3 Aug 2012

Planning Robbery – Some Answers To The Mystery Of Awang Tengah’s Vast Wealth

Planning Robbery – Some Answers To The Mystery Of Awang Tengah’s Vast Wealth

This post is also available in: Iban, Malay

How did Tengah afford this on a few thousand ringgit a month?

Yet another ministerial mansion has sprouted up in Kuching and it tells us all we need to know about the corruption of the state.

The proud owner is Awang Tengah, the Second Minister for Planning in Sarawak (Taib is, of course, the First Minister for Planning) and after a year of construction Tengah has just moved in.

Locals in the surrounding district of Petra Jaya have been left wondering how it is that a state minister, who receives approximately RM17,000 a month, has been able to possibly afford such an enormous construction?

Tengah is the chap who signs off all the medium sized planning projects in Sarawak. Taib himself signs off all the really big ones, but the shopping centres, residential blocks and such go to Awang Tengah.

How, one asks, could such a position transform a modest man into a spectacularly wealthy one?

Key man - Awang Tengah signed the deals with Hydro-Tasmania to project lead on Sarawak's mad dam ventures. Taib's cousin Hamed Sepawi (in charge of SEB) looks on.

In line for succession?

Indeed, on receiving this post the youthful Awang Tengah was immediately judged by political observers to be the key new favourite of the Chief Minister and his likely successor.

In fact, it is a universal truth that mad dictators always try to pass on their jobs to their sons and we should wait for announcements shortly regarding Abu Bekir Mahmud Taib in this respect and nobody else.

However, it is without doubt that Tengah, whose brutal features resemble those of a none-too-intelligent boxer, is currently one of Taib’s right hand men, jetting around doing his deals on the demented mega-projects of SCORE.

Dodgy dealings in Lawas

Meanwhile, Sarawak Report has investigated the details surrounding a sensational case, back in Tengah’s home region of Lawas, that goes a long way towards revealing how the Minister manages his affairs and how he and his family have suddenly become so rich.

The case involves one Encik Sia Tangi, who together with his sons was accused of setting fire to the office buildings and staff quarters of a company named Laras Jaya Construction, at the water treatment plant which it has been contracted to build in Long Kuton, Trusan.

The destruction also included two excavators and three cement mixers on the site and the penalty for these men, if found guilty, was a maximum imprisonment of 20 years. Luckily for them the court discharged the case and they have walked free.

But, consider the background to this affair.  Sia Tangi has been complaining since 2008 that his three fields in Trusan were confiscated by the state to construct the water treatment plant, but that the much publicised compensation payments (amounting to a total of RM473,625.35) were made to somebody else!

Every time he queried and complained about the situation he was ignored by the officers of the State Government. Neither the Native Court nor the District Officer would respond to his lawyer’s letters.  In response Sia Tangi obstructed the building of the plant by all means possible, including planting oil palm on the site which was eventually ripped out.

The driveway into Awang Tengah's new house is as impressive as the mansion itself!

Remember this is Awang Tengah’s own home area and the Minister clearly has found the matter extremely annoying.

Some months back he used the platform of the DUN itself to rail at Mr Sia Tangi personally for holding up the water treatment project.

However, for years Tengah and all the agents of the state government have been refusing to reply or take any notice of the valid claims and complaints of this native customary land owner.

The Lawas District Officer, who had handed the compensation to others, did not even turn up at the High Court in 2009, where it was ruled that those compensation payments should be quashed and that Sia Tangi’s complaints should be addressed.

Even after this court victory to Sia Tangi the Superintendent of the Land Custody & Development Agency and the District Officer have failed to respond or rectify the situation.  Instead they have ignored the court.

Under the circumstances few would blame Sia Tangi and his sons if they had indeed been responsible for the fire in the face of such injustice.  This land, they say, was taken from them with the payment going to somebody else!

Fat contract for Laras Jaya Construction Sdn Bhd!

Laras Jaya Construction

So who are the beneficial owners of Laras Jaya Construction Sdn Bhd, the company that Awang Tengah, Second Minister for Planning, has been railing on behalf of in th DUN?

People might assume they would be the same shareholders as the sister company Laras Jaya Sdn Bhd, which is owned by the construction magnates Kuo Ing Sing and Kueh Hoi Lai.  After all the companies share the same address in Kuching.

