Posted tagged ‘MAIKA Holdings Bhd’

Wheeler and dealers short change MAIKA stakeholders

January 2, 2013

In the year 2000, MAIKA, the MIC’s loss making investment arm was sold to tycoon Tan Sri Gnanalingam’s G team Resources for RM106 million. 66000 MAIKA shareholders had been clamoring for the listing of its priced asset, OCA, by MAIKA itself.   But the MIC and their saviors had other plans, shattering the 29 years of hope for recovering their investment.    

Last year (2012), Tan Sri Tony Fernandez bought over OCA from G Team Resources and renamed it TUNE insurance Bhd, marking it for listing after 6 months of acquisition. It is expected that TUNE insurance will have a market capitalization of RM1 billion.  

Why were MAIKA shareholders left in the lurch without proper compensation? The 66000 shareholders invested hard earned RM1000 per lot of the MAIKA shares in 1981.  All they got back in 2010 was RM800 per lot. And those who took loans had to pay back with interest and many relinquished their loan along the way. Many of MAIKA shareholders were poor who wanted to do their part and responded to the call of the MIC president in 1981. Quite a number died while still in debt. But at the time of selling of MAIKA holding with its priced asset OCA, all their sacrifices’ were for naught.

 MAIKA directors and MIC promoters got away scot free and Tan Sri Gnanalingam and Tan Sri Tony Fernandez took away the priced asset of MAIKA for themselves. BN and the prime minister conveniently got themselves out of a politically embarrassing situation. But poor MAIKA shareholders who waited for 29 years were dumped. Another let down of Indian saga under BN rule.

The RM146 million payment for 74.1% OCA stake by Tan Sri Tony Fernandez would have left clean RM40 million for Tan Sri Gnanalingam to be redistributed to charities. Many ex-MAIKA shareholders expected that they will be included in the charities list. Unfortunately they were left out here too.

TUNE holding also bought another 3.75% of OCA from G team resources and 1.92% from GYRSS holdings Sdn Bhd which another investment arm of Tan Sri Gnanalingam and family. In all these wheeling and dealing of OCA shares, were MAIKA shareholders compensated? They seem to be completely left out in the disposal of MAIKA shares.

However the real issue is not the RM40 million gain but rather the lost opportunity by not listing OCA by MAIKA itself. It’s really perplexing why MAIKA didn’t want to list OCA on its own. Had it done so even with a market capitalization of RM300 million, MAIKA shares would be worth RM 3 each which is much better off compared to repayment of RM800 per lot of 1000 shares after 29 years?

 Why didn’t MIC get the support of Bank Negara and ministry of finance and list the OCA in BURSA Malaysia themselves? Is MIC hiding something from MAIKA shareholders? At least TUNE insurance could have offered TUNE insurance shares to ex-MAIKA shareholders. Why the gross injustice to Indian Malaysians? Can we trust BN and prime minister Datuk Seri Najib Tun Razak anymore?

 If the Indian Malaysians don’t wake up, the MAIKA saga of Indian community will be buried and forgotten once and for all after this 13th general election. Indian Malaysians are short changed once too often. Will the ghost of MAIKA holding resurface before the 13th general election to haunt MIC and BN? Will the blatant betrayal of MAIKA shareholders by MIC leaders, opportunistic businessmen and UMNO leaders be held accountable?  

Would the impending listing of TUNE Insurance cause controversy and anger among MAIKA shareholders? Are the Indian Malaysians forever left out not only in government policies but ribbed and robbed of their own hard earned assets? Is there any hope for Indians under MIC/BN rule?

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What MAIKA could not do Tony Fernandes did

October 24, 2012

Maika holding Bhd the flagship of MIC was started with great promise to the Indian community. But after 28 years of operation there was no hope of return. It became an embarrassment to BN, that PM Datuk seri Najib Tun razak found a way out to get rid of Maika Holdings Bhd. Oriental capital insurance (OCI) of Maika holding was forced to sell by Najib government to G team resource of Ganalingam for RM106 million (80cents per share). Maika set up out of sweat and blood of Malaysian Indian community but cheated and ruined by Samy Velu and MIC. UMNO and Najib couldn’t be bothered of the sweat and blood of Indian community but wanted to get rid of this MIC ruined company so that it won’t be an issue for PR to take a swipe at BN.   

Oriental capital insurance Bhd was sold to Tony Fernandez of Air Asia for RM156.91 million by G resources. G resources never responded to calls on whether the RM50.91 million surpluses will be returned to shareholders. Why is G resources of Ganalingam remaining silent about this RM50.91 million? Gnanalingam owe an explanation to MAIKA shareholders.

Within one year of purchase Tony Fernandez is able to apply for listing of OCI in bursa Malaysia. Tony plans to raise RM1 billion from the proposed listing.  Maika holding or G resources could have done the same and saved the investment of poor people who responded to the call of Samy Velu and MIC to form an economic arm for Indian community. MIC failed to float this one good investment and allowed it to slip away. Can MIC ever do anything proper and meaningful to Indian community? What one businessman can do within a short span of time, MIC as an important BN component party could not accomplish in 28 years.

Looks like MIC can only give out hampers and provide entertainment to Indian youths during election to get votes for UMNO. MIC wants to keep Indian community weak and ignorant so that they are subservient to BN and remain poor. This is the party created by UMNO to outsource Indian affairs to MIC. Even the recent announcement by PM Datuk Najib Tun Razak that RM100 million allocated to repair Tamil Schools were withheld by ministry of education. Suria cooperative could only nominate names of contractors but MOE will decide whether to award the job or not.   

