[#najibiscrackingup another great article (english and malay version) by Tun M!] JUST JUSTO

[#najibiscrackingup another great article (english and malay version) by Tun M!] JUST JUSTO

1. Some people are very excited about Justo. Now they say the critics of the Prime Minister should apologise. Apologise for what? The fact remains that vast amounts of money has disappeared. Can Justo bring all the money back?

2. Justo was dismissed and Petro Saudi gave him 15 million Ringgit. Is he being bribed or what? That is a handsome amount to pay an employee or director after he had done something wrong. Normally he would just be kicked out. But we are told he is not happy with this amount and demanded for more or else he would leak documents. What is the proof that he tampered with the documents or he has more incriminating documents. How does he negate the fact as admitted by the Prime Minister in a written reply to Parliament? He said that, “a US1.9 billion dollar loan from 1MDB to a subsidiary of Petro Saudi International Limited was in order to reduce the risk on the equity holding.” Giving a loan to a joint-venture partner who was found unsuitable as a JV partner would increase the risk, not reduce it.

3. When the JV was dissolved after only 6 months of its formation, it must be because 1MDB realised that the venture was bad. What it should do is to demand the equity and the loan amounting to US1.9 billion be returned. Instead it was converted into a loan (murabahah).

4. Having given this US1.9 billion loan, where is the money now? The Government has not clarified. Is it in Cayman Islands, or in Singapore or where. That amount of money cannot be shifted around without being recorded by the banks involved. Surely Najib knows. Yet the money has not returned.

5. Even if Justo tampered with the e-mail, it does not alter the fact that 1MDB forked out US1.9 billion to the JV with Petro Saudi, which within 6 months was so worthless that the JV was aborted. And after that the investment and the loan of US700 million was converted to a loan to a partner you no longer believe could deliver through the JV. You had some direct control over a JV, but not over the borrower.

6. So what has all this to do with Justo blackmailing Petro Saudi: N othing.

7. The supporters of the Prime Minister seem unable to understand that 1MDB borrowed 42 billion Ringgit to invest in shady businesses. In the process large amounts of money has disappeared.

8. It is not just about Petro Saudi or the JV. The money has been used to buy IPP at inflated prices. This is wrong. Attempts to sell to Tenaga have only cause Tenaga shares to fall. Unless the IPP are sold at a loss there is no way investments in Edra would give profits. But if the sale is at a loss 1MDB will face problems of paying debts.

9. The restructuring of 1MDB seems to be based on settling the 42 billion Ringgit loan.

10. The money is to come from the sale of TRX and Bandar Malaysian land. 1MDB paid extremely low price for this land. But can 1MDB do so?

11. The London Stock Exchange News Service reported that International Petroleum Investment Company (IPIC), Aabar Investments PJS entered into a binding term sheet with Minister of Finance Inc., Ministry of Finance and 1MDB for the following.
– IPIC on 4 June, 2015 provides US1 billion to 1MDB to utilise immediately to settle certain of its liabilities.
– Also on 4 June ’15 IPIC has assumed the obligation to pay all interest due under two IPIC guaranteed 1MDB financing accounting amounting to US3.5 billion (RM13.3 billion) in aggregate principal amounts.

12. For this takeover of the loans, on 30 June, 2016, IPIC is to receive transfer of assets with aggregate value of an amount which represent the sum of the cash payment (US1 billion or RM3.8 billion), and the assumption of the debt of US3.5 billion or RM13.3 billion.

13. IPIC has met the cash payment and will meet the interim interest payment.
14. Curiously no mention is made of what the 1MDB asset are which will belong to IPIC.

15. What are the possible assets? If it is the power plants or the land, it would mean that these assets no longer belong to 1MDB to sell. So how does 1MDB recover the RM42 billion it had borrowed?

16. Is Justo going to reveal there is anything worse than what the London Stock Exchange has revealed? So who needs to apologise?

VERSI BM

1. Sesetengah orang sangat teruja dengan Justo. Sekarang mereka mengatakan pengkritik Perdana Menteri perlu meminta maaf. Meminta maaf untuk apa? Hakikatnya sejumlah besar wang telah hilang. Bolehkah Justo membawa kembali semua wang itu?

