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External Consultants Cost Khazanah 0.6 Per Cent Of Total Deals – Najib

By Thursday March 15th, 2012 No Comments

KUALA LUMPUR, March 15 (Bernama) — Datuk Seri Najib Tun Razak said costs incurred by Khazanah Nasional Bhd for services rendered by external consultants represented 0.6 percent of its total investments (RM45.5 billion) and divestments (RM31.7 billion) between May 2004 and December last year.

The prime minister said it covered services relating to the GLC Transformation Programme and professional fees relating to finance, human resource, legal and investment, sectoral studies, among others.

“This rate is lower compared with the market rate for external consultancy services that is usually paid by other investment institutions, namely between 1.0 percent and 1.5 percent,” he said in a written reply to Wee Choo Keong (Independent-Wangsa Maju) who had asked about consultancy costs incurred by Khazanah and Malaysia Airlines.

For Malaysia Airlines, Najib who is Finance Minister, said the national carrier had appointed 14 consultants for 16 contracts since the swap deal involving Malaysia Airlines and AirAsia on Aug 9, 2011, and five of the contracts amounting to RM14.4 million were renewals.

The other 11 contracts which included PlaneConsult were new assignments totaling RM10.5 million, he said.

In reply to Tian Chua (PKR-Batu), Najib said Bursa Malaysia had referred trading activities in Harvest Court Industries Bhd counter to the Securities Commission (SC).

“The SC, along with Bursa, is looking into trading activities in Harvest Court shares to determine whether Harvest Court breached securities laws or Bursa rules,” he said.

Tian Chua had asked whether Bursa Malaysia or the SC had investigated allegations of impropriety in Harvest Court and also those relating to SC Chairman Tan Sri Zarinah Anwar and her husband in the purchase of Eastern & Oriental Bhd (E&O) shares.

On the E&O share purchase, Najib said the authorities were still investigating.

Source : Bernama

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