Report: Umno raised RM2b so far by selling stakes in four firms

05-Aug-2019 Intellasia | Malay Mail | 6:02 AM Print This Post

Umno has generated nearly RM2 billion this year through the sale of shares or proxy stakes in four public-listed company, according to a news report.

Local financial weekly The Edge listed the four companies as MyEG Services Bhd, Media Prima Bhd, KUB Malaysia Bhd and Utusan Melayu (M) Bhd.

However, it said Umno’s use of proxies and trustees made it difficult to clearly determine the extent of its holdings.

According to The Edge, the latest sale was on July 25 and involved one billion MyEG shares sold at RM1.65 each for a total of RM1.697 billion.

Previous sales include RM26.125 million in Media Prima shares at RM0.475 per share on July 11, RM73.812 million worth of Media Prima shares at RM0.6 per share on July 2, RM121.088 million worth of KUB Malaysia shares sold at RM0.68 per share on March 1, and RM6.65 million worth of Utusan Melayu’s shares sold at RM0.19 per share on February 8.

These amounted to an estimated RM1.92 billion, The Edge reported.

“Umno needs money so it needs to divest its investments. Media Prima and KUB are the obvious ones since we really do not know the extent of the party’s business empire,” a source told The Edge.

According to The Edge, the MyEG shares sold had been held by MyEG group executive chair Datuk Dr Norraesah Mohamad, a former Umno senator and supreme council member.

The Edge also dug into the RM121 million sale of the KUB shares by the company’s biggest shareholder then, Anchorscape Sdn Bhd, and found it to be owned by Temasek Padu Sdn Bhd that is said to be Umno’s holdings firm.

The Edge said the KUB shares were sold to Umno Federal Territories chief Datuk Seri Johari Abdul Ghani’s investment company, JAG Capital Holdings Sdn Bhd.

According to The Edge, Anchorscape would have gained a profit of RM41.4 million from the sale to Johari’s company as it had purchased the shares held from minister of Finance Inc (MoF) Inc at a low price in June 2017.

As for Umno’s sale of its Utusan Melayu shares, The Edge noted that these were sold for 19 sen each and had been bought in 2003 at RM2.37.

The Edge said Umno still holds a 18.16 per cent stake in Utusan Melayu despite the sale Opulence Global Asia Sdn Bhd.

The Edge said Umno’s investments are believed to be under Temasek Padu, with the Companies of Commission Malaysia records showing its only shareholder to be Bank Islam Trust Co (Labuan) Ltd

Temasek Padu’s latest available records for the 2016 financial year showed it had RM724.5 million in assets and generated a net profit of RM9.3 million from RM662.45 million in revenue then, The Edge said.

After losing the 2018 general election, some of Umno’s bank accounts were frozen for investigations as the party allegedly received millions of ringgit from 1Malaysia Development Berhad.

On July 24, Umno president Datuk Seri Ahmad Zahid Hamidi said the party will be crowdfunding for the first time in its history to support its political activities and to prepare for the 15th general election.

Zahid said that a professional body will manage the funds raised and vet their sources.


Category: Malaysia

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