Sectors:Oil and GasBy Reuters 20 Mar 2008 09:47 AM ET
Oil fell below $100 a barrel on Thursday for the first time in two weeks, extending a hefty sell-off in the previous session on growing concerns an economic slowdown in top consumer the United States would undermine global energy demand.
Mark Lennihan / AP
An oil refinery in Elizabeth, N.J.
--------------------------------------------------------------------------------
U.S. crude NYMEX CRUDE OIL FUTURES Front MonthUS%40CL.1
99.5 -3.04 -2.96% BIS
Quote Chart News Profile
[US@CL.1 99.5 -3.04 (-2.96%)] was down, and the first time since March 5 that it has fallen below $100, adding to an almost $5 loss on Wednesday.
London Brent crude IPE BRENT CRUDE Future Front Month CGB%40IB.1
98.71 -2.01 -2% KRF - US
Quote Chart News Profile
[GB@IB.1 98.71 -2.01 (-2%)] also fell.
"We continue to see profit-taking among commodities. There are also macro-economic concerns about the economy and the dollar has been doing better," said Mike Wittner, global head of oil market research in London for Societe Generale.
Gold dropped more than 4 percent to a one-month low Thursday, while platinum slid more than 5 percent to $1,820 an ounce, the lowest since early February as funds cashed in.. Oil and other commodities had struck a series of record highs since the beginning of the year as investors fled stocks markets and took refuge in dollar-denominated assets.
Investor Takeaway
Coal: An Export in Solid Supply
Cash Is 'Place to Be' with Oil
CEO Roundtable: Pressure from Oil
High-Priced Oil: Here's Who Wins
U.S. oil prices averaged around $97 a barrel since the beginning of this year, up from $72.30 in 2007.
But investors nervous about the economy are cashing in on recent record prices in commodities and energy.
"Commodity players seem to be coming round to the notion that the deterioration in the U.S. macro picture cannot be ignored," Edward Meir said in a daily note by MF Global.
Weekly U.S. stockpicks data released on Wednesday showed lower fuel stocks than forecast, but the figures also revealed a fall in demand.
U.S. demand for gasoline over the past four weeks was 0.1 percent below last year, the U.S. Energy Information Administration figures showed.
Adding to the gloom, U.S. government data showed on Thursday that the number of jobless staying on aid rolls rose to the highest in three and a half years to 378,000, higher than the expected 360,000, possibly partly due to an auto industry strike.
"We believe that the combination of low economic growth in the United States and high oil price inflation will have its strongest impact on demand in the first half of the year," Goldman Sachs said in a note.
Goldman pointed to the 3.2 percent fall in U.S. oil demand over the past 4 weeks from last year according to stocks data released on Wednesday.
Thursday, March 20, 2008
Selangor exco list finalised, or is it?
Mar 20, 08 6:24pm
The protracted delay over the Selangor state executive councillor (exco) list took a new twist today when newly minted Selangor Menteri Besar Khalid Ibrahim announced that the list had been "finalised".
Several assemblypersons from DAP however were unable to confirm this when contacted today.
Pandamaran state assemblyperson Ronnie Liu for instance, could not confirm nor deny whether negotiations with PKR are still ongoing.
"All I can tell you is that the outcome would be a win-win situation which would be well received by our supporters and voters," said Liu, a first-time elected representative who is almost certain to be in the exco lineup.
PKR is the largest member of the new coalition government with 15 state assembly seats. DAP has 13 while PAS has 6.
Previously, DAP expressed that it would seek four exco and the deputy speaker posts, in proportion with the number of seats the party holds.
Under this formula, PKR would have four exco posts, including the menteri besar post while PAS would have two.
Race factor
According to a New Straits Times report today, this formula is unworkable because PKR intends to allocate two exco positions to non-Muslims.
Should DAP have four exco members, the exco would end up with a non-Muslim majority - a scenario which the is not favoured by the Selangor palace, reported the daily.
Fueling speculations further was a DAP Selangor delegation’s audience with Sultan Sharafuddin Idris Shah yesterday.
DAP Selangor chief Ean Yong Hian Wah when contacted declined to reveal details of the meeting which involved himself, Liu and Kinrara state assemblyperson Teresa Kok.
Ean Yong declined to reveal any information about the meet but hinted that negotiations with PKR were still ongoing.
"We still think we should get four exco positions," he said.
Asked if such an arrangement would not be accepted by the Sultan due to the racial composition, Ean Yong believes that the final exco list would be the prerogative of the menteri besar.
Teng likely to be dropped
PKR is expected to nominate Lee Kim Sin (Kajang), Dr Xavier Jayakumar (Seri Andalas), Nik Nazmi Nik Ahmad (Seri Setia) Yaakob Sapari (Kota Anggerik) and Haniza Mohd Talha (Taman Medan) for the five posts.
The four DAP names submitted for exco posts includes Ean Yong, Liu, Teresa Kok (Kinrara) and Teng Chang Khim (Sungai Pinang). PAS is believed to have nominated their Selangor chief Dr Hasan Ali (Gombak Setia) and Dr Halimah Ali (Selat Kelang).
Observers believe that DAP is now caught in a bind because the party had a clean sweep of 13 state seats and party supporters would expect an equitable distribution of seats.
Should DAP be given only three exco posts, it would be seen as the second blow to the party since being denied the menteri besar post in Perak despite having overwhelming majority of seats in the Perak coalition government.
Having only three exco posts in Selangor would also deal a blow to Teng who is widely expected to be the sacrificial lamb should negotiations with PKR fall flat.
Teng is a hugely popular and influential figure in the party but it is an open secret that he is at odds with the party’s national leaders.
