Laman Webantu   KM2A1: 4067 File Size: 3.5 Kb *

Daim Lied About MAS NTA
By Jake the Rake

27/3/2001 11:21 am Tue

Source: FGR

Devious Finance Minister, Daim Zainuddin lied in Parliament when he said that Net Tangible Asset (NTA) per share of MAS is RM8.00. The truth is, the NTA per share is only RM1.23. Daim must be removed from public office.

Edited transcripts of his reply to questions from 10 MPs over the government's purchase of MAS shares from Naluri Bhd. was made available by The Sun on 22.3.2001.

MAS unaudited accounts for year ending 31.12.2000 is available on its website. This must be the accounts that Daim refer to for his computation of NTA as he also quoted MAS as having assets totalling RM11.44 billion. But despite assets totalling RM11.44 billion MAS has long term borrowings of RM8.61 billion, deferred charges of RM1.87 billion. Officially MAS declared its NTA at RM1.23 although my computation shows that the NTA is only RM0.66 as I would have excluded the deferred income of RM453 million appearing in the same Balance Sheet as being not tangible. But whatever the case where does Daim gets the figure of RM8.00 from!

Daim also had the audacity to equate MAS with SIA and Cathay Pacific.He was surely hoping we do not verify his assertions. Doesn't he know that these airlines do not undergo abuses that MAS had to go through? In whose name and under whose authority was MAS abused? As these airlines are managed with the highest standard of corporate governance, the result shows a healthy profit margin and reserves many times the share capital. For financial year ending 31.3.2000 SIA made a profit after tax of RM2.56 billion(SGD 1.17 billion) and its NTA per share is RM19.27(SGD 8.76). The result for Cathay Pacific for year ending 31.12.2000 showed a profit after tax of RM2.48 billion(HK$5.09 billion) and NTA per share of RM4.56(HK$9.35). SIA's profit margin is 13% whreas that of Cathay Pacific is 14%. These go to prove that both SIA and Cathay Pacific are in the airline business and their results are consistent. The results of MAS showed a totally different statistics. They must be doing some other monkey business!

Daim's argument about controlling stake and premium is a fallacy.With NTA of RM1.23 and a loss after tax of RM852.7 million, how much premium can you give? At premium 50% of NTA the share is only worth RM1.84. Isn't a market price of RM3.60 sufficient premium for the share?Does the 29.09% constitute controlling stake when the Minister of Finance own the golden share?

On whose behalf was Daim talking when he said that Tajuddin was a reluctant seller? Didn't Tajuddin said that he was relieved("Saya lega") with the sale.

Daim said that the government is confident of turning around MAS in a short time.Please give the timeframe and what are his plans.As an experienced wheeler dealer he better shut-up until he has the plans properly laid-out. His threat to sell back MAS to Naluri or that MAS will fall into the hands of foreigners has been heard many times before.This is the standard line used whenever he wants to justify the use of public fund to bail-out his companies. Doesn't MAS belong to him and Tajuddin is his lackey?


and you had better believe the $8.00 NTA figure or you'll be charged with spreading rumours...hehehe