PutraPg76: September 2008

It appears that Ahmad Ismail is a big time Umno warlord in Penang. Ahmad Ismail was cleared of bankruptcy by the Insolvency Department in 2006. Ahmad Ismail is the figure linked to the controversial PORR project in Penang. He is the director of Peninsular Metroworks Sdn. Bhd., the concessionaire for the project. Ahmad is an influential Umno divisional leader and former Penang Chief Minister Koh Tsu Koon was beholden to him for support. That was why Koh was powerless when Ahmad Ismail a mere Umno division leader could wield so much influence over him and accused him of not paying attention to the Malays in Penang.The CM’s former constituency of Tanjong Bungah happens to be in the Bukit Bendera division.

It gets more interesting here, The Scribe discovered that PM Abdullah Badawi was named as a director of Yayasan Bumiputra Pulau Pinang, who owns 34% of the PMW share via two wholly-owned companies, Kumpulan Pinang and Kumpulan Perhubungan. Prime Minister Abdullah Badawi is linked to the Penang Outer Ring Road (PORR) project’s concessionaire company, Peninsular Metroworks Sdn. Bhd. (PMW) According to corporate information obtained from the Companies Commission of Malaysia, Abdullah (I.C. No.391126-07-5077) was first appointed director of the Yayasan Bumiputra Pulau Pinang Sdn. Bhd. His name is still listed as a director.Yayasan Bumiputra now controls 34.78
percent of PMW through its two subsidiary companies; Kumpulan Pinang Holding Sdn. Bhd. and Kumpulan Perhubungan Sdn. Bhd.

This was a result of restructuring of the ownership equity in PMW. The shareholders areas follows:
Kumpulan Pinang Holding Sdn. Bhd. (222310-D) 10,000 share
Lingkaran Tanjung Sdn. Bhd. (676910-W) 340,000 share
Setegap Berhad (107232-X) 12,750 share
Kumpulan Perhubungan Sdn. Bhd. (60597-A) 1,190,000 share
Nadi Senandung Sdn. Bhd. (381079-U) 1,897,250 share

Setegap Berhad is a construction company listed on Bursa Malaysia.Lingkaran Tanjung (formerly known as Jasminata Sdn. Bhd) was registered on 30.12.2004 and its registered address is at Suite 2.01, Tingkat 2, Wisma K.P.Loh, No 42 Jalan Besar, Kajang, Selangor. There is no information on the nature of its business and its financial standing. Sources said the directors are related to Datuk Ahmad Ismail.

Major shareholder, Nadi Senandung is principally controlled by Datuk Ahmad Ismail via a dormant company, Cedar Heights Sdn. Bhd. (267289-U). From the web of ownership structure and list of directors, it has confirmed DAP’s allegation that the PORR project is a classic example of Umno’s crony capitalism. Peninsular Metro-Works Sdn Bhd, would be given not just the profitable toll collection for 30-years, but also properties belonging to Penangites amounting to 31 hectares of prime Penang State land (why?). It would also gained 202 hectares of reclaimed land off Gurney Drive. The value of the total package? It’s approximately RM5 billion, not just the RM2 billion we’ve been led to believe.

Nadi group's power structure: Dato Haji Ahmad Bin Ismail > Goh & Foo >> Loo or Chua. If the PORR concession is awarded to PMWSB, Nadi which controls 54.5% of PMWSB will effectively control the Board and the PORR project. But Cedar's Board will make the decisions, because Cedar controls 85% of Nadi. Cedar, in turn, is controlled by Dato Haji Ahmad Bin Ismail (30%), City (29.3%), and Nagasari (20%). Among these three Cedar shareholders, Dato Haji Ahmad Bin Ismail holds the largest power because, if disagreement arises, he only has to forge an alliance or agreement with either one of City or Nagasari to exceed 50% voting rights (To be precise, In the case of an alliance with Nagasari he will need another two shares).

In contrast, if either of City or Nagasari disagrees with him, each will need two other alliances, including one major shareholder, to reach 50% voting rights. Between the last two, City is far more powerful than Nagasari, because of its 29.3% vs Nagasari's 20%, but also because the latter's shareholders are split into two equal-weight of 47.5% (Loo and Chua), while City is owned by Goh and Foo of the same address, which is assumed to mean close relations or associates who would be expected to vote together. City's two major shareholders are also directors at Cedar.

It doesn't matter that the total attributable stake to Dato Haji Ahmad Bin Ismail (13.9%) is smaller than to Goh Choon Aun and Foo Quin Yar (together 21.2%), or Setegap's 25.5%, or KPHSB's 20%. Simply because Cedar will dominate the Board of Nadi, which will dominate the Board of PMWSB, those who dominate Cedar will hold sway.

The State and Federal civil servants will have to answer the questions: How do you expect 20%-shareholder KPHSB to play a more useful role in the financially much more demanding PORR project and Peninsular Metro-Works Sdn Bhd, considering KPHSB's apparent inability to contribute to Jelutong Expressway? And if there is a high risk that Peninsular Metro-Works Sdn Bhd will not be adequately supported by its financially weak shareholders, why should PMWSB be awarded the PORR concession, particularly without an open, competitive bidding process?

That's the reason why PM Badawi, Najib and the rest of the BN/Umno leadership are just giving Ahmad Ismail a slap on the wrist over this seditious remark.