Observers point out that should Teng, who already has experienced three terms in the Selangor state assembly as opposition leader, be dropped from the exco lineup, it would open wide fissures within the party.
Liu, Kok and Ean Yong are aligned to party secretary-general Lim Guan Eng’s camp.
The protracted delay over the Selangor state executive councillor (exco) list took a new twist today when newly minted Selangor Menteri Besar Khalid Ibrahim announced that the list had been "finalised".
Several assemblypersons from DAP however were unable to confirm this when contacted today.
Pandamaran state assemblyperson Ronnie Liu for instance, could not confirm nor deny whether negotiations with PKR are still ongoing.
"All I can tell you is that the outcome would be a win-win situation which would be well received by our supporters and voters," said Liu, a first-time elected representative who is almost certain to be in the exco lineup.
PKR is the largest member of the new coalition government with 15 state assembly seats. DAP has 13 while PAS has 6.
Previously, DAP expressed that it would seek four exco and the deputy speaker posts, in proportion with the number of seats the party holds.
Under this formula, PKR would have four exco posts, including the menteri besar post while PAS would have two.
Race factor
According to a New Straits Times report today, this formula is unworkable because PKR intends to allocate two exco positions to non-Muslims.
Should DAP have four exco members, the exco would end up with a non-Muslim majority - a scenario which the is not favoured by the Selangor palace, reported the daily.
Fueling speculations further was a DAP Selangor delegation’s audience with Sultan Sharafuddin Idris Shah yesterday.
DAP Selangor chief Ean Yong Hian Wah when contacted declined to reveal details of the meeting which involved himself, Liu and Kinrara state assemblyperson Teresa Kok.
Ean Yong declined to reveal any information about the meet but hinted that negotiations with PKR were still ongoing.
"We still think we should get four exco positions," he said.
Asked if such an arrangement would not be accepted by the Sultan due to the racial composition, Ean Yong believes that the final exco list would be the prerogative of the menteri besar.
Teng likely to be dropped
PKR is expected to nominate Lee Kim Sin (Kajang), Dr Xavier Jayakumar (Seri Andalas), Nik Nazmi Nik Ahmad (Seri Setia) Yaakob Sapari (Kota Anggerik) and Haniza Mohd Talha (Taman Medan) for the five posts.
The four DAP names submitted for exco posts includes Ean Yong, Liu, Teresa Kok (Kinrara) and Teng Chang Khim (Sungai Pinang). PAS is believed to have nominated their Selangor chief Dr Hasan Ali (Gombak Setia) and Dr Halimah Ali (Selat Kelang).
Observers believe that DAP is now caught in a bind because the party had a clean sweep of 13 state seats and party supporters would expect an equitable distribution of seats.
Should DAP be given only three exco posts, it would be seen as the second blow to the party since being denied the menteri besar post in Perak despite having overwhelming majority of seats in the Perak coalition government.
Having only three exco posts in Selangor would also deal a blow to Teng who is widely expected to be the sacrificial lamb should negotiations with PKR fall flat.
Teng is a hugely popular and influential figure in the party but it is an open secret that he is at odds with the party’s national leaders.
Observers point out that should Teng, who already has experienced three terms in the Selangor state assembly as opposition leader, be dropped from the exco lineup, it would open wide fissures within the party.
Liu, Kok and Ean Yong are aligned to party secretary-general Lim Guan Eng’s camp.
Restore the third vote in Penang
Mar 20, 08 1:45pm
The DAP-led Penang government should use its legislative powers enshrined under Article 113(4) of the Federal Constitution to restore the third public vote - the local government elections, which was suspended after the country's confrontation with Indonesia in 1965.
Although the state government would run foul with the federal laws of the Local Government Act 1976 (Act 171) and the 1965 Emergency Regulations, a social activist suggested that the DAP administration should nonetheless initiate the bold move to test the law.
Since Article 113(4) provides the power to state lawmakers to authorise the Election Commission to conduct elections other than parliamentary and state legislative elections, Malaysian Voters Union coordinator B K Ong is of the opinion that the DAP-led state government has the power to enact laws to govern a municipal elections, even though it could be challenged in court.
Chief Minister and DAP secretary-general Lim Guan Eng said the party would seek the support of BN federal government to restore local government elections, while constitutional law experts have argued that holding local government elections would be possible only if the Emergency Regulations are revoked and Section 15(1) and Section 10 of Act 171 was repealed and amended respectively.
"Since federal laws governing the suspension of local government elections are still in force, DAP needs the support of the federal government to repeal such provisions in the Parliament," Lim told Malaysiakini recently.
It is learnt that the DAP top brass would meet Prime Minister Abdullah Ahmad Badawi on the issue soon.
However, Ong thinks otherwise.
Instead of seeking support and cooperation from the Barisan Nasional federal government, which would be a "mission impossible" anyway to restore the third vote, he pointed out that the state government should take the lead and do it in its own way to authorise the EC to conduct elections for local authorities.
"A DAP move to restore the third vote would be a populist policy and propel the party’s public ratings," said Ong.
Main points in manifesto
Local government elections was the among the main points in the DAP election manifesto during the March 8 national polls, which saw the party sweeping aside all opposition and storming to power in Penang with the help of its allies, PKR and Pas.
The last local government elections in the country were held in 1963 under the Local Government Act 1960.
However, the municipal elections were suspended after the Confrontation pursuant to the Emergency (Suspension of Local Government Elections) Regulations 1965 (Emergency Regulations) made by the Yang di-Pertuan Agong on March 1, 1965 under the Emergency (Essential Powers) Act 1964.
The Emergency Regulations were amended on Aug 9, 1965, to allow local councillors to be appointed by the state governments.
Act 171 stated that any provisions related to local government elections shall cease to have force or effect, which means the provisions under the 1960 Act related to local government elections have ceased to apply.
