Friday, September 18, 2009

Wednesday, September 16, 2009

Sarawak To Propel Taib's Family's Future

Sabah, S’wak to propel nation’s future: CM

By Puvaneswary Devindran

Comments by Sarawak Headhunter in red, as usual.

KUCHING: Efforts from Sabah and Sarawak - through their ample reservoir of natural resources - will help a lot in ascertaining the future direction of the country, Chief Minister Pehin Sri Abdul Taib Mahmud said yesterday.

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OATH-TAKING: A representative leads the stadium in reciting the Rukun Negara. — Photo by Jeffrey Mostapa

He said the natural resources in East Malaysia were yet to be fully exploited, adding that if they could be pooled and used well, both states would certainly contribute more wealth to the rest of the country.

"Exploited" is one of the key words here. "Fully" is another. The crucial question is "for whose benefit?". Haven't these states already contributed more than their fair share of their natural resources to the rest of the country and the rest of it to Taib, his family and their cronies while a significant portion of their people still remain deprived, poor and oppressed?

With all the wealth of Sarawak, the irony and sad fact is that many Sarawakians are still so poor that they can't even afford basic necessities or to send their children to school to ensure a better life for themselves. And Taib wants to "fully exploit" our resources for us to contribute more to the wasteful and extravagant Malayans? Not to mention to himself, his family and cronies.

We must seriously ask ourselves what kind of government do we have here and for whose benefit do we have such a government, both at the federal and state levels. Whose interests does Taib's and the BN's regime serve, the people's or their own?

“We know that the future of Malaysia will be ascertained through efforts from East Malaysia because our natural resources are yet to be fully exploited,” he said at the state-level National Day Celebration at Stadium Perpaduan here.

The future of his family will also depend on it. How much more of the State's resources - the people's resources - will they be able to fully exploit? Are Sarawakians going to continue to let them get away with it?

Taib, who is also Abuse of Finance Minister and Planning, Scheming and Resource MisManagement Minister, said Sarawak would also play a vital role in the country’s High Income Economy (HIE) structure - an effort to bring Malaysia on par with developed countries by making use of the people’s intelligence and skills rather than their physical strength.

REALLY? And how is this purported HIE going to be distributed? Or will it just be controlled by his family and their selected cronies?

The Chief Minister said this would be the state’s struggle because it realised that Sarawakians could not progress by depending entirely on monetary assistance and budget plans from the federal government alone, but rather the will to work at securing their fate.

Monetary assistance and budget plans from the federal government? A federal government that has been exploiting and wasting to the maximum the petroleum resources of Sarawak? Who has been assisting whom?

Sarawak's fate will certainly be sealed if the exploitation continues. Taib and the BN regime have to go!

Taib said in its second wave of politics of development by 2030, the state was aiming for an investment worth more than RM380 billion. Of this, he said the government would only fork out RM70 billion, while the rest was expected to come from investors - be they foreign or local.

Of this multi-hundred billion investment, how much would go into private pockets and how much would really benefit the people? What would the returns be like for the people?

He said the huge investments would provide close to one and a half million job opportunities.

Who would the people have to work for and enslave their future to? Taib Mahmud and his arrogant and ungrateful family and cronies?

“We know that our money in the state is not enough, and as such most of it will be from investors.

“So we must prepare ourselves to face questions on how safe it is for them to put their money here,” he said.

What he means is how safe is his family's fortune going to be in the future in Sarawak?

He said investors would want to know the political situation in the state, the unity of the people and also whether the state had people with the necessary knowledge and skills.

This would all depend on whether the people still remain ignorant of what Taib is, has and will be doing to exploit them or whether they would be able to forge the necessary will and unity of purpose to overthrow him and his evil regime.

The chief minister added that investors would also want to ensure the state’s leaders were responsible individuals who would place the country’s development first rather than their own political agenda.

Right, and Taib is a reasonable man who puts the State's development first rather than his own personal and political agenda. Anyone believe that?

He said the state had managed to convince and draw some investors who could probably be putting in some RM100 billion worth of investments in various types of industries.

It certainly wouldn't take much convincing if "full exploitation" is going to be the order of the day for these selected and fortunate investors - all at the expense of the people and the State's resources.

As such, he said Sarawakians should focus on one struggle and that was to meet these investors’ criteria and prove time and time again that the state was a place worth investing in.

Basically, what Taib is saying is just let them have what they want and on top of that be grateful to them for wanting to take the trouble to rape, loot and pillage the State.

Taib added that the first 45 years of Sarawak being in Malaysia had featured the state as the most promising economy in Malaysia.

Promising for whom?

He hoped the people would continue to work together to protect this.

For the sake of his family and their cronies.

People of Sarawak, if you don't wake up NOW, it will be too late!

The Taib and family termite infestation will eat up the rest of the forest that still remains while the Malayan pests will continue to feed, gorge themselves on and vomit whatever is left of our depleting petroleum resources.


Tuesday, September 15, 2009

Rule Of Law Or Law Of The Jungle?

The rule of law and judicial independence, or lack thereof – Anwar Ibrahim

SEPT 15 – Today, I would like to share with you some thoughts about a subject which I believe is close to our hearts. Not just to politicians, lawyers or social workers but to every member of society.