2. Justo telah dihenti kerja dan Petro Saudi memberinya 15 juta Ringgit. Adakah dia disogok (dirasuah) atau apa? Itu satu jumlah yang lumayan untuk dibayar kepada seseorang pekerja atau pengarah selepas dia telah melakukan perkara yang salah. Biasanya beliau ini akan ditendang keluar sahaja. Tetapi kita diberitahu dia tidak berpuas hati dengan jumlah ini dan menuntut untuk dibayar lebih, kalau tidak dia akan bocor dokumen. Apa buktinya yang dia mengubah meminda dokumen atau dia mempunyai dokumen yang lebih membabitkan. Bagaimana dia dapat menyangkal fakta seperti yang diakui oleh Perdana Menteri dalam jawapan bertulis kepada Parlimen? Beliau telah berkata, “Pinjaman US1.9 bilion dolar dari 1MDB kepada sebuah anak syarikat Petro Saudi International Limited adalah untuk mengurangkan risiko pada pegangan ekuiti.” Memberi pinjaman kepada rakan usaha sama yang didapati tidak sesuai sebagai rakan usaha sama akan meningkatkan risiko, bukan mengurangkannya.

3. Apabila usaha sama (JV) telah dibubarkan selepas hanya 6 bulan ditubuhkan, ia mestinya kerana 1MDB sedar bahawa usaha itu tidak baik. Apa yang perlu dilakukan adalah untuk menuntut ekuiti dan pinjaman berjumlah US1.9 bilion itu dikembalikan. Sebaliknya, ia telah ditukar menjadi pinjaman (murabahah).

4. Setelah memberi pinjaman US1.9 bilion ini, di mana wang ini sekarang? Kerajaan tidak memperjelaskan. Adakah di Kepulauan Cayman, atau di Singapura atau di mana? Wang sejumlah ini tidak boleh dipindahkan ke sana sini tanpa direkodkan oleh bank-bank yang terlibat. Pasti Najib mengetahui. Namun wang tidak dikembalikan.

5. Jika sekali pun Justo telah meminda mengubah e-mel, ini tidak mengubah hakikat bahawa 1MDB mengeluarkan US1.9 bilion kepada usaha sama dengan Petro Saudi, yang dalam tempoh 6 bulan sahaja didapati tidak begitu bernilai dan usaha sama tersebut telah digugurkan. Dan selepas itu pelaburan dan pinjaman sebanyak US700 juta telah ditukar kepada pinjaman bagi rakan kongsi ini yang tidak boleh anda memperpecayai lagi untuk menjayakan sesuatu melalui usaha sama ini. Anda mempunyai beberapa kawalan langsung ke atas rakan usaha sama tetapi tidak atas peminjam.

6. Jadi apa yang kena mengena semua ini dengan Justo memeras ugut Petro Saudi: Tidak ada apa-apa.

7. Penyokong-penyokong Perdana Menteri nampaknya tidak dapat memahami bahawa 1MDB meminjam 42 bilion Ringgit untuk melabur dalam perniagaan yang diragukan. Dalam proses ini jumlah wang yang banyak telah hilang.

8. Ianya bukan sahaja mengenai Petro Saudi atau usaha sama. Wangnya telah digunakan untuk membeli IPP pada harga yang dipertinggikan. Ini adalah salah. Percubaan untuk menjual kepada Tenaga hanya menyebabkan saham Tenaga jatuh. Kecuali IPP ini dijual dengan kerugian, tidak ada jalan pelaburan dalam Edra akan memberi keuntungan. Tetapi jika penjualan itu adalah pada paras kerugian, 1MDB akan menghadapi masalah membayar hutang.

9. Penyusunan semula struktur 1MDB nampaknya berdasarkan penyelesaian pinjaman 42 bilion Ringgit.

10. Wang ini akan datang daripada jualan tanah TRX dan Bandar Malaysia. 1MDB membayar harga yang amat rendah bagi tanah ini. Tetapi bolehkah 1MDB berbuat demikian?