Article 75 of the Federal Constitution was unambiguous that federal laws would prevail in any event of conflict with inconsistent state laws.
Thus, said party insiders, any move by the state DAP was risky as it could be challenged in the court of law.
However, Ong suggested that the DAP should set aside such fears and be prepared to test its powers in the court to authorise elections for local authorities.
Therefore the country's judiciary, an essential branch of a democratic system, should be allowed to make a landmark ruling on the contentious issue.
"DAP should not worry much about its legal implication since it is a political issue.
"Let the judge decide for the people," he said.
Disservice to the people
Prior to the recent general election, 22 and 21 councillors are appointed on a yearly basis from the ranks of BN component parties in the Penang's two local authorities, namely the Penang Island Municipal Council (MPPP) and Seberang Perai Municipal Council (MPSP) respectively.
Alongside them, two and three district officers sit as councillors in the MPPP and MPSP respectively.
For the past 43 years, the post of councillors have become a political gift from BN to those members who did not get a ticket to contest in state or federal elections, besides being a training ground to groom future BN political leaders with administrative experience.
Many Penangites concurred that due to the appointment system; virtually all councillors were "sleeping on their job" because they do not need to seek the people's mandate.
The council and councillors collect and spend taxes from ratepayers, and regulate virtually everything governing laymen's daily lives.
But they are not accountable to the public. Instead they are obliged to be grateful to their political masters who had appointed them.
As the councillors were not performing, BN state assemblypersons and Members of Parliament, especially those from MCA and Gerakan, seized the opportunity to perform like de facto councillors over the years by clearing drains, cleaning roads and public parks via community projects.
They conveniently neglected their duties as state and federal elected representatives, which are to propose, debate and monitor the state and federal policies, enactments and laws, and their implementation.
Due to this, over the years, the perception of people on the responsibilities of the elected representatives has also changed, rather incorrectly.
Many people perceived that state assemblypersons and MPs shall help constituents to strike of summonses, clear garbage, unclog drains and put out neighbourhood fires than being effective and decisive lawmakers to provide check and balance to the government of the day.
"Appointment of councillors had been a disservice to the people," said Ong.
Since the DAP electoral campaign was on "Penang leads" slogan, he said the state government should take the lead in restoring the third vote, which would restore public confidence on good governance, transparency and openness.
"This was DAP's electoral battle cry. Why not put it into practice?" he commented.
The DAP-led Penang government should use its legislative powers enshrined under Article 113(4) of the Federal Constitution to restore the third public vote - the local government elections, which was suspended after the country's confrontation with Indonesia in 1965.
Although the state government would run foul with the federal laws of the Local Government Act 1976 (Act 171) and the 1965 Emergency Regulations, a social activist suggested that the DAP administration should nonetheless initiate the bold move to test the law.
Since Article 113(4) provides the power to state lawmakers to authorise the Election Commission to conduct elections other than parliamentary and state legislative elections, Malaysian Voters Union coordinator B K Ong is of the opinion that the DAP-led state government has the power to enact laws to govern a municipal elections, even though it could be challenged in court.
Chief Minister and DAP secretary-general Lim Guan Eng said the party would seek the support of BN federal government to restore local government elections, while constitutional law experts have argued that holding local government elections would be possible only if the Emergency Regulations are revoked and Section 15(1) and Section 10 of Act 171 was repealed and amended respectively.
"Since federal laws governing the suspension of local government elections are still in force, DAP needs the support of the federal government to repeal such provisions in the Parliament," Lim told Malaysiakini recently.
It is learnt that the DAP top brass would meet Prime Minister Abdullah Ahmad Badawi on the issue soon.
However, Ong thinks otherwise.
Instead of seeking support and cooperation from the Barisan Nasional federal government, which would be a "mission impossible" anyway to restore the third vote, he pointed out that the state government should take the lead and do it in its own way to authorise the EC to conduct elections for local authorities.
"A DAP move to restore the third vote would be a populist policy and propel the party’s public ratings," said Ong.
Main points in manifesto
Local government elections was the among the main points in the DAP election manifesto during the March 8 national polls, which saw the party sweeping aside all opposition and storming to power in Penang with the help of its allies, PKR and Pas.
The last local government elections in the country were held in 1963 under the Local Government Act 1960.
However, the municipal elections were suspended after the Confrontation pursuant to the Emergency (Suspension of Local Government Elections) Regulations 1965 (Emergency Regulations) made by the Yang di-Pertuan Agong on March 1, 1965 under the Emergency (Essential Powers) Act 1964.
The Emergency Regulations were amended on Aug 9, 1965, to allow local councillors to be appointed by the state governments.
Act 171 stated that any provisions related to local government elections shall cease to have force or effect, which means the provisions under the 1960 Act related to local government elections have ceased to apply.
Article 75 of the Federal Constitution was unambiguous that federal laws would prevail in any event of conflict with inconsistent state laws.
Thus, said party insiders, any move by the state DAP was risky as it could be challenged in the court of law.
However, Ong suggested that the DAP should set aside such fears and be prepared to test its powers in the court to authorise elections for local authorities.
Therefore the country's judiciary, an essential branch of a democratic system, should be allowed to make a landmark ruling on the contentious issue.
"DAP should not worry much about its legal implication since it is a political issue.
"Let the judge decide for the people," he said.
Disservice to the people
Prior to the recent general election, 22 and 21 councillors are appointed on a yearly basis from the ranks of BN component parties in the Penang's two local authorities, namely the Penang Island Municipal Council (MPPP) and Seberang Perai Municipal Council (MPSP) respectively.
Alongside them, two and three district officers sit as councillors in the MPPP and MPSP respectively.
