Tuesday, July 10, 2012

Khazanah big Gun under probe [Updated & Clarified]

Update & Clarification: A source very close to Khazanah has told me that talk of a probe into the Pantai-Parkway deal was hogwash. Neither Khazanah nor its senior Indian exec is under MACC investigation. I have also checked with a source close to MACC, who said there's no record of such a probe.
My statement that "Khazanah Nasional should be vindicated with the listing of IHH Healthcare Bhd, the world's third largest IPO this year", remains true.
In view of this clarification, I'm obliged to close the comment section and not publish the comments that readers have sent.

Original posting:
Khazanah Nasional should be vindicated with the listing of IHH Healthcare Bhd, in what is the world's third largest IPO this year (after Facebook and Felda). The nucleus of the whole deal was the Pantai-Parkway deal, brokered during the Badawi administration. Faithful readers of this blog would remember the series of postings I did on that deal. But this isn't about "I told you so". I am just wondering if this is good brinkmanship on the part of Khazanah, or is something rotten going to emerge soon? Because talk is a senior Indian official at Khazanah Nasional has been interviewed twice by the Malaysian Anti-Corruption Commisison (MACC). Talk also is that he might know how a substantial amount of money from the Pantai-Parkway deal had gone and if the sum had gone to a mysterious third party linked to the infamour 4th Floor then.

The probe is not likely to affect the IPO, though. If anything, it should increase investors' confidence in the exercise!