An interesting “revelation”…
(Hold on, the money is inside here, my friend! Image source:http://omong.wordpress.com)
Kumar: Datuk Seri, do you know that Maika Holdings is the only company which started with more than RM100 million hard cash yet it went down the drain under your very own eyes and stewardship. Is this among your achievements?
Samy Vellu: My friend, you are sadly mistaken; it has not gone down the drain. The money is still there. Maika Holdings owns more than 70 per cent of United Oriental Capital insurance company. Why don’t you read and understand all this?
As at 2007 (last published financial report on its website), UOC made a net loss of almost RM20 million and they been making loss for 2 years in the row. And whilst it is good to hear that almost RM100 million was used to hold the shareholding in UOC, serious questions need to be asked whether the investment is giving the rightful returns.
If money invested yields no dividends, then isn’t this considered as bad investment?
By the way, Great Eastern registered a profit of RM502 million in the same 2007 and they also have the same shareholders fund of RM100 million as UOC. So, is Maika been doing the right thing with the “hard cold” cash?