For the past 43 years, the post of councillors have become a political gift from BN to those members who did not get a ticket to contest in state or federal elections, besides being a training ground to groom future BN political leaders with administrative experience.
Many Penangites concurred that due to the appointment system; virtually all councillors were "sleeping on their job" because they do not need to seek the people's mandate.
The council and councillors collect and spend taxes from ratepayers, and regulate virtually everything governing laymen's daily lives.
But they are not accountable to the public. Instead they are obliged to be grateful to their political masters who had appointed them.
As the councillors were not performing, BN state assemblypersons and Members of Parliament, especially those from MCA and Gerakan, seized the opportunity to perform like de facto councillors over the years by clearing drains, cleaning roads and public parks via community projects.
They conveniently neglected their duties as state and federal elected representatives, which are to propose, debate and monitor the state and federal policies, enactments and laws, and their implementation.
Due to this, over the years, the perception of people on the responsibilities of the elected representatives has also changed, rather incorrectly.
Many people perceived that state assemblypersons and MPs shall help constituents to strike of summonses, clear garbage, unclog drains and put out neighbourhood fires than being effective and decisive lawmakers to provide check and balance to the government of the day.
"Appointment of councillors had been a disservice to the people," said Ong.
Since the DAP electoral campaign was on "Penang leads" slogan, he said the state government should take the lead in restoring the third vote, which would restore public confidence on good governance, transparency and openness.
"This was DAP's electoral battle cry. Why not put it into practice?" he commented.
The 'fragile' pact to rebuild MIC
Mar 20, 08 12:27pm
The two veterans were sworn enemies. But external circumstances dictated that a truce be called.
For decades, former MIC deputy president S Subramaniam tried every trick in the political handbook to outflank his nemesis.
None worked, for the 72-year-old president was simply too formidable.
But when dawn broke on March 8, a force was unleashed upon MIC. So powerful that it humbled the mighty S Samy Vellu and left his party black and blue.
Reeling from the shock, the president decided to enlist his former deputy-turned-foe-now-turned ally for the daunting mission of rebuilding MIC and re-uniting the Indian community.
Subramaniam readily agreed thinking this was nothing short of divine intervention to revive his inanimate political career.
On the same day, the pair also drove to Putrajaya to inform Prime Minister Abdullah Ahmad Badawi about their patching up and to discuss other matters.
"Subramaniam then jumped the gun and called for a press conference to announce that he is willing to cast aside his differences with the leadership and offered his help to rebuild MIC," said a source.
This drew more brickbats than bouquets, especially with Samy Vellu turning the tables the next day and stating that Subramaniam has been wanting to meet him for two months.
According to the source, the backlash - even from some of his loyal supporters - caught the former MIC deputy president by surprise.
It is learnt that certain quarters have also mounted a campaign to boycott the Subramaniam-linked Tamil daily Makkal Osai in the wake of the reconciliation.
Retirement date
"His supporters are upset because of three reasons," said the source. "One, they were not consulted. Two, why did he agree without a concrete takeover plan and three, why the rush in announcing the partnership when even the cabinet had not been formed."
"The supporters felt that an agreement should have been made based on terms set by him," he added.
As for the Indian community, he said they want Samy Vellu to vacate his post. "The longer he stays and remains in the public eye, the more complicated matters will become."
In a bid to placate his supporters, Subramaniam is expected to press the MIC president to publicly announce a retirement date and if possible endorse the former as his successor.
"There must be an indication of some sort from Samy Vellu that he is going for good and this indication must come soon or Subramaniam will find himself in a bigger fix," said the source.
"The situation is really bad on the ground. The truce has become the laughing stock of the community. The move has also severely dented his popularity," he added.
He said Subramaniam must also find a solution for the Maika Holdings issue and iron out other details like party and government positions.
"If this cannot be done, then the deal should be called off. It would be wiser for Subramaniam to step aside respectably and consider other options instead of being dragged down as well.
"Why should he inherit a party with so many loose ends? MIC is weak, BN (Barisan Nasional) is weak, the opposition may come into power and the Indian community is divided," he added.
Maika Holdings is the debt-ridden investment arm of MIC which has been embroiled in a protracted controversy after shareholders accused it of shortchanging them.
Subramaniam has been one of the leading crusaders against Maika Holdings, which is helmed by the MIC president's son Vel Paari.
It is learnt that Subramaniam's supporters have given him a month to resolve all these issues, failing which, he could lose a sizeable chunk to the opposition.
What about Palanivel?
Meanwhile, the source also pointed out another factor to the Samy Vellu-Subramaniam equation - current deputy president G Palanivel.
"Is he willing to step aside and allow Subramaniam to take control of MIC or will he put up a challenge?" he asked.
Palanivel was Samy Vellu's hatchet man in driving out Subramaniam from the top echelon in the 2006 party polls.
Prior to March 8, Palanivel was sailing along placid waters although rumours abounded that his relationship with the president had soured.
The current rough weather, however, has put pressure on him to make a stand. "His supporters see the alliance as unfair to him, it is a case of being used and disposed."
On Palanivel lacking grassroots support, the source said: "Never rule out any politician. Crises have a way of bringing out certain qualities in people ... qualities that in the past had no reason to be showcased. But it is an entirely different ball game now."
Since MIC leaders were shown the exit by voters - the top brass fell into an eerie silence - save for Samy Vellu making statements now and then and party information chief M Saravanan - one of the survivors of the March 8 massacre - reminding the public that MIC is still breathing.
On Sunday, Palanivel decided to make himself heard.
He came out with a hard-hitting statement on BN's lacklustre performance and conceded MIC's error in not taking notice to the brewing storm.
While stressing on the need to rebuild MIC, the deputy president, however, did not make any mention about Subramaniam.