It is so close that, without it, the very foundation of a free and democratic society crumbles. It is called the rule of law.

According to F.A. Hayek, this means that government in all its actions is bound by rules fixed and announced beforehand which make it possible to foresee with fair certainty how the authority will use its coercive powers in given circumstances, and to plan one’s individual affair on the basis of this knowledge.

That definition is indeed a powerful formulation of the concept but I would hasten to add a major rider to it, which is, that the coercive powers referred to must be predicated on the basis that the laws in the first place must meet the criterion of justness.

Hence the rule of law means the exercise of publicly justifiable power. I emphasise the phrase “publicly justifiable power” because not every law that comes out of Parliament is publicly justifiable.

In other words, the rule of law requires the application of moral standards to legislative output. And this is because every individual possesses rights founded on justice which are inviolable.

The positivity of law is not sufficient to establish its lawfulness. If laws are unjust then the rule of law itself is in jeopardy.

The Internal Security Act is a classic instance of this injustice. It offends against human dignity and it violates our fundamental rights but it still continues to be used arbitrarily against those seen as possible threats to the ruling elite.

We have a written constitution which guarantees our liberties, including freedom from arbitrary arrest. Yet the use of the ISA to silence political dissent makes a mockery of this guarantee.

Just two months ago, we witnessed one of the largest manifestations of the people’s opposition to this draconian law but tragically, the Umno-controlled agencies responded with even greater use of tyranny and oppression.

So among the paramount characteristics of the rule of law concerns the judiciary. In this regard, judges must exercise their powers in accordance with the rule of law and not the rule of men.

Translated into the real world, this means the judiciary must not be accountable to the Prime Minister. If the rule of law is to mean anything, one of the essential prerequisites is that the judiciary must be independent.

We saw back in 1988 how the institution was dealt a fatal blow by the powers that be then and we saw in 1998 how it was not just I who was given a black eye but the judiciary itself, thanks to the perverse decisions of two High Court judges then.

These are the same judges who now warm the seats of our Appellate courts, enjoying the fruits of their perversity, as it were. Is it then any wonder that today history is again repeating itself?

We would have thought that the lessons of March 8 2008 would have taught the political masters some fundamental truths regarding the legitimate expectations of the people. One of which is that the people don’t want to see the judicial process turned into a circus. We are tired of seeing judges as mere puppets dancing to the tune of the political masters.

The latest instance of this judicial aberration can be seen in the decision just last week in respect of the suit filed by the legitimate Pakatan speaker over the Perak debacle on May 7, 2009. The court held that in accordance with Article 72 of the Federal Constitution, “the validity of any proceeding in any state assembly cannot be questioned in any court”.

Well, that indeed sounds very impressive and laudable in the context of respecting the concept of the separation of powers. But then why is it that, in the same breath, the court also held that the legislative assembly’s decision to remove the speaker and to appoint someone else was conclusive and had been fairly determined by the state assembly?

I have heard of judges making wrong decisions based on a misinterpretation of the law but I don’t recall judges blowing hot and blowing cold in the same judgement.

In coming to this conclusion, we may say that the court has sunk into the abyss of judicial reasoning displaying in the process clear symptoms of judicial schizophrenia.

The question now is not whether we should challenge such a decision. Indeed we must, but I believe even more importantly, there is a moral duty to speak out against such a gross travesty of justice.

In practical terms, judicial independence must mean protecting citizens against illegitimate usurpation of power. Indeed, the travesty of justice that continues to plague us in the Perak debacle remains a stark reminder that the separation of powers envisaged in a democracy remains largely a mirage in the constitutional landscape.

The topic of our gathering tonight is the launch of this important book and recognition of its author, a dear friend of mine, Pawancheek Marican. It is of course rare to find in today’s Malaysia such a comprehensive account of an event so controversial in our nation’s history.

Applying no varnish to the entire sordid affair I believe this text will be a signpost for generations of Malaysians on the dangers of absolute power. He has also paid a great tribute to the the legal team that defended not just me but an entire nation against the onslaught of executive power run amok. For those present and absent who had a hand in the trial and particulary the lawyers, words cannot convey the deep gratitude that I, Azizah and my family have for their work – which I might add is not yet done.

Now with reference to the trials prosecuted against me, as so well documented in Pawancheek’s book, suffice it to say that the judges were essentially under the thumb of the Executive. There is a saying that when the law is subjugated to the chicanery of politics, that is, where the judges are subservient to the political masters, the administration of justice becomes both farcical and perverse.

In a real democracy, the use of judicial high-handedness to bring down a political opponent won’t be tolerated because of the existence of a transparent court system and a process of accountability. In a sham democracy, however, judicial highhandedness is given free rein and transparency is irrelevant. Those prosecuted for political reasons are thus condemned even before the trial begins. It is not just about me or some of our friends here today.

There are now a few other high profile cases pending. For example, the persecution of Raja Petra will certainly be top on the list of the study on the breakdown of the rule of law. I emphasise the word ‘persecution’ because the manner in which he is being hounded is no longer prosecution but sheer audacious use of blatant state powers in order to bring down one one of the government’s most strident and vocal critics. These actions violate the dignity and honour of all Malaysians.

