After an initial quick look at the so called breakdown of the 1Malaysia Development Bhd (1MDB) debts, I must register these observations:
1) The so-called breakdown does not give enough details as the chart is too generalised. A more detailed breakdown is needed; and
2) The RM6 billion "inherited debt" is the most eye-catching item. I shall concentrate my comments on this matter. This was the question I have been asking in Parliament for the past two years.
1MDB started off as the Terengganu Investment Authority (TIA), which only operated for nine short months (also under Prime Minister Najib Abdul Razak and its then chief executive officer Shahrol Halmi, with Penang billionaire Low Jho Lho as 'adviser'), before it was aborted and taken over by 1MDB.
Jho Lho (photo) was also the "matchmaker" since the infancy stage of TIA. During the nine months, the then Terengganu menteri besar, Ahmad Said, claimed there was an attempt to collateralise Terengganu's oil and gas future income.
However, a loan of RM5 billion was obtained, and at least more than RM250 million in commissions was known to have been paid out to some mysterious individuals.
The big questions I have been asking in Parliament are: to whom and for what were the commision paid out for? And, what are the liabilities Terengganu had to bear during the short nine months when the RM5 billion fund was made available to TIA?
Now, the RM6 billion 'inherited debt' suddenly looks very interesting, as it is pretty close to the RM5 billion facility TIA had!
Please enlighten us
Could TIA have spent the RM5 billion in the short nine months, and together with interests as well as commissions paid, caused this to amount to the RM6 billion, the sum that was "inherited" by 1MDB?
Please enlighten us, so that we can understand what happened to the RM5 billion fund TIA had, despite it having no known assets, nor projects, in the nine months.
There are many similarities between TIA and 1MDB.
Firstly, the 'modus operandi' to siphon money out for both TIA and 1MDB are starkly similar.
TIA wanted to collateralise Terengganu's future oil and gas income, making future generations to pay for the debts, while 1MDB, through the US$4.5 billion (RM16.66 billion) from Abu Dhabi, is effectively deferring payments to future taxpayers!
Both involve the government splurging today, with future generations having to pay dearly for the excesses of our present leaders.
Secondly, the other interesting common denominators are the three main players of TIA, who are also crucial figures in 1MDB - Prime Minister and Finance Minister Najib, former 1MDB chief executive Shahrol and the main mover-cum-matchmaker extraordinaire Jho Lho!
Strangely, none of them is making any announcement on 1MDB's breakdown.
Instead, statements are coming from the new 1MDB chief executive officer Arul Kanda (photo), who was specially imported from the Middle East, where PetroSaudi International and the Abu Dhabi investment company come from.
In short, Arul's breakdown raises the classic case of raising more questions than answers. Keep on talking, you people, for the rakyat want to know where did their billions of ringgit are going to.
Try explaining, for one, what exactly is this "inherited debt"? - Raja Kamarul Bahrin Shah, MP for Kuala Terengganu, MKini
Dr M: 1MDB salah guna kuasa beli tanah...
Tun Dr Mahathir Mohamad berkata beliau percaya rancangan untuk menyelamatkan 1MDB akan mengakibatkan rakyat menanggung bebannya.
Beliau merujuk kepada usaha rancangan firma Abu Dhabi, International Petroleum Investment Company (IPIC) untuk menyuntik dana sebagai tukaran bagi tanah 1MDB.
Ini kerana, 1MDB memperolehi tanah tersebut dengan murah daripada kerajaan, yang disifatkannya sebagai “penyalahgunaan kuasa”.
"1MDB mendapatkan tanah kerajaan bernilai antara RM4,000 dan RM7,000 sekaki persegi dengan harga antara RM60 hingga RM90 sekaki persegi.
"Sebenarnya harga yang dibayar oleh 1MDB untuk tanah kerajaan itu mencerminkan penyalahgunaan kuasa.
"Langkah yang betul adalah membayar dengan harga pasaran sebelum dibangunkan atau digunakan,” katanya.
Beliau merujuk kepada tanah 1MDB di Tun Razak Exchange dan Bandar Malaysia.- mk
Dr M: Bila Najib kalah, mahkamah mula memburu...
Tun Dr Mahathir Mohamad berkata beliau yakin bahawa langkah penstrukturan semula 1MDB tidak akan berjaya mendapatkan semula wang firma itu yang hilang.
Beliau juga meramalkan bahawa Perdana Menteri Datuk Seri Najib Razak akan diburu dengan pelbagai tindakan mahkamah selepas ini.
“Terlalu banyak bukti mengenai usaha menyembunyikan kebenaran oleh ahli politik dan penjawat awam.
“Apabila Najib tewas, dan saya pasti beliau kalah dalam pilihan raya akan datang, tindakan mahkamah yang akan menyusul tidak akan dapat ditahan lagi.
Ahad lalu, Mahathir menuduh terdapat cubaan menyembunyikan kes dan salah laku jenayah selepas kenyataan menyebut dana 1MDB di Singapura dalam bentuk tunai, sebelum ditukar kepada aset.
Bagaimanapun Menteri Kewangan II Datuk Seri Ahmad Husni Hanadzlah berkata ia dalam bentuk “unit”, tanpa menghuraikan lanjut maksudnya.
