1MDB owes ARB RM2bil, not one sen paid...

1MDB owes ARB RM2bil, not one sen paid...

The list of companies 1MDB owes money grew bigger today, after an opposition MP alleged the debt-ridden investment firm had borrowed RM2 billion from government-linked company Amanah Raya Berhad (ARB).

In his expose at Parliament today, Tanjong MP Ng Wei Aik (photo) said the RM2 billion loan was in the form of an IOU bill issued to 1MDB with an interest rate of four percent per year.

"However to this day, not one sen has been returned, let alone any interest paid to ARB," Ng said in a press conference at the Parliament lobby today.

He added the RM2 billion had come from ARB's RM2.6 billion reserves.

He also claimed former ARB chairperson Dusuki Ahmad and former managing director Ahmad Rodzi Pawanteh were forced to resign from the trustee company, for refusing to issue the loan.

"I understand that the loan was only issued to 1MDB after ARB was chaired by (Kepala Batas MP) Reezal Merican Naina Merican," Ng said during a press conference at the parliament lobby today.

Forcing company to sell bonds

Citing sources, Ng said the RM2 billion had come from ARB's RM2.6 billion reserves.

This he said had caused the company financial problems, forcing it to sell bonds, and real estate investment trusts (REITs) to maintain its reserves.

"The value of bonds now owned by ARB is just five percent of ARB's assets.

"I understand that ARB is working to sell more real estate to get additional funds to cover back the interest (1MDB) owes ARB," he added.

Ng has demanded explanations from the finance ministry, and wants the police and auditor-general to probe the matter as it may involve criminal breach of trust. - mk

No loan from ARB to 1MDB, Reezal to sue DAP MP
Story kat SINI dan SINI

 Saya tak boleh terima angka 1MDB dpd. seorang penipu...

Presiden dan pengarah eksekutif 1MDB, Arul Kanda mungkin telah memberi angka-angka mengenai di mana syarikat itu membelanjakan RM41.8 bilion, tetapi ia tidak dapat meyakinkan bekas Perdana Menteri Tun Dr Mahathir Mohamad.

Mahathir mendakwa ia kerana Arul Kanda telah beberapa kali didapati berbohong dan oleh itu tidak dapat memberi keyakinan tersebut.

"Saya tertarik dengan keupayaan 1MDB untuk melabur RM42 bilion dalam banyak perniagaan," katanya dalam catatan di blog beliau hari ini.

"Saya tertarik dengan kemampuan 1MDB melabur RM42 bilion dalam banyak perniagaan. Saya seharusnya berpuas hati sepenuhnya dengan bagaimana 1MDB membelanjakan pinjaman besar yang dipinjam," katanya .

"Tetapi malangnya tidak. Saya tidak percaya, kerana maklumat itu datang daripada CEO semasa, Arul Kanda Kandasamy. Dan Arul ditangkap berbohong beberapa kali."
 
Tetapi malangnya, tegas Mahathir, beliau tidak yakin dengannya kerana maklumat itu datang dari pengarah ekksekutif sekarang, Arul Kanda, yang didakwanya tealah beberapa kali didapati berbohong. 

Merujuk kepada pelaburan 1MDB sebanyak AS$2.318 bilion di Kepulauan Cayman, Dr Mahathir berkata Arul Kanda ketika mula-mula mengambil alih 1MDB ada mengatakan wang berkenaan sudah ditebus sepenuhnya.

"Beliau berkata dengan jelas dan terang beliau melihat wang berjumlah AS$1 bilion dalam bentuk tunai. Kemudian beliau kata ia dalam bentuk penyata. Kenyataan apakah ini?

"Bagaimanapun, pada akhirnya, bank berkenaan menyatakan tidak ada wang tunai dan hanya ada dokumen yang disimpan serta dokumen yang terdapat tandatangan palsu.

