Thursday 6 February 2014

EXPOSED AND HOT !! Omar Ong link to AES established!

Omar Ong link to AES established!

Over dinner sometime last year, one former mainstream media editor shared an information on the controversial AES. He said someone related told him that Dato Omar Ong has interest in the privatisation of AES.

The editor told a lot of what he heard on grapevine but shared no details or explanation. Only "someone said this" and "someone said that", thus giving an impression of him as someone loves delving in petty gossip.

We did not consider his word as reliable but did not totally put it aside. And we got someone to check and got only an affirmative yes. Still no details was given. Ever since, few other sources confirm the same.  

Syed Akbar's posting here on The Star's report confirmed the link to Omar Ong.

An extract of the report below:
In early December last year, a motion was passed in the Dewan Rakyat to allow the Government to take over the project from the companies, paving the way for negotiations between the companies and the MoF.

The companies’ estimated capital expenditure (capex) for the project was to have been between RM300mil and RM400mil, with 60% being spent in the first six months of rolling out the system.

However, up to last year, the companies were reported to have spent just over RM100mil each. 

The Government is taking over the two companies via AES Solutions Sdn Bhd, a company owned by MoF-controlled Prokhas Sdn Bhd.

AES Solutions, incorporated on Sept 2, 2013, has two directors – Maamor Che Alias and Datuk Kamal Mohd Ali.

The-then Deputy Finance Minister Datuk Ahmad Maslan had said that the two companies had an estimated investment cost of RM717mil, and that the Government would conduct its own due diligence.

Under the terms of the concession, Beta Tegap was supposed to have implemented the AES for Kuala Lumpur, Putrajaya, Selangor, Negri Sembilan, Malacca, Johor, Pahang and Terengganu, while ATES was to have operated in Perlis, Kedah, Penang, Perak, Kelantan, Sarawak, Sabah and Labuan.
According to Syed Akbar, Beta Tegap only has a paid-up capital of RM19mil. They have four shareholders namely; Nik Ismail Nik Mohamed, Yap Kim See @ Yap Ai Lin, Rozana Redzuan and Andreas Teoh.

Rozana is Toh Puan Rozana Tan Sri Redzuan Salim is a former Director of Plantantion & Development Berhad, before Dato Soh Chee Wen turned it into a PN4 company. She was formerly an analyst with Public Securities and came from an influential UMNO family in Batu Pahat.

Andreas Toh is linked a Mediharta Sdn Bhd, a company that had benefited from two lucrative contract from the Ministry of Health and believed to be linked to MCA Johor.  
The system was supposed to have been launched nationwide in September 2012, but was delayed due to massive resistance from various quarters.

The major shareholder of ATES is Commercial Circle (M) Sdn Bhd. One of its directors is Chee Chwee Cheong, who also happens to be the founding partner of Ethos Consulting, which is one of the country’s most influential boutique advisory houses.

Apart from Chee, the other director of ATES is Lawrence Foong, who is Chee’s father-in-law.

With Chee and his father in law as directors, it indicate that Omar Ong's partner and his father-in-law controls the company. 

Does Omar has interest in Commercial Circle as the cover for his equity? 

If so, Chee and his father in law is only Omar's proxy.  

According to The Star, the companies claimed to have spent between RM300mil and RM400mil of capex with 60% spent in the first six months. of rolling out the system.

However, the companies were reported to have spent just over RM100mil each for last year.

One of the concessionaires is demanding between RM400-RM500 million based on a big four accounting company valuation. Government valuation only placed it at RM180 million for each company. 

Since the shareholders of the concessionaires are politically linked, they better realise the public has no tolerance for paying to much for a controversial privatisation which did not take off.

Shouldn't be paying more to these opportunistic rent seekers. 

So damn with their accountants!

source : another brick in the wall

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