Main company is owned by Kuo Ing Sing and Kueh Hoi Lai

But, in fact the shareholders of Laras Jaya Construction Sdn Bhd, also based at L150/5A Jalan Datuk Abang Abdul Rahim, are completely and utterly different. The dominant owner is none other than one Awgku Jinal Abedin Bin Pgn Haji Jawa.

Same address but different shareholders!

Awangku Jinal is none other than Awang Tengah’s brother-in-law (married to his wife’s sister) and the man who is widely regarded as the Planning Minister’s main business proxy!

The Laras Jaya group clearly need to explain their unusual pattern of share ownerships.  Another sister company at the same address shows a shared relationship between Kueh and Awangku Jinal, this time with Jinal acting as a minority shareholder.

Laras Jaya Management has had its own share of state contracts, like Laras Jaya Sdn Bhd. These companies are controlled by Kuo and Kueh

So, who is getting what from this relationship and why has the State Government of Sarawak handed out a massive RM68million project to a company owned by Awang Tengah’s family without any form of proper tendering,

Man of political stature? Or just a convenient yes man for Taib?

all within the Planning Minister’s own constituency area?

How are we to know what the real costs of this project might have been when no other company was given the opportunity to bid for the work, which was all paid for of course by taxpayers?

Sadly, under Taib/BN people in Sarawak have become so used to the practice of Ministers awarding themselves and their close families these huge projects that it is necessary to issue a reminder that this is a form of blatant conflict of interest and political corruption using money from the state!

How dare Awang Tengah exploit his political position to secure his close family such an enormous project!  And how dare he build himself such a blatant monument to his own corruption as this vast house in Kuching?!

Under construction - "private property", but paid out of the public's money!

More

It is a clear offence to exploit the responsibilities of public office and to abuse that position of trust to make money for oneself.  However, Laras Jaya Construction Sdn Bhd has been awarded numerous other such projects by the State of Sarawak in recent years as the official records of Malaysia’s Construction Industry Development Board can testify!

State projects awarded to Laras Jaya Construction

The mystery of the missing compensation

So what of the strange issue of the disputed compensation over the Trusan water treatment project and Sia Tangi’s protests, which brought this whole disgraceful matter to public attention?

The amount of money that the state agreed to award for these three fields was an extremely substantial sum.  It totalled no less than RM473,625.35 and at the time the compensation was announced owners were invited to put in their claims, which Sia Tanga duly did.

However, all this money was given to two other individuals, according to the records.  Si Tanga’s claim to the land was not even considered and he was not informed that the money had been given elsewhere until his lawyers investigated the matter long after the District Officer had disbursed RM73,967.50 to one Janny Apan, plus RM89,651.40 and a further RM310,006.45 to a certain Salli Agong.

Who are these people who received such unusually handsome rewards from the state government in return for the confiscation of Encik Sia Tangi’s land?

The court has quashed these compensation payments to the mysterious Salli Agong, however the money has never been recovered by Sia Tanga

Could the Lawas Member of Parliament Datuk Sum Agong please step forward? Perhaps he would care to deny  the rampant rumours that his family members have been involved in this generous deal?

Would Agong’s close BN ally from the same constituency area, Awang Tengah, also like to vouch that there is no connection between Salli Agong and Datuk Agong as is widely being said?  After all, if the Minister is getting the fat feast it does seem logical that his local side-kick might be expecting some crumbs from the table!

 

 

  • Awg Tanah Bin Awg Bukit

    It is small house for his standard. He have to built it smaller just not to irk the boss.

  • Tulah Down Sindrome Son

    Look how hypocrite this Awang Tanah in opposing open tender for state land alienations…

    Awang Tanah said:

    “…The poor or those in need of land would not be able to compete with those who are well-to-do in any tender exercise…”

    Fine, but look at the Batu Lintang state lands looted cheaply by Naim…how it’ll benefit the low-income folks looking for a decent flat to buy?

    Then Awang Tanah said again:

    “…the cost of undertaking these projects today would have been much higher if Naim Cendera had not agreed to assist the government in implementing those projects under a payment-in-kind scheme…”

    Well the cost-savings for whose benefit? Govt? Low-income folks? What cost savings when the land was let-off cheaply to Naim but big loss of revenue to govt. The lost revenue could easily finance even more low-cost housing projects elsewhere by govt.

    Only Naim having the last laugh enjoying cheap state land acquisition and re-develop the Batu Lintang as commercial centres at far cheaper cost to begin!

