This article from Malaysia Today.
In my opinion, Mahathir succeeded in demolishing Abdullah Ahmad Badawi Mr Clean reputation, and not just Khairy become liability to Umno, but Abdullah Ahmad Badawi is. Umno has to ditch AAB in the next Umno election.
No please dont put forward Mahathir's proxy either.
Lets ditch BN and vote for Opposition.
Thursday, August 17, 2006
Read my lips! Kamal DID NOT get any Malaysian government jobs
Raja Petra Kamarudin
Excerpts of Prime Minister Datuk Seri Abdullah Ahmad Badawi’s TV3 interview with Bernama chairman Datuk Annuar Zaini the night of Monday, 7 August 2006.
22. Q: You are known as Mr Clean and Mr Nice Guy. Sometimes that intention is disrupted because of business interests. Besides KJ (Khairy), your son Kamaluddin is also in business and has he misused or taken advantage of his relationship with you to excel in his business?
A: Kamal has never used his relationship with me to advance in business. His business is in a field which only has two companies in the world. Of the two integrated oil companies, one is in the US and the other is his. He is not involved in many other companies and he operates overseas. Sometimes people ask why is he overseas. He tells them that since his father has become the Prime Minister, it is difficult for him to make a living here. That is why he opted to do it overseas. Eighty percent of his contracts are from overseas and that is where he gets his rezeki (livelihood). Petronas usually participates in international open tenders. Any tenders he gets is too small compared to what he gets overseas and he also has to compete for the tenders with other companies. He usually gets tenders from companies like Shell and Esso because it is related with oil and gas. He has never asked for help from the Government. There is also no bail out. None.
23.Q: In your capacity as the Finance Minister, has his company obtained government tenders?
A: No, not at all. To my knowledge, he has not received any. He does not manage the business and is only the major shareholder and had made a move to buy a Singapore company with 188 ships to transport coal.
24. Q: Some say that the Penang monorail is reserved for Kamal. Is that true?
A: Siapa cakap? (Who said so?) I tell you, it is hard to be nice.
Open letter to PM on Scomi
Malaysiakini, 15 August 2006, 06 3:49pm
Dear Mr Prime Minister,
I used to refer to you as ‘Pak Lah’ but I don't think I want to do that anymore because I think you lost all your endearing qualities the moment you took over as prime minister. My friends and I (all of whom wish that Tun Dr Mahathir Mohamad was still our prime minister) deliberately didn't want watch you on the ‘Bersemuka dengan Perdana Menteri’ programme over TV3 last week.
But I almost jumped out of my skin the next day when I read all about it in the newspapers, especially the part about you claiming that your son Kamaluddin had to seek business opportunities overseas because he couldn't get projects here in Malaysia.
Well, explain these Mr Prime Minister:
In March, The Malay Mail reported that KTM had in 2005 awarded a five-year RM50 million contract to Scomi Group ‘to overhaul and maintain’ as many as 1,000 wagons.
Also in March, Business Times reported that Scomi Group was going to submit a bid for a RM120 million contract ‘to make body parts for about 400 buses for state-owned Syarikat Prasarana Negara Bhd’.
Then in April, The Edge reported that Scomi Engineering Bhd is acquiring a 51% stake in MTrans Transportation Systems Sdn Bhd for RM30 million to provide it a platform to be a key player in urban transportation.
Scomi Engineering had on April 28 signed an agreement with Kiara Kilau Sdn Bhd, which owns 100% stake in MTrans, to acquire the 51% stake. MTrans owns bus manufacturer MTRans Bus Sdn Bhd and MTRans Technology Bhd, which specialises in monorail systems and technology. This is, of course, for the Penang monorail project.
So the five-time hike in petroleum prices over the last year on the pretext of improving public transportation is certainly benefitting some parties - your son's Scomi Engineering, to be specific.
What have you done to improve the public transportation in Kuala Lumpur since then? The LRT is still madly congested and the city buses are still breaking down in the middle of already congested roads.
Recently, Scomi Marine Bhd received a letter of intent from TNB Fuel Services Sdn Bhd for a coal shipment contract for three years from Oct 1, with an option to extend for another two years, the company said. Scomi Marine announced to Bursa Malaysia on April 14 that under the contract, it would be required to transport 500,000 tonnes (with 20% variation) of coal from Australia, Indonesia and South Africa yearly.
It said TNB Fuel Services would determine the actual quantity of coal to be transported and from which country upon finalisation of the contract, The Edge reported.
Also recently, Scomi Group Bhd, an oil services company, won a contract from Petronas Carigali (Turkmenistan) Sdn Bhd to provide drilling fluids and other services for exploration works in Block 1, offshore Turkmenistan.
In a statement issued by Scomi which was published by Business Times, Scomi said the contract would contribute about RM57 million a year to its coffers.
With all these projects, and more to come under your brilliantly devised Ninth Malaysia Plan, why does Kamaluddin have to go overseas to secure projects? Well, I know that Turkmenistan is in central Asia, but the contract was secured here in Kuala Lumpur from Petronas.
All these reek of a scandal in you humble abode, don't you think, Mr Prime Minister?
After 1 November 2003
Scomi to list KMC-Oiltools in Singapore
By Doreen Leong & Surin Murugiah
The Edge, 9 August 2006
Scomi Group Bhd has proposed to list its drilling fluids and drilling waste management unit, KMC-Oiltools Bermuda Ltd (KMCOB), on the Singapore Exchange Securities Trading Ltd by the first quarter of 2007 to fund its international expansion and facilitate a refinancing exercise of its borrowings.
