SCOMI, the company linked to the Prime Minister's son Kamaluddin Abdullah, gets only 15 per cent of its RM200 million earnings locally.
CEO Shah Hakim Zain said 85 per cent came from projects abroad.
In his Aug 7 interview on TV3, Abdullah Ahmad Badawi stiffly denied that his son had abused his position as the PM's son to get deals for Scomi. "If people ask why go overseas, he (Kamaluddin) will say father (Abdullah) is the prime minister, it's difficult to earn a living locally. His contracts, his business, 80 per cent are from overseas. That is his livelihood," the PM had said.
OK, so the PM said 80 and Shah Hakim said it's 85; it's a variation of just 5 percentage points. But in the name of good corporate governance and accuracy, I thought the Scomi CEO and Mingguan Malaysia did well to set the record straight.
Read the Scomi CEO interview.
Bru, does this 85 per cent include contracts awarded by Petronas, its subsidiaries and joint-ventures abroad?
ReplyDeleteAny and all Petronas-related contracts should be considered a business with the Malaysian Government as Petronas belongs to the Government.
But if they were obtained via competitive and transparent biddings, who are we to question.
Does he consider petronas contrct given aborad as local or foreign contract?
ReplyDeleteBut, is it not the 85% overseas revenue also mainly from the subsidiaries of local companies or GLCs such as Petronas?
ReplyDeleteRocky!
ReplyDeleteIf we were to believe CEO of Scomi Shah Hakim Zain on how his company make money and profits, then we have also to believe pigs can fly and Winnie the Pooh is real! If we do, Malaysians that is, it is now confirmed beyond any reasonable doubts Malays, especially in Umno, are indeed Morons! Sad!
hjr, a voice, inmine, I am not sure if the 85 per cent portion includes earnings from projects that are awarded to Scomi by Petronas.
ReplyDeleteIn his interview, I believe the PM classified those Petronas-related projects as "international" as Scomi had won them through "international bidding".
Excerpts:
[Datuk Seri Abdullah said Scomi hardly had business dealings in Malaysia, as 80 per cent of its business came from abroad, and any contracts it had received from national oil company Petronas were won in international bidding.
"He is not involved in government concessions and has never asked for government help," Datuk Seri Abdullah said.]
And according to the CEO of Scomi in the interview with Utusan, Petronas projects awarded to Scomi contributed only about 7 per cent of Scomi's total earnings.
Excerpts:
[Shah Hakim menambah, projek yang diperoleh di AS merupakan penyumbang utama kepada perolehan Scomi yang berjumlah AS$53 juta (RM196.1 juta).
Beliau berkata, bercanggah dengan dakwaan ramai, sebanyak 85 peratus daripada pendapatan Scomi datang daripada luar negara manakala bakinya, hanya 15 peratus, adalah di Malaysia.
Daripada peratusan itu pula, kata beliau, hanya tujuh peratus diperoleh daripada projek-projek yang ditawarkan oleh Petroliam Nasional Bhd. (Petronas) di Malaysia.]
Rocky!
ReplyDeleteCome on! Don't be coy and stop using glib language for some of us out there are not morons. Call spade a spade, even if it is an international contract as clasified by Petronas it is just like saying, once upon a time, a very powerful woman minister who was just sittng at a corner of a room and observing a deliberation on decision to be made on shares to be allocated to whom ever. What hjr, a voice and inmine are saying is thgat yes! Any international bidding for Petronas contract will still be referred to KL, and rest assured a phone call will ensue! Rocky as I said don't be coy and using glib language to us as life is too short!
Not-a-moron!
Thank you Bru, I think the confusion arose because the TV3 interview was not professionally conducted and edited.
ReplyDeleteMaybe both the interviewer and TV3 editors were not well versed in business.
So, having our friends helping us or putting our friends in key places does not ensure our well being if they are not professional and not knowledgeable.
I think professional journalists would have done a better job with the interview and editing of the PM's interview.
Shah Hakim could have given a more detailed explanation. But maybe he was not asked the correct questions by the Mingguan Malaysia interviewer. Many reporters today lack knowledge, especially in economic affairs.
