Businessman compares ECM Libra controversy with deals involving sons of Dr M, Najib

Businessman compares ECM Libra debate with deals involving sons of Dr M, Najib

KUALA LUMPUR, November 18 Controversial deals involving a sons of Prime Minister Datuk Seri Najib Razak as well as Tun Dr Mahathir Mohamad were given a public airing today in office worker Datuk Seri Kalimullah Hassan's insult fit opposite a former budding minister's former political secretary, Matthias Chang (picture).

The former New Straits Times Press emissary authority was asked by Chang's lawyer Datuk R. Kamalanathan if "any alternative association has captivated such widespread controversy" as ECM Libra in a Jan 2006 partnership with government-owned Avenue Capital Resources.

"Just three or 4 days ago, a budding minister's son paid for shares during 84 sen prior to it started sharpened up," Kalimullah replied, referring to Mohd Nazifuddin Najib's squeeze of dual million shares of timber association Harvest Court Industries Berhad that soared to RM2.14 earlier this week.

The share cost of a former PN17 association has jumped as most as 535 per cent in a past dual weeks since Mohd Nazifuddin assimilated a house upon Oct 28.

"There is debate over a lot of things," a shareholder as well as non-executive authority of investment bank ECM Libra said.

He additionally mentioned Dr Mahathir's sons Datuk Mokhzani as well as Mirzan without specifically referring to a expect deals to that he was referring.

In 1997, Mirzan's Konsortium Perkapalan began talks to buy a government's 23.95 per cent interest in Malaysia International Shipping Corporation (MISC), though a understanding fell by due to cost disagreements.

Petronas, tranquil by a budding minister's department, afterwards stepped in as well as paid for a MISC stake.

MISC afterwards paid for all a shipping resources of Konsortium for US$ 220 million (RM696.3! million ) in money to help Konsortium pay a debts. This included Konsortium's interest in Pacific Basin Shipping of Hong Kong.

In 2001, Mokhzani was forced to dispose of his stakes in dual companies Tongkah Holdings as well as Pantai that has a interest in monetary services organisation Avenue Assets to wand off creditors as well as claims that his father was practising nepotism.

Avenue Assets eventually came under a control of a government, as well as was eventually renamed Avenue Capital prior to a 2006 partnership with ECM Libra.

Mirzan is now a director in Petron, an compared association of San Miguel Corp, that not long ago kick twenty alternative companies, together with 7 internal firms, to buy over Esso Malaysia, causing melancholy among worried Malay groups such as Perkasa.

Mokhzani is now a arch senior manager as well as director of Kencana Petroleum, a vital player in a internal upstream oil as well as gas sector, that is in a surrounded by of a RM11.85 billion partnership with SapuraCrest.

The High Court here listened today that a ECM-Avenue partnership upon Jan 19, 2006 was done with ECM being valued during RM1.06 per share, usually 21 days after Khairy Jamaluddin, a son-in-law of afterwards Prime Minister Tun Abdullah Badawi, paid for 13 million shares in a association during 71 sen each.

"If you are trying to say that you jacked up a cost ... that is positively false," Kalimullah replied to Kamalanathan.

The High Court here additionally listened that review organisation KPMG as well as merchant bank RHB Sakura gave wrong as well as dubious valuations of RM330 million for investment bank ECM Libra in a reverse takeover of South Peninsular Industries (SPI) in 2004.

Kamalanthan pronounced this was because KPMG usually relied upon report given by ECM's board, together with office worker Kalimullah, without conducting an eccentric investigation.

"KPMG's gratefulness is not a loyal value of a association as well as not independent. This gr! atefulne ss is not value a ink as well as paper it is written upon as it is usually reproducing what ECM Libra told them.

"The second valuer (RHB Sakura), relied upon KPMG's gratefulness that istotally wrong. These wrong statements to public have been misleading," he pronounced when cross-examining Kalimullah.

He additionally pronounced there were "clear irregularities in RHB Sakura's valuation" though Kalimullah, who is a shareholder as well as non-executive authority of ECM Libra, called a claim "preposterous."

"KPMG relied upon report from a company. But everyone from JP Morgan to Goldman Sachs have a caveat observant a gratefulness is based upon report gleaned from a company," he said.

KPMG estimated ECM Libra's profits during RM48.3 million for a year as well as set a value of RM330 million for a association based upon a multiplier of 6.83.

Kalimullah had pronounced that a distinction projection was made by ECM Libra's board.

He is suing Chang for RM50 million for allegedly calling him a hypocrite as well as corrupt in his purpose in ECM Libra Bhd during a press conference upon Jun 13, 2006.

The remarks were subsequently published in an article in Singapore's Straits Times (ST) a following day.

ECM's reverse takeover of loss-making public-listed SPI allowed it to be listed upon Bursa Malaysia.

The hearing continues upon Jan 10.

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