Monday, February 26, 2007

Dracula lied?

Accountancy 101 for "misleading" minister. An accountant-to-be has "rubbished" S. Samy Vellu's take [New Sunday Times, Feb 25] on why highway toll had to go up extortionately (doesn't 60 per cent extort?) earlier this year.
I am no wizard when it comes to figures but FreeLunch2020 makes it look so elementary.
"So, no Samee. The total interest costs for the entire period of the project is pretty much fixed if interest rates are fixed. And NO, the loan principal IS NOT PART OF THE COST.
Now the question becomes how come these companies are not generating enough cash, and why are their stoopid projections/budgets so OFF the mark?"

Click here for a lesson on accountancy. For your more basic instincts, Shanghai has a finger on the same minister here.


  1. Anonymous1:11 pm

    Shows that the rakyat are no fools. This is not the 70s and Samy, you are not talking to your supporters in MIC.
    What happened to KPI for Pak Lah's ministers? I haven't seen any one of them performing at all. Samy is one of the better ones, in fact! (So imagine the others!).

  2. Anonymous1:32 pm

    wow bro, tks for the support and the "frontpage". as it is am an accountant-to-be, or not to be? ke ke ke. misleading cos definitely they should have explained more. it's just not so simplistic as it was put across by Samee "fake hair" Veloooooooo...

  3. If dracula doesn't know what he's talking about, what will be happening to the 9MP projects and the PFI (private finance initiative) agreements that're coming under his wings, so given mr yachtman?

    Shivvers me timber; the rakyat can't depend on the EPU because that's where the toll ripoffs started, and the rakyat can't depend on Nor Yakcob because he lost rm20 billion of the rakyats' money playing the money market.

    So, will financial disaster repeat itself with the 9MP as it had happened in the 6MP, 7MP and 8MP if count dracula gets to keep his fangs?

    The possibility makes the a-longs seem mild by comparison.

    Don't let the next generations be indebted by stupidity, greed and incompetence.

  4. Anonymous1:41 pm

    agree ie. how can you take prinicpal as cost!

    and our dear samy also said that the RM80.0 million net profit reported by LDP is not profit coz it is paper and not cash profit.
    mr samy, net profit is after deduction of interest, amortisation and tax. include these items back, you will get an ebita figure. if LDP generates RM80 million of net profit, the ebita level would be very much higher. so, the cash flow before loan repayment and interest servicing must be very very good. thats why toll concessionaires can gear up the toll project (thru bank borrowings) at a very high level to fund the project. which also means capital input is relatively low. return on capital at the end of the day is a rosy double digit figure annually throughout the tenure of the concession.
    and that doesnt include the cream which is the construction profit reaped upfront.
    who is paying for it? it is the toll payers, mr samy. the toll payers are paying for the construction cost ( at what inflated level, god knows?), interest cost and also profit due to the toll concesionaires!
    my dear samy, either you are totally ignorant ( which means go and take Finance 101) or you are lying through your teeth.
    mainstream papers will not dissect what you said and just report verbatim in order to spin the public in unison with you.
    sorry, mr samy, there are blogs now to blow your cover. you can change your topee as often as you wish, but we, the concerned citizens will dissect every word you say.

    and i remember mr samy said the same thing about PLUS ( ie. unprofitable and big loan to repay whenever taxpayers complain about the high toll rates during the early years of PLUS). what is PLUS's valuation today as reflected by market capitalisation? is PLUS profitable?

    stop lying, mr samy.

  5. This is the sickness of our politicians....they think we are ignoramuses. They think that most of us originate from the kampong, from the estates and from the tin-mining kongsi and are therefore easily hood-winked. Stop lying tambi....what's that word for inveterate liars.Somebody please. We should get the city-council stray units to reign in these critters before they spread their mange.

  6. samee underestimated the amount of accounting graduate in this country. even those mass produced by local half-past 6 unis (sorry for being rude) can tell between interest/cost/principal.

  7. Anonymous12:08 am

    hi zorro, try wikipedia. even that, no answer for inveterate liar.
    your command for english is great. if you cant, who else, please.

  8. Anonymous3:51 am

    i understand it's implanted hair or something...that samee "fake hair" veloo has...

  9. Made a poster on this subject, feel free to use it, aptly named: "Interview with a Bloodscuker". (gives Vampires the creeps)

  10. Anonymous10:14 pm

    Freelunch2020 - you are a disgrace to members, affiliates and students of ACCA.

    You obviously can't comprehend what and how a non-accountant is communicating.