Sunday, 3 April 2016

KHAZANAH NASIONAL TO BE BLAMED FOR PROTON'S DOWNFALL


Dato' Abdul Rahman Dahlan said in an article posted by the Star, (an extract of which, was posted at the bottom), that Dr M must answer for Proton's colossal failure; I feel the need to clarify.

1. Proton was the no 1 car maker when Tun Mahathir was the Prime Minister. 
2. Proton went downhill under Tun Abdullah Badawi premiership whom was also the Minister of Finance, the holding company of Khazanah Nasional whom was at that time, the biggest shareholder of Proton Holdings Berhad. Dato Mohammed Azlan Hashim was appointed by Khazanah Nasional as Proton Chairman and was tasked to remove Tengku Mahaleel as Proton Managing Director.
3. Dato Mohammed Azlan Hashim succeeded in removing Tengku Mahaleel when his predecessor, also a Khazanah Nasional appointee Dato Abu Hasan Kendut had failed. When Tengku Mahaleel was removed, he left Proton with RM4b in cash reserves.
4. Proton lost to Perodua as the number 1 car maker under Dato Mohammed Azlan Hashim when Khazanah Nasional was the biggest shareholder and in control of Proton.
5. Khazanah Nasional, via Dato Mohammed Azlan Hashim had reversed Tengku Mahaleel's decision to terminate EON as Proton distributor when EON refused to contribute to the R&D funds requested by Proton after the government stopped giving R&D grants for proton development. 
6. This resulted in a sales network with more than 400 dealers representation in Malaysia. This was the most destructive decision that weakens the once a strong dealership network and the start of a series of catastrophe.

7. Proton's downfall started when Khazanah Nasional was the owner of Proton and when the government under Tun Abdullah Badawi had no clear vision and roadmap for the national car. 
8. DRB-Hicom was asked to take over Proton for Barisan Nasional to win the previous election when one of the opposition's strongest manifesto was to shut down Proton! DRB-Hicom then, de-listed Proton and capitalized on Proton's asset.  
9. Proton's real problem began when Khazanah Nasional wanted to gain control of Proton by sacking the performing and profitable Proton Managing Director Tengku Mahaleel. Proton has been repeatedly raped since then.   
10. Proton went into financial problem when all its cash reserves and assets were exhausted during those period under Khazanah Nasional. Tun Mahathir recently came back as Proton Executive Chairman to save whatever that is left in Proton. If there is anyone that should be blame for Proton's failure, then it should be Khazanah Nasional and not Tun M.

* Read my earlier piece: Should the Government Bail out Proton.
** Please also read: Lotus and MV Augusta was not a failure. 

The Star Online: link: http://www.thestar.com.my/news/nation/2016/04/02/rahman-dahlan-dr-mahathir-must-answer-for-proton-colossal-losses/

Rahman Dahlan: Dr M must answer for Proton's 'colossal failure'


Rahman said the former prime minister must answer why Proton "is in serious trouble and in need of billions."

"Tun must come forward and answer why Proton is in serious financial trouble despite billions of rakyat's money poured into Proton," tweeted Rahman, an Umno supreme council member, on Saturday.

"Recently billions pumped into MAS. Now Proton. Interestingly, they have one glaring denominator. What or who? Your guess is as good as mine," Rahman said.

Last week, Dr Mahathir resigned as chairman of Proton, the government linked company he created while he was prime minister in the 1980s.

He also relinquished his post as the chancellor of Universiti Teknologi Petronas, as well as advisor to Langkawi Development Authority and the Tioman Island Development Authority.

Rahman said that RM13.9bil has been pumped into Proton since 1983 and now "horror stories" of Dr Mahathir's direct interference and "dictatorial leadership style" in Proton are slowly emerging.

"It's sad to see some get all riled up when relevant questions posed at Tun," he said.

"Proton's shareholders and BOD (board of directors) must be brave to tackle any legacy problems left by the ex-chairman.

"Proton must be serious and not be afraid to unshackle the culture of "deaf, dumb and blind" in Proton," he said, chiding Dr Mahathir who said in his Chedet blog called Umno leaders and members "deaf, dumb and blind" in their support for Prime Minister Datuk Seri Najib Tun Razak.

Dr Mahathir was sacked as Petronas adviser in March following a unanimous decision by Cabinet to terminate his appointment.

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