In a move to unlock its investment value in KMCOB, the oil and gas group announced on Aug 9 that it would list 30% of its stake in the restructured unit that was expected to raise some RM600 million for Scomi.
The listing exercise of KMCOB will be through Scomi Oilfields Ltd after an internal restructuring that will also involve certain of Scomi's subsidiaries in the oilfields services division.
Scomi president and chief executive officer Shah Hakim Zain said the restructuring would involve the issue of a RM630 million conventional Syariah-compliant bond that is expected to be completed by October, with the proceeds raised to refinance the borrowings and existing bonds of Scomi besides funding KMCOB’s future expansion plans.
Speaking at a press conference in Kuala Lumpur, Shah Hakim said the exercise would allow Scomi to invest in new businesses such as the gas separation business and pare down debts to improve gearing.
At the group level, he said net gearing would be reduced to 0.63 times from the current 1.51 times.
“The proposed listed entity will not be subjected to exchange rate fluctuations, since its transactions are US dollar denominated. What we are doing today is essentially raising money overseas but eventually bringing the money back to the country,” he said.
Shah Hakim said the listing exercise would include a global offering of the shares and it would be a combination of new and existing shares offered for subscription and sale.
He added that the listing was expected to reduce KMCOB’s reliance on Scomi and raise its profile in the global oil and gas industry, as well as strengthen its position in securing tenders and other business opportunities.
Shah Hakim said under the unit's five-year plan, KMCOB was to hit a US$1 billion (RM3.66 billion) revenue by 2010 as it grows its markets in North America, Russia, North Africa, Caspian Seas and Iran. He said KMCOB has targeted a US$300 million revenue this year.
On the proposed Penang monorail, Shah Hakim said Scomi had submitted its bid to supply the train to a consortium led by Malaysian Resources Corporation Bhd.
Scomi Marine gets coal shipment contract worth RM49.12m yearly
By Kevin Tan
The Edge, 6 July 2006
Scomi Marine Bhd has won a contract from TNB Fuel Services Sdn Bhd to transport coal from Australia, Indonesia, China and South Africa worth RM49.12 million per annum for the next three years. TNB Fuel has the option to extend the contract for another two years.
In a statement on July 6, Scomi Marine said the contract would commence from Oct 1 and expire on Sept 30, 2009. Under the contract, the company was required to transport 500,000 tonnes of coal per year for TN Fuel, subject to 20% variation at TNB Fuel's discretion.
Scomi Marine is also required to provide a performance bond of RM2.46 million, being about 5% of the maximum value of coal to be transported in a year.
Scomi Marine set for a coal lift
The Star, 27 June 2006
Scomi Marine Bhd's increase in coal-carrying capacity by 76% in Indonesia should translate into an equivalent earnings contribution in the coming quarters, barring unforeseen circumstances, said chief financial officer Loong Chun Nee.
She was referring to Scomi Marine taking delivery of 13 new vessels that serve its Indonesian operations along the Barito River in Southern Kalimantan.
The vessels, consisting mainly of tugs and barges, would support its client, PT Adaro Indonesia, which had increased its coal production from 2.5 million tonnes to 3 million tonnes per month, Loong said after the company AGM yesterday.
Scomi Marine was also expecting the delivery of a further three similar 12,000-deadweight tonnes vessels in the next few months. The company currently operates in excess of 150 vessels, including those registered to subsidiaries PT Rig Tenders Indonesia Tbk and CH Offshore Ltd.
On the company's deal to transport 500,000 tonnes of coal to Tenaga Nasional Bhd's (TNB) Tanjung Bin power plant in Johor, Loong said it was expecting to receive a finalised contract in the next few weeks to replace the current letter of intent received in April from TNB.
The transportation of coal was scheduled to start in September, she said. Meanwhile, Scomi Marine's sister company, Scomi Engineering Bhd, is looking at diversifying its revenue stream, which is currently predominantly from the oil and gas sector.
The company was looking to have a 50:50 ratio from oil and gas versus logistics engineering, senior vice-president Hilmy Zaini Zainal said after the company AGM yesterday.
“That is why we are expanding our transportation and logistics engineering division. Hopefully, in the next two to three years when the (logistics) projects materialise, the contributions from the divisions will balance out at roughly half-half,” he said.
On the Penang monorail project, Hilmy said the company would be submitting a final bid in the next few weeks, having already put in a preliminary bid.
Scomi Engineering's proposed acquisition of 51% stake in MTrans Transportation Systems Sdn Bhd, if approved, would mean that MTrans would “play an important role in any bid we make for any transportation and logistics projects,” said Hilmy.
The technical, financial and legal due diligence for the acquisition had already been completed and was only awaiting approvals from the various authorities, he said.
MTrans, through wholly-owned subsidiary MTrans Technology Sdn Bhd, designed, manufactured, installed and commissioned 12 monorail train sets of two-car vehicles and all related systems and equipment for KL Monorail in 2003.
At present, MTrans, a wholly-owned subsidiary of Kiara Kilau Sdn Bhd, is reportedly a special-purpose vehicle of MTrans Holdings Sdn Bhd executive chairman David Chew Kiat Choon.
MTrans Holdings is the parent company of KL Infrastructure Group Bhd that built the 65km Kuala Lumpur Monorail.
Scomi Marine expects 76% increase in revenue, profits
By Kevin Tan
The Edge, 26 June 2006
Scomi Marine Bhd expect a 76% increase in revenue and net profit in financial year ending Dec 31, 2006, after boosting fleet size and capacity to transport coal, its chief financial officer Loong Chun Nee said.