Instead of being the ultimate guardians of our liberty from executive tyranny, the judiciary is then transformed into principals in the destruction of the very process it was entrusted to protect. Indeed, the undermining of judicial independence by political interference has negative repercussions not only on society at large but on the nation as a whole.

Very often the inability to assert independence seems to be inversely proportional to the degree of integrity. Judges must display competence and expertise and they must be above suspicion. We are by now very familiar with the videotape of the “correct, correct, correct” judicial scandal but have we seen any action yet?

And where judges are not seen to be absolutely above board, the establishment of equity and fair play in commercial and economic deliberations will be largely illusory. This would also explain why Malaysia continues to occupy dismal positions in the corruption index, not to mention how much further we have sunk in competitiveness.

Another crucial criterion for the rule of law is that the discretion of law enforcement agencies must not be allowed to pervert the cause of justice.

We know that not only the judiciary but the police and the Attorney General’s office play essential roles in the preservation of the rule of law, failing which they are easily used to pervert the law. Selective prosecution, police highhandedness and arbitrary arrests, and now of course the actions of the MACC, all collectively serve to pervert the cause of justice rather than uphold the rule of law.

And in all these, the ruling Umno government is not only complicit but blatantly instrumental in perpetuating these gross transgressions. The upshot is harassment, oppression, and in most cases, the extermination of the small fry while the large predators continue to roam free. The Pakatan controlled government of Selangor will remain a classic case study of the systematic abuse by Federal law enforcement agencies under the thumb of the ruling federal clique.

The arrogance of power has rendered them completely impermeable to public opinion. The extension of the IGP’s contract just last week flies in the face of the overwhelming chorus of objections from the people. The increasing incidences of custodial deaths and the blatant bias of the MACC in carrying out its duties are but two examples of this breakdown in the rule of law.

The very root of this problem goes to the question of accountability. We have seen what it is like. Without accountability these agencies literally get away with murder. They are certainly getting away with corruption. The instances are too many to enumerate but it would be accurate to say that the amounts involved get bigger by the year. We know about the billions earmarked for the stimulus packages but where has the money gone? How much longer can we allow public financial resources to be used in complete disregard of the rules of accountability?

The proper application of the rule of law would have meant that those who occupy the seats of power must be subject to scrutiny and held accountable for their misdeeds. They must realise that power and authority are but duty and obligation and not right and privilege. Will they ever be brought to justice?

In the final analysis, the idea of justice to man is so central to the rule of law that you can’t have one without the other. Corruption and the abuse of public office, the absence of transparency in financial dealings, the perversion of justice by the law enforcement agencies and the dereliction of judicial duty – these are indeed characteristics of the rule of men, and not the rule of law. The trappings of democracy cannot mask this perversion.

Reform is way overdue but on the eve our our Malaysia Day celebrations, let us renew our commitment to freedom and to justice.

Speech by Datuk Seri Anwar Ibrahim at the launch of “Anwar on Trial – In the Face of Injustice” by Pawancheek Marican in Kuala Lumpur on September 14, 2009 at the De Palma Hotel, Ampang.

Wednesday, September 9, 2009

Senyum Kambing - Terpulang Kepada Penan

Rape Of The Penan Report


Get a PDF copy of the Report here, courtesy of Hornbill Unleashed.

The Report is self-explanatory and there will be no comment from Sarawak Headhunter, except that this is probably just the tip of the iceberg. Does Taib Mahmud or Afraid Jabu or Jacob Dungu or any other BN politician care?


Tuesday, September 8, 2009

Senyum Kambing - Terkilan Dipinggirkan

Blockades Up The Baram

Behind the Baram blockades

S M Mohamed Idris
Sep 4, 09
5:33pm



Over the past week, there have been numerous reports about the blockades by several Penan communities in Tutoh-Apoh, Patah, and Baram, Sarawak. The blockades were to halt the transportation of logs by several logging business groups.

These groups have been harvesting timber within the traditional territories of the surrounding villages in the above-mentioned places.

According to community representatives, the blockades were set up for several interrelated reasons. Firstly, with the advent of large monoculture plantations, the people's forest resources are in a state of acute decline.

If logging had devastating impact on affected communities, plantations would be worst off. Clear-felling operations entail the total destruction of the people's land and forest resources, including their communal water catchments.

Secondly, this impending deforestation disaster is certainly linked to the lack of land rights of the native communities to their traditional territories. For years, the communities' numerous applications for their village forest reserves to be gazetted into Communal Forest Reserves have never been approved by the state.

The people maintain that logging has failed to produce meaningful benefits to local communities and has instead, over the years severely compromised their quality of life. They point out that local people even miss out on employment opportunities, as companies seem to prefer to hire Indonesian labour.

The people also stress that their efforts to negotiate with the companies and their agents have often been futile. The protestors are determined not to give in into any intimidations or threats to dismantle the barricades unless their demands are met.

Foremost, they call for all logging and plantation operations to be halted on their land, a call, that if left unheeded, may lead to significant food deprivation and widespread malnutrition among the people.