On that note, the source also did not discount the possibility of a deal being struck between Subramaniam and Palanivel to prevent future feuds.
"Infighting is the last thing MIC needs at this point in time," he said.
Neutral candidate
Meanwhile, the source also said much hinges on who becomes the next secretary-general since the incumbent Dr S Subramaniam - who also escaped the electoral culling - has been appointed a cabinet minister.
"Subramaniam's camp wants a neutral candidate. If another Samy Vellu man assumes the post, then trouble will erupt. So a deal must be reached on this as well," he said.
Another source said it is almost certain that Samy Vellu - who has helmed MIC for 28 years - will call it quits soon.
"The president tried hard to retain the works ministry under the party's control but the ministry has now fallen into the hands of Umno...he is very disappointed," he said.
As for the presidential elections slated for 2009, the source predicted that it will be a "free-for-all slugfest."
"If Subramaniam starts flexing his muscles from now, he stands a good chance of assuming total control of the party. He must lay down his terms, especially concerning the branches.
"MIC is there for the taking. All he needs to do is play his cards right and show a little grit. The grassroots are in desperate need of direction and hope," he added.
He also said that Subramaniam's strategy of keeping himself relevant via a newspaper has been fruitful.
"Despite being cast into political wilderness, he was never far from mind or sight. This is something that made Samy Vellu very uncomfortable.
"He continued to project himself as an alternative force. But the Indians now have the opposition as an alternative so Subramaniam must work extra hard to prove that he is still relevant."
The observer was also quick to point out that the fate of MIC is now lodged between a rock and hard place.
"The situation has deteriorated to a level where even with Samy Vellu leaving and Subramaniam returning may not be enough to salvage the party. Unless, the opposition falls short of expectations and the swing reverses in the next polls.
"MIC's fate is no longer in the hands of one man as it used to be. It is now intertwined with many other factors and only time will tell if the party can survive," he said.
The two veterans were sworn enemies. But external circumstances dictated that a truce be called.
For decades, former MIC deputy president S Subramaniam tried every trick in the political handbook to outflank his nemesis.
None worked, for the 72-year-old president was simply too formidable.
But when dawn broke on March 8, a force was unleashed upon MIC. So powerful that it humbled the mighty S Samy Vellu and left his party black and blue.
Reeling from the shock, the president decided to enlist his former deputy-turned-foe-now-turned ally for the daunting mission of rebuilding MIC and re-uniting the Indian community.
Subramaniam readily agreed thinking this was nothing short of divine intervention to revive his inanimate political career.
On the same day, the pair also drove to Putrajaya to inform Prime Minister Abdullah Ahmad Badawi about their patching up and to discuss other matters.
"Subramaniam then jumped the gun and called for a press conference to announce that he is willing to cast aside his differences with the leadership and offered his help to rebuild MIC," said a source.
This drew more brickbats than bouquets, especially with Samy Vellu turning the tables the next day and stating that Subramaniam has been wanting to meet him for two months.
According to the source, the backlash - even from some of his loyal supporters - caught the former MIC deputy president by surprise.
It is learnt that certain quarters have also mounted a campaign to boycott the Subramaniam-linked Tamil daily Makkal Osai in the wake of the reconciliation.
Retirement date
"His supporters are upset because of three reasons," said the source. "One, they were not consulted. Two, why did he agree without a concrete takeover plan and three, why the rush in announcing the partnership when even the cabinet had not been formed."
"The supporters felt that an agreement should have been made based on terms set by him," he added.
As for the Indian community, he said they want Samy Vellu to vacate his post. "The longer he stays and remains in the public eye, the more complicated matters will become."
In a bid to placate his supporters, Subramaniam is expected to press the MIC president to publicly announce a retirement date and if possible endorse the former as his successor.
"There must be an indication of some sort from Samy Vellu that he is going for good and this indication must come soon or Subramaniam will find himself in a bigger fix," said the source.
"The situation is really bad on the ground. The truce has become the laughing stock of the community. The move has also severely dented his popularity," he added.
He said Subramaniam must also find a solution for the Maika Holdings issue and iron out other details like party and government positions.
"If this cannot be done, then the deal should be called off. It would be wiser for Subramaniam to step aside respectably and consider other options instead of being dragged down as well.
"Why should he inherit a party with so many loose ends? MIC is weak, BN (Barisan Nasional) is weak, the opposition may come into power and the Indian community is divided," he added.
Maika Holdings is the debt-ridden investment arm of MIC which has been embroiled in a protracted controversy after shareholders accused it of shortchanging them.
Subramaniam has been one of the leading crusaders against Maika Holdings, which is helmed by the MIC president's son Vel Paari.
It is learnt that Subramaniam's supporters have given him a month to resolve all these issues, failing which, he could lose a sizeable chunk to the opposition.
What about Palanivel?
Meanwhile, the source also pointed out another factor to the Samy Vellu-Subramaniam equation - current deputy president G Palanivel.
"Is he willing to step aside and allow Subramaniam to take control of MIC or will he put up a challenge?" he asked.
Palanivel was Samy Vellu's hatchet man in driving out Subramaniam from the top echelon in the 2006 party polls.
Prior to March 8, Palanivel was sailing along placid waters although rumours abounded that his relationship with the president had soured.
The current rough weather, however, has put pressure on him to make a stand. "His supporters see the alliance as unfair to him, it is a case of being used and disposed."
On Palanivel lacking grassroots support, the source said: "Never rule out any politician. Crises have a way of bringing out certain qualities in people ... qualities that in the past had no reason to be showcased. But it is an entirely different ball game now."
Since MIC leaders were shown the exit by voters - the top brass fell into an eerie silence - save for Samy Vellu making statements now and then and party information chief M Saravanan - one of the survivors of the March 8 massacre - reminding the public that MIC is still breathing.
