Are SC/BM not involved in 1MDB probe?

Article in The Edge: "Zeti: Public deserves answers to 1MDB"

One snippet:


“There are three agencies involved, comprising the police which deal with cheating, criminal breach of trust and so on; the MACC (Malaysian Anti-Corruption Commission) which deals with corruption; and the central bank, BNM, that deals with aspects relating to our financial system and what contravention there has been of our rules [and] regulations, and our laws."


I definitely hope that the Securities Commission and/or Bursa Malaysia are included in the probe as well. Although 1MDB is not a listed company, the following companies are or were listed on Bursa:

• Utama Banking Group Bhd
• Cahaya Mata Sarawak Bhd
• Putrajaya Perdana Bhd
• Loh & Loh Corp Bhd
• RHB Cap Bhd

According to this article from The Malaysian Insider, all these companies were very much linked to 1MDB and the actors involved in the drama.

BM and/or SC have been as quiet as a mouse over the whole affair, but they should revisit all deals regarding these four companies, if the information provided to the public has been correct at all times.

CMS and Corporate Governance (2)

I wrote before:


"I would recommend shareholders (major or small) of CMS to forward their questions regarding this deal to Bursa Malaysia, who can then (possibly including own questions they might have) issue an official query to CMS. 

Those queries have to be answered within one working day, not until the sale and purchase is concluded. Let's see if CMS still will not make any further comment."


Bursa did indeed query CMS and CMS needed not one, not two, but three announcements to answer the queries (here, here and here).

The answer on the eighth question:


On behalf of the Board of Directors of CMSB, Kenanga Investment Bank Berhad wishes to provide clarification on the following statement in the press release:

"While CMSB understands that our major stakeholders will have many questions about this acquisition, we have no further comment to make until the sale and purchase is concluded, at which time we will make a further statement."

The above statement is meant to inform CMSB stakeholders that CMSB will make further necessary announcements once CMSB has completed the due diligence exercise and firmed up CMSB’s plans for Sacofa.


I would like to add: "except when the query comes from Bursa, then CMSB will respond in one working day".

Kinibiz also wrote about the above issue, but also from another dimension: that the deal might be good for CMS shareholders, and thus bad for the state government of Sarawak, the seller of the shares. Not only should CMS be more transparent, but also "It is imperative that the state government clear the air on whether Sacofa is being sold on the cheap or not before the deal is done.".

CMS and Corporate Governance

CMS announced a proposed acquisition of 50% of the shares of Sacofa for RM 187 Million.

An interesting comment was made by the managing director:


“While CMSB understands that our major stakeholders will have many questions about this acquisition, we have no further comment to make until the sale and purchase is concluded, at which time we will make a further statement.’’


That is a rather remarkable statement, from a corporate governance point of view. Even if investors have genuine questions regarding this deal, they will not be answered for the time being?

I would recommend shareholders (major or small) of CMS to forward their questions regarding this deal to Bursa Malaysia, who can then (possibly including own questions they might have) issue an official query to CMS. 

Those queries have to be answered within one working day, not until the sale and purchase is concluded. Let's see if CMS still will not make any further comment.