“Theoretically, the 76% increase in capacity will lead to a 76% increase in revenue,” she said after the AGM in Kuala Lumpur on June 26. She added net profit would also increase by the same percentage, unless margins were affected by higher oil prices.
Scomi Marine was expanding its fleet to cope with the requirements of its main customer -- Indonesian mining company PT Adaro – which had increased its annual coal output to 36 million tonnes recently from 27 million tonnes last year.
Loong said last year, the company ordered 16 new tugs and barges, costing RM179 million, which would increase its fleet size to 159 vessels. Out of this, 91 would be tugboats and barges.
So far, 13 news tugboats and barges have been delivered and another three vessels would be delivered this year, Loong said.
She said these new vessels’ capacity was up to 12,000 deadweight tonnes (dwt) each compared with the older vessels of between 4,000dwt and 8,000dwt each. The new vessels would be mainly used to transport coal along rivers in Kalimantan, Indonesia.
Loong added the company was looking for more business in Malaysia and had secured a letter of intent to transport coal of 500,000dwt of coal a year for Tenaga Nasional Bhd from Indonesia, Australia and South Africa.
The quantum to be paid to Scomi had yet to be finalised as it would depend on the location from which the coal would be transported. It would charter one or two Panamax vessels for this purpose, she added.
Scomi Engineering to submit proposal on Penang monorail
By Kevin Tan
The Edge, 26 June 2006
Scomi Engineering Bhd will submit a final proposal to the government to bid for the Penang monorail project within the next two weeks, its senior vice president Hilmy Zaini said.
"We have submitted a preliminary proposal. We have to work on the financing and other details," he told reporters after the company's AGM in Kuala Lumpur on June 26.
While there was no deadline for the submission of proposals, Scomi Engineering would submit its proposal "within the next week or so", Hilmy said.
To a question, he said the company also had not ruled out the possibility of working in a consortium with the Kuala Lumpur Infrastructure Group Bhd (KLIG) to jointly bid for the project.
"We are working with a few parties, but we cannot confirm who we are working with," Hilmy said when asked if Scomi Engineering was jointly bidding for the project with KLIG.
He added that the company had to work with other parties on a big project such as the Penang monorail project as its expertise was in the provision of monorail technology and fabrication of the monorail cars.
Scomi Engineering had last April proposed to acquire a 51% in MTrans Transportation Systems Sdn Bhd for RM30 million cash. MTrans specialises in manufacturing urban buses and monorail transportation system.
Hilmi said the company was expecting to receive approvals from the relevant authorities to proceed with the acquisition "anytime within the next two weeks." He reckoned that the acquisition would boost Scomi Engineering's chances of winning the monorail project.
The acquisition did not require shareholders' approval and the company had completed the due diligence in terms of the legal, technical and financial aspects of the proposed exercise, Hilmy said.
If the scale of the Penang monorail project was similar to the one in Kuala Lumpur, Scomi Engineering would get a 40% portion of the work, he said.
Melewar Industrial Group Bhd, with technical backing of Swiss and Russian partners, recently said it had submitted a RM1.6 billion bid to construct a 52km monorail in Penang.
Meanwhile, Scomi Marine Bhd expected a 76% rise in revenue and net profit in its financial year ending Dec 31, 2006, in tandem with the increase of its fleet size and capacity to transport coal, its chief financial officer Loong Chun Nee said.
“Theoretically, the 76% increase in capacity will lead to a 76% increase in revenue,” she told reporters after the company’s AGM in Kuala Lumpur on June 26.
Loong said it should also translate into same amount of increase in net profit, barring circumstances that affected the company’s margin such as further increase in oil prices.
Scomi acquires 51% of MTrans for RM30m
By Tamimi Omar
The Edge, 28 April 2006
Scomi Engineering Bhd is acquiring a 51% stake in MTrans Transportation Systems Sdn Bhd for RM30 million to provide it a platform to be a key player in urban transportation.
Scomi Engineering had on April 28 signed an agreement with Kiara Kilau Sdn Bhd, which owns 100% stake in MTrans, to acquire the 51% stake. MTrans owns bus manufacturer MTRans Bus Sdn Bhd and MTRans Technology Bhd, which specialises in monorail systems and technology.
Scomi Engineering senior vice president Hilmy Zaini said the strategic acquisition is in line with its focus on energy and logistics engineering.
“With its range of core competencies, MTrans will enhance Scomi Engineering’s capability in the fabrication, assembly and fittings of special-purpose vehicles, particularly buses,” he added.
Scomi Engineering is involved in the fabrication of special purpose vehicles such as petroleum tankers, ambulance, fire engine, defence vehicles.
The acquisition will enhance Scomi Engineering’s current logistics engineering capabilities by diversifying the range of products that Scomi Engineering would be able to offer.
MTrans owns a 22-acre factory in Rawang Industrial Zone. The facility will be an addition to Scomi Engineering’s current infrastructure in the logistics engineering business and increase Scomi Engineering’s overall manufacturing capacities.
“With its proven technology in cost-effective fuel emission systems, particularly in urban bus projects, MTrans has established a presence in Hong Kong and Bangladesh and is looking at other Asian and Middle Eastern markets,” Hilmy said.
He added that the acquisition of MTrans would enable Scomi Engineering to bid and secure urban bus projects anywhere in the world.
Scomi Marine gets Tenaga coal shipments job
The Edge, 14 April 2006
Scomi Marine Bhd has received a letter of intent from TNB Fuel Services Sdn Bhd for a coal shipment contract for three years from Oct 1, with an option to extend for another two years, the company said.
