Bustari Yusof: The man who quietly guides Najib's hand

nirman

http://www.straitstimes.com/asia ... -guides-najibs-hand

He is not well known, but businessman Bustari Yusof is PM's top go-to man
Leslie Lopez Regional Correspondent In Kuala Lumpur
Shortly after receiving word in early May that the Malaysian government had cancelled his contract to develop the multibillion-dollar Bandar Malaysia real estate project, a shaken Lim Kang Hoo scrambled to secure a meeting with Prime Minister Najib Razak in the hope of reversing the situation.

Datuk Seri Najib refused to meet the Malaysian businessman or representatives of Mr Lim's Chinese partners, China Railway Engineering Corp.

Instead, Mr Najib dispatched Tan Sri Bustari Yusof to advise Mr Lim, the controlling shareholder of Iskandar Waterfront Holdings. Mr Lim was told that challenging Kuala Lumpur's decision would only dim his chances for future government contracts, according to close associates of the Prime Minister with knowledge of the situation.


"The fact that the message was delivered by Mr Bustari showed that the PM was very serious about the warning that Mr Lim would be blackballed if he did not stand down," said a senior Kuala Lumpur-based banker close to Mr Lim.

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In Malaysia these days, one ignores the soft-spoken Mr Bustari, 65, at one's peril.

According to politicians and businessmen supportive of the Najib administration, Mr Bustari's position as senior political counsel, chief troubleshooter and economic adviser is unparalleled in the premier's very tight circle of operatives.


"He is the only person who straddles both business and politics within the inner circle, and what he says matters very much to the PM," said a senior Kuala Lumpur-based businessman, who is close to Malaysia's political elite.

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"He would easily count as one of the PM's closest friends. They play golf (together) regularly and Mr Bustari often goes for holidays with the (Mr Najib's) family," noted a chief executive of a government-controlled commercial bank who knows Mr Bustari.

Despite his much-envied clout, Mr Bustari is not widely known among Malaysians.

But that is about to change soon because of his growing business interests and his position as the No. 1 go-to person who can make things happen in the Najib administration.

Mr Bustari declined requests to be interviewed for this article.

But the following account, based on interviews with politicians, businessmen and civil servants, shows how relationships forged in the early years are paying off big time for the businessman from Sarawak.

Mr Bustari's ties with Mr Najib date back to the 1980s when he was a colleague of the premier's influential wife, Datin Seri Rosmah Mansor. Both of them worked in property development firm Island & Peninsular.

During that time, Mr Bustari was already dabbling in politics in Sarawak.

His big break came in 1987 when he made a gamble to back then Sarawak chief minister Taib Mahmud, who was at the time caught in a power struggle for the state's leadership. When Tan Sri Taib, who is currently Sarawak's governor, emerged victorious, there was no looking back for Mr Bustari.

According to several Malaysian politicians, Mr Bustari continued to maintain close ties with Mr Najib, who was then steadily making his way up in the ruling party Umno and in government.

After Mr Najib assumed the premiership in early 2009, Mr Bustari slowly began getting involved in national politics. His strong political connections with the Sarawak leadership made him a particularly important asset for Mr Najib in managing the often-prickly federal-state relations.

Sarawak's role has become more important over the last decade because of Malaysia's fractured political landscape. The 25 elected lawmakers of the governing Barisan Nasional coalition form a critical bloc in Parliament that keeps the coalition in power.

According to several close associates of the Prime Minister, Mr Bustari has been crucial in keeping relations between the Najib administration and the Sarawak state government on an even keel.

All these connections have helped Mr Bustari, whose brother Fadillah Yusof is the Works Minister in Mr Najib's Cabinet, become a very wealthy man.

Mr Bustari's corporate flagship, OBYU Holdings, has extensive holdings in property and plantations in Sarawak. More recently, he has diversified into the construction, healthcare, and oil and gas exploration sectors.

Public-listed Petra Energy, in which Mr Bustari's private corporate vehicles own a collective 27.5 per cent interest, is a major beneficiary of marginal oil fields that were awarded to private players in the deep waters off Sarawak's coast.

Another shareholder in the company is Mr Najib's younger brother, Datuk Mohamed Nizam Abdul Razak, who controls a 9 per cent interest.

Through his Metrocare Services, Mr Bustari and his partners have a 10-year concession to operate and manage hospital support services in all government-run medical facilities in Sarawak.

But most lucrative of all is the role that Mr Bustari's corporate interests are expected to have in the construction of the RM27 billion (S$8.7 billion) Pan Borneo Highway that will connect Sabah and Sarawak.

