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FISHY PUTRAJAYA: Why are firms bankrupted & then sold to foreigners – Dr M

KUALA LUMPUR - Troubled Malaysian companies are bankrupted and sold to foreigners instead of allowing proposals by locals to rescue these entities, Tun Dr Mahathir Mohamad said.

In a posting on his blog, chedet.cc, today, the former Prime Minister said the proposals from the locals, whom he termed as “white knights”, were not welcomed.

“Due diligence cannot be done by the white knights for some unknown reasons.”

Dr Mahathir also lamented that despite a lot of talk on the importance of small and medium enterprises, the situation on the ground was the opposite.

Critics, he pointed out, were being demonised by the mainstream media while they also risked being bankrupted themselves.

Claiming that many complaints were being made by Malaysians about the country, Dr Mahathir described this as “something rotten in the state of Malaysia”.

Adding that some complained that the government seemed unwilling to pay for work done for the government, which led to a dispute, he lamented that many of these disputes could drag on due to legal battles.

Citing contracts withdrawn for unknown reasons, Dr Mahathir alleged that contracts were often given to someone else even after contracts were signed.

“Then there are those whose project submissions have been passed on to others. The others make bids at a higher price but the documents are identical.”

Government-owned entities employing more than a thousand workers, he said, suddenly found themselves without a job because some foreigner was chosen to get the contract.

Dr Mahathir said this trend led to workers being laid off and facilities closed down.

He went on to criticise Malaysian companies for not investing in the country and not improving local technological capacity, adding that this led to money flowing out of the country.

“And there are many more complaints about the state which would give it a rotten smell.

“But not to worry. We will get used to the smell.” – http://www.therakyatpost.com/

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