"Beliau perlu memberitahu perdana menteri mengenai longgokan besar duit ini jadi perdana menteri boleh menjawab soalan di Parlimen yang wang tunai itu sudah disimpan di Singapura," kata bekas perdana menteri.

 Beliau merujuk kepada jawapan Najib di Parlimen pada Mac lalu, di mana Najib berkata sejumlah AS$1.103 bilion hasil pelaburan dari Kepulauan Cayman kini diletakkan di BSI Bank Limited Singapura (BSI Singapura).

"Keputusan untuk menggunakan BSI Singapura (adalah) untuk memudahkan pengeluaran wang kerana mengikut peraturan yang ditetapkan Bank Negara Malaysia, kelulusannya diperlukan untuk transaksi lebih RM50 juta," kata Najib.

Bagaimanapun, Dr Mahathir berkata, Najib sebagai menteri kewangan boleh meluluskan atau menolak semua struktur atau kelulusan Bank Negara.

"Kemudian bank berkenaan menafikan terdapat tunai dalam bank. Ini memalukan. Gambaran itu sudah hilang. Tidak. Ia bukan tunai. Ia dokumen. Tidak, ia unit. Unit apa? Tak tahu. Bank mana? Tidak pasti. Semakin banyak misteri.

"Oleh itu, apabila Arul mengumumkan pelaburan sebanyak RM42 bilion, mungkinkah dia nampak benda lain yang sebenarnya tiada?" soalnya.

Awal bulan ini, 1MDB menjelaskan ke mana wang itu dibelanjakan dengan mendedahkan syarikat itu  membelanjakan RM18 bilion bagi pembelian Pengeluar Tenaga Bebas (IPP) manakala RM15.4 bilion dilaburkan ke dalam dana seperti Brazen Sky dan Aabar Investments.

Selepas mengambil kira sejumlah RM5.8 bilion dalam perbelanjaan mengurus (kos kewangan dan modal kerja) dan RM1.7 bilion dalam kos tanah, 1MDB ketika ini mempunyai lebihan tunai sebanyak RM900 juta.

Hari ini, Dr Mahathir mempersoalkan mengapa syarikat pelaburan negara itu perlu meminjam wang untuk membayar cukai.

"Cukai apa? Tiada keuntungan diisytiharkan tetapi cukai dibayar. Berapa banyak? Kos menguruskan 1MDB mencecah berbilion-bilion!"

"Arul pernah berbohong sebelum ini. Sukar untuk membayangkan beliau tidak berbohong lagi dalam isu RM42 bilion itu. Ke mana perginya sebahagian daripada RM42 bilion itu masih boleh dipersoalkan," katanya.

Kritikan semakin memuncak sejak syarikat pelaburan milik penuh Kementerian Kewangan yang ditubuhkan pada 2009 itu mencatatkan hutang sehingga RM42 bilion dan disokong Putrajaya.

Jabatan Audit Negara kini sedang meneliti buku kira-kira 1MDB, dengan laporan awal dijangka dikemukakan kepada Parlimen bulan ini, manakala Jawatankuasa Kira Wang Negara (PAC) mula melakukan siasatan ke atas syarikat itu pada 19 Mei lalu.

Arul Kanda gagal menghadirkan diri pada prosiding dengan PAC dan kemudiannya menjelaskan beliau berada di luar negara pada masa itu. – tmi,mk

I can't accept 1MDB numbers from a liar...

1.    I am intrigued by the ability of 1MDB to invest 42 billion Ringgit in so many businesses. Really I should be fully satisfied with how 1MDB expended the huge loan that it borrowed.

2.    But unfortunately I am not. I am not, because the information came from the current CEO, Arul Kanda Kandasamy. And Arul has been caught lying quite a number of times.

3.    Almost as soon as he took over management of 1MDB he announced that the money from Cayman’s Island has been returned. He said clearly and openly that he saw the cash i.e. one billion dollars in cash. Then he said it was statements. What are the statements? Anyway in the end the bank said no cash and only documents were deposited in it and the documents carried false signatures.