Contracts are currently being awarded for the 1,090km-long stretch and construction industry executives have noted that one way around trying to secure a piece of the action would be to forge ties with parties linked to Mr Bustari.

A version of this article appeared in the print edition of The Straits Times on June 05, 2017, with the headline 'The man who quietly guides Najib's hand'. Print Edition | Subscribe

nirman

Why Did Najib Give Sarawak's Bustari Yusof A Million Ringgit?
16 April 2016 44 comments Malay Iban
Najib paid his golf buddy a million ringgit, according to investigation papers
Najib paid his golf buddy a million ringgit, according to investigation papers

One of the as yet unreported recipients of Najib’s cash, according to the papers released to ABC Australia’s Four Corners programme, was the Sarawakian mover and shaker Bustari Yusof.

He received a million ringgit from the money that found its way into Najib’s personal account from the 1MDB subsidiary SRC.

People who are currently being gifted with water butts and maybe RM50 per family as bribes to vote BN in the coming election might think this is a lot of money.

But, in fact, it is nothing to either the billionaire Najib or the billionaire Bustari.  The former plainly just wasn’t prepared to pay his pal out of his own money, so he used the KWAP pension fund, sourced through SRC, into his own account.

Far more serious than even this outrage, however, is the new evidence obtained by Sarawak Report that Bustari’s companies have been positioned by his friend Najib to leach out billions more public money, not only from the RM27 billion allocation to the Pan Borneo Highway, but even more shockingly from Sarawak’s under-funded public health services, which have been recently restructured to give Bustari a fat cut.

Raids on Infrastructure and Health, as Najib’s key man makes his bid to control Sarawak
Close - Adenan and Najib's right hand man Bustari, who was at the fore-front of negotiating Adenan's big shows of support for Najib
Close – Adenan and Najib’s right hand man Bustari, who was at the fore-front of negotiating Adenan’s big shows of support for Najib

As Sarawak Report has previously noted, Bustari Yusof and his brother Fadillah are Najib’s key agents in Sarawak.

Businessman Bustari is one of the Prime Minister’s closest current confidants and golfing partners and he has taken care to become part of Adenan’s closest inner circle as well.

This ex-PBB Treasurer originally thrived under Taib Mahmud, gaining vast timber concessions through his company Sarako and also massive public contracts through his construction outfit KACC, but now he has even grander future designs on the state.

His brother Fadillah is of course directly in politics, with the lucrative present position of Minister for Public Works.

Min of Public Works - plum position for Fadillah who has placed his men in seats for the next election
Minister of Public Works – plum position for Fadillah (right) who has placed his men in seats for the next election

He also heads up and pays for the Sarawak Youth Wing of PBB, which has become his power-base.  Fadillah has succeeded in getting many of his key followers nominated for many of the seats in the State Assembly elections, which will give him great influence should they win (as he expects them to once he has poured money into their campaigns).

There is a game plan here, which is that Fadillah is known to be positioning to become the next Chief Minister once elderly Adenan has been pushed aside after the election.

This plan is supported of course, by Najib, who more than anything desires control of Sarawak through his personal proxies.

So, how has the Yusof family exercised its powerful influences both in Sarawak and in Malaysia?  Sadly, largely to make money.

Sarawak Report has already exposed the blatant and outrageous scam by which Fadillah, as the Minister of Public Works, has handed a ‘turnkey’ role to a company controlled by his own brother for the whole of the much vaunted Borneo Highway.

Bustari’s Lebuhraya Borneo Utara Sdn Bhd (where around 40% of the shares are held by his long-term employee and a close political friend) was disgracefully awarded the so-called role of ‘Project Delivery Partner’ by the ministry, without the slightest attempt at a tendering process.

Observers calculate that the scam should enable LBU to cream off at least 5% of the entire budget of RM27 billion – i.e. over a billion ringgit and probably far more: because, as the Sarawak Building and Civil Engineering Constractors Association (SBCECA) has protested, the awarding of behind doors ‘project management’ contracts of this nature is known to inflate the costs of projects “by at least 30%”.

“SBCECA urges the Government to ensure all future projects are openly tendered and awarded to the lowest qualified tenderer in a transparent manner,” its chairman Lau Kah King said in a statement.

“Open tenders will save the Government at least 30% in construction cost. ‘Selected tenders’ and direct negotiation procurement methods, not only cost more to the Government, it also doesn’t guarantee timely completion and better quality,” Lau said.

It is not hard to guess Najib’s objective in sanctioning this arrangement for his golfing friend, who has always had a key role in funnelling funds into BN’s election campaigns and whose brother is now seeking to buy control of PBB.