On Sunday, Palanivel decided to make himself heard.
He came out with a hard-hitting statement on BN's lacklustre performance and conceded MIC's error in not taking notice to the brewing storm.
While stressing on the need to rebuild MIC, the deputy president, however, did not make any mention about Subramaniam.
On that note, the source also did not discount the possibility of a deal being struck between Subramaniam and Palanivel to prevent future feuds.
"Infighting is the last thing MIC needs at this point in time," he said.
Neutral candidate
Meanwhile, the source also said much hinges on who becomes the next secretary-general since the incumbent Dr S Subramaniam - who also escaped the electoral culling - has been appointed a cabinet minister.
"Subramaniam's camp wants a neutral candidate. If another Samy Vellu man assumes the post, then trouble will erupt. So a deal must be reached on this as well," he said.
Another source said it is almost certain that Samy Vellu - who has helmed MIC for 28 years - will call it quits soon.
"The president tried hard to retain the works ministry under the party's control but the ministry has now fallen into the hands of Umno...he is very disappointed," he said.
As for the presidential elections slated for 2009, the source predicted that it will be a "free-for-all slugfest."
"If Subramaniam starts flexing his muscles from now, he stands a good chance of assuming total control of the party. He must lay down his terms, especially concerning the branches.
"MIC is there for the taking. All he needs to do is play his cards right and show a little grit. The grassroots are in desperate need of direction and hope," he added.
He also said that Subramaniam's strategy of keeping himself relevant via a newspaper has been fruitful.
"Despite being cast into political wilderness, he was never far from mind or sight. This is something that made Samy Vellu very uncomfortable.
"He continued to project himself as an alternative force. But the Indians now have the opposition as an alternative so Subramaniam must work extra hard to prove that he is still relevant."
The observer was also quick to point out that the fate of MIC is now lodged between a rock and hard place.
"The situation has deteriorated to a level where even with Samy Vellu leaving and Subramaniam returning may not be enough to salvage the party. Unless, the opposition falls short of expectations and the swing reverses in the next polls.
"MIC's fate is no longer in the hands of one man as it used to be. It is now intertwined with many other factors and only time will tell if the party can survive," he said.
Kit Siang to push again for parliamentary reforms
Mar 20, 08 3:49pm
Opposition leader and DAP Ipoh Timor MP Lim Kit Siang has revived calls for a series of wide-ranging parliamentary reforms ahead of the new Parliament session expected to convene in May.
Out of his 12 proposals to create a ‘first-world Parliament’, seven were the same which he had made after the 2004 general election. The 2004 polls marked his comeback to Parliament after a five-year hiatus.
"The political tsunami of the March 8 general election is an unmistakable mandate and demand for far-reaching changes in Malaysia after 50 years of nation-building, including the creation of a vibrant, vigorous and truly representative first-world Parliament," he said in a statement today.
Topping the list are the previous calls for:
- Live telecast of parliamentary proceedings
- Daily two-hour question time
- Opposition MP heading the Public Accounts Committee (tasked to ensure government’s money is well-spent)
- Some 30 specialist parliamentary select committees with a select committee for every ministry
- About 10 general parliamentary select committees to produce annual reports on progress, trends and recommendations on national integrity, IT, women’s agenda, environment, mass media, corruption etc.
- Allocation of certain days a week specifically to deal with opposition business.
- Research and constituency staffing for MPs.
While the newly-included proposals are:
- prime minister’s question time twice a week
- An opposition deputy speaker
- Modernisation and democratisation of standing orders
- Code of ethics for all MPs
- Ministers’ parliamentary code of conduct
Slow pace of reforms
Among Lim’s suggestions, the daily question time was extended by 30 minutes to one-and-a-half hours during the last Parliament sitting while several select committees have been set up.
The select committees include one to review the controversial amendments to the Penal Code and Criminal Procedure Code, on national integrity, national unity and national service.
Lim, who has been the Parliamentary Opposition Leader since 1973 except for the term of 1999-2004, retained his Ipoh Timor parliamentary seat in the last election with a thumping 21,942-majority votes after defeating BN-MCA’s Liew Mun Hon.
However, with the March 8 election results, Lim and two other main opposition party leaders have decided to support PKR president and Permatang Pauh MP Dr Wan Azizah Wan Ismail as the new Parliamentary Opposition Leader.
In the just-concluded general election, PKR won 31 parliamentary seats, while DAP holds 28 and PAS 23.
According to tradition, the leader is selected from the opposition party with the most number of seats but based on consensus among all the parties involved.
Wan Azizah is expected to hold the post until her husband and PKR de facto leader Anwar Ibrahim’s ban from active politics is lifted mid-April and re-elected to Parliament.
"DAP MPs and I will give full support to Wan Azizah and the Minister in the Prime Minister’s Department Nazri Abdul Aziz who is now fully responsible for parliamentary affairs, to turn the Malaysian Parliament into a first-world Parliament - as it is better to be late than never," said Lim.
Opposition leader and DAP Ipoh Timor MP Lim Kit Siang has revived calls for a series of wide-ranging parliamentary reforms ahead of the new Parliament session expected to convene in May.
Out of his 12 proposals to create a ‘first-world Parliament’, seven were the same which he had made after the 2004 general election. The 2004 polls marked his comeback to Parliament after a five-year hiatus.
"The political tsunami of the March 8 general election is an unmistakable mandate and demand for far-reaching changes in Malaysia after 50 years of nation-building, including the creation of a vibrant, vigorous and truly representative first-world Parliament," he said in a statement today.
