[interesting question and article...] ... What does the USD1.2 billion promise to pay IPIC means?
Together with other Malaysians, I read the short statement by 1MDB on its settlement with IPIC. It is short one. Despite that, we know how crooked Najib and his government are.
We who learn statistics in economics, were told, something like this is like a bikini. What it reveals is suggestive, but what it hides is vital. The vital information is still hidden. The government does not want us to know. Fortunately we have many right thinking and public spirited individuals who expose the government’s duplicity.
The secret of good government is good people. Bad people are ruining our country now. The government protects itself by dividing the people. They divide us into those anti Malay and anti Islam.
Choose BN, we are letting this country to be run by crooks. The crooks are doing everything to avoid going to court and will sell everything to recover money stolen.
A lot of money has been revealed stolen as a result of Malaysia’s arbitration with IPIC. When 1MDB insisted that it paid IPIC USD3.5bllion, IPIC said it did not. The government puts up a display of virtuous indignation saying how can IPIC deny receiving payment. We have proofs here and there.
IPIC brought the matter to the court of international arbitration in London. But before all can be revealed in court, 1MDB agreed to pay up and negotiate further on how to pay the vast sums of money it owed to IPIC.
Our ministry of Finance or MOF will pay IPIC a total of USD1.2biilion in two instalments. That is payment for the interests, cash advances and loans made to 1MDB or paid on behalf of 1MDB by IPIC . let us hope we get the consent judgment by the end of May 2017 as stated.
1MDB started as a private company. It ended up a public company. Money was stolen and carted away by private individuals. The cost to it all is now borne by the public. This is the business as usual philosophy of UMNO people and its advisers. Privatise all the benefits, make public pay for the costs.
What does payment of USD1.2 billion result in? It results in Najib not having to stand in the dock and be grilled by questions. So Najib is actually finding ways to avoid going to court. Despite talking big and sounding virtuous and pretending angry at IPIC for denying it was paid, Najib and the government lied.
So he pays up a little. But it is a ruse. It is just a refined and elevated way of saying- boss I pay u a bit, so don’t take action against me ok? The lawyer termed it more stylishly as a no predicate offence. In practise it means, using some legal device to stop being brought to court. That is devious.
Malaysia through 1MDB/MOF will take over all the financial obligations associated with the 2 bond issues guaranteed by IPIC. The total amount is USD3.5billion. It frees IPIC from responsibility of paying bondholders should Malaysia refuse to honour her obligations.
In doing its business, most of them shadowy and suspicious, 1MDB ran up huge debts. More than USD50 billion. It borrowed some USD3.5billion from IPIC to pay off some portion of the mountainous debt. IPIC wants the money it loaned.
The USD3.5billion loan has increased to USD4.8 billion with interests. The interest on the USD3.5billion is therefore USD1.3 billion. There is another small loan amounting to USD500millon including interest.
So, that s why IPIC is demanding USD6.5 billion in total.
Read my lips: Malaysia must pay USD6.5 billion to IPIC. If it pays the USD1.2, it still owes IPIC USD5.3 billon.
Somebody stole USD3.5billion. it owes IPIC 6.5 billion, that’s USD10 billion. It’s not doubled. It has more than doubled.
The money that was stolen consists of the following. It’s USD3.5 billion that disappeared into thin air- or rather into Aabar BVI’s account. It owes a principal sum of USD3.5 billion to IPIC. The interest on the USD3.5 billion is USD1.3billion. It owes USD1.2 billion plus interest it is now promising to pay. Then there is another loan from IPIC amounting to some USD500million.
A total of USD6.5 billion. Plus the USD3.5 billion stolen- the amount is a whopping USD10 billion.
1MDB is responsible to the USD3.5bliion to bondholders. That’s an IOU to bond holders.
So IPIC got back whatever payments it made in addition to releasing itself from USD3.5billion guarantee on the bond issues. It saves its neck. If it doesn’t threaten Malaysia with a court case, it may end up paying bond holders.
So 1MDb and the government pay USD1.2 billion. It says it will pay with the money it got from the sale of the fund units stashed in Cayman Islands. My guess, is the fund units will be sold to who else, but China.
If the government is transparent, define clearly what are fund units? What the hell are they?
Leaders can go to bed with China, but asks the common Malay to quarrel with the common Chinese. Some Chinese do not see this game.
Let us be clear. The USD1.2 billion is separate loan from the USD3.5billion loan from IPIC. The USD3.5 billion was a separate loan given to 1MDB to pay off its mountain of debts. The debt is over USD50 billion now.
The promise to pay IPIC USD1.2 billion reveals the duplicitous methods used by 1MDB. We now know, that 1MDB did not actually pay USD3.5 billon to IPIC, it was channelled illegally into Aabar BVI account. There was a conspiracy involving probably Najib to transfer USD3.5 billion into Aabar BVI.
What does this mean? It means 1MDB and Najib lied to us and IPIC was telling the truth when it said, it did not receive any USD3.5bn payment. the money was paid into Aabar BVI account.
Which means at all material time, 1MDB knew it ferreted out USD3.5 billion and paid the sum into a bogus account operated by the two Arabs. The company is the infamous Aabar BVI a close copy of the true Aabar PJS, which truly belongs to IPIC.
Those involved in this illegal transfer of USD3.5 billion into Aabar BVI’s account must be brought to justice. So it’s true, Najib is no transformer, he is a master money transferor.
Sometime ago i wrote on this blog. -
Where did the USD3.5billion payment meant for IPIC go to? We now know it went to Aabar BVI. It was stolen and the people who made this theft possible were in 1MDB
It means a sum of USD3.5billon was stolen by Najib and his gang. Even though Najib promises to pay UD12.billion to IPIC, the payment does not erase its obligations to pay USD3.5 billion to bond holders. I said, the USD1.2 billion will be paid by the sale of fund units to China. But what if China doesn’t want to buy and the parties fored to buy the fund units are people like EPF, KWAP and other GLCs?
Najib and co must answer us what actions are they planning to take on te thieves of 1MDB?
Just to remind ourselves- the USD 1.2billon has not been actually paid. We have only promised to pay. The amounts ‘owed’ by 1MDB are:-
a) USD1.2billion which represent the interest payments, cash advances, loans outside the principal amount of USD3.5 billion which are made to 1MDB or aid on behalf of 1MDB.
b) USD3.5billion stolen by Aabar BVI.
c) USD3.5billion loan by IPIC
d) USD500million loan plus interest. .
e) Interest on the USD3.5billion loan amounting to USD1.3billion
With the IPC deal, the total amount of money shouldered by 1MDB is 10 billion or more.
Did anyone benefit from the extortious fees charged by Goldman Sachs? For illustration let us say as follows. The market fee is USD1 million. Goldman Sachs charged USD10 million. USD9 million constitutes the extortious portion. Extortion is a crime. The extortious part of the fees can be considered stolen money too.
Even though Najib agrees to pay USD1.2 billion, we must remember that a crime has been committed. USD3.5 was stolen and sent to Aabar BVI. Some people in 1MDB colluded with the 2 Arabs in spiriting out 1MDB’s money. This payment of USD1.2billion does not erase the crime committed.