Thursday 21 December 2023

The Pirates Of Bursa Malaysia : Enron

TWENTY two years after Enron Corp's collapse on December  2001, under the weight of massive fraud, we have learned NOTHING.

THE biggest lesson we didn't learn from Enron is that corporation's will engage in conflict of Interest and will not stop until requlators start taking serious and honest action.

ANOTHER  important lesson which we have FAILED to learn is small investors are placed LAST   in a corporations food chain,  meaning they are the last to get paid by corporations,, but if the shit hits the fan, small investors tend to suffer  losses , which are  often  unrecoverable

NOW that we have got READ :a Second Finance Minister, the Ministry of Finance, should seriously investigate the activities of the Corporate Mafia, who has been using the Enron play book over and over again. 

THE Securities Commission  and Bursa Malaysia, merely  pretend everything is ABOVE BOARD, while the minority shareholders watchdog group are in a cocoon of their own.

THE powebrokers and decision makers at Securities Commission and Bursa Malaysia, should be investigated on why the ENRON TYPE RED FLAGS in so many of the Corporate Mafia's proposals were approved at the EXPENSE of retail shareholders.

BY solely using ENRON as the benchmark, I shall outline some of those dubious dealings, which definitely  is pointing to something very wrong with the power Joe's at SC and Bursa Malaysia .

ENRON thought us, to keep an eye on insider trading activities, if not  kept in check, it  can collapse a company as well as the entire stock market. READ : Enron Corp.'s former Chief Executive Officer Jeffrey Skilling jailed 24 years for insider trading and fraud

REVENUE  Group Bhd,  one of the companies in the armory of the Corporate Mafia, had seen READ:Eddie Ng Chee Siong sells off his Revenue Group Bhd shares via off market just 24 hours before company announces RECORD losses.

ENRON had thought us that withholding information will most likely lead to Securities fraud. READ: Timothy Despain, the former assistant treasurer of Enron Corp., has pleaded guilty to a charge of conspiracy to commit securities fraud.

JUST look at Hong Seng Consolidated Bhd READ : axing RM3 billion Rubber Glove Project in Kedah On Sept 2023, and the Kedah Menteri Besar's reaction. READ I was informed on Hong Seng's possible withdrawal, says Kedah Menteri Besar.

SO how come the small shareholders only got to know about it a year latter. Do note the announcement of the project in 2021, helped Hong Seng Consolidated shares breach RM3.40 , valuing the company at RM8 billion , but TODAY the shares trade at TWO SEN , valuing the company at RM102 million. 

TODAY 100 per cent of Classita is worth only RM55 million,  and this steep drop in value , all in less  than SIX MONTHS.

WHICH brings us to the next question.  Why did Hong Seng buy 32.61 per cent and not 33 per cent?

WELL, this is what ENRON  had thought us, that READ : Enron used off balance sheet transactions to shield it from being exposed

 BUYING 33 per cent , could have triggered a mandatory general offer, which Hong Seng may have wanted to avoid.

0R it could also be the case enough  shareholders could have sold their shares in a MGO offer to turn Classita into a subsidiary, with out Hong Seng obtaining say 75 per cent of  Classita. READ : A subsidiary company is where the parent owns 51 per cent stake and will have to consolidate the subsidiaries financial statements.

ENRON had also thought us, that rewarding insiders when they shouldn't is not only bad business but is akin to robbing small shareholders. READ; Enron paid out $681m to top executives just before going bust.

JUST look at the deal in which REVENUE Group Bhd under Francis Leong Seng Wui READ: paid a RM5.5 million premium for the six month old digital business that Hong Seng Consolidated did not want anymore.

AND let's not forget; the making of outlandish claims that never materialise. READ :Enron Broadband and its claim to be on track to be the world's most valuable Internet company.

WELL look no further than current SARAWAK CABLE Bhd's CEO's deal with Hong Seng Consolidated. READ : A 51 per cent stake in Russell Walter Boyd's Pow Pocket for RM200mil, will generate Hong Seng RM400 million in profits.

NEEDLESS to say the deal died off just like the broadband unit of ENRON.