Scomi Marine told Bursa Malaysia on April 14 that under the contract, it would be required to transport 500,000 tonnes (with 20% variation) of coal from Australia, Indonesia and South Africa yearly.
It said TNB Fuel Services would determine the actual quantity of coal to be transported and from which country upon finalisation of the contract.
Scomi Marine is involved in the marine logistics business of the energy sector. It said the contract was in line with its plans to expand its coal transportation business, involving inter-country marine logistics services.
Scomi lands RM1.5b contracts
The Edge, 24 January 2006
Scomi Group Bhd's unit has secured contracts that are expected to generate some US$400 million (RM1.5 billion) in revenue through the provision of drilling fluids materials, equipment and services.
Its unit, Kota Minerals and Chemicals Sdn Bhd (KMC), had received the letters of awards from Petronas Carigali Sdn Bhd, Sarawak Shell Bhd, Sabah Shell Petroleum Co Ltd, ExxonMobil Exploration and Production Malaysia Inc and Nippon Oil Exploration (M) Ltd.
“Based on the number of wells indicated in the joint tender document, the company estimates the revenue to be generated from the contracts to be about US$400 million (RM1.5 billion),” it said in a statement on Jan 24.
KMC received the last letter of award on Jan 19, it said. The contracts were expected to be for four years with an option to the tender parties to extend for another two years, it added.
Scomi said KMC was finalising the terms and conditions of the contracts to be signed with the tender parties.
Scomi earnings surge 340%
The Edge, 25 February 2006
Scomi Group Bhd’s earnings surged 340% to RM61.50 million for the year ended Dec 31, 2004, with the oil and gas (O&G) division contributing 97% of the net profit. The previous year's net profit was RM14.02 million.
Announcing the results on Feb 25, the company said revenue jumped 263% to RM590.45 million, with the bulk from O&G, compared with RM162.47 million a year ago. Earnings per share was 6.95 sen.
“The O&G division had benefited from the increase in exploration, development and production activities in the oil and gas industry,” it said in a statement.
Scomi said the acquisition of a 77.7% interest in KMC Oiltools Bermuda Ltd (Oiltools) contributed positively to the revenue and profits.
“Although only two quarters of Oiltools’ results were consolidated, approximately 44% and 39% of the group’s revenue and profits, respectively, were contributed by Oiltools,” it said.
The company said the O&G division’s drilling fluids unit had secured new businesses in 2004. They were the supply of drilling fluids to Murphy Oil Sarawak and synthetic-based mud to Sarawak Shell Bhd and Sabah Shell Petroleum Co Ltd.
For the fourth quarter, Scomi recorded a net profit of RM21.42 million, which was more than the RM14.02 million for the entire financial year of 2003. For the quarter, revenue jumped to RM213.20 million compared with RM58.11 million.
Scomi said the higher net profit was also due to certain non-taxable foreign sourced income, low tax rate for foreign subsidiaries and also credits arising from the acquisition of the remaining 50% of KMC Oiltools’ stake in Shetland Oiltools Ltd.
Scomi Marine Bhd see record 4th Quarter results
Rigzone.com, 21 February 2006
Scomi Marine Bhd (Scomi Marine, formerly known as Habib Corporation Bhd), an associate company of Scomi Group Bhd, listed on the Main Board of Bursa Malaysia, announced a record net profit of RM20.3 million for the fourth quarter ended December 31, 2005, on the back of RM136.3 million in Turnover.
Cumulatively for the full financial year ended 31st December 2005, Scomi Marine recorded a Net Profit of RM24.5 million on the back of a Turnover of RM234.5 million. This is an increase of 703% and 105% respectively from the corresponding period in 2004.
The quantum increase in turnover and net profit is a result of the acquisition by Scomi Marine of the new businesses in the marine vessel transportation from Chuan Hup Holdings Ltd, namely the marine logistic business and the offshore marine support services. The acquisition was completed on September 30, 2006, making this the first quarter of fully consolidated marine vessel business.
The marine logistic services division generated a Net Profit of RM14.5 million on the back of a Turnover of RM84.4 million, making it the largest contributor to Scomi Marine's financial performance for the quarter under review. The Surabaya and Jakarta listed PT Rig Tenders Tbk ("PTRT") contributed RM8.7 million and RM3.3 million in Turnover and Net Profit to that of Scomi Marine.
Issues that impacted the quarter's results included adverse weather conditions resulting in reduced activities for its vessels as well as unplanned dry docking activities for maintenance of several vessels.
The prospect for 2006 continues to be good. It has 12 new vessels delivered to date with another 4 vessels expected to be delivered within the next four months. The new vessels are expected to contribute positively to Scomi Marine's turnover in 2006. Its increased shareholding in PTRT making it a subsidiary of the group is also another factor expected to positively impact the earning of the group for 2006.
Scomi Marine is also participating in tenders in Indonesia and Malaysia for more coal transportation business. Its strategy is to position itself as an energy logistic provider for the region.
Scomi Marine's plans going forward include leveraging on opportunities in offshore oil & gas support services for the international market, focusing on vessels with deepwater functionalities, end-to-end coal supply chain and also extracting better yield from its existing fleet.
Scomi Marine is an associate company of Scomi group which is involved in the oil and gas industry with core businesses in integrated drilling fluids and drilling waste management services and solutions, distribution of products and services, production enhancement chemicals, manufacturing business and marine vessel transportation.
