I refer to your report ECM-Avenue merger a conflict of interest?

Public Accounts Committee (PAC) chairman Shahrir Samad conceded after the PAC meeting last Thursday that the merger between ECM Libra and Avenue Capital Resources Bhd raised troubling questions.

Indeed, there are many questions which Shahrir needs to dig into and seek answers. He really shouldn't be a rubber stamp. For example, it is now public knowledge that the 'valuation of goodwill' for the ECM Libra and Avenue Capital merger was put at RM360 million.

As you know 'goodwill' is an accepted terminology and is practiced to capture the 'non-tangible' value of a company. For example, even if Rolls Royce is one day financially bankrupt, the name Rolls Royce can still be sold for a premium. The name has 'goodwill' value.

There are no fixed and fast rules about how to value 'goodwill' but Shahrir, as the chairman of the Public Accounts Committee should try to determine how the figure of RM360 million was arrived at as 'goodwill value' in this ECM Libra-Avenue Capital transaction?

This is another matter of grave public interest. The whole merger exercise also did not involve any cash payment by ECM Libra but yet ECM Libra has come out on top - meaning that it has taken control of Avenue Capital without paying a single sen. How can this be so?

Also, Shahrir needs to ask who were the Finance Ministry officials who made the unilateral decision to sell Avenue Capital to ECM Libra? They bypassed the cabinet but shouldn't something this big (Avenue Capital had over RM3 billion in cash assets) require the approval of at least the finance minister or at the very least the second finance minister?

Horror of horrors, I hope it is not true that not even the chief secretary of the Finance Ministry was not informed of the selling off Avenue Capital to ECM Libra.

The public now wants to know if it is possible for mere ministry officials to make decisions involving billions of ringgit of taxpayers money? Is this the proper procedure at the Ministry of Finance now?

I hope Shahrir will do a good job. I wish him God speed.