Bustari and Adenan celebrate (again) the lavish wedding of Bustari's son
Bustari and Adenan celebrate (again) the lavish wedding of Bustari’s son – what is the CM doing to stop this plunder?

One Medicare Sdn Bhd
However, now an even more pernicious raid on public funds has come to light, with the restructuring that has taken place in the provision of Sarawak’s public hospital services. At the centre of the scandal is a company named One Medicare Sdn Bhd, which after the last General Election was given a key share of the budget for hospital support services.

The public company that had previously managed this provision and invested heavily in the service, Faber Group Bhd, was elbowed out of 60% of its share of their contract in Sabah and Sarawak in March last year. According to the Star newspaper:

“Analysts also said they wanted to know what the other joint venture parties were bringing to the table as Faber would have already invested a hefty sum throughout the years to acquire and sustain these assets when the company wholly owned the concessions in both states.

Faber managing director Azmir Merican.. said the company was not “able” to release any financial information pertaining to these contracts and how it would impact Faber but would do so once it had obtained “clearance” from the Government via the Health Ministry.” [The Star]

So, who are the new joint venture parties who have been foisted on a public health contract in this secretive deal and what expertise do they indeed ‘bring to the table’ to benefit Sarawak and Sabah’s health services?

The 60% shareholder of One Medicare Sdn Bhd is now Metrocare Services Sdn Bhd, whereas the remaining 40% remains in the hands of Faber, through Edgenta:

60% of the contract is now in the hands of Metrocare Services Sdn Bhd
60% of the contract is now in the hands of Metrocare Services Sdn Bhd

There is a give-away as to who owns parent company Metrocare Services in One Medicare’s line up of Directors, which not only includes the experienced Azmir Merican, but also no less than three members of the Bustari family:

Bustari line up
Bustari family line up

An even bigger give away is the identity of the Chairman of One Medicare, Anthony Bujang. Bujang is also the CEO of Bustari’s major public company Petra Energy Bhd.

Bustari's man Anthony Bujang was centre stage at the launch of the new arrangements last year
Bustari’s man Anthony Bujang was centre stage at the launch of the new arrangements last year

So, who owns Metrocare?  It turns out to be yet two more companies, Pop Media Sdn Bhd and Obyu Resources Sdn Bhd!

who is behind Pop
Who is behind Pop Media and the major shareholder Obyu Resources?

Obyu Resources, which holds 4/5 of the shares (above), is no stranger to readers of Sarawak Report, which has already named its parent company in previous exposes about crony contracts. OBYU Holdings Sdn Bhd is a major investment company based in Sarawak, which has benefitted from numerous government favours.

It was incorporated soon after Taib took power in 1983 and Bustari Yusuf (who had made the game changing decision to back Taib against his uncle in their power struggles) has been its Executive Chairman ever since:.

Bustari is the owner...
Surprise – Bustari is the owner…

This means Bustari owns a 48% share of One Medicare Services and its fat contract, which has been granted for the next ten years.

Where was the supposedly “reformist” Adenan Satem when all this was going through?  Of course, we remember that Satem was appointed by his brother in law Taib and is best friends with the Bustaris too.

As for Pop Media Sdn Bhd, this is partly owned by the Sarawak Economic Development Corporation SEDC, the head of which is Soedirman bin Aini.

Najib's son Norashman and Bustari's son celebrate in lavish terms
Najib’s son Norashman and Bustari’s son Subky celebrated in lavish terms

Soedirman caught the headlines earlier this year when his daughter Tidja Norain married none other than Bustari’s son Subky Bustari in one of the most lavish and extended weddings of the decade.

The grand reception in KL was attended by Najib, of course, and all his inner circle of advisors, interestingly, including his master of communications UK national Paul Stadlen.



The celebrations then moved to Kuching, where the same pantheon of cronies gathered again, featuring Adenan as a key guest.  The friendship between Bustari, Najib and Adenan has also been carefully preserved into the next generation. Subky Bustari has been photographed on numerous occasions with Najib’s son Norashman.

The man in charge of Najib's questionable communications strategy, Paul Stadlen sits right at the wedding feast, next to Najib's daughter, whose own wedding was even more expensive
The man in charge of Najib’s questionable communications strategy, Paul Stadlen sits right at the wedding feast, next to Najib’s daughter, Nooryana, whose own wedding was even more expensive

Those around this clique say that the strategy is clear.  Najib aims to control Sarawak, helped by the wealthy Bustari’s close ties to  Adenan, but more importantly with the plan of replacing Adenan with Bustari’s brother Fadillah.