Scomi unit poised to expand core ops
BY DANNY YAP
The Star, 27 January 2006
With its re-listing completed yesterday, Scomi Engineering Bhd is set to tap the capital markets to expand its core businesses of machine shop operations, transportation manufacturing and fleet management.
Senior vice-president Hilmy Zaini said the company planned to focus on niche areas within the divisions to fast-track its growth to boost earnings.
Scomi Engineering, a 71% subsidiary of Scomi Group Bhd, made an impressive start even before the re-listing via a reverse takeover of Bell & Order Bhd by its parent company.
For the nine months ended Sept 31, 2005, the company posted RM144.6mil in revenue and RM15mil in after-tax profit, beating the RM141.7mil revenue and RM10.9mil after-tax profit it charted in 2004.
“With our core businesses now under one roof, we are well positioned for better growth,” he said at a press conference yesterday.
Hilmy said the rise in oil and gas exploration activities augured well for the company's machine shop division.
“Contribution to this division should remain strong as oil and gas exploration activities in this region increases, fuelled by recent oil findings,” he said, adding that the company planned to improve earnings by leveraging on its seven machine shop operations in six countries in the Asia Pacific.
Hilmy said Scomi Engineering was also expanding its machine shop facilities in Thailand, Brunei and especially Labuan, in anticipation of the higher demand, especially for threaded pipes required in the region's oil and gas explorations.
“We expect the demand for threaded pipes to increase two-fold or more,” he said, adding that the Labuan machine shop contributed between RM7mil and RM8mil to the division's revenue.
Hilmy also said Scomi Engineering was looking to aggressively expand into new markets such as Shakalin Island, Turkmenistan and Tenggu in Irian Jaya.
“We were working out a deal in Sudan but that did not materialise and the bid to supply oil and gas accessories to Sakhalin Island is at the preliminary stage, while our bid to enter the Turkmenistan market through Petronas Carigali is at the evaluation stage,'' he said.
On market talk that oil prices could reach US$100 per barrel in six months, Hilmy said he would not be surprised as shallow-water oil and gas exploration activities in Malaysia and other regions were reaching maturity and there was increasing emphasis on deepwater exploration with rising oil demand.
He said the company planned to expand its business to include servicing the mining sector in the future. The company's transportation engineering division was also poised to expand to regional markets with its plan to set up distribution units for exclusive rights to distribute imported engineering components.
In the company's fleet management division, Hilmy said the industry was extremely competitive but was still profitable in niche areas.
Currently, the company managed over 600 vehicles and provides online rental services via a partnership with AirAsia Bhd under its Go Car promotion programme.
The company also has contracts to supply vehicles to Maxis Communications Bhd and Silver Bird Bhd. The company was looking at ways to improve earnings without incurring more overheads.
“Fleet outsourcing is one area of business worth pursuing because of lower operational costs,” he added.
Asked when the company planned to transfer to the main board, Hilmy said: “We hope to achieve this in the next 12 months if earnings targets are met.”
Mahathir uncovers nuke link
USA Today, 18 March 2004
The United States asked Malaysia to halt a shipment of suspected nuclear parts in the 1990s, years before a local company was linked to a network that supplied Libya, Iran and North Korea with weapons-making technology, Malaysia's former leader said Thursday.
Former Prime Minister Mahathir Mohamad told The Associated Press in an interview that Malaysia stopped one shipment years ago of stainless steel pipes at Washington's request.
"We didn't know where they were headed," Mahathir told The AP. "They didn't say if it was for centrifuges. There were some reports submitted to me, saying that there was this American objection. They said it was meant for some nuclear thing."
Mahathir retired as prime minister Oct. 31 after 22 years in power that saw Malaysia develop as a high-tech manufacturing center. The nuclear parts incident is believed to have occurred in the early 1990s.
A U.S. official posted in this Southeast Asian nation at the time recalled that Washington suspected a Malaysian factory of making parts that could be used for nuclear purposes and were possibly bound for Pakistan. Malaysia contended that the parts had other possible applications.
The official, who spoke on condition of anonymity, recalled that a ship was searched but no parts were found. He was unclear on details given the many years that have lapsed.
Last October, a shipment of 25,000 Malaysian-made centrifuge parts for enriching uranium to make nuclear arms was seized in the Mediterranean en route to Libya, uncovering a secret network led by Pakistan's top nuclear scientist, Abdul Qadeer Khan.
Malaysian police have cleared the company that made the components, Scomi Precision Engineering, of knowing that they were bound for Libya or for nuclear use. The company is controlled by the son of current Prime Minister Abdullah Ahmad Badawi.
The company was tricked into thinking that the components were intended for the oil-and-gas industry in Dubai, police said, concluding that it could not be held responsible for any wrongdoing.
"During my time, there were also some orders for similar pipes," Mahathir told The AP. "It was not with Scomi. I think it was some other company. The United States objected to this, so the deal was aborted."
The seizure last October blew the lid off the smuggling network headed by Khan and triggered investigations in the United States, Europe and Asia to track down the ring's activities.
The deal to make the Libyan-bound parts in Malaysia was brokered by a Sri Lankan businessman, Buhary Syed Abu Tahir, whom President Bush has labeled the Khan network's "chief financial officer."
Tahir, who has business interests in Dubai, moved to Malaysia in the mid-1990s and began establishing contacts among the country's elite. Khan attended his marriage to a Malaysian woman.
Tahir served on the board of directors of an investment company, Kaspadu, along with the current prime minister's son, Kamaluddin Abdullah, the majority shareholder. Kaspadu holds the chief stake in Scomi, an oil and gas company. Scomi Precision Engineering is a subsidiary.
