Very recently, we heard of the news reported in Berita Harian that this one obscure company called I'DA World Group Sdn. Bhd had donated RM4 billion to PAS in Kelantan. Of course, it was reported that the representative of the Kelantan MB is there to receive the mock cheque. Is Nik Din Nik Mat (younger brother of TGNA) the so-called representative? Nik Din denies it and was there only on his personal capacity of being invited by the company to come to the event.
Ok, let's do a bit of background of this company:
Registration date: 3rd April 2007
Type of business: Investing
Capital allowed: RM1 million (RM1,000,000)
Capital paid: RM1 million (RM1,000,000)
Company status: 100% Bumiputera
Company's bank: Al-Rajhi Bank
Bank groups: Lloyds Bank (England); Standard Chartered (England); Barclays (England); UBS (Switzerland); BNP Paribas (France); Citi Bank (US)
Company groups: 167 giant companies in 117 countries
Group's assets: USD2.716 trillion (or equivalent to RM8.4 trillion)
Company's lawyers: Mr. Rimin b. Haji Maidin
Company secretary: KM Management & Corporate Services Sdn. Bhd
Planning consultant: AECOM South East Asia
Surveyor: Jurukur Teguh
Company's architects: Local (Arkitek Studio Sdn. Bhd); Overseas (Arcop & Partners [Middle East] Engineering Consultants LLC)
Ok, now let's analyse whether it's plausible that they gave the so-called RM4 billion to PAS as alleged by Berita Harian.
1st of all, it is a private limited company. It cannot raise shares from the public as it is a private company. Thus, it cannot have raised as much funds during their start-up back in April 2007.
2nd, it's allowed & paid-up capital is only RM1 million. This in itself raised suspicions about their financial viability to raise even that much money to donate to PAS and to Najib's 1Malaysia concept (as pledged by the company themselves, reported on Malaysiakini). By right, they are supposed to be making super-revenues in the billions of ringgit every year to be able to make that donation, if it ever happened.
3rd, it is 1 of the companies in the group of 167 giant companies with its group assets of up to USD2.7 trillion. What are assets made up of? Cash, cash at bank, debtors, stocks, unpaid revenues, prepaid liabilities, non-business revenues. Now, if any one of you studied business law or corporations law or company law for that matter can understand that a company is a separate entity on its own which can act as a legal person with a mind of its own. They are separate from management. Even being in the group of 167 doesn't mean that they will get billions of USD (or ringgit for that matter) within a space of few years. All the assets in the group are just combined in total. It doesn't mean that every company has USD16.2 billion (rounded) in assets on average. Those companies within the group are of different sizes and doesn't mean that all of them are doing as well as the numbers suggested.
Even within a group of companies, they are not of one company. They are a separate legal entity. Thus, I'DA World Group's assets are different from the other companies' assets within the group. As I've mentioned above, their start-up capital is only RM1 million, and that was only 3 years ago. Even being in a big group of companies such as these, it's not like mi casa es su casa (My house is your house). No, companies do not work like that in the 1st place. If joint venture, yes, maybe. But these are just the combination of the group's assets. If anyone of you ever taken or learned Company Reporting will understand that each of the company's assets are of their own.
So...coming back to the issue. Was it possible that I'DA World Group Sdn. Bhd have that much money to so-called donate RM4 billion to PAS, as alleged on the mock cheque? Being a private limited company, as I said, they are not obliged to publish their financial statements. For them to grow so quickly in a space of 3 years itself is questionable if we don't even know their financial position. Of course, some of you may argue that the group's assets are so much that this company may have been rich as well. But... they are just assets combined. They are not reflective of how much does each company in the group holds in terms of assets.
According to their objectives, they consist of off-shore reclamation, oil refineries, sea ports, development of new townships, etc...
http://idaworldgroup.com.my/
Therefore, without any financial statements to show its profits, assets, liabilities, etc... How can we know whether I'DA World Group Sdn. Bhd is worth as much, or more than the donation in the 1st place? How did they obtain those profits in 3 years to make billions? Unless, they are compelled to publish financial statements by its shareholders, then only we can know their true financial position.
Just remember these 3 points people:
1. Their start-up capital is only RM1 million
2. They are only established 3 years ago as a PRIVATE LIMITED COMPANY, which means they cannot raise more equity from the public.
3. The group of assets are just the total assets of all the companies within the group. It does not state the asset holdings of each of the 167 mega companies & I'DA World Group Sdn. Bhd in this case. In conclusion, this issue will not go away as easy as it first came. However, we cannot come to the conclusion that PAS received RM4 billion, because a mock cheque does not necessarily lead to realisation of the cash. As they say: SHOW ME THE MONEY.
As of now, some UMNO people cry of corruption about this issue (they also have reported to the MACC) and PAS has blacklisted this company for ill-willed purposes in order to destroy their integrity as state government of Kelantan. It'll be interesting to see in the next few days about what comes out of this issue. GET THE POPCORN EVERYONE!