Topping the list are the previous calls for:
- Live telecast of parliamentary proceedings
- Daily two-hour question time
- Opposition MP heading the Public Accounts Committee (tasked to ensure government’s money is well-spent)
- Some 30 specialist parliamentary select committees with a select committee for every ministry
- About 10 general parliamentary select committees to produce annual reports on progress, trends and recommendations on national integrity, IT, women’s agenda, environment, mass media, corruption etc.
- Allocation of certain days a week specifically to deal with opposition business.
- Research and constituency staffing for MPs.
While the newly-included proposals are:
- prime minister’s question time twice a week
- An opposition deputy speaker
- Modernisation and democratisation of standing orders
- Code of ethics for all MPs
- Ministers’ parliamentary code of conduct
Slow pace of reforms
Among Lim’s suggestions, the daily question time was extended by 30 minutes to one-and-a-half hours during the last Parliament sitting while several select committees have been set up.
The select committees include one to review the controversial amendments to the Penal Code and Criminal Procedure Code, on national integrity, national unity and national service.
Lim, who has been the Parliamentary Opposition Leader since 1973 except for the term of 1999-2004, retained his Ipoh Timor parliamentary seat in the last election with a thumping 21,942-majority votes after defeating BN-MCA’s Liew Mun Hon.
However, with the March 8 election results, Lim and two other main opposition party leaders have decided to support PKR president and Permatang Pauh MP Dr Wan Azizah Wan Ismail as the new Parliamentary Opposition Leader.
In the just-concluded general election, PKR won 31 parliamentary seats, while DAP holds 28 and PAS 23.
According to tradition, the leader is selected from the opposition party with the most number of seats but based on consensus among all the parties involved.
Wan Azizah is expected to hold the post until her husband and PKR de facto leader Anwar Ibrahim’s ban from active politics is lifted mid-April and re-elected to Parliament.
"DAP MPs and I will give full support to Wan Azizah and the Minister in the Prime Minister’s Department Nazri Abdul Aziz who is now fully responsible for parliamentary affairs, to turn the Malaysian Parliament into a first-world Parliament - as it is better to be late than never," said Lim.
BN MP quits, may join PKR
Mar 20, 08 4:47pm
Serian MP Richard Riot from Sarawak has resigned from Supp along with many party members from his constituency after he was not appointed a deputy minister in the federal cabinet.
Richard, a Bidayuh, is a five-term MP for Serian. He first won the seat as an Independent in 1990 and joined predominantly Chinese Supp in order to keep his seat as a BN legislator as Serian is a traditional Supp seat.
Richard submitted his resignation letter to Supp president Dr George Chan Hong Nam on the same day that Prime Minister Abdullah Ahmad Badawi announced his new cabinet line-up on Tuesday.
A veteran party member, acting as a spokesperson for the Serian MP, confirmed to Malaysiakini rumours that Richard had quit the party along with a number of his supporters and members of the five sub-branches of the Serian Supp branch. Each sub-branch has more than 1,000 members.
Requesting anonymity, the spokesperson said after the letter was submitted to Chan, the party president sent his secretary-general Sim Kheng Hui to Serian hoping to meet Richard and talk him out of it.
"But Richard was nowhere to be found," he added.
According to the spokesperson, many party members in Serian, mostly Bidayuh, had surrendered their membership cards and sent them all in a bag to the party president together with the resignation letter.
The party flags at the Serian branch office had also been taken down and burned by angry members.
No Dayak interests at heart
In the letter, Richard was said to have told Chan, who is one of Sarawak's two deputy chief ministers, that the party did not have Dayak interests at heart.
Chan was accused of engaging in a musical chair by putting up four names from the party to be considered by the prime minister when in fact he had already known the quota for the party was only three - one full minister and two deputy ministers.
The four names were Peter Chin, Miri MP, Robert Lau, Sibu MP, Yong Khoon Seng, Stampin MP and Richard Riot.
Richard won the just-concluded election for a fifth term with an impressive 13,427-vote majority, defeating his sole Snap opponent Sylvester Belayong Jayang. The Serian parliamentary seat has 27,901 registered voters, 80 percent of whom are Bidayuhs.
The constituency is about 60km southeast of Kuching.
With his resignation, Supp is now left with five MPs, having lost one to DAP incumbent Chong Chieng Jen in Bandar Kuching. All the remaining five MPs are Chinese.
Richard could not be immediately contacted but his spokesperson told Malaysiakini he had already returned to his kampung and would not receive any visitor from his previous party.
He is expected to be an Independent MP in Parliament although there are reports that he has shown interest in joining PKR.
Serian MP Richard Riot from Sarawak has resigned from Supp along with many party members from his constituency after he was not appointed a deputy minister in the federal cabinet.
Richard, a Bidayuh, is a five-term MP for Serian. He first won the seat as an Independent in 1990 and joined predominantly Chinese Supp in order to keep his seat as a BN legislator as Serian is a traditional Supp seat.
Richard submitted his resignation letter to Supp president Dr George Chan Hong Nam on the same day that Prime Minister Abdullah Ahmad Badawi announced his new cabinet line-up on Tuesday.
A veteran party member, acting as a spokesperson for the Serian MP, confirmed to Malaysiakini rumours that Richard had quit the party along with a number of his supporters and members of the five sub-branches of the Serian Supp branch. Each sub-branch has more than 1,000 members.
Requesting anonymity, the spokesperson said after the letter was submitted to Chan, the party president sent his secretary-general Sim Kheng Hui to Serian hoping to meet Richard and talk him out of it.
"But Richard was nowhere to be found," he added.
According to the spokesperson, many party members in Serian, mostly Bidayuh, had surrendered their membership cards and sent them all in a bag to the party president together with the resignation letter.
The party flags at the Serian branch office had also been taken down and burned by angry members.
