Update, 8.15pm: TM gets Letter of Award from Govt on HSBB project, an announcement to the Bursa here:
We refer to our announcement dated 15 May 2008 [Reference No. TM-080515-63438] in relation to the abovementioned matter.
Announcement Details :
Telekom Malaysia Berhad (“TM”) is pleased to announce the acceptance of a Letter of Award (“LoA”) from the Government of Malaysia (“the Government”) for the implementation of the High Speed Broadband (“HSBB”) Project in collaboration with the Government to deploy the access, domestic core and international networks to deliver an end-to-end HSBB infrastructure. The total cost of the HSBB investment for a period of ten (10) years is RM11.31 billion whereby the Government will be investing RM2.4 billion and the remaining RM8.91 billion from TM.
With the acceptance of the LoA by TM, the parties will enter into a formal agreement (“HSBB Agreement”) based on mutually agreed terms and conditions in due course. Further details and relevant information would be announced upon the execution of the HSBB Agreement between the Government and TM.
None of the Directors or major shareholders or persons connected to the Directors or major shareholders of the Company has any direct or indirect interest in the HSBB Project.
This announcement is dated 2 September 2008.
101 reasons why the Pahang Menteri Besar's party should not be awarded the High Speed Broadband project. But the fact that he did not even have a comprehensive proposal to back his RM18 billion plan should be enough to compel Mohd Najib Abd Razak, the Deputy Prime and chairman of the Cabinet Committee on Broadband, to stick to the original plan (with Telekom Malaysia).
Adnan is closely linked to the Pahang royalty, and his involvement in the RM18 billion project may also implicate the palace. This is especially so given the fact that the RM18 billion bid came just days before the Government was supposed to sign an HSBB deal with TM. Some said Adnan was fronting Najib. This, the locals can tell you, is absurb. Others said the additional billions would come in handy to stop some BN MPs from defecting to PKR, and to ensure that there's enough to go around to keep the Umno President in power during the Umno general assembly in December.
When you act suspiciously, people become suspicious. Many felt that Adnan's party should not even have been entertained. And they are right. After presenting a "concept paper" to the Cabinet Committee on Broadband, it was clear that Adnan and the parties linked to the Pahang State Government did not have what it would take to carry out the HSBB project. And RM18 Billion don't fall from the sky.
We can expect an announcement by the Government to say they are going back to the Original Plan. A weird detour, that. I hope foreign investors take note that in Malaysia, it is no longer Boleh all the time for the cronies. I hope the Cabinet Committee on Broadband has made sure of that.
Read my previous postings:
The 18 Billion Man - 14/8/08
Will Adnan be given the RM18 B project? - 21/8/08