Tony Pua, the incredible role in the Dark Knight rises!

Since the Selangor-Talam’s RM676 million bail out was exposed, there is complete silence in Selangor government to the alleged “sweetheart” bail out involving the public interests.  While Selangor government appears to have no answer to its White Paper and questionable valuation, a man came to their rescue and he seems to have full knowledge of the deal.  Yes, everyone knows the man is Tony Pua of DAP, plays no role in Selangor government but an incredible role in the Dark Knight rises.

On 17 July, in defense to Chua Tee Yong’s shocking exposure on the bank interests of RM86 million incurred by Permodalan Negeri Selangor Berhad’s (PNSB) to rescue Talam ,  Tony Pua had confidently argued that PNSB is capable of undertaking RM230 million in loans and incur the astronomical interests for the land acquired from Menteri Besar Incorporated (MPI) because its financial position had improved after 2008.

“PNSB had recorded a profit of RM8 million in 2009, RM23.4 million in 2010 and RM28.4 million in 2011,” said Tony Pua.

This explanation by Tony Pua may convince some people on the street but for the people with financial knowledge, this is a big joke to them.  Tony has obviously made the mistake of presumption.

The first fallacy of presumption by Tony Pua is that a company or in this context PNSB could obtain a sizeable loan of RM230m simply because it is recording profit.  This remark has become the joke of the year to the financial people. Tony must learn that the primary factor the financial institutions consider in giving out loans is the strength of cash flows of the company and not the profitability.  The basic accounting knowledge tells us that a company with profitability may not have the ability to repay the bank borrowing and interests as profitability is never equal to the cash flows.

Now, let’s take a closer look at the audited cash flows generated from operating activities by PNSB for years 2007-2010:-

 

2007

2008

2009

2010

 

RM’million

RM’million

RM’million

RM’million

Cash flow generated/(used) from operating activities

9.6

15.5

(0.3)

423.5## /  (8.2)

 ##  Based on the audited accounts 2010, the seemingly strong cash flows generated in year 2010 is contributed by RM431.7m advance from State Secretary, Selangor (incorporated) in the same year.  Removing this exceptional item, there was actually negative cash flow of RM8.2m in operating activities in year 2010

By referring to above, it is clear that contrary to what Tony Pua has argued, PNSB could not afford to borrow RM230m loan from any financial institution on a clean basis in view that there is no consistent cash flow generated from its operations to service interest as well as for future repayment of principal.

What Tony Pua has failed to do in his defense of the RM1 bil fiasco is to disclose to public what and how much assets exactly has been pledged by the Selangor Government to the financial institution to obtain the loan of RM230m.

Last week, Tony Pua has cited PNSB’s balance sheets obtained from the Companies Commission of Malaysia (CCM) and showed that the state subsidiary had total assets of RM761 million and RM823.8 million in 2010 and 2011 respectively, compared to those of 2008 and 2009, which stood at RM111 million and RM115 million, when he is comparing total assets in 2010-2011 to total current assets for year 2008-2009! (please note that in elementary accounting, total assets consist of total current asset and total non-current asset).

After being pointed out by MCA Chua, Pua admitted that he did read the wrong line of PNSB’s balance sheet to make his claim. But he asserted that that does not negate his argument that PNSB was in better shape under the Pakatan Rakyat government’s rule.

However, What Pua failed to realize is that he has committed the sin of reading and plucking figures without analyzing them.  To put it plainly, he never used his brain when referring to figures to support his claim.  Anyone with common sense would have pondered on the alleged significant increase in total asset, wrongly computed as RM700m or 800%  increase in a span of 3 years from 2008 to 2011, and would have noticed the error and made correction before making any conclusion.

It is a shame when he still refuses to admit he lacks the “thinking” skill and instead shamelessly and arrogantly challenging Chua to a debate!

Instead of apologizing to the people on his mistake of misleading public, he made another joke on 20 July 2012 to the people with even little financial knowledge.

“PNSB had a profit of RM28.4 million in 2011. The land transaction was done in 2010, which means the land transactions did not affect the financials of PNSB but added to its profitability.”  said Tony Pua.

This is not only another absurd statement made by Tony Pua when referring to PNSB’s profitability but, more than that, an insult to the intelligence of the people with even little financial knowledge.