Dear Rocky,
ReplyDeleteThis joke continues to be on us. Scomi is a UMNO-linked company and at one time was controlled by Anwar's crony Nasaruddin Jalil. After 1998 it was rapidly fading away, until given to Kamal, who in turn put his friend-crony Shah Hakim to be its official face. Kamal has no track record as a succesful businessman - Dewina collapsed when he helmed it and his restaurant business failed miserably as well. Shah Hakim was a very, very small timer before Scomi. Then, Petronas' contracts kicked in and Scomi was on its way up. Shell, Talisman and others are all bound by Petronas' criteria in awarding contracts, not much for competition. Most of its revenue from abroad? Since they count TNB contract as "overseas" (as the procurement and shipment of coal is from foreign countries, technically yeah), as well as Petronas' contracts in Central Asia, as well as SE Asia, maybe they are right in 80%... If they dare, let them publish how many contracts have been awarded to them overseas, other than from Petronas, TNB and their related companies? Pak Lah is insulting our intelligence day after day...
Brother Rocky,
ReplyDeletePerhaps we should get Mr Prime Minister to explain these, if he is aware of them, of course. The recent interview on TV3 simply showed that he is not aware of many things happening in the country and with members of his own family:
1. In March, The Malay Mail (controlled by your close associate Kalimullah Maseerul Hassan, who was once a Singapore Straits Times reporter) reported that KTM had in 2005 awarded a five-year RM50 million contract to Scomi Group "to overhaul and maintain" as many as 1,000 wagons.
2. Also in March, Business Times (also controlled by your close associate Kalimullah Maseerul Hassan) reported that Scomi Group was going to submit a bid for a RM120 million contract "to make body parts for about 400 buses for state-owned Syarikat Prasarana Negara Bhd."
3. Then in April, The Edge (controlled by Ho Kat Tat, also a former Singapore Straits Times reporter and Kalimullah's good friend) reported that Scomi Engineering Bhd is acquiring a 51% stake in MTrans Transportation Systems Sdn Bhd for RM30 million to provide it a platform to be a key player in urban transportation. Scomi Engineering had on April 28 signed an agreement with Kiara Kilau Sdn Bhd, which owns 100% stake in MTrans, to acquire the 51% stake. MTrans owns bus manufacturer MTRans Bus Sdn Bhd and MTRans Technology Bhd, which specialises in monorail systems and technology.This is of course for the Penang Monorail project.
So the five-time hike in petroleum prices over the last year on the pretext of improving public transportation is certainly benefiting some parties - Your son's Scomi Engineering, to be specific!
What have you done to improve the public transportation in Kuala Lumpur since then. The LRT is still madly congested and the city buses are still breaking down in the middle of already-congested roads.
4. Recently, Scomi Marine Bhd received a letter of intent from TNB Fuel Services Sdn Bhd for a coal shipment contract for three years from Oct 1, with an option to extend for another two years, the company said. Scomi Marine announced Bursa Malaysia on April 14 that under the contract, it would be required to transport 500,000 tonnes (with 20% variation) of coal from Australia, Indonesia and South Africa yearly.
It said TNB Fuel Services would determine the actual quantity of coal to be transported and from which country upon finalisation of the contract, The Edge reported. Rumour has it that while the contract to transport the coal went to Kamaluddin, the contract to supply coal to TNB went to Khairy Jamaluddin. Any truth in that?
5. Also recently, Scomi Group Bhd, an oil services company, won a contract from Petronas Carigali (Turkmenistan) Sdn Bhd to provide drilling fluids and other services for exploration works in Block 1, offshore Turkmenistan.In a statement issued by Scomi which was published by Business Times, Scomi said the contract would contribute about RM57 million a year to its coffers.
With all these projects, and more to come under your brilliantly devised Ninth Malaysia Plan, why does Kamaluddin have to go overseas to secure projects. Well, I know thatTurkmenistan is in central Asia, but the contract was secured here from Petronas.
All these reek of a scandal in your humble abode, don't you think, Mr Prime Minister?
Of course Scomi has high profit margin. They get venders to make a agreement with Scomi as a agent and promise huge sales. After the vendor’s product is sold and money collected, the vender never gets paid. Makes sense to me on how to show growth and profit.
ReplyDeleteKilling2birds1stone