[OPINIONS] Yes, this time it does matter who you are
Asas Serba’s proposal has seen cries all over the internet that it is almost too good to be true – and has raised many questions at the same time. Who exactly is this fairy godmother Asas Serba and why this sudden interest in saving the nation’s toll concessionaires?
To put it in black and white, Asas Serba as a company was only started last year, has no track record, and perhaps most importantly no financial backing of its own as it is attempting to raise the RM50 million in bonds for this deal. Not much is known about Asas Serba apart from its bid last year to buy over PLUS Expressways which was rejected by the Prime Minister with the reason being that PLUS provides a lot of cash for Khazanah and the government, who has a 64% stake in the company.
In light of this, who do Asas Serba think they are and what do they think they are doing?! The audacity of their proposal should alarm even the most well-waxed of ears! It is well known that they are linked to Tan Sri Halim Saad, ex boss of Renong, which in itself is a danger warning.
If you are unfamiliar with what happened, Renong managed to incur phenomenal debts and had to be bailed out by the government at the expense of taxpayers, with no repercussions for the key players whose decisions allowed for this to happen. Asia Times said in an article dating back to 2001 that “The former owner of Renong, Halim Saad, got away with not having to pay 3.1 billion ringgit (US$816 million) he owed to United Engineering Malaysia (UEM), in a closely watched UEM-Renong debt restructuring exercise.”
Key words: “Got away with.”
Of course it would be unfair to presume that this will happen again if Asas Serba’s proposal is accepted, but ultimately it was greed and bad business acumen that resulted in the Renong bailout. Unfortunately, history does have a tendency to repeat itself.
Syed Nazri’s recent article in the New Straits Times on the matter boldly exclaims, “So what? Does it really matter who is behind the proposition?” but I beg to differ as well as repeat myself on the subject, purely for emphasis. How can we allow a company which we know hardly anything about, who so far has no financial credibility of its own, to gain control of part of our country’s infrastructure with grand promises that we have no way of knowing they will keep? On top of that, if it all comes tumbling down, it will be the tax-payers who will once again have to bail out the so called mighty monopoly. Doesn’t sound like a fairytale come true when put like that, does it?
Tags: Asas Serba, Highways, Khazanah, PLUS Expressways, Renong, Tan Sri Halim Saad
You can comment below, or link to this permanent URL from your own site.
June 9, 2010 at 10:43 am
Edited for typo, Pls use this – tq
Dear Sir/Maam,
My article in the New Straits Times on Tuesday concerning the Asas Serba proposal should be seen in the right context. It was on the simple premise of a better deal — real or imagined — for the ordinary folk. Nothing more than that. All I was suggesting was that perhaps we should give these guys a listen since they are claiming the deal is so good. It was NOT a sales pitch for Asas Serba in any way. Hey, don’t you yourself want the rates to come down? Of course everyone does. Like I said in the article, let’s leave our suspicion and political cynicisms locked up in the closet first, then listen, then decide. Thank you.
June 10, 2010 at 8:43 am
Dear Syed,
From the point of view of fairness and equal opportunities, I can see where you are coming from on the matter. In a perfect world everyone should be given a chance to prove themselves… unfortunately, we don’t live in a perfect world. We live in a world where your track record does matter, especially so in business. ‘What ifs’ play an important role in decision making and the risks in Asas Serba’s proposal outweigh the promised benefits.
Of course I would like to see toll prices go down. However it seems like the offer is a quick fix; pay less now but at what cost in the future? See our highways crumble and monopolies tumble? Only so we will have to dig in our back pockets in a decade or so to save a faceless organization that couldn’t hold up their end of the deal?
I realize this is a very pessimistic stance on the issue, but when it comes to something this big that affects the people it’s always better to be safe than sorry.
June 11, 2010 at 2:12 am
The proposal is to establish a monopoly, and at any rate how is that in line with a competitive and transparent economy that we aspire to be? I’d rather have a government monopoly which is created for the interests of the people rather than a private monopoly which is out to maximise its profits! Perhaps wanting to acquire all tolls is abit ambitious. Excuse my cynicism, but since when were we Malaysians so charitable? By the way we are listening, and have yet to hear anything new.