> ValueCap: Avoid and evade by Nor Mohd.

I had hoped against hope that the Second Finance Minister, Datuk Nor Mohd Yakcop, would come to Parliament today to give the first full and proper accounting of Valuecap’s performance in the past five to six years.

I was dead wrong. Nor Mohd staged an “avoid and evade” play, fully agreeing when I interrupted him that Valuecap needs to be more transparent, but when pressed to give a full and proper accounting of Valuecap’s past performance, pleaded that he did not have the time to do so during the debate.

This prompted my question asking what is the use of him agreeing that Valuecap should be more transparent but refusing to be transparent when asked specifically?

Although Nor Mohd said he did not have the time to give an accounting on the past performance of Valuecap during his winding-up speech, this did not prevent him from going on and on on other subjects – to the extent that I walked out in disgust!

In view of Nor Mohd’s admission that Valuecap had been remiss in the past in failing to be more accountable and transparent in its custody of taxpayers’ money, and his excuse that he did not have the time in his speech today to be transparent about Valuecap’s past performance, he or the Finance Minister, Datuk Seri Najib Razak should make a ministerial statement in the current meeting of Parliament to report on the performance of Valuecap in the past five years.

I had earlier asked Nor Mohd why the Employees Provident Fund (EPF), which had been directed by the government to provide Valuecap with a RM5 billion loan to buy undervalued stocks, had changed its previous standing opposing such an adventurist investment - also reminding him of the MTUC’s objection to the RM5 billion EPF loan to Valuecap.

In November, 2002, when the Valuecap was being set up, there were strong talks in the market that EPF monies would be involved.

I read to Nor Mohd the EPF’s denial and clarification issued on 20th November 2002 by its Deputy Chief Executive Officer (Investment), Dr. Roslan A. Ghaffar, viz:

“The Employees Provident Fund (EPF) denies reports in today’s newspapers (November 20, 2002) which associated the operations of ValueCap Sdn Bhd with the EPF’s investments and two other state-run funds.

“The EPF wishes to clarify that it has not appointed ValueCap Sdn Bhd to manage the EPF’s investment fund. The EPF also denies that its involvement in the KLSE is to shore up the stock market. The EPF’s investments are not used to bail out ailing companies.

“The EPF invests in companies with sound fundamentals, long-term growth potential and competent management. The EPF is always prudent and professional in its approach when investing members’ savings. The Fund ensures that the investments are safe, not exposed to high risks and gives reasonable returns to its members for their retirement.”

Nor Mohd just made a bald denial that EPF had changed its stand on Valuecap investments - LKS Blog.

Thank you Mr. Lim Kit Siang. The Malaysian Public are very convinced now.