Tahir brokered the deal to make the parts for Libya, but police say he has broken no local laws and he remains free.
Tahir told Malaysian police that he had been acquainted with Khan since the 1980s and helped smuggle nuclear materials to Iran and Libya. The only deal involving Malaysia was Scomi's manufacture of parts for Libya between 2001 and 2003, the police report says.
The United States sent a top-level anti-proliferation envoy, John Wolf, to Malaysia three weeks ago to urge Abdullah and other officials to tighten export controls. Malaysian authorities made no firm commitment to Wolf, who was ambassador to Malaysia in the early 1990s.
Washington has been keen to improve relations with Malaysia, an important Southeast Asian ally in the war against terrorism, following often prickly relations during the Mahathir years.
"The U.S. has admitted that this is not a deliberate attempt by Malaysia to spread nuclear weapons to other countries," Mahathir said. "I don't think the people who ordered these things told Scomi, 'We are going to build a nuclear bomb. Can you please supply us with centrifuges?'"
Scomi gets RM50 mil job
The Edge, 27 February 2004
Scomi Group Bhd has secured a two-year RM50 million mud engineering and materials contract from Murphy Sarawak/Peninsular Malaysia/Sabah Oil Co Ltd.
The contract is for Murphy’s 2004-2005 deepwater and shallow water exploration/development drilling programmes.
Paper trail shows Malaysia ties
CNN, 18 February 2004
A Sri Lankan accused of being the chief financial officer for an international nuclear black market sat on the board of a company owned by the Malaysian prime minister's only son, according to documents obtained by The Associated Press.
The connection indicates that alleged senior members of the network established by Abdul Qadeer Khan, the father of Pakistan's nuclear bomb, were able to woo partners in the highest levels of Malaysian society.
In the Malaysian case, the partners said they had no idea deals were being made to fashion parts that could be used to make nuclear weapons.
The documents, obtained by AP via searches of publicly accessible files, reveal a paper trail through privately held and publicly listed companies that outlines ties between the prime minister's son, Kamaluddin Abdullah, and the Sri Lankan, Buhary Syed Abu Tahir, as well as his Malaysian wife.
The documents show that the men were top executives at Kaspadu Sdn. Bhd. when Tahir negotiated a deal for a company linked to Kaspadu, Scomi Precision Engineering, to build components that Western intelligence agencies allege were for use in Libya's nuclear program.
U.S. President George W. Bush last week called Tahir the "chief financial officer and money launderer" of the black market network led by Khan, who has admitted selling nuclear technology and know-how to Iran, North Korea and Libya.
Pakistan's President Pervez Musharraf has said Khan acted alone in selling atomic secrets to these countries, but many in Pakistan and outside have doubted this.
Kamaluddin's company, the Scomi Group, previously acknowledged that its subsidiary Scomi Precision Engineering fulfilled a contract for machine parts that was negotiated by Tahir.
Non-proliferation authorities say the parts were for centrifuges -- sophisticated machines that can be used to enrich uranium for weapons and other purposes -- but Scomi says it did not know what the parts were to be used for.
Rohaida Badaruddin, a Scomi spokeswoman, confirmed Tuesday that Tahir was a Kaspadu director until early last year, and said it was likely Kamaluddin encountered Tahir at business meetings.
Kamaluddin was "shocked and surprised" to learn late last year of Tahir's alleged role in the nuclear network and broke ties with the Sri Lankan -- including asking Tahir's wife, Nazimah Syed Majid, to sell her shares in Kaspadu, the spokeswoman said.
Kamaluddin has not spoken publicly about the matter and was not available for comment Tuesday. A security guard at the house listed on company documents as his residence told AP it was owned by Prime Minister Abdullah Ahmad Badawi, but that nobody now lives there.
The AP traced Nazimah, 35, to an apartment in one of Kuala Lumpur's most exclusive suburbs. She declined comment, except to say, "My husband is not here; he's away." She said she did not know where Tahir went.
Police say they have interviewed Tahir but he is not in custody because he has committed no crime in Malaysia.
Abdullah took office last October and was deputy prime minister at the time of the business dealings between his son and Tahir.
Tahir is believed to have started developing social and business ties in Malaysia in the mid-1990s, and by 1998 held a society wedding attended by Khan. Tahir's wife is the daughter of a former Malaysian diplomat, officials have said.
The revelations of deeper links between Tahir and Kamaluddin come as Malaysian officials complain that this mostly Muslim Southeast Asian country has been unfairly singled out by Washington for its role in the nuclear black market.
Bush, in his speech last week, alleged Tahir used a Dubai computer company as a front for Khan's network, and directed the Malaysian company to produce centrifuge parts based on Pakistani designs. Bush said Khan's network used front companies to "deceive legitimate firms into selling them tightly controlled materials."
Malaysia has welcomed comments by a senior U.S. official, who said during a visit to China on Monday that Bush doesn't hold Malaysia responsible.
"There was never any suggestion that the government of Malaysia was involved," said John Bolton, an undersecretary of state, adding that the Malaysian firm might not have known its equipment was for nuclear use.
Kaspadu is a privately held investment vehicle for Kamaluddin and a business partner that has a controlling stake in Scomi.
Scomi fully owns Scomi Precision Engineering, which delivered "14 semifinished components" to Dubai-based Gulf Technical Industries between December 2002 and August 2003, under the US$3.4 million Tahir contract.
