Stock Market Criminals – NATO, No-Action-Talk-Only

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Jul 03 2007
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The recent accounting irregularities could be the climax (or more to come?) as far as Malaysian corporate and stock market scandals are concern, at least within the tenure of Prime Minister Badawi. The crisis definitely has put the country in the global map, for the wrong reason obviously. So when Badawi issued the warning yesterday, 2nd July 2007, it didn’t actually raised my eyebrows simply because the contents of the speech lacks the main ingredients and juices to prevent such shameful incidents from happening again.

First of all, it’s disappointing to note that the prime minister, being the Finance Minister himself (yes, Malaysian prime minister holds more portfolios than any other premiers or presidents in the world) took such a long period to come out and express his concern on such an important crisis, not that the premier has other more critical issue on hand. Such a slow response reflects badly on his leadership as it’s a known fact that the rest of the government agencies only accelerate when there’re enough pressures from the man who walks the corridor of power.
Secondly, Badawi warned that the law will come down hard on those who violate the securities laws, a statement which could be constructed as a lame and normal statement which has been issued everytime crisis or incompetency occurs. Investors who have been long enough in the country should know that the warning will just dies off given time.

Thirdly, the prime minister said the regulators will maintain close surveillance to ensure rules are observed. He further added the government would continuously review and tighten existing regulations to deter corruption, graft and fraud. While the flowerish statements look good on newspaper, he stopped short of hinting for a severe punishment such as putting the top management of the listed companies who were happily cooking the accounting books on charges and be jailed as a deterrent to other potential culprits.

On the fun notes, Badawi said the Transmile Group Berhad (KLSE: TRANMIL, stock-code 7000) and Megan Media Holdings Bhd (KLSE: MEGAN, stock-code 7101) troubles are a timely reminder for everybody that integrity and good corporate governance must always be an ongoing effort with transparency and openness remain the best deterrent against corruption and fraud. The fact remains that top management of listed companies are normally immune from all possible corporate criminal charges (they’s criminals, aren’t they?).

The first no-brainer thing to do, if the premier is seriously concern about maintaining investors’ confidence in the country stock market, is to separate and make the judiciary independent from the executive’s power. Currently, the “Judiciary Pillar” is part of “Executive Pillar” and hence the judiciary couldn’t exercise their independent power on anyone found to have breached the law. And most of the top executives of listed companies are political-linked or has great influence to create a layer of immunity for themselves. A good example is Steel-Man Eric Acquitted – Are You Surprise?

How long do the minority shareholders need to wait for investment protection from the morons of public listed companies top executives?

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It’s a shame this happened in Malaysia which has had such a good record so far.

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is PM going after those that screw minorities thru exploiting the loopholes via threat of delisting? pls save the minorities in rohas-euco industries bhd who have held the ground till now even with the threat of delisting over the heads. I am one of those minority shareholders and my fervent hope is that all MIs will hold their ground whatever it is! Is SC and KLSE listening when MIs are supposed to part with their shares at below NTA and P/E disocunt of more than 50% to the market just because of threat of delisting? Can someone stand up with me together?

talking about saving MIs in takeover by majority shareholders of Rohas. Pls and Pls do not sell any more. The majority shareholder has accumulated up to 81.2% as at 2/7/2007. another 8.8% to go. remember unless they have 90% and we as MIs will have to kowtow under a compulsory submission, there is hope as the delisting lies in the hands of KLSE and not the majority shareholders. Dont succumb to the threat of delisting and stay united MIs. This is very clearly spelled out by the numerous articles emphasised in the Edge and I am very thankful to them for highlighting that. Even this does not come from the independent advisors for Rohas to the MIs. so much for professional advisors, ok.
Hold on for a better price, pls MIs. look at MOX, a claasic example. EPF and Aberdeen Assets held back and were rewarded with RM2.00 (or 13%) extra premium. Sad in that I wrote to fund manager acting on behalf of EPF which held a significant stkae in Rohas but they didnt even bother to reply! maybe I am a small boy in the investment fraternity but all I am concerned is that minorities are not taken for a good ride! any takers for this? Pls pls MIs, dont succumb to the threat, I am holding on even if it means my shares turning into private equity! dont get screw big time ok with the ridiculous offer of RM1.80 per share which is a discount to NTA and less than 4 times P/e prospective! when the market is trading at more than 17 times. Pls…Pls… and I am asking for help to disseminate this info to all the remaining MIs. The Edge weekly magazine has done its part and may someone help pls.

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