The Potential Khazanah Imbroglio

The divestment of 5 non-core companies to qualified bumiputera comapanies through open tender is again becoming a hornet's nest for the current Barisan Nasional Government.

Another Brewing Controversy

For the Opposition members, this is again opportune fodder besides the Gemas Cowgate scandal,to drive the ruling party into a corner before the 13 GE.

While there is no or little controversy on PNB divesting 5 of its non-core companies,this is not the same with Khazanah Malaysia Berhad (Khazanah) which is actually 'considered' more of a national sovereign fund.

This time the voices of dissent is coming from both with in the folds of UMNO as well amongst others outside the corridors of power.

So, how is the government going to side-step from the gathering storm that is brewing in the horizon? Will this move distance themselves more from middle Malaysia and the potential one-third voting bank?

Let us look at the raison de'tat of Khazanah Nasional Berhad. This was taken from its website.

Khazanah Nasional is the investment holding arm of the Government of Malaysia and is empowered as the Government's strategic investor in new industries and markets. As trustees to the nation's commercial assets, our main objective is to promote economic growth and make strategic investments on behalf of the Government which would contribute towards nation building.

Khazanah is also tasked to nurture the development of selected strategic industries in Malaysia with the aim of pursuing the nation?s long-term economic interests.

Khazanah has investments in over 50 major companies, both in Malaysia and abroad, and our companies are involved in a broad spectrum of industries.

So, on the outset, a couple of questions need answering.

What are non-core assets? And what are non-core assets of Khazanah as an investment arm as its primary aim is to bring back maximum returns to the national coffers for the Malaysian people. Does 'non-core' means non-monopolies?

As UMNO's Bung Radin Mokhtar retorted-if Syed Mokhtar Bukhari or his likes are again to be given some of these divested companies,after amassing so many government monopolies from rice, ports, sugar,the post office to the national car, then something is really amiss with the policy makers!

Loss to Unit Holders?

For now, it would be interesting to see how the tender is to be conducted,the rasionale for Khazanah to divest national wealth to a few bumiputra companies as well as the effect of the loss of potential dividend to Amanah Saham unit holders from PNB's divestment.