In Najib's tight circle, Bustari is in pole position - a former close friend of wife Rosmah to boot.
In Najib’s tight circle, Bustari is in pole position – a former close friend of wife Rosmah to boot.

This way, lament dissenters within PBB, Najib will finally achieve UMNO control of Sarawak in the same way that it controls Sabah.

Fadillah’s prominent role within the UMNO community in West Malaysia has likewise been noted with anxiety amongst these Sarawak BN supporters, who fear that their coalition is being made a vehicle for UMNO to capture the state through Fadillah and Bustari’s political and economic power-base.

Business on the side for Karim Hamza?
Meanwhile, there is one remaining shareholding at One Medicare Sdn Bhd, that raises some eyebrows. The private company Simfoni Dua Sdn Bhd in fact has a larger share of the 12% of the company owned by Pop Media Sdn Bhd than the SEDC.

The larger shareholder is a private concern
The larger shareholder is a private concern

So, who are these guys at Simfoni Dua Sdn Bhd, who have been give around 8% of the contract for the entire of Sarawak’s hospital support services?

It turns out the company coyly hides behind yet another company, which is called Fieldmart Sdn Bhd.  This in turn is owned by two people, who appear to be rather low key.  One is a ‘banking service manager’ and the other gives his “employment” as being “formerly” at Simfoni Dua Sdn Bhd itself, where both are Directors.

What are these two chaps doing owning 8% of Sarawak’s hospital procurement contract, alongside the State Government itself, which indeed has the lesser share of the company?

Sarawak Report wonders if there is a hint in the identity of one of the Directors of Simfoni Dua, who is none other than a serving State Assemblyman, Karim Hamza, formerly Taib Mahmud’s garrulous political secretary?

A bit of business for Karim?
A bit of business for Karim?

Hamza has of course gone on record supporting his boss Taib on the subject of using political connections to “do business” on the side.  He thinks it’s fine and sees no problem over conflict of interest.

Why should only business leaders be able to fly around in private jets, he once lectured Radio Free Sarawak?  Surely, political leaders also deserve such perks, given all their “sacrifices” and “hard work”?

No longer employed, but remains a shareholder?
No longer employed, but remains a shareholder?

So, perhaps Karim Hamza can enlighten Sarawakian voters why he is a Director of Simfoni Dua and what expertise he has on hospital provision?

Also, can he explain who the shareholders of the company are exactly, given they are also employed by the company?

And why has Bustari Yusof been given a controlling 60% share, via secret tender, of a medical contract to supply hospitals, which was once managed by a public company with expertise in this field?

Because, voters should understand that this is how BN plans to service Sarawak’s public hospitals for all of the next decade, given this ten year contract handed to Bustari.

Readers might also like to remind themselves how former Sarawak Health Secretary and Deputy Chief Minister, George Chang signed off medical contracts also, before Sarawak Report exposed him and voters booted him out at the last state election – Read Here



http://www.sarawakreport.org/201 ... -a-million-ringgit/

nirman

Saturday, 4 July 2015
Little known LBU lands lucrative job in Sarawak
BY GURMEET KAUR

image: http://www.thestar.com.my/~/medi ... 721F8D70A3895719E84
Tan Sri Bustari Yusuf
Tan Sri Bustari Yusuf
  
As a PDP, LBU stands to get between 5% and 6% of the total cost of the project

MUCH has been written on the Pan Borneo Highway, the multi-billion-road network connecting Sarawak and Sabah that is finally being rolled out after it was first mooted over five decades ago. The company mandated to deliver the project is little-known Sarawak-based company Lebuhraya Borneo Utara Sdn Bhd (LBU).

Early this week, the company signed a memorandum of understanding (MoU) with the Federal Government and the Sarawak state government for construction of the Sarawak portion of the highway. The first phase is expected to begin in September.

LBU has been appointed as the project delivery partner (PDP) and will be responsible for supervising and managing construction works of the 1,090 km-long toll-free stretch of the Sarawak side.

This means LBU is now the sole point of accountability to complete the said stretch at a reasonable cost and period.

The overall project has been tagged with a ceiling budget of RM27bil.

Profit margin

According to industry players, it is generally known that a main contractor could make a profit margin of about 10%, leaving the balance for the sub-contractors to execute the job. “But the cost of completing the job goes way above what has been budgeted and more often that not there are delays. This is why a PDP comes in. The role of a PDP is to ensure that the job is completed on time and within budget. In return they get about 5% or 6% of the project cost,” says the player.

If this is really the case, LBU could stand to earn more than RM1.3bil from the Pan Borneo Highway provided it is done within cost and on schedule.