The parts were seized in October in boxes marked with Scomi's name en route to Libya. Scomi says it understood the parts were for the oil and gas industry, and had no knowledge of the Libyan connection.
Scomi has previously identified Tahir as a businessman who approached its subsidiary about the contract, and said Kamaluddin had no knowledge of the deal because he has no official management role in Scomi.
But company documents show ties between Tahir, 44, and companies controlled by Kamaluddin, 36, were closer than previously acknowledged.
Kaspadu documents list Tahir as being appointed December 16, 2000, as a company director. Kamaluddin is listed as one of Kaspadu's four other directors and its "corporate executive."
Malaysian police say Tahir negotiated the Libya-linked contract around 2001. It was Scomi Precision Engineering's first order, and it built a factory to fill it.
Kaspadu records show Tahir resigned as a director February 24, 2003. No reasons were given and the Scomi spokeswoman said she didn't know why.
Scomi Precision Engineering paid Kaspadu 84,000 ringgit ($22,000) in management fees in 2002, when Tahir was a director.
Other records show that in October 2000, Nazimah, Tahir's wife, was one of only three shareholders in Kaspadu. The others are Kamaluddin and his business partner, Shah Hakim Shahzanim Zain, who is a director of Kaspadu and Scomi Precision Engineering, and is the Scomi Group's chief executive.
Documents show that Nazimah's stake in the company was sold to Kamaluddin and Hakim last month.
After an inquiry, Prime Minister Abdullah declared Scomi had been cleared of wrongdoing. Last week he said "there is no such thing as Malaysian involvement" in the network outlined by Bush.
Scomi’s FY03 net profit exceeds forecast
The Edge, 16 February 2004
Oil and gas related Scomi Group Bhd achieved a net profit of RM14.02 million in financial year ended Dec 31, 2003, which was slightly higher than its forecast of RM13.5 million.
It recorded a revenue of RM162.48 million while earnings per share was 18.91 sen. Net tangible asset per share was 86 sen.
Before 1 November 2003
Abdullah should come out with a policy statement as to the implications of the meteoric rise of Scomi and his son, Kamaluddin Abdullah Badawi, overnight richer by RM430 million, on accountability, transparency, integrity and good governance when he takes over as the fifth Prime Minister in less than six weeks
Media Statement by Lim Kit Siang, 20 September 2003
The entire market is watching the meteoric rise of the newly-listed Second Board 50-sen stock, Scomi and Kamaluddin Abdullah Badawi, the only son of Prime Minister-designate Datuk Seri Abdullah Ahmad Badawi, who could have become RM430 million richer overnight – and what it implies in terms of accountability, transparency, integrity and good governance when Abdullah takes over as the fifth Prime Minister in less than six weeks.
Yesterday, the share price of oil-and-gas services group Scomi, which is substantially owned by Kamaluddin, rocketed to as high as RM9.50, an astronomical rise of 588 per cent from its listing price of RM1.38 in May – making it the top equity performer in the country this year.
Although Kamaluddin’s exact stake in Scomi cannot be ascertained, he has at least a total interest of 53 per cent, based on its listing prospectus, which states that his privately-held Kaspadu has a 27.2 per cent direct interest and another 26 per cent deemed interest in Scomi.
Assuming a total interest of 53 per cent in Scomi, the stake would be worth RM503.5 million at RM9.50 per share. Kamaluddin’s paper worth would have gone up RM430 million as the stake was valued at RM73.1 million four months ago.
Almost all oil-and-gas stocks are enjoying a bull run, buoyed by the budget announcement that the government is encouraging the formation of a second consortium to undertake the development of smaller oil fields, and Scomi is the darling of these stocks because of growing expectation that it could be the chief beneficiary of the budget announcement.
In view of the implications of the meteoric rise of Scomi on the Abdullah premiership, Abdullah should come out with a clear policy statement preferably in Parliament on Monday as to put to rest all speculation as to how it could affect policies of accountability, transparency, integrity and good governance under his premiership when he replaces Datuk Seri Dr. Mahathir Mohamad in Sri Perdana Putrajaya end of next month.
SCOMI plays down role of Acting PM's son
By Sidek Kamiso
The Edge, 30 April 2003
SCOMI Group Bhd chief executive officer Shah Hakim Zain has played down the role of Kamaluddin Abdullah, a son of Acting Prime Minister Datuk Abdullah Ahmad Badawi, in the company.
Instead, he said investors should focus on SCOMI's fundamentals when deciding whether to participate in its upcoming initial public offering. Shah Hakim said Kamaluddin is a shareholder with no executive position.
"He is not involved in the day-to-day operations, but he is aware of management decision-making process," he said after the company's balloting ceremony on April 30, when asked about Kamaluddin's role in the company.
Shah Hakim also urged investors to look at the company's proven track record and its consistent high margins.
He also played down "the hottest IPO" label, tagged on SCOMI for its upcoming listing on the Second Board due to the presence of Kamaludin and other prominent corporate figures such as Symphony House Bhd chief executive Datuk Azman Yahya.
"Oil and gas seems to be the hottest industry, but we like people to view us as a company which has good fundamentals," he said.
Scomi Group on solid ground
By Isa Ismail
The Edge, 13 May 2003
Scomi Group's over-subscription of more than nine times for the three million shares it is offering the public this Tuesday may be an indication of the general perception of the company as the "hottest IPO" in recent times.