    As final icing on the cake, LKMNS/Sarawak Mosque Welfare Trust Board and Tabung Baitulmal Sarawak were invited as mere stooges pretend themselves as religous beneficiaries. How noble.

    ____________________

    No to open land tender

    By Yu Ji, The Star, 13 August 2008

    Tender system will have adverse impact on the poor who can’t compete with the rich: Tengah

    KUCHING: Sarawak is not ready yet to adopt an open land tender system because it will have an adverse socio-economic impact on the poorer segment of the population, said Second Planning and Resource Management Minister Dato Sri Awang Tengah Ali Hassan.

    “The poor or those in need of land would not be able to compete with those who are well-to-do in any tender exercise,” Tengah said in his winding-up speech at the State Legislative Assembly yesterday.

    Tengah said the government would continue to make land available for development by the private sector.

    “The government will balance the needs of the private sector while meeting the basic housing needs and amenities for the population as a whole,” he said.

    On Friday, Violet Yong (DAP-Pending) called on the government to introduce open land tenders to “realise the highest price so that there is greater generation of revenue for the state coffers”.

    She argued that the move would enable “more accountable and transparent” alienation of state land.

    However, Tengah yesterday resisted the proposal, saying that land tender was only “fashionable” in places like Hong Kong or Singapore “where there is limited land”.

    He added that those places were already “well developed”.

    “These people already have all the basic amenities, including homes for themselves,” Tengah said.

    Replying to another question posed by Yong last week, Tengah explained that it was better for the state government to pay contractors “in kind” for certain projects. Yong charged on Friday that Naim Cendera had been a beneficiary of cheap land.

    “It is not a special case as alleged by Ahli Yang Berhormat for Pending,” Tengah said, adding that the premium imposed was according to the prescribed rates, and also taking into account other factors.

    “The premium imposed for alienation of land for payment-in-kind takes into account that the contract sum is not wholly paid in cash to the developers, and therefore, developers have to incur holding costs, assume development and financial risk and procure their own funding,” he said.

    The minister also said that this form of payment would actually save the government from having “to spend more public money”.

    “The government wishes to say that if Naim Cendera and other developers have not agreed to accept any payment-in-kind, these essential infrastructure projects would have been delayed and the government would probably have to spend more public money,” he said.

    Tengah cited escalating prices of building materials as a factor.

    “The cost of undertaking these projects today would have been much higher if Naim Cendera had not agreed to assist the government in implementing those projects under a payment-in-kind scheme.

    “In fact, to accelerate development in the state, the state government has undertaken many infrastructure projects by paying in kind, rather than wait for the availability and sufficiency of funds, especially from the government,” Tengah said.

    __________________________

    Direct Alienation of State Lands to Naim Cendera Holdings Berhad and its subsidiaries

    Violet Yong, Saturday, May 10, 2008

    In my debate speech on Motion of Thanks to TYT of Sarawak delivered on 9.5.2008, I talked at length on “Alienation of State Lands” in Sarawak to Naim Cendera Holdings Berhad and its subsidiaries without any open tender system. There were 260 acres in Kuching Division and 101 acres of lands in Samarahan Division alienated to Naim Cendera Holdings Berhad and its subsidiaries for the years 2001 until 2006. For lands in Kuching Division, one acre costs RM65,140.88 whereas for lands in Samarahan Division it costs RM38,771.26 per acre. Don’t you think it is too cheap to be believed!!

    When I spoke on the particular issue, though our YAB Chief Minister was not in the Dewan itself, I believe he listened tentatively in his office on the 1st floor of the Dewan.

    The moment I said that Naim Cendera is closely related to our YAB Chief Minister, the Speaker immediately stopped me. How unfair as if our YAB Chief Minsiter is above all law and untouchable! Nevertheless, I continued with what I have to say without fear or favour. I was sent in to the State Assembly by the rakyat to raise the voices and grouses of the people. My job is not to sing praises on our YAB Chief Minister.

    Below is the full text of my speech on “Alienation of State Lands”:-

    Tuan Speaker,

    My first issue is on alienation of State Lands.

    Lands in Sarawak belong to all Sarawakian and not to certain companies which are politically linked to our state Barisan National leaders. Distribution of state resources including state lands should be transparent and more people orientated through public tender system rather than based on political favour or cronyisms.

    However, we have seen that vast areas of state lands in Sarawak with high commercial value have been alienated to certain cronies companies without going through the process of open tender or public tender. It should be condemned if our state resources have been used by cronies companies to generate private profits. This will only drained money away from the state. Our people can never be rich if our state administration governance does not subscribe to transparency integrity, equal opportunity and social economic justice.

