Rafizi refutes LTAT, claims land deal worth double original cost

Rafizi said the deals are proof that the government is trying to silence Deepak. – File pic

PETALING JAYA, Jan 7 – Boustead Holdings Bhd’s acquisition deal continued to come under attack from PKR’s Rafizi Ramli today, despite a statement by LTAT’s chairman Admiral (Rtd) Tan Sri Mohd Anwar Mohd Nor that it was a corporate exercise based on commercial considerations.

Rafizi also claimed that the amount to be paid to Awan Megah Sdn Bhd, the company owned by Umno Wanita leader Senator Raja Datuk Ropiaah Abdullah, is more than double the original valuation of the National Defence Education Centre (Puspahanas) project.

“We want to show that the RM160 million is nothing more than a bribery... There is no commercial basis whatsoever,” Rafizi spoke at a press conference here.

He highlighted a copy of the privatisation deal for Puspahanas dated July 17, 2009 which showed that Awan Megah was required to provide a land bond totalling RM72.5 million as security.

The land bond, usually called “performance bond”, is valued the same as a company’s total financial commitment to a project, subject to its performance.

According to Rafizi, the RM72.5 million bond requirement was the reason Awan Megah initially approached controversial businessman Deepak Jaikishan-owned Astacanggih Sdn Bhd, and plastic manufacturer GuppyUnip Sdn Bhd afterwards.

On Friday, Rafizi alleged that Awan Megah has no track record in construction and possesses a terrible financial record, with only RM6,180 in assets.

He pointed out to the latest financial statement filed by Awan Megah to the Companies Commission of Malaysia (SSM) showed that its last activity was on December 31, 1993, 12 years before the Puspahanas deal award.

A credit facility by the United Overseas Bank (UOB) was awarded to GuppyUnip on July 21, 2010 which will cover the capital for Awan Megah worth RM59.25 million, the premium for the land title transfer from the Selangor government, and the cost for the development site’s preparation.

On the same day last week, Boustead defended its purchase of 80 per cent stake in Astacanggih for RM30 million and Bukit Raja land from Awan Megah for RM130 million, saying that it would generate a return of 25 per cent.

The company also clarified that its proposition for the deals was not a recent one, and has been on the plans since 2005.

Boustead’s statement came on the same day after government investment fund Lembaga Tabung Angkatan Tentera (LTAT) chairman Mohd Anwar asserted that the deals were aimed at expanding Boustead’s land bank and generating long-term profits for the company.

Mohd Anwar also stressed that LTAT was not involved in the deal despite owning 60 per cent of Boustead’s stake.

Rafizi has been adamant that the deals — which he called “outright bribery” — are proof that the government is trying to silence Deepak from further revealing salacious scandals revolving politicians who have dealt with him in the past.