Who really made money from the RM 625.00/car subsidy pay out? |
| Written by Leremy | |||
| Wednesday, 18 June 2008 | |||
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I found this article from here. Recently, Government announced that the pay out subsidy for private cars below 2000cc, SUVs below 2500cc and motorcycles below 250cc be made on cash, via all the post offices in the country. RM billions have been put aside for this exercise, meant to alleviate the burden of the much thought to be a ‘Flip-Flop’ decision of the exorbitant increase in retail price of petrol and diesel two weeks ago. The exercise was said to be decided by the ‘Cabinet technocrats’ Second Finance Minister Tan Sri Nor Mohamed Yackop, Minister in the PM’s Department (in charge of EPU) Dato’ Amirsham Aziz and Agriculture and Agrobase Industry Minister Dato’ Mustapha Mohamad (from his NEAC experience), in a discussion meant to address the issue of IPPs and the affect on electricity tariffs. Eventually, someone proposed to unlift all subsidies on retail petrol and diesel eventually and pushed for PM ‘Flip-Flop’ Dato’ Seri Abdullah Ahmad Badawi to announce hastily. Maybe the public is not aware who are the shareholders of Pos Malaysia Services Holdings Bhd., the wholly own parent company of Pos Malaysia which has been given the authority and funds to channel these monies. As of two years ago, pre-merger with ECM Libra, Avenue Capital Resources Bhd. owns 15.6% of Pos Malaysia Services Holdings Bhd. When the merger was successfully announced August 2006, which received approval of all the authorities (despite the attention drawn to the highly dodgy deal of ECM Libra merging with a much bigger firm and eventually took control), it was still believed that presently, ECM Libra still has the strategic 15.6% holdings of Pos Malaysia Services Holdings Bhd. So who actually benefitted from this subsidy payout scheme? If the amount is in the neighbourhood of RM 1 billion, then long term deposit with a commercial bank, Pos Malaysia or indirectly, ECM Libra would have made RM 39 million per annum or RM 106, 849.32 daily. That is not including the management or services fee that Pos Malaysia charges the Government for this service. If the charge is just 1.0% of the amount, it means Pos Malaysia would have made RM 50 million per annum free income without incurring significant operations cost. If the pay out amount for the year is in multiples of RM 1 billion, then the profits will be realised will be on the same proportion. That is definitely a great business model for the owners of ECM Libra, which include Riong Kali and Khairy Jamaluddin, two of PM ‘Flip-Flop’ Abdullah’s closest advisers!         
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