One wonders whether this is the joke of the year 2012.  For his information, any purchase of land cannot increase a company’s profitability immediately as it is a balance sheet item. Profitability of a company is neither measured by the value, size of land nor the number of land purchased. The profit of company will increase only if the land can be successfully developed where the revenue derived from the development exceeds the total cost of development including the cost of purchase. However, in very rare circumstance, if the purchase value turns out to be over and above market value and is therefore subject to impairment, then it will reduce profitability immediately even before the land is developed.

It is surprising to note that Tony Pua has also claimed credit that after Pakatan took over, PNSB’s cash assets were higher when there was actually a dubious advance of cash amounting to RM431.7m from State Secretary, Selangor (incorporated) in year 2010. Was it for rescue of PNSB’s cash flows?

What Tony Pua ought to do during the forum next week is to explain on the purpose of the advance, how was it funded by State Secretary, Selangor and how PNSB plans to repay.  If there is still no proper explanation this time, he will be more like the Joker who thinks he can fool the people on the street rather than playing the role of the batman in the Dark Knight rises.

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89 thoughts on “Tony Pua, the incredible role in the Dark Knight rises!

  1. The more Tony said the more he show how little knowledge he has in accounting. Don’t make me laugh more, Tony.

      • As politician, he should be responsible for what he said. It it true that he is lack of thinking and never did his homework properly. He ought to know that he is held accountable for all the remarks made by him.

    • Now you know who is the clowm. Already audited and want to debate, the chua kuku still want to debate the selangor MB himself. He already appointed the right people to handle this.Just talk to them.

  2. This article open my eyes. Before I learn accounting, I also don’t know profitability not equal to cash flow. Many people thought they can borrow money from bank if they make their accounts look profitable.

  3. You are stupid BN supporters. Stop attacking PR. You knwo your master will lose in the election and now only know attack us. SHame on you, dogs!! I will continue to vote PR no matter they cheat me or not.

    • Please discuss rationally. As a Malaysian, we want our country to be a better country and we don’t want to blindly support any party.

      • L3, no one has the right to question you whom you want to vote and support. Same thing, you have no right to scold people being stupid if they have different opinions from you. Please learn how to respect others.

    • ” I will continue to vote PR no matter they cheat me or not ”

      This is the STUPIDEST thing I have ever heard in my life!
      Your level of intellect really shine out to ALL in this web page.

      Can you quickly send me your bank account number or better put it on this web page together with your passwords! I want to cheat you blind…. You will continue to give me ALL your money and even VOTE me into office all because I claim I am a PR man.

      Remember to also enclose all your credit cards and theirs CVS number too!

      • Who are you to teach me? fxxkers, i like to support PR, it is not your business. You are not qualified to talk to me because you only know to say yes to your master UMNO!!

      • This involves RM676 million bail out. You think it is a small gap??? Don’t be double standard!!

  4. L3, we are not politicians but rakyat of Malaysia. It is our duty to keep an eye on all these politicians who are our representative. It is sad to see you making comments to support PR even if they cheat on you.

  5. Why Tony did not extract the figures correctly? Now become a laughing stock by his opponents. How can he be so careless?? Shake my head…

    • The main reason for his ‘mistake’ is that he was trying to pull the wool over the public. So long he said something his die hard supporters will shallow the whole thing; hook, line and sinker. Then his supporters will FLOOD the net with their ‘FACTS’.

      It’s has always been their style and mode of operation.

      DAP IS ALWAYS RIGHT…ALL OTHERS ARE FOOLS!

      • ExDAP, I agree with u. Some PR supporters are like believers of religion. Whatever the religion leader proclaim, they will follow blindly.

      • DAP now focus on publicity not the truth. power and reputation always come first.

  6. His accounting knowledge is so poor and still dare to challenge Chua Jr to debate. He must be thinking to use the debate as ceramah platform.

  7. Tony is doing good to divert the attention so far. the lay men will be confused and believe tony. khalid has to appoint tony as exco to replace theresa.

  8. The opposition has always avoided their faults and divert all their mistakes onto others. They dont even have the decency to admit when they foul up. In fact, if anyone within their own party rise any mistake done, they will immediately put a GAD order. If they persisted, they are labeled as ‘ traitors ‘ or better ‘brought’ over by the other party.

    IT’S SO EASY FOR THEM! I too want to be in PR…. I can be come GOD and can do no wrongs!

