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Saturday, June 3, 2017

Pua: Don't let Proton sale become bailout for 'loss-making' DRB-Hicom



Petaling Jaya Utara MP Tony Pua has expressed support for Prime Minister Najib Abdul Razak's opinion that the government should not be retaining a "loss-making company", in regards to the sale of 49.9 percent of Proton to China carmaker Geely.
However, Pua said as the government had already disposed 100 percent of Proton, the government-linked company DRB-Hicom Bhd in 2012, a different question should be asked instead.
"Najib is absolutely right to ask the question, 'will you retain a loss-making company?', in a pointed justification for the sale of Proton.
"(But) the question Malaysians are asking the prime minister is why are we allowing DRB-Hicom to benefit billions of ringgit by helping them dispose half of their loss-making company, Proton?" Pua asked in a statement today.
Najib yesterday alluded that it was better to own a smaller percentage in Proton, as it will create more wealth and jobs.
Pua said DRB-Hicom, which is the majority shareholder in Proton, had suffered over RM1 billion in losses over the last two financial years.
The GLC also owed the government RM1.5 billion in loans.
Thus, to avoid the Geely deal turning into a bailout for DRB-Hicom, Pua said the government must force the latter to pay its debts first before benefiting from the sale.

The deal with Geely will see DRB-Hicom getting GB£100 million (RM556 million) from the sale of Lotus, on top of receiving a transfer of at least RM540 million in assets.
"The government must block the transfer of cash and assets to DRB-Hicom unless the government’s soft loan is repaid first.
"Otherwise, the 49.9 percent stake sale of Proton to Geely has only become just a façade not only for Proton’s assets to be stripped, but for DRB-Hicom and (its boss) Syed Mokhtar Al-Bukhary to benefit billions of ringgit in the process, at the expense of the Malaysian taxpayers," Pua said.- Mkini

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