‘Superman’ brought down JCorp, says ex-CEO

By Debra Chong

December 18, 2011

KUALA LUMPUR, Dec 18 — Former Johor Corp (JCorp) chief executive Tan Sri Muhammad Ali Hashim has blamed outside forces he dubbed “Superman” for incurring more debts to the once-powerful Johor state investment company.

Muhammad Ali, who helmed the corporation for 28 years until July last year, said the “Superman” had seized control of the state-owned company and was directing the future of JCorp and its group of companies.

“This Superman’s hands are among the factors that caused JCorp to set aside the management’s original plan, to let go its assets and businesses that were less strategic, to resolve its debt,” he said in a statement late last night.

Muhammad Ali was responding to reports that Johor’s investment firm was partnering a private equity fund, CVC Capital Partners Asia Pacific (CVC), in a plan to buy out its prized assets QSR Brands Bhd (QSR) and KFC Holdings Malaysia Bhd (KFCH) and privatise the two public-listed companies.

JCorp owns 53 per cent of Kulim, which holds a 57.5 per cent stake in QSR. QSR, in turn, owns 50.6 per cent of KFCH.

There have been several attempts to sell KFCH but Malay right-wing group Perkasa has objected, saying it should remain in Bumiputera hands.

In this week’s report by business daily, The Edge, JCorp and CVC bid to pay RM6.80 per QSR share and RM4 for every KFCH share.

The bid was made through Massive Equity Sdn Bhd, a special purpose vehicle, The Edgeadded.

Muhammad Ali questioned Massive Equity’s statement as published by Malay tabloidKosmo on Friday.

While he conceded the move would benefit KFCH, he said the scheme would also increase JCorp’s debt rather than lower it.

“JCorp will be forced to sell its other assets to repay the increased debt, and a large possibility involves selling its stake in QSR and KFCH that had been privatised to a third party,” he said.

Muhammad Ali said he was worried about the “Superman’s interference, [which] is an alien idea and approach, and different from JCorp’s practice for the past 40 years since it was established”.

He said Superman’s interference has “broken the spirit” of all JCorp’s employees.

He also said he believed pushing the offer through would damage JCorp and jeopardise its position as a state-owned company.

He said his corporate experience has shown that outsiders had caused its management’s loss of authority and will affect its accountability and as an example, pointed to another state-owned company, Kumpulan Prasarana Rakyat Johor (KPRJ).