PKR claims no open tender in aerospace firm’s deal with Syed Mokhtar’s DRB
PETALING JAYA, March 8 — The sale of lucrative aerospace firm CTRM Sdn Bhd to a unit of Tan Sri Syed Mokhtar Albukhary’s DRB-Hicom was not done through open tender, PKR claimed today, alleging procedural breach in the deal it claimed would be detrimental to the former’s Bumiputera workforce.
“There was no open tender. It was done in a cloak-and-dagger way,” PKR strategic director Rafizi Ramli (picture) told reporters here.
“I’ve studied the documents given to me through whistleblowers and am satisfied to say the attempt to privatise CTRM to Tan Sri Syed Mokhtar Albukhary was done by violating procedures and marginalising the welfare of CTRM.”
CTRM, a subsidiary of Ministry Of Finance (MOF) Incorporated, manufactures aerospace parts. It has a list of impressive clientele that includes Airbus, Eurocopter and Goodrich.
The GLC has shown solid performance with contracts worth RM8.26 billion from 2012 to 2017.
DRB-Hicom’s defence unit Deftech had recently agreed to purchase a 96.9 per cent stake or 466.78 million shares of RM1 each in CTRM for RM298.3 million, a deal market analysts hailed as positive for DRB-Hicom’s defence operations, which are one of the many non-automotive catalysts within the group.
The deal was only announced late last month but Rafizi said a letter made available to his whistleblower organisation showed the instruction to dispose of the shares was made since August last year.
The letter, made available to the media, carried the signature of Datuk Mat Noor Nawi, the deputy chief secretary of treasury in MOF Incorporated.
Rafizi claimed the deal was a “backdoor” privatisation move as the ruling coalition’s “precautionary” measure to protect lucrative companies in the hands of Barisan Nasional through its cronies if Pakatan Rakyat forms the new government.
“I am also concerned that part of the disposal of these performing GLCs is a precautionary measure in case Pakatan Rakyat takes over.
“If this continues, more performing companies and with huge assets will be transferred without public knowledge,” he said.
As finance minister, Datuk Seri Najib Razak should stop the transaction immediately, Rafizi added.
He also challenged Umno Youth chief Khairy Jamaluddin to voice his disapproval of the deal which he claimed would impact the Bumiputera workforce badly.
“CTRM is built on the sweat of its domestic professional workforce that worked hard to boost the company’s image.”
Several giant deals involving Syed Mokhtar have come under intense scrutiny from both sides of the political divide and drawn accusations of monopoly.
The Edge Financial daily recently reported that the logistics tycoon will compete for a new multi-billion ringgit high-speed train project linking Kuala Lumpur and Singapore.
Syed Mokhtar already owns a few ports via MMC Corp Bhd, including the Port of Tanjung Pelepas and Johor Port, and was reportedly working on a takeover of national railway KTM.
MMC Corp is currently in a joint venture with Gamuda Bhd for the Mass Rapid Transit (MRT), the largest rail project in the Klang Valley, due to be ready in 2017. The two companies are also working together on a 329km electrified double-tracking rail project connecting Perak and Perlis that is expected to be completed this year.