I will tour the country in the coming month to meet  with political parties, trade unions, consumer groups and NGOs on the Time dotCom IPO bailout scandal, with EPF, KWAP and Danaharta collectively losing over RM513 million in the first week of Time dotCom's public debut


Media Conference Statement  
by Lim Kit Siang

(Penang, Saturday): Time dotCom, which made its public debut on Monday, has been on a downward crash in the past five days since its public debut on Monday, plunging to RM2.12 per share at the end of the week's trading yesterday - a walloping 35.76% discount of its initial public offering (IPO) price of RM3.30 per share.

This would mean colossal losses for the government-linked funds and agencies like the Employees Provident Fund (EPF), the Pensions Trust Fund (KWAP) and Danaharta which have publicly admitted to investing in Time dotCom at RM3.30 per share, whether subscribed or unsubscribed portion of IPO.

The losses suffered by these three institutions in the first week of the Time dotCom's public debut as a result of the  RM1.18 or 35.76% plunge of its price per share from RM3.30 to RM2.12 are:

Amount of shares Price paid Present value Loss incurred
 
EPF 81.6 m  (3.22%) RM269.28m RM172.99m RM 96.29m
KWAP 273.86 m (10.82%) RM903.74m  RM580.58m RM323.16m
Danaharta 80.05 m(3.16%) RM264.16m RM169.71m RM 94.45m
Total RM513.90m
         
The three government-linked funds and agencies of EPF, KWAP and Danaharta have collectively lost the mind-boggling sums of RM513.90 million in the first week of Time dotCom's public debut - a most unforgivable and unpardonable mismanagement of public funds in taking part in the bailout of Time dotCom IPO for the benefit of  Time Engineering, Renong and eventually
Tan Sri Halim Saad.

The losses suffered by government-linked funds and agencies this week as a result of subscribing to Time dotCom IPO at RM3.30 will not be confined to RM513.90 million, as the identities of other such  funds and agencies which had taken part in the Time dotCom IPO bailout have still to be revealed. I will tour the country in the coming month to meet  with political
parties, trade unions, consumer groups and NGOs and ordinary Malaysians on the Time dotCom IPO bailout scandal, with EPF, KWAP and Danaharta collectively losing over RM513 million in the first week of Time dotCom's public debut.

The time has come for the ordinary Malaysian to demand greater accountability and transparency from those entrusted with the management of public funds, whether EPF, KWAP or Danaharta, and when  a financial scandal of the magnitude of the Time dotCom IPO bailout erupts, for the fullest explanation from the custodians of these public trust monies.

I had yesterday rebutted  the statement by the EPF Chairman, Tan Sri Abdul Halim Ali explaining why the EPF invested RM269.28 million to take up 3.22 per cent of the Time dotCom IPO, and  criticised the EPF management for acting in disregard of the interests of the 9.7 million EPF contributors.

Halim has still to respond to my critique, which he is duty-bound to do, not for my sake, but for the sake of the 9.7 million EPF contributors who are entitled to a full and satisfactory explanation for the EPF's decision in participating in the Time dotCom IPO which has caused RM96.29 million losses to EPF in the first week of Time dotCom's debut.

I have still to hear from the KWAP as to why it had invested some six per cent of its total funds and jeopardised the pensions of 800,000 civil servants by investing RM903.74 million to take up 10.82% of the unsubscribed portion of the Time dotCom IPO, and suffering a loss of RM323.16 million this week.

The management of KWAP seems to be a very mysterious outfit for my office had received no response from attempts to locate the persons responsible for the management of the Pensions Trust Fund.

If I cannot contact any person responsible for the KWAP by Monday, I would lodge a police report against the KWAP for criminal breach of trust and criminal abuse of public funds in investing RM903.74 million to take up 10.82 per cent of the unsubscribed portion of Time dotCom IPO and suffering RM323.16 million in the first week of its debut.

As the outlook for the Malaysian stock market is rather grim, and is expected to continue its descent after falling 3.3 per cent in the week's trading, with the  Kuala Lumpur Composite Index shedding  23.25 points over the week to close yesterday  at 672.01, both EPF and KWAP are likely to be hammered with even higher losses from the folly of participating in the
Time dotCom IPO bailout.

The Time dotCom IPO bailout scandal  should also focus greater public scrutiny on Danaharta, as there had been many complaints that it had not been fair, even-handed, unbiased or impartial in discharging  its statutory mission  to "re-energise the financial sector by removing the non-performing loans distractions and to maximise the recovery value of the acquired  assets".

(17/3/2001)


*Lim Kit Siang - DAP National Chairman