    • Sad to see this. This is not the culture we want to see. Last GE, PR promised to be competency, transparent and accountability. But at the end we see PR practise divert, blame others and provoke people to hate others who have different opinion or critize them.

    • Idiot, change your name and don’t dirty DAP. You bang on the mistakes made by Tony but you dare to bang BN for their corruption or not. Is corruption more terrible or mistakes?

  9. Tony should humble himself to learn so that people will have respect to him. He must change his attitude. Too arrogant.

    • Did you see how MCA behave all the time? They control The Star. A political party controls the media. Not right already

      • Do you read Harakah? Do you read the Rocket? Do you read Malaysiakini? They are all owned by opposition. Where is the white paper? Is The Star accusing Khalid cannot produce the white paper or it is a FACT!!!

  10. Anyone in Selangor PR can give a better explanation? Tony, has made many jokes and Selangor PR reputation is damaged.

    • This not a issue of which comes first, ‘ chicken or egg ‘. So that we can debate on it till the death of us.

      This is an issue of tranparency and accountability, which the
      DAP always shouted about and even demonstrated on the streets every time. SHOW US YOUR TRANSPARENCY!

      NO NEED TO DEBATE…..JUST SHOW US!

      • You want transparancy huh?? Tony will show you during the debate. If chicken out, just say it, no need to use MCA media to confuse people. PR is the only government who dare to debate. Come on, tell chicken Chua that Tony is waiting.

      • SHow you? how? you own the paper! and you know it? iF you are wrong, MCA admits? no way bradar.

  11. Hey ubah -alih, can you tell us whether Khalid will be there during the debate? Who is Tony? Does he know the whole deal? Is his remark reliable?

  12. Dear ubah,
    You still don’t understand!
    All the state government has to do is OPEN up the details for us rakyat to see and comprehend what, when, why and how the debt repayment was done.

    What is so difficult about that if there werent any hanky panky or problems. What is there to hide? That’s what and why we all asked for…..TRANSPARENCY!

    Debating is not the answer. Explaining and showing the details is.

    • By the way, dear ubah,
      I think there are plenty of accountants, auditors, businessmen, lawyers and etc in Malaysia that are capable of understanding and comprehending the manner of the deal if ALL detail were given.

      DAP are not the only capable people in malaysia of reading financial accounts, tony is the exemption.

    • Yes, fully agree. What is the point of debating when there is no details given by Selangor government? Show us the details first.

    • Are you really a DAP before? You sound like a BN fan. hehe. You keep asking transparency, did you ask from PKFZ, Cows scandal, First lady diamond, Submarine commission???

      • To answer your question…..yes. I was a staunch ROCKET MAN!
        I voted for the rocket ever since I was 21. I was unwavering and damn committed to the rocket. Whatever the party say or do seems so righteous.

        But the day they JOIN with PAS, they showed me their true colors of greed and HYPROCRITES. They sold their souls and principles to get into putrajaya. DAP was once VERY vocal of islaminization spread by PAS. Ever since their marriage, DAP has never spoken out against PAS in numerous issues.

        It’s is the very social fabric of Malaysia that we are going to vote in the future.
        Will you risk your daughters or sons future. Personally, I won’t!

  13. Ex DAP, I am shame for your stupidity if you are a DAP supporter before. I ask you is PAS worse than UMNO? If Islamic country has no corruption and racist, it is better for our children.

    • I can’t think of any country that has NO corruption or racist free, even your dream country of US of A or Downunder have these problems. I also don’t think that being a PAS style Islamic country, all these problems will immediately disappear.

      If you love an Islamic way of life so much, I think Afghanistan, Iran, Syria, or even even Saudi is for you and your family.

      • ExDAP, you make yourself look stupid. You must be controlled by Be-END for too long until you said no country has no corruption or racist free. If you said is true, Obama will not be the president.

    • There is no choice, to take over the government DAP needs to join with PAS as well. Its not that they are too different, its the BN UMNO corruption that is uncontrollable. We need check and balance. If PKR dont take over, how to control these UMNO fellas. They are king now, dont you think. Cow heads!

      • You are right. We support PKR not because it is good but because we want to end BN corruption.

      • DAP is just using the corruption as an excuse to have power. They can do anything to have power. In Najib time, all corruption is brought to court immediately but Selangor government is silent on Talam bail out. Why?