    Tuan Speaker,

    The general public view is that there are only few selected companies which enjoy the alienation of state lands for development at a very low price which is way under the market value. Amongst them, Naim Cendera is one stark example. The 32 acres of state land in Batu Lintang, Kuching which was government’s quarters area had also been alienated to Naim Cendera. And I was told that eviction letters had been issued to those staying in government quarters.

    Tuan Speaker,

    Do you know how much acreage of state lands in Sarawak have been alienated to Naim Cendera Holdings Bhd and its subsidiaries for the years 2001 until 2006 without any open tender? From the general answer which I had obtained, in Kuching division alone, the land areas are 105 hectares or 260 acres and in Samarahan division, the land areas are 41 hectares or 101 acres, therefore the total acreage is 146 hectares or 361 acres. The total land premium involved for a total of 361 acres of land was only RM20,852,526.02 of which RM16,936,628.00 is the land premium for 260 acres of land in Kuching and RM3,915,898.02 is the land premium involved for land in Samarahan of 101 acres.

    If we do a simple calculation, RM16,936,628.00 for about 260 acres of lands in Kuching, per acre costs about RM65,140.88 only. This is truly under price! As for lands in Samarahan, RM3,915,898.02 for about 101 acres of lands, per acre is only costs about RM38,771.26. Again, no doubt, extremely cheap deal for Naim Cendera. Therefore, it is less than RM70,000.00 per acre to get the lands in Kuching and RM40,000.00 per acre to get the lands in Samarahan from Sarawak state government. Can you find such cheap land deals in Kuching, less than RM70,000.00 for one acre of land in Kuching? It is way under price and just too cheap to believe! No one can find it but Naim Cendera Holdings Bhd and its subsidiaries can get it from the state government through direct alienation. Does this include 32 acres of land in the centre of Kuching at Batu Lintang Area? We would like to know what is the premium Naim Cendera is paying given that it is a prime property in the city of Kuching. Whether Naim Cendera also got the same land deals in Batu Lintang at the price of RM70,000.00 per acre? Why are Naim Cendera Holdings Bhd and its subsidiaries so special that they can get such special price for lands in Sarawak?

    Tuan Speaker,

    Most of us would know land deals in Kuching town area can easily fetch the price of at least RM1 million to RM2.5 million per acre. As you know, the market value for 0.04 acres of land in Kenyalang Park is already worth RM42,000.00 as valued by Land & Survey Department taking into consideration that it is a low-cost housing area. So, an acre land in Kenyalang Park is already valued at RM1.5 million per acre.

    And here, we see that no one but Naim Cendera Holdings Bhd and its subsidiaries could get land deal for ridiculously low price at RM70,000.00 per acre.

    Tuan Speaker,

    Let say one acre of land within 20 kilometre of Kuching area is valued at the conservative market price of RM500,000.00 and Naim Cendera has 260 acres of land in Kuching alienated by the State Government, so we are taking about RM130,000,000.00 (i.e. 260 acres multiply by RM500k) in value. But, Naim Cendera only pays RM16,936,628.00 for the alienation.

    With these land deals, how could Naim Cendera Holdings Bhd not make tens of millions or even billions of ringgit and live up to its billing as the “Strong Man of Borneo”. Therefore, I believe many Sarawakians share the same views as I that, there is nothing to boost about or proud of the so called achievement of “Naim Cendera group”. Comparing RM130,000,000.00 to RM16,936,628.00, our state has lost out at least RM113,063,372.00 if the alienation of state lands was done through an open tender system where everyone can entitle a fair right to bid for the same. In other words, Naim Cendera groups has made at least RM113,063,372.00 in profit through alienation process. Remember, RM113,063,372.00 has not taken into account the profits made from development and through sales of any properties erected thereon. Imagine, this is only one transaction which we are talking about, needless to say about the amount of profits made by Naim Cendera Group through the hundreds of acres of state lands which had been alienated to them over the years.

    Tuan Speaker,

    By right, sales of lands or alienation of state lands should have been through open tender to realize the highest price so that there is greater generation of revenue to the state coffer. However, we have seen that our state government does not utilize our land resources to its fullest to realize the best income to our state. Remember, all the resources in the state belongs to each and every one of us Sarawakian and should not be exploited for the benefits of one or two companies that easily “cari makan senang” and which had “strong connection” with the state Barisan National leaders.