11. Bursa Saham London News Service melaporkan bahawa International Petroleum Pelaburan Syarikat (IPIC), Aabar Investments PJS telah memeterai “a binding term sheet” dengan Menteri Kewangan Diperbadankan, Kementerian Kewangan dan 1MDB untuk yang berikut.
– IPIC pada 4 Jun 2015 memperuntukkan US$1 bilion kepada 1MDB untuk digunakan dengan serta-merta untuk menyelesaikan liabilitinya yang tertentu.
– Juga pada 4 Jun 2015 IPIC telah mengambil alih tanggungjawab untuk membayar semua faedah yang kena dibayar oleh 1MDB di bawah dua perakaunan pembiayaan yang dijamin oleh IPIC berjumlah US3.5 bilion (RM13.3 bilion) dalam jumlah prinsipal agregat.

12. Bagi pengambilalihan pinjaman ini, pada 30 Jun, 2016, IPIC akan menerima pemindahan aset dengan nilai agregat jumlah bersamaan dengan jumlah pembayaran tunai (US$1 bilion atau RM3.8 bilion), dan pengambilalihan hutang US3.5 bilion atau RM13.3 bilion.

13. IPIC telah memenuhi pembayaran tunai dan akan memenuhi pembayaran faedah interim.

14. Agak menghairankan tidak disebut apakah aset 1MDB yang akan menjadi milik IPIC.

15. Apakah kemungkinan bentuk aset itu? Jika ia adalah loji kuasa atau tanah itu, ini bermakna aset-aset ini tidak lagi dipunyai oleh 1MDB untuk dijual. Jadi bagaimana 1MDB hendak mendapatkan balik RM42 bilion yang telah dipinjam?

16. Adakah Justo akan mendedahkan perkara yang lebih teruk daripada apa yang telah didedahkan oleh Bursa Saham London?

Jadi yang perlu diminta maaf?

source : chedet

[#najibiscrackingup] What people know about 1MDB – PetroSaudi ‘assets’

[#najibiscrackingup] What people know about 1MDB – PetroSaudi ‘assets’

 

From around the blogs, there are people who had dig deeper into the dubious agreement 1MDB had made with PetroSaudi back in September 2009.

After it was exposed that 1MDB had to fork out huge sums of money to PetroSaudi in return for some highly doubtful assets, Petrosaudi by 1MDB’s own admission, indeed did not pay a single sen for the joint venture.

Some even question the assets which PetroSaudi had put down as equity in the joint venture company with 1MDB.

Information gathered from the public domain had pointed out that the assets – the oil exploration rights claimed to be owned by PetroSaudi are shady in nature i.e., they may not belonged to PetroSaudi at all.

Excerpts from article – Rubbishing 1MDB’s Rebuttal by Wenger J. Khairy:

The second issue relates to the investment rationale behind the PetroSaudi Joint Venture.

1MDB claims 1MDB’s contribution was in cash, whereas PetroSaudi’s contribution was in independently valued assets worth US$2.7 billion.

What rubbish! The exploration rights for the block in question – Offshore Block III in Turkmenistan – was given to a subsidiary of Canadian exploration firm Buried Hill Enterprise and not Petrosaudi.

So 1MDB was investing in a company without any real assets, consistent with what Dr Mahathir was saying that PetroSaudi did not pay a single cent!

Note: the writer listed out four issues to rubbish 1MDB’s press statement it made last week and all four are equally damning towards 1MDB.

Another excerpt from – 1MDB Turkmenistan Fact or Fancyby Freddie Kevin:

What exactly does “rights to oil fields” mean?

It is Production Sharing Agreements (PSA) that has true value.

I have searched and never found any reference to Petrosaudi having any interest in the oil and gas industry of Turkmenistan or vice versa.

The US-Turkmenistan Business Council is a Washington, DC based non-profit organization that promotes commercial relations between the United States and Turkmenistan. A publication dated 3/10/2009here does not mention any Saudi based company, onshore or offshore.