It’s sad that Indian community with so much talent and able people could not build any economic vehicle with a RM100 million investment company in 1980s. MIC squandered   away many opportunities. Even without UMNO support, Indians could have built an economic empire with the Malaysian economy growing 8% to 10% continuously for about 20 years. MIC not only loss RM100 million of Indian community, the Indian community rights as citizens of this country were diluted and were on the wedge of losing it for good. Indians are doing well in all other countries except Malaysia due to the apartaid policy of BN government.

After years of suffering and erosion of basic human rights, the community woke up to the calls of NGOs and opposition parties in particular HINDRAF and the rest is history. Let’s hope and do our part to keep the community alert and be aware of the political developments. As citizens of Malaysia we have equal right as any other citizens regardless of race or religion. UMNO using MIC has been cheating Indians all this while. Indian community is not beholden to them and it is time that we get rid of them in the coming 13th GE for a better future to our children and grand children.

Returning the money to the poor former shareholders is charity too

May 29, 2012

The recent sale of Maika holding’s 79.85% stake in Oriental Capital Assurance Bhd to Tune Insurance holdings Sdn Bhd by G Team Resources has raised concern as to how  will be the surplus cash distributed. Tune insurance acquired the 79.85% stake in OCS BHD for RM156.91million. It is reported that oriental capital assurance Bhd (OCS) was sold for RM1.965 per share. OCA’s net tangible assets per share were at RM1.22 as of December 2009. A merchant bank and an insurance company were interested to buy the stake from Maika at RM1.59 per share that translated to 1.3 times price-to-book. But the OCS was finally sold for RM1.965 per share thus giving raise to surplus cash.

G team resources should be more transparent and explain to general public what the surplus is after the sale of OCA shares. MAIKA was set up as a vehicle to alleviate the economic achievements of Indian community. Even though MAIKA holding company was bought over and being liquidated, the Indian community is still angry and reeling over the mismanagement and abuses by MIC. Poor shareholders invested to support the attempt of MIC to set up an investment arm. Therefore as a liquidator G team resources must be transparent and sensitive to the feeling of disappointment of poor Indian shareholders and if there are any surplus that must be redistributed back to past shareholders.

The last AGM was held in June 2007. There was no AGM in 2008, 2009, 2010 and 2011. Not all shareholders sold their shares to G team resources. Some of the MAIKA shareholders refused to sell their shares. They are therefore minority shareholders now. Why no AGM was called.

It is public knowledge that MAIKA holdings affair had become an embarrassment and a political laibility to PM Datuk najib during the Hulu Selangor by election in April 2010. To absorb MIC and Samy Vellu from their wrong doings PM roped in Tan Sri Gnanalingan to buy the MAIKA shares at RM106 million and the 66000 shareholders were paid 80 cents per share. MAIKA had 74% stake in oriental Capital Assurance Bhd and some land left over from the Tumbok estate near Nilai plus a 60 million laon.

Samy Velu and his cohorts who cheated and mismanaged the holding company got away with frauds they committed. The BN government gave the criminals police protection and now the PM asking Indians to trust him. Even though Datuk Najib dissolved MAIKA holdings, Malaysian Indians will never forget the great injustice done to them by protecting the criminal and making him an ambassador for projects. It’s an insult to Malaysian Indians.

Senator S. Ramakrishnan

29/5/2012

MAIKA HOLDINGS BHD

May 27, 2010

27/5/2010

Maika holdings bhd finally caught UMNO’s attention during the Ulu Selangor buy elections. A group of private individuals got together under the banner of G Team Resources & Holding Bhd (G Team) and made an offer to purchase all Maika holdings shares for 80cents per shares from its current shareholders. These businessmen are not known for any services to Indian community. Yet they made the offer to buy Maika shares and to finally sell of the assets and finally close the Maika chapter once and for all. No businessman will invest (80cents per share for 125 million shares) for nothing or for purely corporate social responsibility purpose. The talk in town is that PM Najib finds Maika holdings becomes a contentious issue in every elections with the Indian community and therefore he has decided to settle this scandal. Only when Indian vote bank deserted BN his attention turned to settling the Maika issue.    

He must have approached Tan Sri Gnanalingam and a group his supporters from the business community settle the issue for him. Najib’s concern towards Indian community can be seen in the way he has decided to settle the issues. He could have used government assistance to revive and turn the poor Indians investment into profitable investment such as PNB. But inturn approached private individuals to settle off Maika holdings and in the process absorbed all those culprits who brought Maika holdings to this state. He is more concerned with removing the Maika holdings issue than to find a satisfactory compensation to the thousands of investors who did not see any profit what so ever for the past 27 years. He is only interested in securing Indian votes for BN than solving their problems. There will be enough businessmen to serve his purpose for they may not get an opportunity to do a favor to Prime Minister. The BN government has no commitment to uplift Malaysian Indians.        

PM Najib must initiate an investigation into Maika holdings scandal. Those who have abused or misappropriated in Maika holdings must be brought to justice. It is unfortunate that the Indian community could not see the callous attitude of UMNO in the Maika holdings scandal. Maika holdings went down the drain because MIC leaders had unlimited protection from UMNO. The Indian community could not remove MIC leaders from Maika because of the unreserved support from UMNO to MIC. Malaysian Indians have woken up and are holding MIC accountable for their investment. The shareholders approval for further action must be obtained before Maika holdings are sold to a third party. Najib should not take Indian voters for granted.

With all the lucrative offers given to GLCs, they must be financially strong and reinvesting by now. They must be in the for front of economic growth unfortunately not. Govt must rethink the way the GLCs are managed. GLCs must be performance based or else fired. Decision making management must be multi racial and get the best based on delivery. The GLCs now are not competitive, profitable no good governance e.g. sime darby,

  Senator Dr.S. Ramakrishnan