    Therefore, I hereby urge our state government to be more transparent and accountable to its action by implementing open tender system so that all Sarawakian can truly enjoy the natural resources of the State through the revenue that is generated from open tender sale of state lands. If Sarawak State Government is the government for the people, of the people, and by the people, the state Barisan National leaders should have the conscious to use their best endeavors to make the state richer and its people richer, and should not only making the Barisan National political leaders’ crony companies richer. I believe Naim Cendera group is closely related to our YAB Chief Minister as the said group of company belongs to our Chief Minister’s cousins namely Abdul Hamed Bin Sepawi and Hasmi Bin Hasnan. Thus, as the head of the state, our YAB the Chief Minister owes a full explanation to the rakyat as to why Naim Cendera group can have the best treatment from the state which ordinary you and me will never ever be entitled a chance to share.

    ______________________

    ‘Secret land deals costing Sarawak billions’

    Joseph Tawie, FMT, March 8, 2012

    There would be no need to revoke welfare aid to Sarawakians if the state administration practiced an open-tender policy on land sales, claims DAP.

    KUCHING: The secretive sale of state land at grossly low prices to Chief Minister Taib Mahmud’s family and friends has costed the state billions of ringgit in losses, claimed opposition DAP.

    “If we total all the losses from the sales of state land, we could have lost several billion ringgits,” said state DAP secretary Chong Chieng Jen.

    He cited as an example a 269.9 acre plot of land at BDC which was directly alienated to Monarda Sdn Bhd, a company owned by Taib’s sons and other family members.

    “It was sold at RM78.64 million at RM291, 000 per acre instead of RM500 million at RM1.5 million to RM2 million per acre. So here we lost about RM400 million.

    “The 32- acre state land at Batu Lintang was alienated to Naim Cendera at RM900 million. It could have cost much more. All these lands are paid in kind.

    “If we have adopted the open tender system just like the Penang state government is doing we could have saved several billions ringgits.

    “This money could have been used to upgrade the livelihood of the people of the rural areas. We can build more roads, provide electricity and treated water and can give more financial assistance.

    “And there is no need to withdraw welfare allowances to OKU (handicapped persons),” he said, referring to the uproar caused by Assistant Minister for Agriculture (Research and Marketing) Mong Dagang who revoked the welfare aid to Frusis Lebi, a disabled farmer because of his open support for the opposition.

    Adopt open tender system

    Chong said Sarawak should adopt an open tender system similar to that practiced in Penang.

    “Let us compare the sale of state land through the non-open tender system by Sarawak government with the open tender system practised by Lim Guan Eng, Chief Minister of Penang state government.

    “A parcel of land of 102 acres at Bayan Mutiara was valued by the federal government land and survey at RM65 per square feet (psf). That is about 2.8 million per acre.

    “Lim Guan Eng, knowing the rush market price of land in Penang refused to accept such a low valuation.

    “So he set up a reserve RM200 psf and then went through an open tender for the sale of this state land, and at the end, the highest bidder got it by offering RM240 psf, which is RM10 million per acre.

    “From the sale of the 102.6 acres the state government of Penang got RM1.07 billion,” said Chong.

    “Compared that to the sale of Sarawak state land where there is no open tender.

    “The 269.9 acres state land at BDC Kuching is a good example. The state could have earned about RM500 million from the sale of the land.

    “We can accept that Penang’s land title is higher than in Sarawak, but it cannot be higher than 35.8 times,” he said adding that because the state government refused to use the open tender system in the sale of state land, Sarawakians were only getting “three to five percent of prices which are quoted.”

    ____________________________

    Naim to develop RM300m mixed project in Kuching

    Bernama, 23 January 2011

    SARAWAK-based Naim Holdings Bhd (Naim), a property developer and construction group, will develop prime land in Batu Lintang, Kuching, into the state’s biggest comprehensive mixed development project, costing more than RM300 million.

    Managing director Datuk Hasmi Hasnan said the proposed development would be sprawled over 13.597ha and be completed over 20 years.

    The project will comprise a four-storey shopping mall with basement car park, office tower block, hotel tower, a 36-storey office tower with basement and elevated carpark, showroom, 18-storey condominium block and a 27-storey high-rise apartment.

    “We will incorporate a water theme park, a roof garden and incorporate plenty of greeneries so as to come out with a development that is eviromental friendly and one that the local populace can enjoy and benefit from,” he said.