Why would or rather why should 1MDB be a party in a joint-venture with Petrosaudi, whose presence in Turkmenistan is doubtful and which Petronas had already made inroads 13 years before?

U.S. Department of State in its Executive Summary on Turkmenistan in 2014 here (Note: the US-Turkmenistan Business Council publication above must have been the U.S. Dept of State Executive Summary 2009) also does not mention any Petrosaudi presence.

By 2014, the offshore PSA had increased to six with Petronas still in the mix,

In addition, there are six PSAs for offshore operations: Block I operated by Petronas of Malaysia; Block II (Cheleken Contractual Territory) operated by Dragon Oil (UAE); Block III operated by Buried Hill (Canada); Blocks 11 and 12 operated jointly by Maersk Oil of Denmark and Wintershall of Germany; Block 23 operated by RWE of Germany; and Block 21 operated by Itera of Russia.

And still no mention of Petrosaudi or Saudi presence.

So what Petrosaudi “rights to oil fields” in Turkmenistan is 1MDB crowing about that is worth USD2.7 billion (together with Argentina) when it seems to be non-existent?

Clearly, this joint venture started with some imaginary assets in 2009 and ended with some assets nicknamed as ‘units’ in the Cayman Islands.

And how did the external auditors labeled these units in the Caymans? They are labeled to be the lowest form of assets called, the “level 3 assets”. They are defined as:

“Financial assets and liabilities whose values are based on prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement. Level 3 assets trade infrequently, as a result there are not many reliable market prices for them. Valuations of these assets are typically based on management assumptions or expectations.”

The scandal that is surrounding 1MDB can never be covered by the people who are busy defending it. The stink emanating from this gigantic pile of debts can be smelled everywhere. It is heartening to see that the only people who still see nothing wrong with 1MDB are people who are paid to defend it, or people who have self-interests in maintaining their own position.

Hence, their methods of defending 1MDB are mostly in the form of character attacks towards its critics. Salleh Said Keruak and his incessant, nonsensical ululation immediately comes to mind.

The Member of Parliament from Raub succinctly put matters into perspective in his article dated 1st June 2015 – Digging Holes and Moving Earth. Here are the excerpts:

There was fraud from the beginning. The JV with Petro Saudi was an act to swindle money from Malaysia. It would appear that people in 1MDB made that fraud possible. That would suggest complicity.

Money was paid into a shell company. Money was transferred into an account belonging to another person. The amount was slightly more than USD1 billion.

The amount made the earth moved under somebody’s feet. From then on, in an attempt to cover up, more financial holes were created that got 1MDB into deeper shit. The earth was indeed moved when more holes were dug.

I hear some accountants say the value of the assets owned by 1MDB is around RM20 billion only and never got close to RM51 billion as claimed. The figures were massaged to make them appear comforting.

The liabilities- loans, bonds, derivative loans amount to RM49billion. If that is so, then, 1MDB is really RM30 billion in the red. The value of its assets if fully liquidated can never cover the loss. In the end, the government will have to bail it out.

1MDB cannot shake off the perception that it’s now insolvent. It claims it has assets but yet cannot repay its loans. How can it service its interests on loans that many amount to RM2 billion a year? Will it able to honour the value of its bonds when they mature?

Clearly, the PM as the final authority over 1MDB’s transactions is panicking. He will not cause this problem to go away by listing out the wrongs created by Mahathir. He should know two wrongs do not make a right.

He is equally liable over what Mahathir did because he was also on the ship that Mahathir commanded. He too made hay while the Mahathir sun shone.

He is not fooling the people any longer. The wrongs created by 1MDB will never be erased even if Jho Low returned the money or if the PM forces GLCs to buy 1MDB’s assets at overpriced values, or sell down 1MDB’s assets. These after the fact measures will never erase wrongdoings, embezzlement, CBTs and all that.

Let’s take an example. When Felda bought over hotels in London by paying an extra RM100 million, that overpayment is not excused by saying- don’t worry, the cost including that extra RM100 million has been recovered as a result of better business. The hotel business is booming and revenue is increasing.

