Khazanah should not be made to pay for Nor Yakcop's fraudulent acts!

The Star's BK Siddhu has the latest scoop on the lawsuit of Tan Sri Halim Saad against Tan Sri Nor Mohamed Yakcop as the first party.

First read back our mid-June postings, Covering up Nor Yakcop's fraud and Truth is Nor Yakcop is a fraud. Rocky Bru put a posting of Halim's summon here. And, or Yakcop's affidavit can be found here. 

There seemed to be an out-of-court settlement in the making. But, who will be paying for the liabilities arising from the fraudulent act of the first party? Some say it is allegedly fraud, but we'll call a fraud as fraud.  

There is such a thing as insurance coverage for professional indemnity. However, it does not and should not apply for actions taken with a clear intention to commit fraud and default on a signed agreement. 

For someone whose lost RM16 billion of the nation's money under Bank Negara Malaysia's managed reserve in the past, don't tell us that Khazanah Nasional has to be the insurance company to pay Nor Yakcop's liabilities?

The rakyat will not gives a duck to any excuse in saving a crook even if he is soft spoken, seemed "knowledgeable", and knows a lot of people.

Out-of-court settlement

Let's read BK's story first:  

Published: Thursday July 18, 2013 MYT 12:00:00 AM
Updated: Thursday July 18, 2013 MYT 9:20:15 AM 

Speculation rife out-of-court settlement being hammered out for Halim Saad's case 

By B.K. SIDHU
bksidhu@thestar.com.my

PETALING JAYA: Speculation is rife that an out-of-court settlement is being hammered out to conclude the controversial suit filed by Tan Sri Halim Saad against Tan Sri Nor Mohamed Yakcop and two others over allegations that he was forced to sell his stake in Renong/UEM Group to Khazanah Nasional Bhd in 2001.

The settlement figure bandied around, according to sources, is about RM1bil.

However, in his statement of claim filed at the High Court on April 30, Halim is claiming about RM2bil, which includes accumulated interest and tracts of land that he claims were agreed in an deal reached in 2001.

The sources claim the parties involved have met via their intermediaries with one meeting taking place this week. However, this could not be verified as at press time and Halim, when contacted yesterday, declined comment.

If indeed there is an out-of-court settlement, it would follow the route taken to resolve the six-year suit by former Malaysia Airlines (MAS) executive chairman Tan Sri Tajudin Ramli, who had sued brought a suit against Pengurusan Danaharta over the 32% stake shares in MAS.

Halim, who was once the head honcho of the Renong/UEM group, alleged in his statement of claim that he was “fraudulently induced’’ to sell the shares, and not paid what was agreed.

In his suit, he named the Government and Khazanah as second and third defendants respectively, and Nor Mohamed as the first defendant.

The core of the claim is the series of events which led Halim to give up control of Renong and the role played by the then prime minister Tun Dr Mahathir Mohamad and his special economic adviser, Nor Mohamed.

But to counter Halim’s claims, the defendants filed their defence recently, arguing that Halim’s suit should be struck out because it was time-barred.

For that they cited Section 6 of the Limitation Act 1953, whereby a litigant should act within six years once a cause of action arose.

Nor Mohamed in his affidavit filed on July 8, also denied he told Halim that Umno was the owner of the assets. But Halim in his statement of claim contended that the shares were his, but was told that all the assets that Khazanah took over from him belonged to Umno and therefore there was no reason to pay him for the assets.

Halim also alleged he did not receive the agreed amount of RM1.3bil, tracts of land including those in Iskandar Malaysia, and interest in Kualiti Alam, and others as part of an agreement reached in 2011. Instead he claimed he only got RM165mil, of which RM100mil was the first instalment for the put option that was refunded to him, and RM65mil for interest and costs.

Nor Mohamed alleged that during the whole process of the general offer, Halim did not claim the existence of any agreement to compensate him in cash and property.

To recap, the Asian financial crisis of 1997 led to the fall in Renong’s share price. It was then known as the biggest debtor in town. In 1997, UEM announced it was buying a 32.5% stake in Renong but that did not go down well with investors. To appease the market, Halim had in 1998, offered to buy the Renong shares from UEM via a put option worth RM3.2bil.

Halim paid the first RM100mil but could not pay up the second when it was due, which was when Khazanah took over.

Later, Khazanah took UEM private and cancelled the put option. Through UEM and Renong, Halim then had controlled no fewer than six other public-listed companies and also the land which is now being developed as Iskandar.

Khazanah paying? 

What is due for Halim from Khazanah is due to him. It does not matter what is the amount. It is only fair that since Government of Malaysia and not Khazanah was the signatory, Government have to pay.