    The project will be developed on a joint venture basis between Naim, Sarawak Mosque Welfare Trust Board and Tabung Baitulmal Sarawak.

    The three parties signed a memorandum of understanding to facilitate the venture witnessed by Chief Minister Tan Sri Abdul Taib Mahmud.

    Hasmi said Sarawak Mosque and Tabung Baitulmal will each have a 15 per cent equity in the project venture while Naim would hold the remaining 70 per cent.

    “We estimate employment for more than 2,000 people in the project,” he said, without disclosing, when the construction will begin. – Bernama

    __________________________

    New landmark for Kuching

    By JACK WONG, The Star, Wednesday February 2, 2011

    KUCHING: Kuching skyline is set to change with the construction of a 36-storey office tower in the prime area of Batu Lintang.

    The proposed tower will beat the city’s tallest building, the 22-storey Wisma Bapa Malaysia in Petra Jaya which now houses the Chief Minister’s office, several ministries and the state secretariat.

    The tower is part of Sarawak’s biggest mixed-development project jointly undertaken by Naim Holdings Bhd with Lembaga Amanah Kebajikan Masjid Negeri Sarawak (LAKMNS) and Tabung Baitulmal Sarawak (TBS), both state charitable trusts.

    Naim has a 70% stake in the joint venture while LAKMNS and TBS each holds a 15% equity interest. A memorandum of understanding (MoU) on the project was signed recently.

    An artist’s impression of the Batu Lintang project that will change the skyline of Kuching.

    Naim managing director Datuk Hasmi Hasnan said other components of the 13.6ha project were a 27-storey apartment, 18-storey condominium, a second office-tower block, hotel tower, a four-storey shopping mall, a 17,000-sq-ft showroom and multi-storey car parks.

    ‘We will incorporate a water theme park, roof garden and plenty of green areas to make the development environment friendly and one that the local population can enjoy,” he added.

    The project site was previously occupied by government quarters. The land has been cleared and earth-filling works was completed recently.

    Hasmi said the project would be carried out in phases over 20 years, with the apartments to be built first. The apartment block will have 115 units and the condominium 216 units.

    “For each phase, we will do in-depth study on market demand and supply to take cognition of any changes in the economic climate to ensure the project’s success,” he said.

    Hasmi said the development was expected to create 2,000 jobs and would provide business opportunities to retailers and wholesalers.

    ___________________________

    NAIM Bursa Announcement

    21 January 2011

    SIGNING OF MEMORANDUM OF UNDERSTANDING

    Contents

    1) Introduction

    Naim Holdings Berhad (“Naim” or “the Company”) is pleased to announce that it has entered into a Memorandum of Understanding (“MOU”) on 21 January 2011 with the following parties:-

    a) Lembaga Amanah Kebajikan Masjid Negeri Sarawak (“LAKMNS”), a body incorporated under the provisions of the Charitable Trusts Ordinance 1994 (Cap. 7); and,

    b) Tabung Baitulmal Sarawak, (“Baitulmal”), a body incorporated under the provisions of the Ordinan Majlis Islam Sarawak (Pemerbadanan)(Pindaan) 1984

    (herein collectively referred to as “the Parties”)

    for the purpose of recording certain basic principles and understanding reached between the Parties in participating in the mixed development on the land described as Lot 3287 Block 10 Kuching Central Land District measuring approximately 13.597 hectares situate at Jalan Batu Lintang, Kuching, Sarawak registered under Peranan Makmur Sdn. Bhd. (“PMSB”), a wholly-owned subsidiary of Naim Cendera Sdn. Bhd., which in turn is a wholly-owned subsidiary of Naim.

    2) Duration of the MOU

    The MOU shall take effect from the date of the signing of the MOU and shall terminate:-

    a) Upon the execution of Shareholders’ or other detailed agreements; or,

    b) by mutual written agreement by the parties at any time whichever shall first occur.

    3) Equity and Obligations of the Parties

    The equity structure of the Parties in PMSB shall be as follows:-

    a) Naim : 70%

    b) LAKMNS : 15%

    c) Baitulmal : 15%

    4) Financial Effects of the MOU

    The execution of the MOU will not have any material effect on the earnings or net assets of the Company for the year ending 31 December 2011.

    5) Directors’ and Major Shareholders’ interest

    None of the Directors, major shareholders and/or persons connected with them has any interest, whether direct or indirect, in the said MOU.