“Apart from that, sometimes the PDP can also participate in some sections of the job that are more difficult and costly,” says an industry player.

The PDP job of the Pan Borneo Highway is enough to throw the spotlight on the company and the people behind it, more so given that the highway will replace Bakun Dam as the biggest and most expensive infrastructure ever built in Sarawak.

It is not known if there was a competitive tender process for the PDP job.

StarBizWeek was unable to get in touch with the company as there was no contactable number.

According to the Companies Commission of Malaysia (CCM), LBU was set up is 2011 with a paid-up capital of RM1mil,

Its income statement as at Dec 311, 2013, filed with the CCM, showed that it has no revenue generating activity yet.

Industry sources say LBU was initially set up to undertake the construction of the whole Sarawak stretch, but the government felt that it had better access to cheaper financing and the framework was changed to make it the PDP.

A PDP concept allows the Ministry of Finance to provide the necessary funding through Infra Fund – a similar concept used for the Mass Rapid Transit (MRT) project.

Appointed firms, like LBU, will then receive a fee based on meeting an greed key performance index or KPI.

For the MRT project, the job of the PDP went to a joint venture between MMC Corp Bhd and Gamuda Bhd, two established players in the construction industry and project management space.

As for LBU, very little is known of its track record in terms of project management. “Can it undertake a project this size,” asks a fund manager.

A company search on LBU shows that its directors are mostly from Peninsular Malaysia. Two personalities from Sarawak on its board are Tan Sri Abang Ahmad Urai Hakim Abang Mohideen and Mohd Zaidee Abang Hipni.

Ahmad Urai and Mohd Zaidee are shareholders of LBU by virtue of their interest in Maltimur Resources Sdn Bhd, which owns a 55% stake in the former.

Ahmad Urai, who is LBU chairman and once an active politician, has a 30% stake in Maltimur, while Mohd Zaidee owns 40%. Through his interest in Maltimur Resources, Mohd Zaidee effectively controls about 22% of LBU. The other shareholder of Maltimur is one Safuani Andul Hamid, who is also a director at LBU.

LBU’s other shareholder is Jalinan Rejang Sdn Bhd, which hold the remaining 45% stake. Based on its CCM company profile, it has four shareholders, some of whom are directors at LBU.

Chartered accountant

Mohd Zaidee, meanwhile, is said to be a close associate of well-known Sarawak businessman, Tan Sri Bustari Yusuf (pic).

The 46-year old chartered accountant was once the group executive director of OBYU Holdings Sdn Bhd, which is Bustari’s flagship company.

OBYU is an investment holding company, which has its finger in a several industries including property, construction, plantations and telecommunications.

Before being appointed director of LBU on December 2 last year, Mohd Zaidee was the chief financial officer of Petra Energy Bhd. Bustari is a major shareholder of Petra Energy with a 27.47% indirect interest through Shorefield Resources Sdn Bhd. He bought into the oil and gas outfit in 2009, first taking up a 30% stake.

Petra Energy also counts Datuk Mohamed Nizam Abdul Razak, who is the brother of Prime Minister Datuk Seri Najib Abdul Razak, as a substantial shareholder with a 9.09% stake as at April 17, 2015.

Elsewhere, Bustari has been as an independent non-executive director of PPB Oil Palms Bhd since February 2007.

He is also now a name to watch in the healthcare sector, through his 36% shareholding in Metrocare Services Sdn Bhd.

Metrocare Services owns 60% of One Medicare Sdn Bhd, the company with the concession to operate and manage hospital support services (HSS) in Sarawak for a 10-year period. The remaining 40% stake in One Medicare is held by integrated facilities management firm, Faber Group Bhd.

The 64-year-old Bustari, who hails from Sibu but has made Sarawak his base, is said to be influential in Putrajaya.

Industry sources say he is the “go-to man” for many companies seeking to do business in Sarawak because of his extensive links in the state.

Incidentally, Bustari is also the brother of current Works Minister Datuk Seri Fadillah Yusof.

With the signing of MoU, work on the first phase - a stretch spanning 773 km – is expected to start in September, according to a report by Bernama quoting Fadillah.

The Federal Government, according to Fadillah, was still working to finalise the cost and design of the highway,

Works on the Sarawak stretch is expected to be completed by 2023 and bring spill over effects of at least four times to the economy, if a Government study of Peninsular Malaysia’s North South Expressway is a yardstick.

The mammoth project was first announced in 1963, but did not take off until it was fast-tracked under a public-private-partnership model in Budget 2015.


Read more at http://www.thestar.com.my/busine ... XqHtPihv87Zmmtog.99

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