Equally important, the people also want their Native Customary Rights (NCR) to be fully recognised, and that they be allowed to exercise self-determination with regards to any development plans that may affect them.

In our view, all the demands above certainly require an urgent comprehensive response at a policy level from the Sarawak state government.

We find the statement attributed to Sarawak's Rural Development Minister James Masing in an AFP news article published on Aug 23, which describes the Penan communities as "good storytellers" and that their land rights disputes "were often aimed at wringing more compensation from companies" as most regretful.

Similarly, we find the insinuations about the communities' blockades by state assemblyperson Lihan Jok equally unacceptable. Lihan was quoted by Utusan Borneo on Aug 30, suggesting that the blockades appear to show the Penan communities are uncivilised, this despite the fact that many are highly educated.

In fact, the latest blockades leads to questions about the sustainability claims of the Sarawak timber and plantation industries. Many Environmental Impact Assessment (EIA) reports of the projects in the area seem to suggest that plantation development is necessary in Sarawak due to the depletion in timber resources in the state.

However, timber harvesting for Dipterocarp forests within the Sarawak PFE supposedly operates under a 25-year cutting cycle. If it is indeed true that timber has been largely depleted in just 30 years since large-scale logging commenced in the state, Sarawak should no longer claim to be practising sustainable forestry management.

We believe that the Sarawak state government has also failed to take full cognisance of our judicial decisions on native rights. The Federal Court in 2007 has ruled that native rights owes its existence to native customary laws and not to any modern statute or legislation, while affirming that individual and communal native rights have equal legal force. Our Appeals Court has affirmed that such rights cover both cultivated and forested areas.

SAM is of the view that the continuous occurrence of land rights protests in Sarawak is a result of the absence of a participatory and consultative demarcation process of native territorial boundaries in Sarawak.

Such a process should incorporate the Free, Prior and Informed Consent (FPIC) mechanism and a set of substantiation procedures designed to yield corroborative evidence to support each native land rights claim.

Given all the facts above, we call on the Sarawak state government to fulfil all the demands made by the blockading communities and exercise restraint in dealing with the protest.

In our view, unless Sarawak halts further forest conversions in the state and subsequently establishes a consultative demarcation process which takes cognisance of the full stature, nature and extent of the NCR as ruled by our judiciary, any sustainability claims made on both the timber and plantation industries in Sarawak must be treated with great caution.

S M Mohamed Idris is the president of Sahabat Alam Malaysia (SAM)

Sunday, September 6, 2009

Senyum Kambing - Antara Lembu Suci Dan Lembu Bodoh

Penan Under Pressure From Taib Mahmud's Evil Regime Yet Again







Malaysia's Penan tribe ups anti-logging campaign

By Sarah Stewart (AFP) – Aug 22, 2009

LONG BELOK, Malaysia — Hundreds of Penan tribespeople armed with spears and blowpipes have set up new blockades deep in the Borneo jungles, escalating their campaign against logging and palm oil plantations.

Three new barricades, guarded by Penan men and women who challenged approaching timber trucks, have been established in recent days. There are now seven in the interior of Malaysia's Sarawak state.

"They are staging this protest now because most of their land is already gone, destroyed by logging and grabbed by the plantation companies," said Jok Jau Evong from Friends of the Earth in Sarawak.

"This is the last chance for them to protect their territory. If they don't succeed, there will be no life for them, no chance for them to survive."

Penan chiefs said that after enduring decades of logging which has decimated the jungles they rely on for food and shelter, they now face the new threat of clear-felling to make way for crops of palm oil and planted timber.

"Since these companies came in, life has been very hard for us. Before it was easy to find animals in the forest and hunt them with blowpipes," said Alah Beling, headman of Long Belok where one of the barricades has been built.

"The forest was once our supermarket, but now it's hard to find food, the wild boar have gone," he said in his settlement, a scenic cluster of wooden dwellings home to 298 people and reachable only by a long suspension bridge.

Alah Beling said he fears that plans to establish plantations for palm oil -- which is used in food and for biofuel -- on their ancestral territory, will threaten their lifestyle and further pollute the village river with pesticide run-off.

"Once our river was so clear you could see fish swimming six feet deep," he said as he gestured at the waterway, which like most others in the region has been turned reddish-brown by the soil that cascades from eroded hillsides.

Indigenous rights group Survival International said the blockades are the most extensive since the late 1980s and early 1990s when the Penan's campaign to protect their forests shot to world attention.

"It's amazing they're still struggling on after all these years, more than 20 years after they began to try to fight off these powerful companies," said Miriam Ross from the London-based group.

Official figures say there are more than 16,000 Penan in Sarawak, including about 300 who still roam the jungle and are among the last truly nomadic people on Earth.

The blockades, which Friends of the Earth said involve 13 Penan communities home to up to 3,000 people, are aimed at several Malaysian timber and plantation companies including Samling, KTS, Shin Yang and Rimbunan Hijau.

After clearing much of the valuable timber from Sarawak, a vast state which lies on Malaysia's half of Borneo island, some of these companies are now converting their logging concessions into palm oil and acacia plantations.