4.    He must have told the Prime Minister about this fantastic pile of dollar notes so the Prime Minister answered the question in Parliament that the cash is in the bank in Singapore. It cannot be brought back because Bank Negara asks too many questions. The Finance Minister must approve or disapprove all Bank Negara strictures or approvals.

5.    Then the banks denied that the cash is in the bank. Embarrassing. The vision has disappeared. No. It is not cash. It is documents. No, it is units. What units? Dunno. Which bank? Not clear. The mystery deepens.
 
6.    So when Arul announced the investments of 42 billion Ringgit, could it be something else that he saw which was not there. And do people use borrowed money to pay tax? What tax? No profit was declared but tax was paid. How much? Cost of managing 1MDB run into billions!

7.    In any case, many names which are known to have received money from 1MDB are not mentioned. Lots of money went to Hong Kong companies with funny names.

8.    Has nothing been paid to Petro Saudi, to Jho Low, to Brazen Sky and others. Jho Low denies but why has he not proven that he did not receive US 260 million (RM 988 million) from 1MDB to buy a bank.

9. Arul had lied before. It is not inconceivable that on the 42 billion Ringgit Arul may be lying again. Where a chunk of the 42 billion Ringgit went is still questionable.

10.    I don’t think we can resolve the problem of where the 1MDB money has gone through four-eyed meetings. Najib can resolve through proving beyond reasonable doubt that no money has disappeared from the 42 billion borrowed.

11.    The intention of 1MDB I presume is to make money for the Government. Show how much profit the Government has made since 2009. Why do you have to borrow money to pay interest on the debts?

12.    Why cannot the power plant shares be listed?

13.    Why does 1MDB pay only 60 – 90 Ringgit for Government land which it now wants to sell at 2000 – 4000 Ringgit psf? And now the land bought by Tabung Haji has been sold to some Indonesians at a loss. The loss will be borne by the pilgrims.

14.    Actually there are many questions that the Prime Minister can answer not to me, but to the public. The money does not belong to me alone. From the question asked by so many people they want to know where their money is.

15.    The money belongs to the people. It is the duty of the police, the anti-corruption agency to investigate the complaints and the reports that has been made – including by Bank Negara. But the agencies have not investigated.

16.    There is a climate of fear which restrains them from investigating. For as long as the Prime Minister is the Prime Minister, investigating things involving him is not going to be really possible. It is necessary that the PM relinquish his position and authority if the Auditor General, the Public Accounts Committee or even a Royal Commission is to reveal the truth.

17.    I went to the “Nothing to Hide” forum hoping to hear explanations from Dato Sri Najib and to ask questions. But it was cancelled because of security reasons.

18. I watched a video clip of what happened. There was no threat to security except for Ali Tinju making a lot of noise. It is obvious he wanted the meeting to be cancelled. We know who he is in favour of. It is a pity. Najib could have explained everything and people like me would be silenced. - chedet

Arul has been caught lying quite a number of times

Arul Kanda not Dr Mahathir who Spooks the PM...

Almost all commentators attributed Mohd Najib Abdul Razak’s no show at the “Nothing2Hide” (N2H) city hall dialogue on June 5 to the presence of Tun Dr Mahathir Mohamad.

They concluded that the Prime Minister feared being grilled by Dr Mahathir or, at the very least, the old fox received a more rousing welcome than himself.

As I have stated many times before, this is not about Mohd Najib vs Dr Mahathir. This is about seeking the truth about 1MDB, including the possibility of criminal act in the running of the company.

The following is my take on the event, which made news worldwide, and on 1MDB as a whole:-

1. The Prime Minister is not a debater. He is more like an orator. He loves to scream and shout, sometimes out of tangent, in front of large obedient audience.

