MOVE ASIDE AZMIN-HAZIQ! MAHATHIR ALREADY VERY NICELY ‘SODOMIZING’ MALAYSIANS OVER PLUS TOLLS – WITH CRONES SALIVATING AT THE WINGS TO GRAB JUICIEST PIECE OF FAT MEAT

AppleMark

Malaysians To Get Liwatted For The FIFTH Time, PLUS 20 Years More Tolls !!

FOLKS did you know that PLUS does not have to pay corporate taxes?? 
PLUS has been tax exempt for a LONG time. Banyak cantik.
You and I have to pay toll to PLUS.
You and I also have to pay taxes. 

Bear this in mind when you read the following. 
We are going to be liwatted again. 

This is from The Star. I have truncated the news for quick reading. 

To add more clarity I have also substituted the word government with ‘TAXPAYER’. 

Saturday, 11 Jan 2020
decision on takeover of PLUS next week
four proposals by private entities for PLUS
however 5th proposal yet to be heard by market

This is a proposal from Khazanah Nasional Bhd
 
PLUS controlled by UEM – subsidiary of Khazanah – and EPF 
Khazanah holds 51%, EPF 49%
Khazanah proposed best entity to take over PLUS is TAXPAYER.
 
PLUS debts RM30.2bil, of which RM11bil TAXPAYER guaranteed
 
PLUS’ yearly principal repayment RM300mil
increases to RM500mil in 2020 
from 2024 doubles to RM1bil
 

If TAXPAYER sells PLUS to private entities, can they take over TAXPAYER guaranteed debt of RM11bil?
Or would they expect TAXPAYER to continue guaranteeing RM11b debt? 

raises questions why TAXPAYER needs to guarantee RM11b debt
considering PLUS in private hands

“Should TAXPAYER own PLUS, issue of compensation, TAXPAYER guarantees and even concession periods no longer matter, ” said the source.

(OSTB : Obviously the source was a moron who knows nothing of business, economics, finance and taxpayers’ liability. And Star is printing this type of statement??)

Earnings wise, PLUS not doing well

loss of RM93.53mil for (FY) ended Dec 31, 2018
losses in FY17, revenue RM3.99bil, net loss RM101.46mil
FY16, PLUS net profit RM288.21mil, RM4.07bil in revenue

PLUS’ cashflow is still strong, enough to service debts

free cashflow RM1.64bil 1st nine months of 2018
allowed it to declare dividends to its shareholders
TAXPAYER currently owes PLUS RM2.7b compensation
PLUS’ concessions end in 2038
TAXPAYER rightful owner of PLUS
PLUS’ RM23.35bil sukuk musharakah
rating revised to stable from negative
PLUS’ sukuk rating hinges on continued TAXPAYER support
PLUS’ healthy liquidity FROM portfolio of matured highways
More importantly TAXPAYERS’ golden share underpin the ratings
  • TAXPAYER has golden share in PLUS through MoF
  • TAXPAYER veto power to wind up / dissolve PLUS
  • cessation of TAXPAYER as largest shareholder via MoF, EPF, KNB constitutes default
  • considerable comfort in TAXPAYER commitment to remain largest shareholder
taxpayer support towards PLUS is strong
demonstrated by TAXPAYER -guaranteed sukuk
financial assistance on funding costs
tax breaks  (OSTB: I told you so – PLUS does not pay corporate taxes).
TAXPAYERS subscription of one golden share in PLUS
  • conditions for the PLUS deal to materialise
  • TAXPAYER must not be burdened with further debt
  • toll rates have to be reduced by at least 18%
  • concession period cannot be extended more than 20 years
(OSTB : These are kepala bapak conditions. Which monkey agreed to these stupid conditions in the first place? Not me. Toll extended another 20 YEARS ?? Only 18% reduction in tolls?  I say kawan, abolish the tolls completely. 100% toll reduction. Do read on.)
** 2011 UEM, EPF took over PLUS for RM23b **
Now four offers for PLUS :

1.  RM5.2b offer to buy entire equity of PLUS via Karongsa 
2.  Widad offered RM5.3b cash to buy up PLUS
3. Msian-led, HK firm, RRJ Capital bid to acquire PLUS outright for RM3.5b
4. Maju offer for PLUS RM34.9b enterprise value
 
PLUS paid 3 times more for maintaining roads 
puny margins due to related-party transactions
 
(OSTB : Another way of saying it is “money drains out”)
 
puny margins another reason why TAXPAYER right party to take over PLUS
 
(OSTB : Really? Sudah sapu profits, now they want TAXPAYER to take over burden)
 

Wastage from maintenance contracts
TAXPAYERS can immediately rectify maintenance contracts

currently largely carried out by Propel Bhd, says source
 
PLUS could be paying less for highway maintenance
If TAXPAYERS take over, definitely relook maintenance agreement 
not only result in savings, but allow PLUS to keep profits
4 private bidders believe they can maintain highways at much lower cost
 
maintenance is RM1.3mil per km spent by PLUS
only about 50% of that for Propel / UEM in that year
remainder 50% tendered out to others
 
coming week will determine if PLUS go into private hands or remain with TAXPAYER
TAXPAYERS took over in 2002
mantra was do away with “privatising profits and socialising losses” 
18 years later does this mantra still hold 
or old practice that benefits certain private parties
 
My comments :  This whole PLUS crap just gets dumber by the day.
 