"They told us earlier this month they were coming to plant palm oil, and I said if you do we will blockade," said Alah Beling.

"They told us we don't have any rights to the land, that they have the licence to plant here. I felt very angry -- how can they say we have no right to this land where our ancestors have lived for generations?"

Even on land that has been logged in the past, Penan can still forage for sago which is their staple food, medicinal plants, and rattan and precious aromatic woods which are sold to buy essential goods.

"Oil palm is worse because nothing is left. If they take all our land, we will not be able to survive," the Long Belok headman said.

Sarawak's Rural Development Minister James Masing admitted some logging companies had behaved badly and "caused extensive damage" but said the Penan were "good storytellers" and their claims should be treated with caution.

"The Penan are the darlings of the West, they can't do any wrong in the eyes of the West," he said.

Masing said disputes were often aimed at wringing more compensation from companies, or stemmed from conflicts between Penan and other indigenous tribes including the Kenyah and Kayan about overlapping territorial claims.

He said the current surge in plantation activity was triggered by Sarawak's goal to double its palm oil coverage to 1.0 million hectares (2.47 million acres) -- an area 14 times bigger than Singapore.

"The time we have been given to do this is running short. 2010 is next year so we want to make that target and that is why there may be a push to do it now, to fulfil our goal established 10 years ago," he said.

"In some areas the logging has not been done in accordance with the rules and some of the loggers have caused extensive damage. That does happen and I do sympathise with the Penan along those lines," he said.

"But the forest has become a source of income for the state government so we have to exploit it".

Driving through the unsealed roads that reach deep into the Borneo interior, evidence of the new activity is clear with whole valleys stripped of vegetation and crude terraces carved into the hills ready for seedlings.

Most of the companies declined to comment on the allegations made by the Penan, but Samling said it "regrets to learn about the blockades".

"We have long worked with communities in areas we operate to ensure they lead better lives," it said in a statement.

Its website says its acacia timber plantations in Sarawak will "enhance the health of the forests" and that it uses "only the most sensitive ways to clear the land".

The Penan allegations could discredit Malaysia?s claims that it produces sustainable palm oil, particularly in Europe and the US where activists blame the industry for deforestation and driving orangutans towards extinction.

Indigenous campaigners say that past blockades have seen violence and arrests against tribespeople, but village chiefs -- some of whom were detained during the 1980s blockades -- said they did not fear retribution.

"We're not afraid. They're the ones destroying my property. Last time we didn't know the law and now to protect ourselves, but now we know our rights," said Ngau Luin, the chief of Long Nen where another barricade was set up.

An AFP team reporting at the blockades was photographed by angry timber company officials, and later intercepted at a roadblock by police armed with machineguns and taken away for questioning.

The plight of the Penan was made famous in the 1980s by environmental activist Bruno Manser, who waged a crusade to protect their way of life and fend off the loggers. He vanished in 2000 -- many suspect foul play.

Copyright © 2009 AFP. All rights reserved.

Photo 1 of 4

Penan tribespeople man a blockade with banners and spears to challenge vehicles of timber and plantation companies


Friday, September 4, 2009

MAS Clarifies On "BN's Bullshit On MAS Revealed"


From the Comments Section of the original post on Sarawak Headhunter:
Comments by Sarawak Headhunter in red.
Tan Wai Fong said...

We would like to offer clarification pertaining to our Q2 financial results announcement in August.

We made a conscious decision to be an early adopter of the Financial Reporting Standard 139 (FRS139) beginning FY09. When we announced this in May, we highlighted that we wanted to ensure that we were aligned to how other full service carriers reported their results and to ensure transparency around our results.

This is where FRS139 can be found.

Due to the unprecedented collapse in oil prices after reaching a historical high in July 2008, most airlines were hit with significant mark-to-market (MTM) loss positions on their fuel hedging portfolio.

Obviously, we at Malaysia Airlines were not spared as we practice competitive hedging and the early adoption of the FRS139 enabled us to be transparent about our MTM position. Prior to FY09, there was no urgency to adopt FRS139 as our MTM position was not significant.

Just what is "competitive hedging"? Is there such a thing as "uncompetitive hedging" or is that an oxymoron?

In our Q209 results announcement filed in Bursa, under part B review of performance, we first announced that MAS recorded an operating loss, followed by derivative gains and net profit. During our result briefings, we walked the media and analysts through our P& L in terms of revenue, expenditure, operating loss and net profit. We had robust discussions on yield, seat factors, operational losses and ways to increase revenue, operating cash flow and fuel hedging.

The financial figures including the operating losses were reported by The Star and The Edge as below:

The Star: Malaysia Airlines (MAS) reported an operating loss of RM420.8mil but exceptional derivative gains of RM1.34bil on fuel hedging resulted in the carrier reporting a net profit of RM876mil in the second quarter ended June 30.

Source: http://biz.thestar.com.my/news/story.asp?file=/2009/8/7/business/4473457&sec=business

For us laymen, perhaps MAS could clarify what exactly "exceptional derivative gains" means. Does it mean that MAS made more money from fuel hedging than they did from operating an airline and if so how was this achieved? Perhaps MAS is in the wrong business. More importantly perhaps, can this "profit" be spent? Is it cash in the bank?

