Press
Statement by Lim Guan Eng in Penang on Tuesday, 7th
October 2008:
Datuk Seri Najib Tun Razak should have directed Maybank to cut its
losses by forfeiting the RM 483 million deposit than risk losing RM 8.25
billion to pursue with its “commercial decision” to purchase PT Bank
Internasional Indonesia (BII)
DAP Secretary-General and MP for Bagan Lim
Guan Eng will write to new Finance Minister Datuk Seri Najib Tun Razak
requesting that Datuk Najib explain why he did not direct Maybank to cut
its losses by forfeiting the RM 483 million deposit than risk losing the
entire acquisition price of RM 8.25 billion to pursue with its
“commercial decision” to purchase BII. The public is highly suspicious
of such shady deals as they remember the losses suffered by Proton
Holdings Bhd of selling MV Augusta for one euro what it had bought for
70 million euros resulting in total losses of RM500 million.
Maybank, Malaysia's largest bank by assets, had agreed to pay RM 4.8
billion for a 56% stake in BII held by Singapore state investment
company Temasek Holdings Pte. Ltd. and South Korea's Kookmin Bank.
Maybank had paid a deposit of RM 483 million which would have been
forfeited if the purchase was not completed. The purchase of the
56%-stake at 510 rupiah per share would have triggered a general offer
at the same price.
The acquisition price of 510 rupiah per share was 65% higher than the
share price of 310 rupiah per share. So unfavourable was the deal that
both Temasek Holdings Pte and Kookmin Bank had to give a RM 758.9
million or 15% discount to sweeten the deal. This would reduce the full
acquisition price to RM 8.25 billion. So far, Maybank has failed to
explain how it can pay 4.3 times BII’s book value compared to the
current market valuation of Indonesian banks at a maximum of 2.7 times.
With the drastic drop in value of Indonesian banks together with the
bearish global share markets, would Maybank even get half of its
acquisition price of RM 8.25 billion should BII be sold now? 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. Is
there a need for Mayban to buy a bank that Singapore’s 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?
Why is Maybank allowed to behave unprofessionally and risk further
heavier losses of RM 8.25 billion when a more responsible decision
should be to forfeit the RM 483 million deposit? Lim is asking Najib to
order an inquiry into Maybank’s conduct in this RM 8.25 billion scandal
that is not in the public interest.
It is such shady deals that have crippled Malaysia’s anti-corruption
efforts causing Malaysia’s to tumble in the rankings of the Transparency
International’s Corruption Perception Index of No. 37 in 2003 to No. 47
this year. Lim added that to succeed in fighting corruption, Najib must
prove that he is a Finance Minister that practices prudence, competency,
accountability and transparency. Where else but to protect the public
interest by withdrawing such “protection” from Maybank?
*
Lim Guan Eng, Penang Chief
Minister Penang & DAP
Secretary-General