From transport to land banks, Umno-BN bestows non-stop largesse to Syed Mokhtar
Cynicism greeted news that Umno-linked billionaire Syed Mokhtar al-Bukhary was moving in on 330 acres of land leased out to Kelab Golf Negara Subang (KGNS), and believed to be worth a staggering RM5 bil.
"This is a deal that has been brewing for a while and we are not surprised given that it is prime land and the federal government has always bent over backwards to help private entrepreneurs win deals even though it is unfair, one-sided or downright crooked," a research director at a bank-backed brokerage told Malaysia Chronicle.
"We are actually more shocked by the sheer number of deals Syed Mokhtar has collected so far. Can it really be all his - this is the question in the market and of course, we all know the answer too."
All over transport and logistics business
Indeed, Mokhtar has been granted an extraordinary number of mega deals by Prime Minister Najib Razak's government. Many believe this was part of a plan by Najib's Umno party to gather as much wealth as it could by selling national assets to cronies such as Mokhtar at advantageous prices in the event that their BN coalition lost power in the coming 13th general election.
Earlier this month, PAS deputy president Mat Sabu shared reliable information that Mokhtar had been given approval to conduct due diligence on KTM Berhad, the manager of the national railway.
“I have been told he has obtained approval to conduct due diligence on KTM Berhad, is this another act of fattening UMNO’s political war chest? At present, he controls several ports and there is plan to acquire other ports in the country. So if he catches fever, Malaysia will pass out," Harakhdaily reported Sabu as saying.
The PAS leader also pointed out that Mokhtar had also offered to take over PLUS highway. If true, Mat Sabu said the tycoon would be having an overwhelming control over the country’s logistic sector. Mokhtar recently acquired Penang Port, already owning the ports of Johor and Tanjung Pelepas through his flagship enterprise, MMC. It is also speculated that he is eyeing Northport Berhad at Port Klang.
“If Syed Mokhtar is successful in acquiring PLUS and KTM and 60 percent of the country’s export has to go through those ports along the Malacca Straits, just imagine how powerful he is," Sabu said.
From logistics to strategic landbanks - will fund be waylaid maidway
It now looks like Mokhtar is shifting over to strategic land banks, with some speculating that the Najib administration was pushing through the deal in a bid to raise funds. However, with the 13th general election likely to be held in June, the successful 'privatization' of the golf club's land won't be in time.
Additionally, critics have questioned the source of Mokhtar's funding, rich though he may be.
"It looks more like Umno leaders are building a self-preservation fund for themselves rather than for GE13. Since the money trails will be bound to be complex, whether Treasury gets all the money or a huge chunk is waylaid by top Umno leaders is not clear yet," PKR vice president Tian Chua told Malaysia Chronicle.
On Monday, The Edge newspaper reported that Perspective Land, a private investment vehicle controlled by Mokhtar and Sunway City, an arm of property giants Sunway, had submitted a development plan for the land.
“We always look at the opportunities that are available to us. If it turns out to be something interesting, we may put in a proposal though most of this is done on a trial-and-error basis,” The Edge quoted Ho Hong Sang, managing director of Sunway’s property division, as saying.
Greed will turn the people off
KGNS is currently is fighting a lawsuit filed by the BN government to force the club to buy the land at current market rates. The federal government and KGNS entered into a 99-year lease in 1971 but the official land owner, the Federal Land Commissioner, then went to court in the middle of last year to compel KGNS to buy the land at current market prices.
KGNS members then voted in a November 20 extraordinary general meeting to defend itself against the lawsuit and also that a new task force be established to help negotiate a settlement.
A KGNS member Megat Najmuddin cautioned that it would be “political suicide” for the government if it tried to hammer through the deal.
“It will antagonise a whole generation of people. These people are not just anyone,” Megat was quoted as saying.