The scheme is named after Charles Ponzi (March 3, 1882 – January 18, 1949),recognised as one of the greatest swindlers in American history. A Ponzi scheme is a fraudulent investment operation destined to collapse because the earnings, if any, are less than the payments.
The perpetuation of the returns that a Ponzi scheme advertises and pays requires an ever-increasing flow of money from investors in order to keep the scheme going. Read here for more
Bernard Madoff, the orchestrator of a massive, long-running Ponzi scheme that snared thousands of victims, from the rich and famous to small investors who entrusted their life savings to him, pleaded guilty on Mar. 12, 2009 to 11 charges related to the fraud in a packed federal courthouse in Manhattan. He was sentenced to the maximum 150 years behind bars for what his judge called an "extraordinarily evil" fraud that shook the nation's faith in its financial and legal systems and took "a staggering toll" on rich and poor alike. Read here for more
The Dismantling of the 30% Rule (NEP)
Datuk Mohd.Ariff Sabri bin Hj. Abdul Aziz aka "Sakmongkol AK47"
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The NEP created 2 groups of Malays.
- The 30% faction turned out to be largely RENT SEEKERS.
- The second group, which took the slower route of progress, were actually the people who ACTUALLY WORKED to gain benefits.
- One secured benefits by being WHO and WHAT THEY ARE
- The other group secured benefits by offering what THEY CAN ACHIEVE.
The ones suffering (from the dismantling of the 30% quota) will be those who have benefited by taking a joy and free ride enjoying the status of BUMIPUTERA.
The NEP (especially the 30% equity rule) is essentially a giant, legalised PONZI scheme.
Since the NEP was carried out, in the name of the NEP, in the name of "Melayu tak akan hilang di dunia" , RM54 billion worth of equity ownership has been given to BUMIPUTERAS.
Who were these BUMIPUTERAS? The refined term used presently- the FIRST-TIER BUMIPUTERAS.
It has created a super rich section of the Malay community.
I salute the PM for dismantling this 30% myth of Malay ownership of Malaysia's wealth. If it has not worked, cut our political losses and abandon them. Clearly, the policies have not been functioning well.
Inter ethnic wealth differences are widening. Intra ethnic income differences are worse among the Malays.
We can infer many things from the outcome of various economic policies. By and large, the Malay administrative elite have not helped out the majority Malays.
The POLITICAL ELITE have been feathering their own nests.
Just look at the GINI coefficients. The facts speak for themselves. Res ipsa loquitur("the thing speaks for itself.")
What has happened to the RM 54 Billion?
- Our PM has been forthcoming in this- out of that figure only RM 2 Billion remained.
- Those BUMIPUTERAS once holding the RM52 billion have left the building. They sold or the softer term- cashed out. This behaviour, as some contend, is perfectly rational.
The NEP was designed to help Bumis acquire 30% equity- but the policy, these people claimed, never demanded they retain it. They had it and cashed out. The problems start when the very same people want the opportunities AGAIN - for THEMSELVES, (and) for their successors.
- actual ownership of the businesses and
- a willingness to defer present gratification.
They refuse to confer ownership on their writings and therefore attach no conscientious responsibility over them. So they babi here and babi there.(Read here and here on the "babi name calling " )
95% of those who received government largesse wanted to exercise immediate gratification- more cars, houses and more wives. They want to drive in Ferraris, Jags, Mercs and Aston Martins.
Who are these selected few? Various euphemistic terms have been given to them- first tier, top tier, perhaps later, maal hijrahbusiness stars.
We know them simply as rent seekers and rent collectors. It was easy for them to jettison their shares because they got it gratis. Easy come, easy go. That is also perfectly rational behaviour.
We have another plain term for them. The bumiputera means just that- "Putera di depan, Bumi dibelakang."
These puteras in front- PUTERA BANGSAWAN, PUTERA PIMPINAN UMNO, the genetic elite, the inducted elites and so forth. The rest which forms the majority are left belakang- behind.
Just like the oppressed natives spoken about by Franz Fanon, the majority BUMIPUTERAS shout- cracy—cracy—while the elite say it loud and proud- democracy. The elite know what democracy means- the chance to enrich themselves at the expense of the majority herd.
Indeed, what the majority were shouting and mimicking were words sounding more like kasi-kasi-kasi (not give) but neuter, neuter. They, the majority have been neutered.
What are the positive effects of the NEP on the Malays?
It has been successful in so far as it has created the real basis for wealth creation. These include better education, better job opportunities, improvements in agriculture, better standard of living for Malays.
The all round improvements cannot however be attributed to the NEP alone especially the 30% equity rule.
Maybe it is the outcome of the exercise in normal government responsibilities. It is the nature of government to provide the framework within which, economic actors act on them. They gained by being active and never passive.
The majority Malays are not going to lose sleep over the abolition of the 30% quota rule.