Khairy Jamaluddin - Questions on his Loans

PM AAB has jumped in to defend his controversial son-in-law Khairy Jamaluddin. Khairy had been accused as the power behind the throne, allegedly running the country for a passive AAB.

Since Dr Mahathir had come out recently with that insinuation, Khairy had stop working as an advisor for AAB.

AAB retorted: “It was not easy to become a prime minister, I will not hand over my power (so easily) to him.”

He admitted that Khairy had worked for him as one of his advisers, providing his [Khairy’s] opinions on matters involving the government. But AAB asserted that ultimately it was him who would decide.

But Mr PM, it’s not just Dr Mahathir. For years since you became the PM, that had been the perception of most Malaysians that your son-in-law allegedly called the shots (excuse the pun). Dr Mahathir merely voiced it out aloud publicly.

Then AAB went on to Khairy’s business dealings. He said: “He applied for loans to buy some small amount of shares in ECM-Libra.”

But AAB, like Khairy, didn’t explain how in the world did a company, ECM-Libra, merely loan out RM 9.2 millions to a 31-year old bloke to buy the shares of the same company?

Additionally, the approved merger of ECM Libra with Avenue Capital Resources Berhad, a Finance Ministry-linked company, has, as Malaysiakini reported, raised many eyebrows.

A Malaysiakini reader BOLH wrote in to the online newspaper to query the means by which Khairy had, as he [Khairy] himself confessed, ‘luckily’ obtained a loan from ECM-Libra. BOLH wants to know what collateral Khairy had offered. He asked:

“Khairy said that he borrowed money from certain parties to finance his acquisition of a substantial stake in ECM-Libra. We must not forget that Khairy is linked to the prime minister and he must come clean.”

“Who are these people who financed him? If these parties truly had financed him, surely there must be some form of collateral to back this loan and such collateral must be greater than or equal to the sum loaned to Khairy. Nobody gives out money for nothing even if you are the son-in-law of the prime minister.”

“If there is such a collateral, what is it and where did it originate from? If it is from Khairy, then how did he come by with such a collateral of such great amount?”

Very daunting questions, but then Khairy has just announced he has explained enough already, and will now focus on UMNO Youth’s struggle, whatever that would be.

As for Khairy’s explanations, other than he isn’t married to Maya Karin, many people including BOLH still are waiting for him to explain how he was given such a humongous loan by ECM-Libra. We all want to learn how to achieve that too.

But UMNO supreme council member Mohamed Nazri Abdul Aziz, the ‘jantan’ man, defended Khairy. Nazri said Khairy had sought his advice and he counselled only responding to Dr Mahathir’s accusation at the right time. He believed that Khairy has done well to remain cool. Give the laddie a pat on his shoulder.

Then none other than Rahim Tamby Chik came out in Khairy’s defence too – see, told you Khairy’s ‘popular’. Rahim even went one step further by suggesting that Khairy should only respond if there was evidence - in other words, Khairy should maintain 'elegant' silence.

Certainly heart-warming to see how UMNO stalwarts marshalled around young Khairy in his 'cool' though tearful defence. However, another Malaysiakini reader, Ibnu Hakeem, also wrote in and asked:

[…]

"Khairy has been a director of ECM-Libra since July 2004, not long after his father-in-law, Abdullah Ahmad Badawi, succeeded Dr Mahathir Mohamad as prime minister."

"According to Section 131 of the Companies Act, it is illegal for a company to make a loan to anyone (especially a director) to buy its own shares. In this case, ECM Libra is also a financial institution (a so-called investment bank) which means it is also under the purview of the Bafia (Banking and Financial Institutions Act). The Bafia has a few more restrictions than the Companies Act."

"Since Khairy has made a public confession, the attorney-general and Bank Negara should investigate if there is any breach of either the Companies Act, the Bafia, or both."

Hmmm, any chance of that happening?