Tuesday, June 16, 2009

Maika shares returned to shareholders without profit

Maika Shares Returned to Shareholders without Profit?

Referring to the outcome of the article “Government urged to rescue Maika Holdings” in NST on 11th June 2009, it was learnt that Maika Holdings are in plan to return the shareholders investment on 1 ringgit to 1 ringgit without any profit.
The question is on what basis Maika Holdings will revive the community’s interests and regains the confidence of shareholders? By right now, Maika shares should have been distributed to the low-income group to increase their investments and the community’s equity share from 1.1% to 3%. On October 2006, DAP Ipoh Barat MP M. Kulasegaran had repeatedly reported that many who bought the shares in 1983 had pawned jewellieries sold their dairies, and came from the down trodden and poor Indian community who all invested on the assurance that their investments would bear fruits handsomely.
On 4th October 2007, Kulasegaran said the works minister then had also not managed to raise the community’s corporate equity from one per cent to 10 per cent as he had promised. He said that some RM100 million was raised to achieve this, but time has shown that Maika Holding has been an empty promise, bogged down irregularities, with an uncertain future.
The shareholders would have better off without investing or an old Indian saying is that ‘we would have better off if each of us has invested for 2 cows; at least would have returned of milk’. We are in a nation of society who has greater mind and soul for nation’s development in competing with global. But all of these problems with repeated manipulations by the Maika Holdings has caused a great uncertainty to the shareholders and brought down the public trust on the company’s strength and capability.
It is time that we need immediate action from Maika Holdings with the force of Government to intervene in and bail out the company for the interest of the Indian community. The government shall be involved urgently to help in settling and close the whole issue amicably by returning the people’s money with handsome returns and continue on the steps of addressing the community’s equity growth.

by Kanesh

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