We doubt that the Government will pay for shares already transferred to Khazanah Nasional. It will not be a surprise that Khazanah is the one involved in the legal suit because the Government side kept silent and only Khazanah issued a statement.

Since Nor Yakcop is Deputy Chairman, the rakyat will be concern on who is paying for the legal bills of Nor Yakcop. And, will the discussion be inclusive of his personal liabilities?

If so, and it is expected to be so, it means Khazanah is solving Nor Yakcop's personal liabilities. That can't be.

Even the argument that he was doing it for Government and not to enrich himself does not hold ground because when one signs an employment agreement or job contract, quite sure one is expected to do so in accordance to the law.

There could be things call professional indemnity coverage by insurance companies to cover negligent claim by clients due to error and omission mistake. But this is a case of fraud and default.  

For Nor Yakcop to claim defense on the basis of statutory of limitation, it is not a smart move. He is basically trying to get away on technicality and almost an admittance of guilt.

Theoretically, Halim can file for a police report for the crime of fraud. Is there statutory limitation for criminal fraud?

Nor Yakcop and Government may buy time by getting friendly police in Jabatan Siasatan Jenayah (JSJ) or Dato Ramli Yusof's old goldmine at Jabatan Siasatan Jenayah Komersial (JSJK) to NFA or KIC the case or "adjustable" Tan Sri Gani Patail may claim as no case.

Even if Halim passed on, we believe his estate can still continue to make claim on the Government and also Nor Yakcop and his Brother in Racing, Kanari Group of Companies, proxies like Hasbie, xxx, yyy, zzz, etc, and some secretly kept nicely in Dubai.

Government default

Bankers are now acknowledging the reality that Government do default

The meter will be running and Government need to resolve this matter. If not because the Jewish banking world of compounded interest is expensive, the whole world will now know that Nor Yakcop tried to get away on technicality and that is an admittance of guilt.

It means our Government defaulted on a clear cut agreement. Any legal contract involving the Government is be seen as not binding.

Dato Omar Ong and Dato Idris Jala must be scratching their head because in their hurried pace to dupe the nation into believing of their vision of developed Malaysia is to idiotically open up Malaysia, the Government openly act unprofessionally like a 3rd world country to decay on their agreements.

Who is to believe the Government?   

Then on the matter of UMNO asset. Nor Yakcop denied it is UMNO assets but Tun Mahathir said Nor Yakcop told him so.

Halim has a witness and unless, his witness Tan Sri Rashid Manaf can be bought or bribed or threatened albeit in the infamous soft spoken Nor Yakcop way, Nor Yakcop basically lied to Tun Mahathir.

On "Nor Mohamed alleged that during the whole process of the general offer, Halim did not claim the existence of any agreement to compensate him in cash and property", we are still trying to understand this? 

The agreement is well documented and there are correspondance. Is Nor Yakcop trying to buy time till he can come up with a better legally credible excuse?

Probably Nor Yakcop does not have his documents in order and worse still, he does not know what is at stake.

Reckless

Damn what do I care!!!

If one remember the way he siphoned money CBT-wise at Abrar Corporation Berhad, he does it amaterishly in the manner of a reckless foreign exchange trader Nor Yakcop is.  

Main hantam saja!

If that is the case, Halim should ask for more than a RM1 billion settle all deal. Can 0.1% be alright as fee? Just kidding ...


Read back past postings below on why this man Nor Yakcop is not only a fraud, but corrupted, reckless and irresponsible, and dishonest:

Part 1: A great talent leaves
Part 2: Continued presence
Part 3: Bounty to hunt
Part 4: Rogue trader
Part 5: Forgiven sins
Part 6: Cover-up and rising up
Part 7: Aides charged for corruption

There is still many more Parts. It is a slow month of Ramadhan and there is the Kuala Besut by-election.

The big puzzle is why Prime Minister Dato Najib still trust a man who breached the Trustee Act is thus not trustworthy, unlawfully committed CBT under the Company Act, and now practically admited himself is a fraud be kept as Deputy Chairman and Chairman of Executive Committee of Khazanah?

With the appointment of another fraud and allegedly corrupt and fraud, namely Emir Mavani as CEO of Felda Global Venture Berhad, perhaps Dato Najib mindset is in the dangerous, careless and reckless zone of moral hazard.

Even keeping Emir for few months as claim by BK Siddhu here is a dangerous and irresponsible thing to do. Mavani can do what Nick Leeson and Nor Yakcop did. He's even got the wife to attend and asked question in his meeting.

Being a leader, one must know when it is time to be decisive and to be cruel, in order to be kind to the rest.

- Another Brick in the Wall