      • The problem is PR in power for only 4 years and they are showing their true colors which is NO different than previous party! In fact they are worse because they are like pots calling the kettle black.

        The main different for me, is one sided with PAS when in fact he said that will happen over his dead body!

  14. Anonymous, don’t judge a book by looking at its cover. Whether the Star owned by MCA doesn’t matter, the important is the content of the news. Don’t make a mistake like Tony. Pluging the figures without analysing. If you think all news in the Star is incorrect because it is MCA owned, do you read the Rocket published by DAP?

    • You got the point – never judge a book by its cover. Obviously, DAP is telling otherwise when the news are against them.

  15. We all can see clearly that PR will try to discredit the media, the judge, the police, MACC etc when it is not good to them. But they will praise the judge, MACC, the media when it is good to them. They think we cannot analyse like Tony.

    • PR treat its supporters like stupid idiot who cannot analyse. Always blame others for own mistake. X#$%Q

  16. This article make me laugh. LOL. “To put it plainly, Tony never used his brain when referring to figures to support his claims.” hahaha..

      • By using explicit words shows the lack of upright character and exposes your low intellectual levels. I personally have said I was a staunch DAP supporter…..WAS!

  17. If you don’t agree with the author, you should argue with him with facts. By accusing other won’t make you look better, it just shows that you have lost in argument.

    • Must share this blog to more people. Many people who have no accounting background are confused by Tony’s misleading remarks.

    • It is their intention to be careless and provide reports that fit into their LIES. This has been their mode of operation and SOP. you seriously think they make a careless mistake!…..THEY DID IT ON PURPOSE. So that their members can play up their report and calm those fence sitters.

  18. ExDAP, you have not answered my question yet. You want a corruption country or you want a answerable country with little careless? All of us can tolerate a little careless but CANNOT tolerate the corruption Be-eNd!

    • As I have clearly said, your PR gods are just as BLACK……no different than the kettle. But one very BIG different is that PAS islamicnization of Malaysia. Their understanding and insistence of implementing their ‘ISLAM’ is not acceptable to me, but that’s just me.

      You may your own priorities. I am not trying to convert you nor asking you to leave PR, but rather trying to tell you that your GOD is no better than those you so eagerly trying to demonize. In fact they may be even worse!

      • I want to support PR it’s not your business. EIther I want to call them gods also none of your business. I leave it to your son to curse you in future for supporting the corruption BN and make the country bankrupt.

      • Tony is NOT as stupid as you think!

        The reason for his mistake is that he wants to manipulate the figures to his benefits and proof to his loyal subjects that PR did a fantastic job of debt collection while still have ‘TONS’ of money in the bank.

        IT IS A POLITICAL MOVE, and a damn good one indeed. Now his die hard followers will NEVER believe anything else, said, or proofed otherwise.

        So now do you think he is stupid?

  19. You may be right. This could be manipulation of figures but I wonder the die hard followers of Tony are so easily deceived.

  20. These pro PR supporters are behaving like hooligans at best. They have to show off their mights and threaten others into their submission. If one don’t join their GANG, you are labelled as their ENEMY and have to die!

  21. This guy Rafizi is good!!! He should be appointed as MACC chief !! Listen to his presentation ,especially the last 3-5 minutes of this video. He alleged that the Talam issue was created by unscrupulous dealings between MCA and the previousBN/UMNO state govt and all PAKATAN did was to protect and recover thedebts owed by Talam to the Selangor State subsidiaries –before the debt “disappears into thin air –like magic !!Syabas . Rafizi –you represent the new generation ofeducated, honest and dedicated leaders , even resigning from your cushy Petronas job to join this dirty industry called politics–for the people of Malaysia. Click on the link to watch This is interesting…..http://my.news.yahoo.com/video/rafizi-threatens-reveal-mca-talam-000000220.html This email is UNCLASSIFIED.

    • Rafizi and PR can say anything they want of course. But where is the white paper to show the money was used diligently and not misused to bail out Talam.

      Professionally, Zin is right to ask Khalid to answer the questions why there is no valuer from state government to appraise the value.

      • So now prove already with proper auditors! still want to debate with MB. MB appoint the right people, still dont want to accept but insiste of MB debate, Damm stupid right? Wasting time.

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