EPF not to subsidise PLUS

EPF not to subsidise PLUS - EPF not to subsidise PLUS...

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EPF not to subsidise PLUS Malaysian Business , Nov 1, 2010 by A Kadir Jasin THE sale of PLUS to a UEM-EPF special purpose vehicle for RM23 billion with little information forthcoming has raised eyebrows. This is understandable, as there are concerns that the life savings of EPF members are being used to subsidise the highway concessionaire's operations. ASAS SERBA SDN BHD AND MMC CORPORATION Bhd could be kicking themselves in the rear. There's no doubt that their takeover bids of the toll highway concessions and the UEM Group, respectively, have triggered the sale of PLUS Expressways Bhd to the UEM-Employees' Provident Fund (EPF) joint- venture. The former had, a year ago, submitted to the government a proposal to buy over all the 22 toll highway concessions for RM50 billion, immediately reducing the toll rate by 20% and promising no further hikes thereafter. The latter acknowledged recently that it had submitted a bid to buy the UEM Group, which controls PLUS, for RM15.6 billion. Just days after Khazanah Nasional Bhd Managing Director Tan Sri Azman Mokhtar confirmed MMC's bid and said that the sovereign fund was evaluating the bidder's financial capability, the government announced that PLUS would be sold to the UEM-EPF joint-venture for RM23 billion. So much for the government's constant badgering of the business community, especially its Bumiputera components, to show ingenuity, creativity and originality. The speed with which the government came up with its own solution to the problem suggests that it had no intention of re-privatising UEM or PLUS after they were taken back from Tan Sri Abdul Halim Saad in 2001. Further to my comment in this column in the Oct 1-15 issue, Abdul Halim confirmed that he was contemplating legal action against Khazanah to regain the company, failing which to demand that the latter pays him in excess of RM1 billion for the takeover. The immediate concern is for the EPF to unequivocally guarantee its 10 million over contributors that the PLUS deal is indeed a good buy, and that the national pension fund will not only enjoy steady cash flow but also make a reasonable profit out of the deal. We should hold the government and the EPF board responsible for this mega deal. According to its
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This document was uploaded on 02/20/2011.

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EPF not to subsidise PLUS - EPF not to subsidise PLUS...

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