En route to a listing on the Second Board of the Kuala Lumpur Stock Exchange (KLSE), this bumiputera-controlled company has attracted a lot of attention due to its shareholder line-up comprising Kamaluddin Abdullah and Datuk Azman Yahaya. "The over-subscription is a good sign of keen public interest," says an analyst with Hwang-DBS Securities. "Yes, its shareholder line-up has spurred some excitement."
Notwithstanding its prominent shareholders, Scomi Group's chief executive officer Shah Hakim Zain is confident that investors will see the company for what it is rather than who owns it.
"Oil and gas seems to be the hottest industry, but we would like people to view us as a company that has good fundamentals," Shah Hakim said recently when asked about his fellow shareholders.
It appears that most analysts agree with Shah Hakim. The company, which has captured 82 per cent of the market for drilling fluids in the country, does have an enviable position in the local oil and gas industry.
"It's a fundamentally solid company," says another analyst.
Scomi Group posted a net profit of RM14.6 million for the year ended Dec 31, 2002, on the back of a turnover of RM158.5 million. By June next year, Scomi Groups will be ready to move to the Main Board of the KLSE, analysts say.
"Their business may not be very big at the moment but the services they provide are necessary in the oil and gas business," says an analyst.
The group has three core activities, which are the provision of drilling fluids and chemicals for the oil and gas industry, the assembly of modified commercial vehicles and a car rental service. Of the three, the oil and gas division contributes about 70 per cent of the group's total revenue. Subsidiary Kota Minerals and Chemicals Sdn Bhd (KMC) undertakes Scomi Group's oil and gas operations while the other two divisions come under Scomi Sdn Bhd (commercial vehicles) and Scomi Transportation Solutions Sdn Bhd (car rental services).
At the launch of the company's prospectus last month, Shah Hakim said the company has a book order worth RM185 million, which is 10 per cent short of its 2003 book order forecast of RM204 million.
Formerly an agent for drilling fluid giant Magcobar-Imco Drilling Fluids Inc (MI), KMC has grown to become an established provider of specialised drilling fluids and chemicals in the country. Today, the company competes with the likes of MI and other major players such as Baroid of Halliburton and Baker Hughes Inc.
Also known as "mud" engineering, drilling fluids are specially blended chemical cocktails used to ensure drill heads function efficiently as well as to soften and remove soil and waste from oil wells.
KMC's main customers are ExxonMobil Exploration and Production Malaysia (EPMI), Petronas Carigali and Shell Sarawak. EPMI contributed 40 per cent of the company's income in the financial year 2002 while Petronas and Shell contributed 37 per cent and 20 per cent, respectively.
Unlike its competitors, KMC prides itself on its large Malaysian team of engineers, which has given the company a cost advantage over larger foreign players.
"Over the years, KMC has successfully trained Malaysian engineers," says an analyst with Mayban Securities. "Ninety-six per cent of its technical support is comprised of locals, compared with 60 per cent and 30 per cent for MI and Baker Hughes in Malaysia."
The company also has fully equipped chemical laboratories to support its daily operations, she adds.
Another analyst with Affin-UOB concurs, saying that KMC is the only mud engineering company in the country that has its own barite mill and speciality chemicals blending facility. The plant provides the bulk of the country's barite requirements of oil and gas companies in the peninsula.
The analyst points out that KMC is dependent on oil and gas exploration activities as drilling fluids are used in the initial stages of the oil extraction process. With about 14 years of crude oil reserves remaining, KMC might experience a slowdown in drilling activities as oil supplies dwindle.
To avoid this, Scomi Group's management plans to ride on Petronas' global expansion programme to keep its oil and gas division going for years to come. Petronas currently has stakes in the oil and gas industry in over 22 countries and is expected to expand to 40 countries worldwide in the future. KMC itself has received a letter of award to supply drilling fluids to the Greater Nile Petroleum Operating Co Ltd in Sudan. It is also seeking to expand into deep-sea exploration, which will require more drilling fluids.
The group also manufactures specialised road equipment such as airport ground support vehicles. Under the brand name King's, Scomi Group offers, among others, tankers, trailers, aircraft refuellers and catering lift trucks.
Malaysia's Scomi renews deal with three oil firms
Reuters, 25 August 2003
Malaysian oil and gas company Scomi Group said on Monday it has renewed its contracts to supply drilling fluids and engineering services to three oil majors operating in the country.
Reuters reported last week that Scomi was to sign a 300 million ringgit ($79 million) contract to extend its supply agreements with Malaysia's Petronas, Royal Dutch Shell Group and ExxonMobil Corp.
Scomi said in a statement the extension was for a period of two years but did not give a value.
"As of this moment, there is no value available for the contract," Norhaidza Shamsudin, a spokeswoman for Scomi, told Reuters.
Shell and ExxonMobil are involved in oil production-sharing contracts with Petronas in Malaysia. Scomi's original deals with all three was for a period of three years and was worth around 100 million ringgit.
Controlled by Kamaluddin Abdullah, a son of Malaysia's Deputy Prime Minister Abdullah Ahmad Badawi, the mid-sized Scomi has relied on the supply contract for 90 percent of its turnover since 2000.
Kamaluddin, who does not hold any management position, controls 53 percent of Scomi via subsidiary Kota Minerals & Chemicals Sdn Bhd.
Scomi -- with a market capitalisation of just 510 million ringgit -- said the contract extensions were awarded directly to Kota Minerals.
Scomi's shares have been at a high since mid-June, when news leaked of an impending deal, and more than quadruple its 1.38 ringgit May initial public offering price. The stock closed 0.6 percent up at 6.45 ringgit on Monday.
Thursday, August 17, 2006
This article from Malaysia Today.