IN the face of dire financial problems after losing the 14th general election in May, Umno is trying to overcome its credit crunch by restructuring its companies as soon as possible, sources said.

This was the message party president Ahmad Zahid Hamidi passed to other leaders at a two-day Umno retreat in Janda Baik over the weekend, a source told The Malaysian Insight.

“He said Umno previously needed close to RM50 million a year to operate nationwide. The money contributed by companies owned by Umno was less than half that amount.

“With the party’s bank accounts frozen by the government, Umno has to do something, including restructuring the companies to fund the party,” the source said.

Zahid did not name the companies nor their contributions, he said.

This is because the stakes held by Umno in the businesses are through nominees who manage these companies.

Umno holds a 19.05% stake in Media Prima Bhd which runs four free-to-air television stations, and several radio stations through Gabungan Kesturi Sdn Bhd and Altima Inc.

But the restructuring at Media Prima could be challenged by larger shareholders, such as Employees Provident Fund and Permodalan Nasional Bhd, which hold a 35.97% stake should there be changes in the board of directors.

Umno also has a 49.77% stake in another media group, Utusan Melayu (M) Bhd, which publishes Malay newspapers Utusan Malaysia, Mingguan Malaysia and Kosmo!

The second largest shareholder in the group with a 14.76% stake is Nilam Setar (M) Sdn Bhd, which is linked to tycoon Syed Mokhtar Al-Bukhary.

Umno has been urged to give up its shares in Utusan Melayu, which is bleeding financially. But Umno appointed former Kulim Bandar Baru MP Abdul Aziz Sheikh Fadzir as its executive chairman on June 7.

The appointment took place two weeks after board chairman Mohamad Fatmi Che Salleh, and four directors – Tengku Sariffuddin Tengku Ahmad, Jamalul Kiram Mohd Zakaria, Mohd Yusof Abu Othman and Md Afendi Hamdan – resigned.

Meanwhile, Umno owns Putrade Property Management Sdn Bhd which manages the Putra World Trade Centre and party headquarters at Menara Dato Onn.

The party also owns KUB Malaysia Bhd that is involved in information, communications, technology, real estate, engineering, construction and the food industry. – August 13, 2018.