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View Full Version : EPF wanted to lend RM695 million to Rashid Hussain Bhd (RHB)?



sirgalahad2010
27-04-2006, 12:32 PM
So says a report in today's Spore Business Times.

What the **** is going on at EPF?

In any case, it seems that the RHB board rejected the EPF offer and chose to go for a US$190 million bond issue.

Another bail-out coming?

Stan
27-04-2006, 02:57 PM
EPF need to invest to make profits and declare dividends to all of us.

The fact that RHB rejected it may mean the terms are not favourable to RHB, so the inference is that the loan was offered with favourable terms to EPF. Nothing wrong with that. Just a simpke business transaction.

Remember, EPF has billions of ringgit it needs to invest to generate good returns. Dont turn everything EPF does into a 'bailout' jsut because it is a Malaysian company. Anyway, heard that RHB is out of favour with the government, that's why all their problems

tempuadua
29-04-2006, 04:03 AM
So says a report in today's Spore Business Times.

What the **** is going on at EPF?

In any case, it seems that the RHB board rejected the EPF offer and chose to go for a US$190 million bond issue.

Another bail-out coming?
Bail out? how can this be a bail out. Bail out is when you beg EPF to lend you the money, and they give it to you. Not when you are rejecting it!

penangkia
29-04-2006, 01:51 PM
Aiyaa, like that orso you people don't understand! It was reported in the gospels of S'pore Straits Times so it must be true lar. We poor ignorant souls in usj.com who don't know how to read the ST need to be informed ma. :D

tupai
29-04-2006, 02:36 PM
epf is also a substantiate shareholder of rhb...it needs to protect its interest so that all of us can get better dividends...raising USD bonds might not work for epf (eventually all of us)...Not when epf is growing in excess of RM1billion cash every month.

ST might have its own agenda when it interpret and spew half truth.

Yang amat Be careful with rumors lato tupai

Sentinel
01-05-2006, 01:41 AM
The Singapore Straits Time also said "RHB is cash-strapped" and rejected the EPF loan offer in favor of a USD190 million bond issue because some majority owners were afraid of losing management control to government-linked agencies like EPF. And that Sulaiman Taib Mahmud will not be allowed to be executive director of the bank or group except of RHB Capital. I think the ST was just reporting facts without an agenda. :confused:

sirgalahad2010
01-05-2006, 04:24 PM
Did someone forget to mention that RHB (Rashid Hussain Bhd) is carrying a debt of RM3.5 billion? Why should EPF want to lend money to a company that's so deep in debt? Is it because EPF holds a stake of around 32% in RHB?

Also, remember that in the late 1990s, EPF lent RM400 million to a private company called Realmild that used to control MRCB. The money could not be repaid. EPF had to be satisfied by taking a majority interest in MRCB. It is believed that Realmild still owes about RM70 million to EPF.

(above facts from S Jayasankaran of the Spore Business Times).

To quote Jayasankaran:

"The EPF is a fund manager, pure and simple. It is not a banker, nor should it aspire towards managing companies. It should strive towards getting the best return for its members, all of whom have no choice in the matter because parking money with the EPF is a non-negotiable option".

Leave the managing of companies to the likes of Khazanah or PNB, for example.

Sentinel
01-05-2006, 06:31 PM
You're right SirGalahad! I should have quoted the entire article. I agree with the writer and your assertion that EPF should just remain as manager of funds and guardian of Malaysian's retirement fund and stop risking our hard-earned money in frivolous deals.

cskok8
01-05-2006, 06:45 PM
The NS State Govt also wanted to borrow RM 250 M to among others pay compensation to the FELDA settlers displaced by their housing project. Apparently they (EPF) imposed a lot of "unreasonable conditions" on the loan. In the end the loan was given by the Fed Govt. I wonder what they meant by unreasonable - have to pay back? :mad:

Sentinel
01-05-2006, 06:51 PM
CSKok8, I believe so. But then again, EPF had extended far more loans which went bad esp. during the last administration under TDMM... circa 1997/8 financial crisis. Until today, the whole EPF is still shrouded in mysteries, and thats OUR retirement money okay. :mad:

tupai
01-05-2006, 09:16 PM
with the exception of the chairman, the ceo & senior management team had been changed. The bailouts done in the mid&late 90s by epf were totally out of line. They used our money to bail-out many bumi companies but thats another story.
EPf today, i'd like to believe is a different animal. Being substantiate shareholder (mostly by default, esp in the late 90s), they have to continuously extend credit to existing (badly managed) debtors & glc...and while extending additional credit, it would therefore be prudent that some sort of additional management control be wrangled out.

This MO had been used in mbsb about 3-4yrs ago..last year for the 1st time in a decade, mbsb made a miniscule profit but thats sure as hell was better than the hundreds of millions lost before the 'new' epf-appointed ceo took control.

And yes! I'd too would like to think that 'unreasonable conditions' imposed on the ns gomen, would also mean 'pay up your debt!'

ANd yes! i too would want epf to protect and grow our retirement money...and i also wish for more transparency & less gomen intervention/bailouts. no?

yang akan berpencen senang hati (?)latotupai

starrnorth88
02-05-2006, 01:13 AM
glad to know that nowadays EPF impose a condition that all loan has to be repaid.