Statement by Lim Guan Eng in Petaling Jaya on Sunday, 5th
Datuk Seri Najib Tun Razak defence of the RM 8.25 billion PT Bank
Internasional Indonesia Tbk (BII) scandal as a purely commercial
decision shows that BN has still not learnt the lessons from the March 8
political tsunami of the necessity for Competency, Accountability and Transparency(CAT) in good governance
New Finance Minister Datuk Seri Najib Tun
Razakís defence of the RM 8.25 billion BII scandal as a purely
commercial decision shows that BN has still not learnt the lessons of
the March 8 political tsunami of the necessity for CAT in good
governance. Malaysians denied BN its 2/3 majority for the first time in
history because they were sick of corruption abuse of power, financial
malpractices and shady deals that has caused Malaysia to tumble in the
rankings of the Transparency Internationalís Corruption Perception Index
of No. 37 in 2003, when Datuk Seri Abdullah Ahmad Badawi took over as
Prime Minister, to No. 47 this year.
Unfortunately the BN government has refused to stop questionable deals
such as Malayan Banking Bhdís (Maybank) acquisition of Indonesia fifth
largest bank, BII, for RM 8.25 billion despite widespread condemnation.
Consequently Maybankís share price closed to its 5Ĺ year low of M 6.60
on Friday. While Maybank is still the nationís largest bank by assets,
its market capitalisation has fallen to RM 32.2 billion, behind Public
Bank Bhdís RM 35.1billion.
So unfavourable was the deal that the vendors had to give a RM 758.9
million or 15% discount to sweeten the deal. So far Maybank has failed
to explain how it can pay 4.3 times BIIís book value compared to the
current market valuation of Indonesian banks at a maximum of 2.7 times.
CIMB Research estimated that the cost to acquire 100% of BII at
RM8.25bil, or 467.2 rupiah per share, was still 51% higher than BIIís
current market price of 310 rupiah.
In fact the value of Indonesian banks have dropped so drastically,
serious questions are raised as to whether Maybank would even get half
of what was paid for, should BII be sold now by Maybank. Bank Negara
also has to answer questions why it approved this deal when it was
clearly not in the interests of Maybank and the Malaysian public. Do we
need a bank that Singaporeís Temasek Holdings does not want and is
desperately willing to give a further 15% discount of RM 758.9 million
even AFTER the deal has been closed?
DAP calls on Najib as the new Finance Minister to review the RM 8.25
billion BII acquisition to fulfil the changes he had said in Kota
Kinabalu yesterday that BN must make to take heed of the March 8 general
election results. Should Najib fail to look after the public interests
and the desire for change, then his prophecy that the people will have
no choice but to change the BN government will ring true. Najib should
pass this first test if he is to succeed as a Finance Minister of
financial prudence, competency, accountability and transparency.
Lim Guan Eng, Penang Chief
Minister Penang & DAP