2. Dr Mahathir, on the other hand is a debater and communicator. He has crossed sword with some of the region’s best debaters - the likes of Lee Kuan Yew and Devan Nair in the Malaysia Parliament as far back as 1964.

[These days parliamentary banters have become a rarity because few MPs are not genuine debaters and, in the case of government members, the Speaker regularly rescued them from embarrassing situation.]

3. Mohd Najib would have been clobbered not so much by Dr Mahathir but by members of the audience, reported to be some 1,000 of them. They were not the standard audience that Mohd Najib is used to in rural Pahang, Perlis, Sabah and Sarawak.

4. The real reason for Mohd Najib chickening out is Arul Kanda Kandasamy. His June 3 detailing of the 1MDB assets, liabilities and expenditures has made it impossible for Mohd Najib to wrangle his way out of the quagmire. Arul Kanda’s explanation gave the informed public the real basis to ask Mohd Najib at the dialogue, which he could not possibly answer without further incriminating himself.

5. Take for instance buying ageing Independent Power Producers (IPPs) for RM12 billion and inheriting RM6 billion debts, making the total RM18 billion.

6. It is widely known that all or some of these purchases were over-priced despite the fact that the plants are old and their concessions running out. Only Jimah Power is a recent concession with its franchise ending 2033.

7. Arul Kanda, who became 1MDB’s President and Group Executive Director in January this year, told us that 1MDB inherited RM6 billion debts from the IPP purchase.

8. It is hard to believe that companies owned by two of Malaysia’s savviest tycoons – T. Ananda Krishnan and Lim Kok Thay (the scion of the Genting Empire) – would amassed so much debt when their power concessions were coming to an end.

9. The question is, could the RM6-billion debt had been “deliberate created” at the point of purchase in order to enable “excess” funds to be channeled out for political and other purposes?

10. The answer to this question can be extracted if the Public Account Committee of the Parliament (PAC) were to call people associated with the IPP vendors – the likes of Ananda, his right hand man Augustus Ralph Marshall (Tanjong Enery/Powertek) and Lim Kok Thay (Genting/Kuala Langat Power).

11. We all know that Ananda needs Mohd Najib’s “sovereign protection” in order to avoid from being sent to stand trial in India for alleged corruption.

12. Mohd Najib may find it hard to justify selling prime government land cheaply to 1MDB – RM200 million for the 70-acre of Tun Razak Exchange (TRX) land in Jalan Tun Razak and RM400 million for 500-acre Bandar Malaysia i.e. the Sungai Besi RMAF base.

13. But it’s harder for him as Chairman of 1MDB’s advisory board, to justify purchasing 234 acres in Penang for RM1.1 billion just before the 2013 general elections, which according to Penang Chief Minister, Lim Guan Eng, was 95 per cent above valuation two years earlier.

14. Issues pertaining to cost of finance and working capital (RM4.5 billion), foreign exchange cost (RM900 million) and taxation (MR400 million) could be too technical for Mohd Najib to answer.

15. The hottest potatoes of all are 1MDB’s cash investments abroad. It is here that Jho Low features prominently and where the biggest “silap mata” (sleight of hand) could have taken place to enrich certain parties.

16. There are many more issues in Arul Kanda’s revelation that Mohd Najib would not possible answer like those massive investments in Brazen Sky Limited (RM6.1 billion), Aabar Deposit (RM4.2 billion) and 1MDB GIL Fund (RM5.1 billion).

The Zeti, Arul Kanda Posers

Many questions have been raised about who Arul Kanda really is and what are his motivations for taking over the hot seat at 1MBD.

People who know him, including those who attended the Royal Military College (RMC) with him, said he was a bright student and an orator. He hailed from a good Ceylonese family from Terengganu. (More here).

Why is he staking his reputation by accepting the 1MDB job puzzles these people. Some ventured to link him to Ananda who is also of Ceylonese descent. What is Arul Kanda’s game plan,  if any, can be determined by what question PAC members ask when he faces them.

