chosen to back its cronies in a privatised H2O industry by bailing out these companies though any commitment during all from a latter for a restructuring practice in a suggestion of a Water Services Industry Act 2006.
Now which these companies have been postulated reprieve from th! eir debt obligations, there will be no urgency upon their partial to resolve a restructuring imbroglio. As a outcome a losers will be a rakyat who will not usually suffer from a risk of higher H2O tariffs in a destiny from these in isolation H2O companies, though also having to bear a burden of paying for a really expensive bailout of a really same companies.
The forward abuse of tax-payers' supports must stop or a risk of Malaysia's "bankruptcy" as warned by Datuk Idris Jala as a outcome of unsustainable debt as well as deficit will usually become a certainty. - tonypua
Malaysians Must Know a TRUTH Puncak Niaga Holdings Bhd has voiced upon 1st November 2011 which a Government, around a unconditionally owned subsidiary of Pengurusan Aset Air Bhd (PAAB) Acqua SPV Bhd, has concluded to acquire all Redeemable Unsecured Notes (RUNs) with an superb worth of RM328.12 million. The RUNs are radically debt instruments released by Puncak Niaga in 2001.
As partial of a bailout exercise, Puncak Niaga gets to defer its annual monthly payment amends by 5 years to a debtors, now a Government of Malaysia, from a original date of eighteen November 2011. There is no alternative in isolation association in Malaysia, solely for well known cronies of Barisan Nasional (BN), which can enjoy such preferential treatment.
This is upon tip of a 20! -year RM 110 million loan recently postulated by a Federal Government to Syarikat Bekalan Air Selangor Bhd (SYABAS) upon 17th October. SYABAS is a 70% subsidiary of Puncak Niaga as well as a loan is meant for a siren replacement plan which is ostensible to be within a scope of SYABAS's benefaction agreement. In a SYABAS loan agreement, a association is not usually since a preferential 3% interest, it is usually compulsory to commence amends of a principal installments in a 3rd year of a loan. On tip of which a interest accrued upon a loan shall usually be upon credit in 10 equal installments commencing 2022 or 10 years after a loan is granted!
The above loan is upon tip of a "back-loaded interest giveaway unsecured RM320.8 million loan" postulated by a Fe! deral Go vernment to SYABAS less than 2 years ago in Dec 2009. For this loan, SYABAS is usually compulsory to commence amends with amounts less than RM5 million until 2025, with a overwhelming residue upon credit usually from 2026 onwards! And as a statement implies, a loan is utterly interest-free as well as requires positively no collateral from Syabas.
That's not all Acqua SPV Bhd had acquired all holds released by a Selangor state H2O concessionaires for a volume of RM6.5 billion in May this year. According to a Financial Daily, a marketplace source had confirmed which "in terms of price, a buying back is during 94.49 opposite mark to marketplace worth of usually 54.54 during a finish of last month". It is bad enough which a Federal Government has motionless to bail out a Selangor H2O concessionaires, though for it to pay a whopping 73.2% higher than a marketplace worth of these holds borders upon being vast as well as an abuse of taxpayers' money.
The persistent need to bailout a privatised H2O companies in Selangor proved a unmitigating disaster of BN's privatisation practice which usually served to profit its cronies as well as confiscate a rakyat. When these companies were profitable, nothing of their dividends were accrued to a Government, but! when th ey are incompetent to pay off their mountain of debt it is a BN Federal Government who will come to their rescue with tax-payers' money.
What is worse is a fact which a Selangor State Government had offered both a Federal Government as well as a H2O concessionaires a approach out with its restructuring proposal where a ownership of a latter earnings to a state supervision in sell for a fortitude of their debt burden. Instead a Federal Government had chosen to back its cronies in a privatised H2O industry by bailing out these companies though any commitment during all from a latter for a restructuring practice in a suggestion of a Water Services Industry Act 2006.
Now which these companies have been postulated reprieve from th! eir debt obligations, there will be no urgency upon their partial to resolve a restructuring imbroglio. As a outcome a losers will be a rakyat who will not usually suffer from a risk of higher H2O tariffs in a destiny from these in isolation H2O companies, though also having to bear a burden of paying for a really expensive bailout of a really same companies.
The forward abuse of tax-payers' supports must stop or a risk of Malaysia's "bankruptcy" as warned by Datuk Idris Jala as a outcome of unsustainable debt as well as deficit will usually become a certainty. - tonypua
Courtesy of Bonology.com Politically Incorrect Buzz & Buzz
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