No Dayak interests at heart
In the letter, Richard was said to have told Chan, who is one of Sarawak's two deputy chief ministers, that the party did not have Dayak interests at heart.
Chan was accused of engaging in a musical chair by putting up four names from the party to be considered by the prime minister when in fact he had already known the quota for the party was only three - one full minister and two deputy ministers.
The four names were Peter Chin, Miri MP, Robert Lau, Sibu MP, Yong Khoon Seng, Stampin MP and Richard Riot.
Richard won the just-concluded election for a fifth term with an impressive 13,427-vote majority, defeating his sole Snap opponent Sylvester Belayong Jayang. The Serian parliamentary seat has 27,901 registered voters, 80 percent of whom are Bidayuhs.
The constituency is about 60km southeast of Kuching.
With his resignation, Supp is now left with five MPs, having lost one to DAP incumbent Chong Chieng Jen in Bandar Kuching. All the remaining five MPs are Chinese.
Richard could not be immediately contacted but his spokesperson told Malaysiakini he had already returned to his kampung and would not receive any visitor from his previous party.
He is expected to be an Independent MP in Parliament although there are reports that he has shown interest in joining PKR.
Khir Toyo quits all posts
Mar 19, 08 10:25pm
Former Selangor Menteri Besar Mohd Khir Toyo has relinquished his posts as the state’s Umno and Barisan Nasional chief.
This is the second resignation by a senior Umno leader in just a day. The first to call it quits was Umno Secretary-General Radzi Sheikh Ahmad who made his announcement this morning. Radzi also resigned as Barisan Nasional secretary-general.
"I assume responsibility for the heavy (electoral) loss suffered by Umno and BN in Selangor and therefore resign from my posts with immediate effect," Khir told a packed press conference held at the Umno office in Shah Alam.
When asked if he thought that his decision was hasty, a sombre Khir said that if he was to delay his resignation, trouble would brew in Umno ranks.
"This will lead to divisions in the party. I notice that there is already a blame game (for the Umno’s electoral losses) among party members. To prevent this, I assume full responsibility over the loss.
"My resignation is in accordance to my belief that a leader must take full responsibility. This is the best thing to do for Selangor," he said.
Khir is the first Umno leader to quit and claim responsibility for the heavy defeat suffered by Umno and BN in the March 8 polls.
Muhammad returns
Selangor had for the first time in Malaysian politics fallen into opposition hands following the 12th general election results that saw the opposition grabbing 36 out of the state’s 50 seats.
Khir, however, had managed to survive the opposition onslaught and retained his Sungai Panjang state seat with a 5,828 majority - 368 more votes than what he had garnered at the 2004 polls.
"I apologise to Selangor Umno members. I promise that I will do my best to cooperate with the new leadership and wrest the state back from the opposition (current government)," he said.
Khir denied being pressured to resign saying that his quit decision was "... based on my own conscience".
Khir said that he had met Umno president Abdullah Ahmad Badawi as well as deputy president Najib Razak two days ago to tender his resignation letter.
He said both leaders had accepted his decision with his replacement being former Selangor menteri besar Muhammad Muhammad Taib who has also been appointed to Abdullah’s new cabinet as rural and regional development minister.
"I will support and I also urge all Selangor Umno members to show undivided loyalty to the new leadership and be focused on winning back the state in the coming polls," Khir said.
"This is no time for quarrels and I call on every on every party member to be united," he added.
Muhammad Muhammad Taib, who was at the press conference, declined to comment when approached by reporters.
Former Selangor Menteri Besar Mohd Khir Toyo has relinquished his posts as the state’s Umno and Barisan Nasional chief.
This is the second resignation by a senior Umno leader in just a day. The first to call it quits was Umno Secretary-General Radzi Sheikh Ahmad who made his announcement this morning. Radzi also resigned as Barisan Nasional secretary-general.
"I assume responsibility for the heavy (electoral) loss suffered by Umno and BN in Selangor and therefore resign from my posts with immediate effect," Khir told a packed press conference held at the Umno office in Shah Alam.
When asked if he thought that his decision was hasty, a sombre Khir said that if he was to delay his resignation, trouble would brew in Umno ranks.
"This will lead to divisions in the party. I notice that there is already a blame game (for the Umno’s electoral losses) among party members. To prevent this, I assume full responsibility over the loss.
"My resignation is in accordance to my belief that a leader must take full responsibility. This is the best thing to do for Selangor," he said.
Khir is the first Umno leader to quit and claim responsibility for the heavy defeat suffered by Umno and BN in the March 8 polls.
Muhammad returns
Selangor had for the first time in Malaysian politics fallen into opposition hands following the 12th general election results that saw the opposition grabbing 36 out of the state’s 50 seats.
Khir, however, had managed to survive the opposition onslaught and retained his Sungai Panjang state seat with a 5,828 majority - 368 more votes than what he had garnered at the 2004 polls.
"I apologise to Selangor Umno members. I promise that I will do my best to cooperate with the new leadership and wrest the state back from the opposition (current government)," he said.
Khir denied being pressured to resign saying that his quit decision was "... based on my own conscience".
Khir said that he had met Umno president Abdullah Ahmad Badawi as well as deputy president Najib Razak two days ago to tender his resignation letter.
He said both leaders had accepted his decision with his replacement being former Selangor menteri besar Muhammad Muhammad Taib who has also been appointed to Abdullah’s new cabinet as rural and regional development minister.
"I will support and I also urge all Selangor Umno members to show undivided loyalty to the new leadership and be focused on winning back the state in the coming polls," Khir said.
"This is no time for quarrels and I call on every on every party member to be united," he added.
Muhammad Muhammad Taib, who was at the press conference, declined to comment when approached by reporters.
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