Even if all the cost is recovered, the fact that RM100 million was artificially created clearly with the intention to defraud Felda, the wrongful act, will not go away. Fraud was committed and it’s not erased by later events. If business if good, then it’s fortuitous.

Same as in the case of 1MDB. Fraud, embezzlement, cheating, dishonest dealings are not erased even when all the total costs are recovered.

I hope these people understand all these. Wrongs are not corrected by after the fact fortuitous events and deceptive measures.

It appears that this is what is happening at the very moment. The Arabs which 1MDB paid off to forfeit their option to buy up to 49% of businesses to be listed by 1MDB now becomes the white knight to help 1MDB? The second finance minister has no shame to announce that help has come from this white knight.

Then we urge him to be brave and tell the public the terms and conditions of the help given by the Arabs. Which arm and leg do we give up? The terms and conditions can be expected to be onerous since having paid off the ah long, it seems they are the only financier willing to touch 1MDB which has since become a leper. Surely they will demand more onerous terms since they know that 1MDB has no one else and 1MDB is in distress!

Arul Kanda may have disappeared for a few days running back to his former employers, asking for help while denigrating Najib and the stupid Malaysians at the same time.

Jho Low was probably in town to meet up PM Najib to tell the latter that he is making steps to reimburse the money he has taken. That will allow PM to later declare that he has fully recovered the money that went to Good Star Limited.

You might also want to read:

1) 1MDB money trail
2) 1MDB – background on the JV Co with PetroSaudi
3) PetroSaudi’s US$1.5 billion assets non-existent

Source : jebatmustdie

[#najibiscrackingup hot and interesting article to read!] 1MDB – the dishonesty and the deceit

[#najibiscrackingup hot and interesting 

article to read!] 1MDB – the dishonesty 

and the deceit

 

We have always believed that those who defended 1MDB, in order to protect their own position
or self interests, or simply being paid to do it, will lose their credibility and integrity eventually.

And it is sad that those who defending them would resort to evading questions, indulging in
dishonesty and telling lies.

For the past couple of weeks, one by one these people are exposed.

We take from the most recent:

1) Contradictory answers in Parliament by Finance Ministry and 1MDB:

1MDB won’t confirm what they were doing with the 

money they received

1MDB today said its USD150 million (RM556 million) loan from Finance Ministry-owned
Export-Import Bank of Malaysia (Exim) were utilised, but did not specify details.

THIS DOES NOT INSPIRE CONFIDENCE AT ALL

In a press release, 1MDB president Arul
Kanda said the proceeds were used in
accordance to the terms of agreement, which
is to: “finance the general corporate purposes
including but not limited to the working capital
requirements, future capital expenditures and
equity infusion of the energy business within
the 1MDB group of companies”. (In other words: 
bla bla bla)

However, Arul did not elaborate on the 
contradictory claimsby two deputy finance
ministers on how the fund were used.

Chua Tee Yong told the Dewan Rakyat that the sum was used to finance the purchase
of land in Pulau Indah, Selangor at RM20.80 per square feet. The deal was inked on February
10.

He also confirmed that Putrajaya issued letters to support 1MDB’s loan application.

However, Ahmad Maslan told the Dewan Rakyat that he was unaware of this, as the
money was supposed to be used for for the maintenance of power plants and operations
involving energy export.

Petaling Jaya Utara MP Tony Pua argued that he had sighted documents during the
Public Accounts Committee meeting which confirmed that the loan was meant for 1MDB to
buy land.

He added that this meant that Exim had violated its own mandate, which is to promote
international trade.

Both 1MDB and Exim are owned by the finance ministry.Prime Minister Najib Abdul Razak 
is the finance minister and the final decision maker of 1MDB.

This gives rise to the possibility of conflict of interest.

Sad that Chua Tee Yong’s credibility is diminished while Ahmad Maslan’s credibility sunk even
lower. As for Arul Kanda, his press statement is testament to the only strategy 1MDB could play
 right now – give vague answers to confuse everyone and hope there will be no more questions.

2) Prime Minister and his favourite mantra: “Wait for the AG report” now means absolutely 
nothing.

