Wednesday, January 27, 2010

4 MAIN REASONS why HASSAN CONTRACT NOT RENEWED.

As it is widely known,PM Najib did not renewed the contract of Hassan Merican as CEO and Chairman of Petronas. They are 4 main reasons for it and it is as follows:-

Firstly, Hassan is NO "YES MAN". He is very independent in making decisions for the good of Petronas and he does not take any NONSENSE from politicians especially those from UMNO. For this he DOES NOT SEE EYE TO EYE with Najib and he has step on the toes of many Umno politicians. Because of his independence Petronas have become the only Fortune 500 company from Malaysia. The ONLY THING PAK LAH DID CORRECTLY during his time as PM is to leave Hassan and Petronas ALONE.

Secondly,Hassan objected Najib nomination of Omar Ong as a director of Petronas because Omar Ong defaulted on a study loan from Petronas. As Petronas come under the PM Dept,the PM have the final say and Omar Ong was appointed as a director.

Thirdly, Hassan made one of the best commercial decision for Petronas by sponsoring Mercedes F1 team instead of Tony Fernandes Lotus F1 team which have the backing of Najib. This sponsorship into a championship winning team was enhanced when Michael Shumacher signed for Mercedes.Furthermore,Mercedes will use Petronas Syntium lubricants for all mercedes cars in India,Turkey and China.It will not be surprising if Mercedes and Shumacher win the 2010 F1 championship with the racing package it has. It is also not surprising to see Lotus not winning and close shop after the 2010 F1 season due to financial difficulties as Lotus was expecting sponsorship from Petronas of US 85 Million to finance their F1 season.

Fourthly, as long as Hassan is in Petronas,he is an obstacles and a hindrance to Najib when Najib make decisions and policy in Petronas base on political consideration to consolidate his power.

Finally ,it is sad that a CEO who did a fantastic job is given the boot whereas a CEO who lost Billions of public money through Khazanah Nasional was given a new 3 year contract. Currently, the govt is on the verge of Bankrupt and Petronas being the richest malaysian company that contribute BILLIONS ANNUALLY (40 percent of govt revenue) to the govt cannot afford to lose this great CEO. In the end, IT IS MALAYSIA LOST BUT NAJIB GAIN.

2 comments:

Wenger Khairy said...

Hi Mr. George,
Could you explain what is called the Petroleum Income Tax on our Governments income statement.

TQ

Anonymous said...

hi there..maybe another reason could be that last year one petronas sponsored student submit a electronic satire on petronas hiring policy and the management wasn't impressed and the student's sponsorship was terminated.maybe the parent of the poor boy prayed to God for justice and walla this is the outcome......maybe...maybe not....