Thus these assets were taken away from direct control of the New UMNO and placed in the hands of an
individual who had no official connection with UMNO. Officially Daim as UMNO Treasurer had no control
over United Engineers and other UMNO assets, but unofficially he had full control and Halim reported to
him in all matters. These were open secrets in Malaysia, and foreigners also came to realize them in time.
Mahathir, Daim and their cronies carried on in full confidence, seemingly unaware but perhaps more
uncaring of the growing discontent among Malaysians that these and many other similar actions induced.

Many other UMNO-related companies - and those which were not as well - fell (or were arranged to fall)
into the clutches of this group of young managers known as Daim’s boys, including Fleet, Landmarks,
Peremba (which had been sold to the Urban Development Authority then sold to Fleet and later was taken
over in a so-called management buy-out). To a man all of them - and later others as well - reported to Daim
who master-minded every scheme or corporate manoeuvre which they implemented. To document every
such manoeuvre (which is possible) would probably require a whole book.

The next step was to ensure an ample and continuous source of income from which political funds could be
generated. Towards this end, and as part of the so-called privatization policy implemented by the
government, again without going through the normal tender process, United Engineers was given the
North-South Highway project (and the right to collect tolls for 20 years) amidst some heavy controversy
which the government managed to brush aside using its parliamentary majority.

This project was leveraged through a series of share swaps to enable the takeover of a score of public-listed
companies which today form the Renong Group controlled in name by Halim. The stupid banks (also acting
under political instruction) were all too ready to lend money to support these transactions and the projects
that came to be taken over by companies such as Renong.

So today it should come as no surprise that Renong and other companies in the group controlled by Halim
reportedly have bank borrowings totalling in excess of RM17 billion and total liabilities which are far greater
than this figure. One of them, the Time Engineering group (with bank borrowings exceeding RM1.5 billion)
has already sought court protection from its creditors while working out a proposed scheme of arrangement
with them. The creditors can expect a huge discount of the debts owing to them.

The irony of it is that until today UMNO has still not repaid to the banks (principally Bank Bumiputra and
Malayan Banking) loans taken for the UMNO HQ building in Kuala Lumpur - the so-called Putra World
Trade Centre and Menara Dato’ Onn.
 
 
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