This would mean colossal losses for the government-linked funds and agencies like the Employees Provident Fund (EPF), the Pensions Trust Fund (KWAP) and Danaharta which have publicly admitted to investing in Time dotCom at RM3.30 per share, whether subscribed or unsubscribed portion of IPO.
The losses suffered by these three institutions in the first week of the Time dotCom's public debut as a result of the RM1.18 or 35.76% plunge of its price per share from RM3.30 to RM2.12 are:
Amount of shares Price paid Present value Loss incurred
| EPF | 81.6 m (3.22%) | RM269.28m | RM172.99m | RM 96.29m |
| KWAP | 273.86 m (10.82%) | RM903.74m | RM580.58m | RM323.16m |
| Danaharta | 80.05 m(3.16%) | RM264.16m | RM169.71m | RM 94.45m |
| Total | RM513.90m |
The losses suffered by government-linked funds and agencies this week
as a result of subscribing to Time dotCom IPO at RM3.30 will not be confined
to RM513.90 million, as the identities of other such funds and agencies
which had taken part in the Time dotCom IPO bailout have still to be revealed.
I will tour the country in the coming month to meet with political
parties, trade unions, consumer groups and NGOs and ordinary Malaysians
on the Time dotCom IPO bailout scandal, with EPF, KWAP and Danaharta collectively
losing over RM513 million in the first week of Time dotCom's public debut.
The time has come for the ordinary Malaysian to demand greater accountability and transparency from those entrusted with the management of public funds, whether EPF, KWAP or Danaharta, and when a financial scandal of the magnitude of the Time dotCom IPO bailout erupts, for the fullest explanation from the custodians of these public trust monies.
I had yesterday rebutted the statement by the EPF Chairman, Tan Sri Abdul Halim Ali explaining why the EPF invested RM269.28 million to take up 3.22 per cent of the Time dotCom IPO, and criticised the EPF management for acting in disregard of the interests of the 9.7 million EPF contributors.
Halim has still to respond to my critique, which he is duty-bound to do, not for my sake, but for the sake of the 9.7 million EPF contributors who are entitled to a full and satisfactory explanation for the EPF's decision in participating in the Time dotCom IPO which has caused RM96.29 million losses to EPF in the first week of Time dotCom's debut.
I have still to hear from the KWAP as to why it had invested some six per cent of its total funds and jeopardised the pensions of 800,000 civil servants by investing RM903.74 million to take up 10.82% of the unsubscribed portion of the Time dotCom IPO, and suffering a loss of RM323.16 million this week.
The management of KWAP seems to be a very mysterious outfit for my office had received no response from attempts to locate the persons responsible for the management of the Pensions Trust Fund.
If I cannot contact any person responsible for the KWAP by Monday, I would lodge a police report against the KWAP for criminal breach of trust and criminal abuse of public funds in investing RM903.74 million to take up 10.82 per cent of the unsubscribed portion of Time dotCom IPO and suffering RM323.16 million in the first week of its debut.
As the outlook for the Malaysian stock market is rather grim, and is
expected to continue its descent after falling 3.3 per cent in the week's
trading, with the Kuala Lumpur Composite Index shedding 23.25
points over the week to close yesterday at 672.01, both EPF and KWAP
are likely to be hammered with even higher losses from the folly of participating
in the
Time dotCom IPO bailout.
The Time dotCom IPO bailout scandal should also focus greater public scrutiny on Danaharta, as there had been many complaints that it had not been fair, even-handed, unbiased or impartial in discharging its statutory mission to "re-energise the financial sector by removing the non-performing loans distractions and to maximise the recovery value of the acquired assets".
(17/3/2001)