Mahathir berharap rancangan penstrukturan untuk menyelamatkan 1MDB akan berhasil tetapi ia masih tidak membebaskan pentadbiran Najib daripada dakwaan wang itu “hilang”. - mk
Show us cash, not units: Mahathir tells 1MDB...
If 1MDB wants the public to believe that its funds are not missing, then it must show real money and not "units", said former premier Dr Mahathir Mohamad.
"So far, there is no evidence that money amounting to US$4 billion from Cayman Islands is in Singapore.
"That money has disappeared unless 1MDB can show there are 'units' with value in money in Singapore.
"The units must be converted to real money to be credible," he said in a blog posting today.
This follows 1MDB's move yesterday to list out where it had spent its RM41.8 billion loans, including RM6.1 billion in Brazen Sky, a Singapore subsidiary of 1MDB.
The investment in Brazen Sky is contentious as it is in "units", for which its true value cannot be properly determined.
1MDB has insisted that its investment in the Cayman Islands has been fully redeemed in cash and is now parked at BSI Bank Ltd in Singapore.
Prime Minister Najib Abdul Razak, who is also finance minister, reiterated this position in a parliamentary written reply on March 10.
However, on May 20, Najib amended his answer, stating there is no cash in BSI Singapore, merely "assets in US dollars".
This became even more baffling when Finance Minister II Husni Hanadzlah (photo) clarified that the assets were in fact in the form of "units", but refused to explain what he meant by that.
This had prompted Mahathir to accuse the government of a cover-up.
He had also said that 1MDB would be presumed guilty until it can show that the money is not missing in a tangible manner. - mk
Hanya separuh hutang 1MDB dapat diimbangi aset...
Hanya separuh daripada aset syarikat sarat hutang 1Malaysia Development Berhad (1MDB) dapat diimbangi dengan aset nyata, kata Setiausaha Agung PKR Rafizi Ramli.
Ahli Parlimen Pandan itu berkata, daripada RM42 bilion hutang bagi tahun kewangan berakhir pada 31 Mac, 2014 hanya RM19.7 bilion (47%) boleh dipadankan dengan aset nyata yang boleh dijual semula.
"Jumlah RM19.7 bilion ini terdiri daripada pembelian penjana bebas daripada Ananda Krishnan dan Genting (yang menelan belanja RM18 bilion) dan pembelian tanah kerajaan Malaysia berjumlah RM1.7 bilion.
"Ini bermakna, jika ada keperluan untuk menjual aset bagi membayar hutang berjumlah RM42 bilion itu, jumlah maksima yang boleh diperoleh tidak sampai separuh daripada jumlah hutang," katanya dalam satu kenyataan, hari ini.
Rafizi berkata, jumlah RM15.4 bilion di dalam syarikat yang tidak dapat dipastikan aktiviti perniagaan atau asetnya iaitu Brazen Sky, Aabar dan 1MDB GIL mengesahkan 1MDB tidak boleh menerangkan ke mana RM15.4 bilion ini dibelanjakan.
"Jika syarikat ini mempunyai bangunan, kilang, tanah, saham dan lain-lain maka sudah tentu 1MDB boleh menunjukkan aset ini untuk mematikan sebarang spekulasi," katanya.
Beliau berkata, pengumuman penjelasan 1MDB semalam membuktikan dana yang dipinjam tidak dapat dipadankan dengan aset nyata.
"Oleh itu, saya menyeru supaya Bank Negara Malaysia menyiasat sehinggalah satu laporan dapat dibentangkan di Parlimen untuk menyenaraikan semua perbelanjaan secara terperinci yang melibatkan hutang RM42 bilion itu.
"Kenyataan 1MDB semalam hanya mengesahkan sekurang-kurangnya separuh daripada RM42 bilion itu dibelanjakan bagi tujuan yang diragui dan mungkin bertentangan dengan kelulusan awal Bank Negara Malaysia," katanya. – tmi
Only half of 1MDB’s debts backed by assets...
Only half of 1Malaysia Development Berhad (1MDB)'s assets can be offset with solid assets, PKR secretary-general Rafizi Ramli said, following 1MDB's breakdown of its RM42 billion debt yesterday.
In a statement today, Rafizi said that only RM19.7 billion out of the RM42 billion debt was used to purchase solid assets, such as power plants and land, while the rest was used for unspecified investments which remained unclear.
"If there is a need to sell assets to pay off the debts of RM42 billion, the maximum amount obtained will not be enough to even pay half of the debts," he said.
1MDB listed down around RM15.4 billion as having been invested as funds via three different companies – Aabar Investments PJS, and two of its wholly owned units – 1MDB Global Investment Limited (GIL) and Brazen Sky Limited.
But there were no details as to where the money is now and also into which form the assets have been converted.
"If these companies owned buildings, factories, land, or shares, surely 1MDB would have revealed these assets to kill off any speculation."
He said that 1MDB's statement yesterday was proof that not all of its debts could be matched with solid assets.
He also urged Bank Negara to table a report in Parliament detailing how the RM42 billion was spent by 1MDB and act against the company if it was found to have acted beyond its initial approvals.
Rafizi said the 1MDB's statement also further fuelled suspicion that at least half of 1MDB's borrowed money was used for "suspicious" reasons. – tmi
Ni punca MAS jadi bengkrap...