Umno tapped ‘friends’ for RM1.6 million injection to Utusan, says source

SM Amin SM Amin Updated 6 years ago · Published on 24 Aug 2019 8:30PM · 2 Comments

A view of Utusan Malaysia's news floor at its offices on Jalan Chan Sow Lin in Kuala Lumpur. – The Malaysian Insight pic by Hasnoor Hussain, August 24, 2019.

UMNO’S RM1.6 million injection to enable Utusan Melayu Bhd pay staff a RM2,000 advance each came from “friends of the party”, a party source said.

Umno itself couldn’t have come up with the funds, as it is having difficulties sustaining party operations, the source added.

Its bank accounts remain frozen since last year as part of anti-graft investigations into the 1Malaysia Development Bhd (1MDB) scandal.

So, while party secretary-general Annuar Musa had said Umno’s hands were tied over Utusan’s financial predicament, party president Ahmad Zahid Hamidi was able to muster some “friends” to pool the funds that were used to pay Utusan staff RM2,000 each for their owed salaries, the source said.

“It’s not that Umno doesn’t care about Utusan’s problems. Even though Umno has sold most of its shares in Utusan, the party is still following developments.

“The problem is, we really are not in a position to help. We don’t have much money at all. The RM1.6 million we had to ask friends of the party to help,” the source said but declined to reveal who had contributed.

The RM2,000 advance was paid out on Tuesday night, after the paper’s management held a town hall with staff.

Utusan’s National Union of Journalists’ branch chief Mohd Taufek Razak said it had come from Umno coffers.

He said the money came after Umno president Ahmad Zahid Hamidi met Utusan directors.

The payout was made a day after Utusan staff held a picket to protest against salaries that were unpaid from June, as well as delayed payments for 800 former staff who had taken a voluntary separation scheme (VSS) from the beleaguered newspaper.

Party secretary-general Annuar had said if Umno’s accounts were unfrozen, the party could use RM200 million immediately to help the country’s oldest Malay newspaper.

Annuar said Umno had no means to help Utusan after selling its share to private entities parties since February.

In February, Umno gave up its control over Utusan when it sold its 31.6% stake in the paper, or 35 million shares, to Opulence Asia Sdn Bhd.

Opulence Asia is fully owned by former Umno MP Abd Aziz Sheikh Fadzir, who is now Utusan’s largest shareholder and the group’s executive chairman. – August 24, 2019.

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Comments

  • Very nice sympathetic story.. umno would have won the hearts of all Utusan employees.

    Posted 6 years ago by Kampung Boy · Reply

  • The stories of three friends dumno, mca & mic, each has its respective mouth piece either direct or indirect representation. MIC tamil nesan's were the first to closed shop last February and Utusan is huge financial crisis with possibilities of closure on the horizon. The Star on the hand is riding high and why is that? The Star beside answerable to the the political master they are in full control of running the business ensuring the revenue streams and paper circulation are in check. They are aware of the new media coming into play and abreast to it. I guess funding was during its initial stage and thereafter they have to be on their own two feet to stay in the business. So Utusan don't be a cry baby of what has taken shape as its the management who has taken things for granted all these while on their cushion sofa's with their blind loyalty to the political masters. Not too mentioned having employed fat earning people injected there doing nothing. To the heart beat workers of Utusan hope you are able to cope with this.

    Posted 6 years ago by Teruna Kelana · Reply