Also what are the components responsible for the operating loss of RM420.8mil?

The Edge Financial Daily: The group recorded an operating loss of RM420.8 million in 2Q compared with profit of RM62.0 million a year ago mainly due to lower operating revenue in line with the declining trend in global travel and cargo movements resulting from the current economic downturn.

Source: http://www.theedgemalaysia.com/business-news/146702-flash-mas-posts-rm876m-net-profit-in-2q.html

Interestingly, the media at the results briefing asked the same question you did – will Malaysia Airlines be profitable as the yields have dropped even though the load factor is up? In comparing Q109 vs Q108, our yields went up 4% but our load factor was down 56% as all the airlines were discounting their fares heavily. For Q209, we have decided to drop our yields in order to increase the load factor, rather than keep the yields up and lose the passengers. This strategy worked and our systemwide load factor for Q209 was up 10% to 66% compared to Q109. With more passengers flying with us, we can now work on increasing our yields.

This does not quite answer the question "Will Malaysia Airlines be profitable?" Passengers prefer lower fares and can be fickle. Will that 10% increase in load factor remain when MAS tries to increase its yields (presumably by increasing its fares, at least partially)?

We are facing the worst crisis ever. Many airlines are registering losses at the operational level. This includes regional airlines like Singapore Airlines and Cathay Pacific. We are not immune from this. Like all the other airlines, we are facing huge challenges.

We are doing everything we can to boost our revenue, conserve cash, and manage costs. We are on the right track with attracting passengers as our loads are up by more than 10% to 66% in Q209. Our forward booking loads are up.

What exactly is MAS doing to "boost revenue, conserve cash and manage costs"?

We are aggressively pushing sales, and some 15 campaigns for Malaysia and 30 for global markets have been lined up for the rest of the year.

Has MAS actually carried out a study on how cost effective these sales campaigns have been? Have they actually resulted in a net increase in revenues or yields?

We expect the economy to recover next year, and are looking forward to take delivery of our new B737-800 in late 2010 to capture the expected growth. We are reviewing aircraft requirements according to supply and demand, and realigning our capacity to tap into the growth in demand.

What if the economy does not recover?

We will increase our frequencies into key ASEAN capitals, South Asia, China and offer more flights to certain points in Australia. In the Middle East, we are looking at expanding our services.

With a 36% load capacity yet to be filled, does it make sense to increase frequencies unless these sectors are already at full load capacity? What are the present load capacities of each of these sectors?

The full clarification by Tengku Azmil Zahruddin, then Executive Director/ Chief Financial Officer is available here, http://www.malaysiaairlinesblog.com/pt/blog/default.aspx?id=444&t=MAS-Adoption-of-FRS139-pushes-agenda-for.

The bulk of this full clarification was in fact regurgitated here. Sarawak Headhunter reserves the right to make further comments and ask more questions upon a full review of MAS' accounts.

Thank you.

Tan Wai Fong
Head, Media Relations
Malaysia Airlines

September 2, 2009 10:18 PM

Wednesday, September 2, 2009

Update: Seminar Tanah Adat - Long Banyok

Wednesday, September 2, 2009

Update: Seminar Tanah Adat-Long Banyok

Pursuant to the previous invitation to all kampungs from Baram Tengah and Tutoh Apoh, the committee of the program has arranged the below accommodation for all the guests respectively:

TAHABAS, BRIMAS and Other Special Guests: At Gau Jalong House
Long Ikang: At Puyang Lawai House
Sg Sebubu: At Oilivia Kajan House
Uma Akeh & Lg Puak: James Jau House
Long Laput: Anyi Kebing & Pius Avu House
Kuala Tutoh & Batu Belah: Saging Aning House

Pls communicate to organizer about the number of delegates for them to cater the food and other necessary arrangements.

All guests, pls refer to the house owner mentioned or call any of the committee members for any enquiry.

Again, inviting all from Baram Tengah and Tutoh Apoh to the Seminar and see you there...!!

En Charles Gau:019-8331578
En Vinsien: 019-8155177
En. Anthony Saging: 016-6548684
En Simon Thomas: 019-8866850

BN's Bullshit On MAS Revealed

Comments by Sarawak Headhunter in red.

Friday, August 07, 2009

Idris Jala bullshit results, 2nd Qtr operating loss worsens

MAS announced it's second quarter results today. Net profit was RM876 million and offset the first quarter loss of RM695 million for a first half profit of RM181 million.

That announcement managed to brush aside analysts' expectation of further loss. Why bother about these life is a straight line forecast and everything remain the same like before analysts?

With the new accounting scheme of mark-to-market for any outstanding futures hedging, the real number that needs highlighting was intentionally hidden. Read on to know the stories shrouding their fuel hedging debacle.

The financial presses were really being 'bodoh'. None bothered to ask about the operating profit and loss. In the first quarter, MAS posted an operating loss of RM138 million. What was the second quarter like?

Read the Bernama report first below:

MAS Posts Net Profit RM876 Mil In Q2

KUALA LUMPUR, Aug 6 (Bernama) — Malaysia Airlines (MAS) posted net profit RM876 million in the second quarter ended June 30, 2009, the highest ever quarterly net profit recorded by the airline.