“WAIT FOR THE AG REPORT!” *LAUGHS*

The public were force fed with the idea that the
AG Report will quickly settle all questions and
suspicion on any wrongdoings in 1MDB. The
Prime Minister gave the impression that all will
be over soon as the AG will complete their
investigation by end of June.

But lo and behold just a few days ago the PAC 
announced that the preliminary AG Report will 
not be released to the public.

The Prime Minister himself had stated in his blog
in May:

“c. We are expecting the release of the preliminary report by Auditor General very soon. In
the mean time, please do not speculate and form conclusions without the information that will
be laid out by the Auditor General, who will provide a detailed report into 1MDB’s finances.”

What kind of dishonesty is this? Did the Prime Minister all along intend to lead the crowd with false
promises?

“Wait for the AG Report” has now turned into “Wait For My Next Lie”.

To make matters worse, the light at the end of the tunnel which was promised to come soon was
quickly doused by an insinuation by the PAC themselves that the investigation could take
nearly a year to complete.

Nur Jazlan said the parliamentary committee was part of the legislative arm and
had powers and responsibilities according to law, to investigate any government-owned
company that used the people’s money or any public funds.

“And this investigation on 1MDB is not the first the PAC, led by me, has done, 
we have launched proceedings on the klia2 project last year,” he added.

“Taking that example, the PAC took almost a year to complete the report which
was eventually presented to the Dewan Rakyat last November.”

It seems the rakyat have been taken for a ride by the people behind 1MDB and those who are
in charge with billions of our money. Do you think these people have anymore credibility and
integrity?

An MP from Raub once wrote in his blog when the Prime Minister is not being truthful:

You people out there, you have no chance at all against a PM who misled and 
is not truthful in parliament. What’s not telling the truth to the ordinary folks mean to him? 
That would be too simple. The people will think of him a liar.

3) Bank Negara exonerates Tun Dr Mahathir regarding the ringgit slump:

Ahmad Maslan, the deputy finance minister in charge of defending 1MDB had blamed Tun Dr 
Mahathir’s attacks on 1MDB is the cause for the fall of ringgit on June 14. A few days later,
he changed his statement. Now he said that Tun Dr Mahathir’s attack on 1MDB is only one of 
the 3 factors for the fall of ringgit.

But today, Bank Negara itself denied what Ahmad Maslan had been saying all along.

Ringgit slump: Bank Negara exonerates Dr M

Bank Negara has refuted recent media reports blaming former premier Dr Mahathir
Mohamad’s criticisms of the Najib-administration for the Ringgit slump.

In a press release today, Bank Negara said the current volatility of the Ringgit was caused
both global and domestic developments, which does not involve politics.

“Global developments would include the investor expectations relating to monetary policies
of major central banks and the trends in crude oil and gas prices.

“Domestic factors include concerns about government linked entities and ratings related
issues.

“While external developments are beyond the control of any open economy, every
effort needs to be undertaken to bring about resolution to the domestic issues that confront
our economy,” said the central bank.

Noting that Malaysia has sound economic fundamentals and growth prospects, the
central bank said the performance of the Ringgit will be stable once these issues are
resolved.

Bank Negara added it will never be drawn into any political agenda and will focus on its
mandate to maintain monetary and fiscal stability.

Although Mahathir was never named in the press release, it was clear that Bank
Negara was referring to Deputy Finance Minister Ahmad Maslan’s recent attempt to pin
blame on the former premier.

Imagine that. A deputy finance minister lying to the public and defaming the former prime
minister just to make the current Advisor of 1MDB look good. How low will these people go
just to defend 1MDB?

4) Two previous auditors for 1MDB were indeed terminated, not rotated:

During a TV interview, when Finance Minister II was asked why did 1MDB changed auditors,
he replied that it was just a normal rotational exercise for external auditors. We knew then it
was a lie. And today it was indeed exposed by the PAC that those auditors were indeed sacked:

1Malaysia Development Bhd (1MDB), which was formed in 2009, has so far sacked
two external auditors, first Ernst & Young (EY) followed by KPMG, according to the
Public Accounts Committee (PAC).