Folks, so now the FIFTH option is that we the TAXPAYERS take over PLUS.
 
BUT THE TAXPAYERS ARE ALREADY THE SINGLE LARGEST SHAREHOLDERS IN PLUS. EPF HAS 49% AND KHAZANAH HAS 51%. That is already 100%.
 
This is a 100% TAXPAYER OWNED COMPANY ALREADY. 
HOW CAN THE TAXPAYER TAKE OVER A COMPANY AGAIN WHEN THE TAXPAYER ALREADY OWNS 100% OF THE COMPANY?
 
Don’t believe me? Please read this part again. 
  • TAXPAYER has golden share in PLUS through MoF
  • TAXPAYER veto power to wind up / dissolve PLUS
  • cessation of TAXPAYER as largest shareholder via MoF, EPF, KNB constitutes default
  • considerable comfort in TAXPAYER commitment to remain largest shareholder


If the TAXPAYERS (via MoF, EPF and KNB) cease to be the single largest shareholders of PLUS then it is an event of default with the bankers, lenders and sukuk bondholders !! 

The TAXPAYERS also have veto power to wind up or dissolve PLUS !!

Meaning we the TAXPAYERS already own 100% of PLUS. 
Through EPF, KNB and the MoF.

So HOW CAN THE TAXPAYERS AGAIN BUY SOMETHING THAT THEY ALREADY OWN?

TAXPAYERS even have the veto power to voluntarily wind up and dissolve PLUS. 

Now here is the really sicky, sicky very very sicky part.

THIS WILL BE FIFTH TIME THAT THE TAXPAYERS WILL BE PAYING FOR PLUS. 

1.  First time when the PLUS Hiway was completed for RM5.0 Billion or so (1989), it is we who have already been paying TENS OF BILLIONS OF RINGGIT IN TOLLS to pay for the hiway. Whichever way – it is we who paid.

2. Then according to The Star story above in 2011 UEM, EPF took over PLUS for RM23b. That was the 2nd time we the TAXPAYERS paid for PLUS.  That was our money – TAXPAYERS MONEY AND PUBLIC MONEY (EPF).  

Tuan – tuan, jangan jadi bodoh. 
We already paid RM23 billion for PLUS in 2011.

3.  And (No. 3) we still continued paying tolls after 2011. Billions of Ringgits in tolls.

4.  Now FOR A FOURTH TIME they are saying that we the TAXPAYERS pay another RM34 billion (or whatever)  to buy PLUS from ourselves pula (ie MoF buy from EPF and KNB).  
5.  And after that the TAXPAYERS will still continue paying tolls for another 20 years UP TO THE YEAR 2058 !! If I am alive I will be 98 years old then.  

THAT WILL BE THE FIFTH TIME THE TAXPAYERS WILL BE PAYING FOR PLUS.

Because whether Halim Saad buys PLUS or Abu Sahid or Widad or the TAXPAYERS buy out PLUS it is we the TAXPAYERS who must pay for PLUS.  

Either we pay directly through the toll gate or we pay taxes also directly to the LHDN (Lembaga Hasil Dalam Negeri).  

BOTH WAYS THE PEOPLE STILL PAY.

The PLUS concession ends in 2038 ie 18 years away. 
We have to pay tolls for 18 more years. 

That is why I suggest that the government issue special Highway Bonds for say RM30 billion or whatever. The bonds can have a tenure of 18 years.  The government can use our TAX PAYMENTS and settle the Highway Bonds over the next 18 years.

  • AS I SAID IT IS STILL WE THE TAXPAYERS WHO MUST PAY.
  • WE THE TAXPAYERS CANNOT RUN AWAY FROM PAYING. 
  • PAY TOLLS DIRECTLY OR PAY TAXES DIRECTLY IT IS WE WHO MUST PAY

`
Take the MONEY FROM THE Highway Bonds and pay off all of PLUS’ RM32b debts plus the repayment  of the “unrecovered portions” of EPF and KNB’s original investment in PLUS (that initial  RM23 Billion they paid in 2011). 

Then PLUS is fully settled.  
With that just abolish the tolls.

Then go and voluntarily wind up PLUS.  
Can the government do that?  
Yes they can. Here is how :government has golden share in PLUS through MoF

  • government veto power to wind up / dissolve PLUS 

The government has all the power.

Now will Dr Mahathir do that?  
No he will not. 

Why not?

Because as Abu Sahid of Maju Holdings has said PLUS is paying THREE TIMES the amount for the road maintenance contracts.

Money is being drained out of PLUS. 
Despite RM4.0 Billion revenue in 2018 they made losses (more than RM44 million losses).

Obviously some people with heavy cables are making tons of money from PLUS. 
Err . . .from you and me. 

Dr Mahathir does not have your best interests at heart.

– http://syedsoutsidethebox.blogspot.com/

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