This profit offsets the national carrier’s RM695 million net losses in the first quarter, leading to a first-half net profit of RM181 million.

Due to the oil price recovery since March 31, 2009, MAS’ fuel hedging losses of RM640 million in the first quarter has been reversed with a RM1.3 billion gain in the second quarter, the airline said in a statement.

Since the beginning of the year, the airline has implemented aggressive sales campaigns to deal with the worst crisis facing the industry.

It successfully increased its load factor to 66 per cent in the second quarter, a double digit growth of 10 per cent compared to 56 per cent in the first quarter.

In response to the growing demand, with the domestic load factor up by 69 per cent in the second quarter, it said the national carrier had increased the capacity by six per cent by adding more aircraft for the domestic sector.

The airline also made substantial load factor gain for its international routes with loads up 11 per cent to 65 per cent compared to 56 per cent in the first quarter.

“We are managing well in this crisis. While the operating environment remains tough, the load factors have increased due to our aggressive strategies to boost sales.

“On the domestic front, more passengers are travelling with us,” managing director/chief executive officer Datuk Seri Idris Jala said.

“On international routes, we have performed better than the industry average as we are less dependent on the front end,” he said, adding that the airline forecast booking numbers for the second half of the year are encouraging.
All that bullshit about rising load factor and yet no mention of operating P&L.

So this super Orang Ulu Idris Jala is revealed as being just another bullshitter. The reward: make him a Federal Minister so that he can teach Najib and the rest of the Cabinet how to bullshit properly.

In the first place, load factor is the old variable to manage an airline. Pushing for purely load factor was the one that got former Managing Director Dato Fuad the boot for taking MAS into loss territory immediately after the financial restructuring. The fancifully named sell and leaseback scheme made Azman Mokhtar's Binafikir famous.

The important variable today is revenue per seat.

Before announcing MAS's operating loss, this is what was heard of MAS' fuel hedging scheme. They left it to the total discretion of Investment Banker Morgan Stanley Singapore. Upon realising the mess Morgan had made, they were considering of hiring an oil futures trader, which they should have done in the first place, but he declined. The whole market has been talking about their messed up oil hedge position.

It is unheard of to totally out-source one's financial market hedging to others who are without knowledge of the whole company's financial variables and constraints. Off course, this is market talk. It is usually more rumour than the truth. But beware that market talk moves markets.

The absurd part of this is the much confidence given to Dato Seri Idris Jala to weather the storm from the oil crisis. That was the story sold to have him extend his stay at MAS. MAS also had highly paid accountants like foreign-trained Tengku Azmil and the many spectacled young Ah Piows from Ernst & Young.

The truth is the Butcher from Shell was never an oilman. He must have butchered all those with experience in fuel hedging within the Treasury team built from the days of Encik Shahril and Low Chee Ting. Now this is the time to repeat my incessant and repeated complaint of young inexperienced know nuts brought into MAS to replace those experienced and appropriately described as knowledge workers.

Idris Jala it seems is nothing more than an oilyman.

The mistake by Tun Lah to entertain the recommendation of Idris Jala by Kamaluddin's friend is also the second quarter operating loss of RM421 million. And that is a further deterioration from RM138 million in first quarter.

So what the f**k is this talk of rising load factor? Don't bullshit about net profit. If your operation doesn't make money, how are you to keep the Company afloat?

Oh yes, the 2nd quarter operating figure is also rumour. So don't sue.

Sunday, August 09, 2009

Why Idris Jala did not reveal and financial press not ask about MAS' operating loss?


Looks like Sarawak has its own highly-paid Pinnocchio trying very hard to fly high but falling flat instead. Do the orang Malaya really believe all his crap? Very sure they know what is really going on.

It is impossible for the financial press to not ask about MAS' operating profit. Unless MAS has transformed the company's core business into jet fuel arbitrage, the operating P&L remains relevant. Hmm ... MAS a jet fuel arbitrage company, that's a niche business idea.

It is from the operating profit that cashflow is generated to maintain the company as an ongoing concern and eventually turn around MAS. Operating profit will translate into the net profit, which God willing could be used to reduce any accumulated losses. Without operating profit, MAS will continually be sucking money from the Treasury.

P Gunasegaran wrote here on similar issue raised in the previous posting. However, he did not pick up where we left off. Kalimullah's contemporary should ask why Idris withheld the information and the financial press including The Star did not ask?

It is simple. In fact, Idris used the same generic corporate trick before. By withholding the operating loss, the financial press will highlight on "capital gain" from hedging revaluation. Still, why did he do it?

Idris Jala reminded me of Tan Sri Nor Mohamad Yakcop's past statement to praise him as the best CEO money can buy. See the newspaper clipping below:


Wonder what made Nor Mohammad impressed by the so-called turnaround done by the Butcher from Shell?

Obviously Idris has been bought and paid for by the ruling BN regime and must now justify his position and use to them.

The Butcher merely reduced overhead by retrenching experienced Airliners but later hired young cikus with zero Airline experience, placed them in numbers at various levels of management, and paid them much higher scale than the senior retrenched staff.

