Deepak Jaikishan, who shot to fame in the statutory declarations made by a private investigator over the Altantuya Shaaribuu murder that implicated Prime Minister Najib Razak, is now making waves of a different sort and in perhaps the most cynical of places - Malaysia's corporate world, where critics often deplore, business is intertwined with politics.
Deepak, also known as First Lady Rosmah Mansor's 'carpet man' because his family runs a rug shop along the bustling Jalan Tuanku Abdul Rahman road, has emerged as a substantial shareholder in Envair Holdings Bhd, a loss-making maker of air and water filters. The stock is listed on the Mesdaq Board for small and mostly tech shares.
"This is a major change for him. Even though Envair is a small firm, it is still a bigger and different environment compared to his carpet business which was mostly retail-based. It shows how powerful connections are and sometimes it is who you know rather than what you know that makes the difference," a research analyst at a large brokerage told Malaysia Chronicle.
From selling carpets to Mesdaq
The 39-year-old Deepak bought a 5.06% direct stake Envair for RM1.32mil or 6 million shares at 22 sen apiece, and was keen to make it known that it would be a 'long term investment'. Nonetheless, his stilted statement was a giveaway of his unfamiliarity with his new habitat.
“I aim to be part of this thriving company's executive board and management. I hereby reiterate that I will not be selling down my stake in the future and, instead, hope to build it up in the days ahead," Star reported Deepak as saying
Other than Deepak's controversial background, which involves murdered Mongolian translator Altantuya Shaariibuu, the transaction is eye-catching because Envair shareholder Jiang Chuan Yi sold his entire 6.75% stake in the firm less than a month after acquiring it on Nov 1.
Jiang, a Chinese national, did not say why he sold the shares or give any reasons for the unusual turnover. The sale was done via open market transactions at an undisclosed price.
Harvest and Tiong King Sing
Coming hot on the heels of another penny-stock counter related to Prime Minister Najib Razak's family, Harvest Court Industries Bhd, there is red-hot talk that Envair may be the Najibs' latest 'vehicle' to ride on his name to tap money from the stock market. Speculation is rife that the deals were either to reap personal gains or to build a war chest for general elections which are widely expected to be called in 2012.
Indeed, shares in Harvest rocketed to a 9-year-high on news that Najib's 28-year-old son Nazifuddin had joined the board and taken a stake in the firm. So strong was the speculative fervor it generated that other penny stocks in the local market zoomed up on its coat-tails, prompting pundits to warn of another market debacle like that seen in the 1998 Second Board crash.
In the wake of the market commotion, Nazifuddin has sinced resigned from the Harvest board, but like Deepak, has pledged to hold onto his Harvest stake for the long term.
News that another Najib-linked figure, Bintulu MP Tiong King Sing, may sell off his 31% stake in timber firm Wijaya Baru Global has compounded the perception of Malaysian politicians trampling the market ahead of a landmark polls that may well see a change in federal government for the first time in 54 years.
Retired army Major Anuar Adam, who is linked to fallen tycoon Halim Saad, and is said to be backed by a group of Indonesian businessman for this deal, was reported by Business Times as being keen to pay Tiong RM1.10 per share for the Wijaya stake. Wijaya’s mother share closed 4.5 sen higher at 80.5 sen on Tuesday, while the warrants ended the trading day 9.5 sen higher at 33 sen.
"From Harvest to Envair and even Wijaya, these deals seen together can give a wrong impression. Even if they are sheer coincidence, it can look suspicious. To some seasoned investors, it is the classic crowd trying to rush for a narrow exit all at the same time and this is why they catch the market's attention," the research analyst said.
"It doesn't matter if it is for personal gain or all in the name of Umno and BN, and it would not be right if this was the case. Even if Najib and Perkasa twist it around and say that it is for national interest or national security, it is still wrong. The share market is not a washing machine where you come and launder your dirty clothes. Fundraising for political reasons should be made a No-No, and retailers should be warned first and foremost. The regulators must beef up their rules. Why are politicians still allowed to hold active roles in listed firms, should they not give these up when they are in office. Either you are a businessman or a politician. In this day and age where transparency and good governance are so crucial, don't come and tell us you want to be a businessman-cum-politician! We have no place for you."
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