EY was terminated before it completed the audit on 1MDB’s accounts for the financial 
year ended March 2010 (FY10). KPMG, which took over in September 2010, was alleged 
to have had to rush the auditing job. The former auditor signed off the FY10 accounts 
one month after it was appointed.

KPMG was dismissed in December 2013, PAC chairman Datuk Nur Jazlan Mohd told
reporters after chairing the PAC probe into 1MDB, with officials from KPMG yesterday.

Nur Jazlan said the committee wanted to know the reason behind the termination 
of KPMG as an auditor, during the period when most major investments were made by
1MDB, including deals with PetroSaudi International Ltd and Brazen Sky Ltd. Brazen Sky
is a subsidiary of 1MDB.

Poor Husni. This 1MDB fiasco is way over his head and as the official spokesperson for
1MDB issue, he had made a bigger mess by diminishing trust and wrecking public confidence.
As far as public is concerned, it is Finance Minister I who should be answering questions.

5) Husni Hanadzlah said 1MDB’s loan interests is up to RM2.7 billion per year:

Debt-ridden 1Malaysia Development Bhd (1MDB) is paying up to RM2.7 billion a year in
 interest payments alone to its bankers for the RM42 billion debt it had accumulated
over six years, the Finance Ministry said today.

Finance Minister II Datuk Seri Ahmad Husni Hanadzlah told the Dewan Rakyat today
that 1MDB pays between RM2.4 billion and RM2.7 billion a year in interest payments.

But in another statement, 1MDB claimed that Tun Dr Mahathir was factually incorrect about
RM3 billion loan interests and that is only RM2.4 billion for its RM42 billion debt.

It seems both Finance Ministry and their wholly owned subsidiary can’t even get their figures
right. And on top of it all, they did not address Tun Dr Mahathir’s concern about the spiralling
debts and interests cost:

14. But more loans were raised from local as well as foreign banks. In all RM42 billion 
were borrowed. It is not clear what the terms are. But interest on RM42 billion must 
come to almost RM3 billion a year. Unless the investment yield fantastic returns, the 
interest burden would sink 1MDB.

And yes, 1MDB is sinking. Otherwise, those behind 1MDB won’t be panicking and started to
blabber nonsense to public with rationalising this and that, revamping here and there.

And how did 1MDB answered these concerns?

Like this:

5. Tun Mahathir claims “In all RM42 billion were borrowed…. But interest on 
RM42 billion must come to almost RM3 billion a year”.

The figures being quoted by Tun Mahathir are incorrect. To be clear; the interest cost on 
RM42 billion of debt by 1MDB as of 31.03.2014 was RM2.4 billion, i.e. a significant 
20% less than what Tun Mahathir claims.

Did that address the concerns the public is asking regarding the massive debts and its
interests costs? No it did not.

1MDB pinned their defence on why on earth did they borrow unnecessary loans on:
“Tun Dr Mahathir shifting goalpost because his figures are incorrect”.

What a dishonest way in hiding the truth.

The public want answers. They do not want contradictory numbers from people who should
know the answers. And they surely do not want to see a blatant trick in trying to evade the
 issue altogether.

When someone doesn’t understand an issue, questions are often asked. It is always nice if
the people we asked will reply with “that is a very good question.. and this is the answer..”,
and they proceeded to enlighten us with the proper answer which will remove all doubts.

But in the case of 1MDB, the people who are in charge of it do not seem to have the
inclination to answer comprehensively. In fact, in many instances they gave conflicting,
even untruthful,  and at best, vague answers.

Is this the end for good governance?

You might also want to read:

1) Rubbishing 1MDB’s Rebuttal

2) 1MDB Turkmenistan – fact or fancy

3) 1MDB’s Reply

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TAGS: 1MDB, MALAYSIAN CORPORATE MATTERS

BY JEBATMUSTDIE IN NAJIB RAZAK, SOCIO-ECONOMY, TUN DR MAHATHIR, UMNO & BARISAN NASIONAL ON JUNE 19, 2015.

← ANIFAH AMAN MISSES THE POINT BY A MILE