The Butcher retrenched the experienced ones so that they are no more a pain in his ass to nag him of his amateurish manner in running a full service Airline. He brought in lots of Ah Piow accountants from Ernst and Young who got no shindick knowledge of Airlines.

If there are consultants like Booz Allen Hamilton, McKinsey & Co. and Ethos Consulting, then you know Khairy and Tingkat 4 have their hand in it. For sure, Khairy and Zaki Zahid had a direct hand to change the National Aviation policy in favour of Airasia. Part of the money went to MyTeam.

Idris did the predictable reorganising of routes. He intended to cut the not profitable routes but Khairy and the corrupt MCA Transport Ministers forced them to give some profitable routes to Airasia. The routes cut the company's capacity, which means limiting capacity to generate profit potential for the future.

Is it a surprise MoF II could claim Idris as the best CEO money could buy?

All along, MAS was not performing well operationally. Thus the second phase of the turnaround plan is to show MAS generating operating profits. That way he could get an extension on his contract.

For that he sold MAS buildings and assets locally and abroad. With the smart and manipulative accounting mind of Tengku Azmil, the capital gain appears on the operating profit column.

That's the past. It's too time consuming to display what happened with facts and figures. Coming to the question again, why did he unethically manipulate the results announcement?

See the headline by The Malaysian Insider with its link below:


The link here.

Doesn't that explain everything? With the aviation industry at a loss, doesn't Idris Jala look impressive for being able to outperform the industry?

MAS Adviser is in slumberland to notice such small but relevent technicality. He is likely to say MAS did well when others are losing. His circle of people are still operating. Kalimullah, crony to sleepy and Nor Mohamad Yakcop assisted MAS with this lie with the hope to make sleepy look good. See the headline given by The Malaysia Insider.

The full report can be read at the link here.

This is a clear cut con job by Idris Jala, Tengku Azmil and Kalimullah. If there is nothing coming from the authorities, then Tan Sri Nor and Tan Sri Azman Mokhtar are together in this lie. Khazanah has yet to turnaround MAS, Proton and Renong/UEM Group since they were first assigned to turnaround GLCs.

KPI?

P/S MAS used this blog for it's internal Leadership High Development course to show the natural occurrence of rejection towards new management. Hope they continue to do so and be sure to distribute this and previous postings. They need to prepare for another rejection because these postings will be sent to high places.

Friday, 28 August 2009

From Sakmongkol AK47

Responding to Anwar’s Ngajat?


Anwar's Ngajat?

Neutralising Anwar Ibrahim's Ngajat overtures! That's the only rationale I see behind Idris Jala's appointment.

In 1975 when I was in 6th form at SABS Kuantan, my Economics teacher, Mr Tan Kee Chow, gave us one of the most practical adages. If you borrow RM500,000 you are at the mercy of the bank. But if you borrow RM500 million, the bank is at your mercy. It couldn't be truer these days. Present day translation: - If you want to make a mistake, make a gigantic and noisy one. You will get promoted to minister.

What KPI will Idris Jala be implementing? His record at MAS is a very much overhyped one. Losses are masqueraded behind balance sheet cleansing. MAS' assets are sold for a song. MAS will be having no assets at all. But he has been regarded as the best CEO money can buy. Who does this assessment? The vadey eating Nor Yaakob. Isn't he the one the last time who paralysed Bank Negara with gargantuan losses in the currency market? He made it to finance minister and now heads the EPU. He is now the stumbling block to the proposal by a group to take over road toll concessionaires. Helo mister, that's RM50 billion into the government's coffers. Wang masuk lah, bukan wang keluar.

That's also the 2nd Great Highway Robbery about to commence, and Mohd Nor probably just wants to make sure he gets his hands on his share of the proceeds. RM50 billion into the government's coffers from where? From the rakyat for them to waste some more?

The only rationale I see with Jala's appointment is Sarawak politics. He is a Dayak - Pak Lah thought he was a Muslim and so he got his chance of becoming MAS CEO. In Sarawak, the survival of BN hinges upon Dayak support who form the majority group. After years of neglect and sidelined, Idris Jala's appointment is perhaps a big consolation to soothe things out. It is hoped by this appointment, Dayak support to the BN will be secured. I hear Anwar Ibrahim is already learning to do the ngajat dance.

But it can also be seen as an excuse to kick out this Dayak from slashing and burning MAS further.

The government's KPI now is winning the trust of the people immediately. Its KPI is key groups targeting. Its KPI is bringing immediate benefits to the lumpenproletariat who don't give a hoot about the 30% quota requirements, or hak here and hak there. The younger generation is repelled by UMNO's positions-for-thievery political philosophy. The younger generation is a thinking public. It is now thinking, for what practical purpose is the appointment of a person responsible for hoodwinking the public that MAS is profitable made?

Partners in crime must always be rewarded appropriately, and if there is a potential political benefit from it, so much the better. We are just seeing another crony in the making.

Idris Jala has indeed made all Sarawakians proud. Sarawak Boleh! Boleh terbang wau lah!

Monday, August 31, 2009