Profitable GLC sold to ‘Umno crony’

Composites Technology Research Malaysia (CTRM), which earns millions in profits, was sold to Syed Mokhtar Albukhary in a 'cloak-and-dagger manner', says Rafizi Ramli.

PETALING JAYA: A government-linked company (GLC) yielding millions of ringgit in annual profit is being sold via closed tender to a firm owned by “Umno crony” Syed Mokhtar Albukhary, Rafizi Ramli said today.

The PKR strategy chief said that Composites Technology Research Malaysia (CTRM), a forerunner in composites and aerospace industry, had contracts worth RM8.26 billion for over the next five years.

According to CTRM’s 2011 income statement, made available to the media, the firm had yielded profits of RM12.94 million in 2010 and RM10.933 million in 2011, while its revenue had increased from RM256.066 million in 2010 to RM292.708 million in 2011.

But the government’s 96.8% stake in CTRM is being sold to private firm DRB-Hicom Defence Technologies Sdn Bhd, according to copies of a letter from the Ministry of Finance Incorporated to CTRM dated Aug 20, 2012.

“I have examined documents given to me by whistleblowers and am convinced that attempts to privatise CTRM to Syed Mokhtar Albukhary [owner of DRB-Hicom Defence Technologies] violated procedure and set aside CTRM’s welfare,” Rafizi said at a press conference here.

“There was no open tender, no discussion; it was all done in a cloak-and-dagger manner behind everyone’s back,” he claimed, citing interviews with staff and documents belonging to CTRM’s clients.

He stressed that should this practice continue, many profitable GLCs with huge assets would be bought over unscrupulously, without the public’s knowledge.

“Any privatisation of government-linked companies should go through the process of open tender and take into account the views of the management and staff. The government should be attempting to get the best bidding price for it,” Rafizi said.

“This is especially so in the case of CTRM as it was built from scratch by local professionals. The government should have at least given an offer for management buyout.”

Rafizi said he suspected that Umno cronies were covertly “cherry-picking” profitable GLCs such as CTRM, and further speculated that the companies would later end up in the hands of Umno leaders.

“This process of cherry-picking is going on so that good companies are quietly transferred to them, so when Pakatan Rakyat takes over Putrajaya, we end up with sick, non-profitable companies,” he said.

“I urge Prime Minister Najib Tun Razak, as the finance minister, to stop this buyout immediately,” he said, adding that he knew Najib was aware of the matter.

“I also challenge Umno Youth chief Khairy Jamaluddin to bravely speak up for the fate of CTRM’s staff, which comprise professional Bumiputeras who also wish for this deal to be stopped,” said Rafizi.