Bank Negara Governor, Zeti Akhtar Aziz is in danger of losing public confidence and respect for extended silence on the 1MDB issue and her penchant for hiding behind banking secrecy and confidentiality.

This is because Bank Negara had been openly dragged into the controversy by no less than Mohd Najib himself, when he said cash 1MDB was bringing back from Cayman Islands could not be remitted directly to Malaysia due to Bank Negara restrictions and had to be deposited in Singapore.
 
The cash, amounting to the US$1.103 billion (RM3.985 billion), had since metamorphosed into “asset certificates” and more recently, according to Finance Minister II, Ahmad Husni Hazadlah, had become “units”.

On May 26, Zeti confirmed that Bank Negara had received a report from its Singapore counterpart - Monetary Authority of Singapore (MAS) - on a complaint lodged by BSI about 1MDB’s account. BSI is the Swiss private bank where 1MDB deposited the Cayman Islands' proceeds.

Only after more than a week of receiving the MAS report that Bank Negara, on June 3, announced that it has commenced a formal enquiry to examine if there are any contravention of financial rules and regulations with respect to matters surrounding 1MDB. It does not help to raise our confidence when Bank Negara appears to be playing the game of catching up.

In the meantime the confidence in economy is waning, despite repeated assurance that our economic fundamentals are strong. The contagion effects of 1MDB are becoming more apparent.

On June 8, the ringgit fell to a nine-year low against the US dollar at RM3.772, which analysts blamed on sustained outflow of foreign funds from the equity and debt markets.

Zeti responded by saying that it is temporary and blame the “external environment”. She said emerging market currencies, including the ringgit, continue to be affected by external uncertainties, adding that ringgit is trading at levels that are not reflective of the fundamentals of the Malaysian economy.

It may all sound so clever. But in reality, the effects of the falling ringgit and the lost of confidence in Mohd Najib’s administration are already being felt by the rakyat. Strong economic fundamentals means nothing to them if they are not reflected by the stronger ringgit, net capital inflow, cheaper goods and services, rising income and ample jobs.

On the contrary the ringgit could fall to as low as RM3.90 or even RM4 to a dollar should the US decide to raise interest rates. - A Kadir Jasin

Arul Kanda's RM42B Illusions - 45 Questions That Any Concerned Rakyat Should Ask...

Let me say from the outset that I am not well versed in accounting and or international finance, like those personalities connected with 1MDB who have impressed the rakyat that they have such expertise as they have borrowed RM42 Billion and made huge investments overseas.

Nevertheless, as a layman applying common sense, I am much perturbed and even more anxious than before, after reading the explanation by the current President and Executive Director of 1MDB Mr. Arul Kanda on the use of the RM42 Billion loan by 1MDB.

Looking at the Table provided by 1MDB, I am sure that there are Malaysians not well versed in accounting and financial matters who may well say and conclude that the Prime Minister, the members of the Cabinet, the Board of 1MDB have finally come clean and revealed the true state of affairs of 1MDB and from the figures disclosed, there are no financial irregularities or crimes committed.

Nothing can be further from the truth. The Table of Figures is typical of experienced dishonest accountants to give financial data to suggest and direct the reader to a pre-conceived conclusion but, in actual fact shields the observer from the underlying truth.

This is also the classic modus operandi of magicians such as David Copperfield. Recently, Astro broadcasted a show whereby a masked magician exposed the tricks of magicians in creating illusions. Without exceptions, all the illusions were created by simple tricks. The magician and his entire team are involved in creating the illusion.

The magician, on his own cannot, I repeat cannot on his own, create the illusion. The entire team must execute the illusion, for if and when any one member opts out and or make any mistakes in the execution of the illusion, it will be the end of the magic show and the illusion.

The Prime Minister and his morons in the Cabinet (not all are with him) have waited till now to publish the Table of Figures in an attempt to deliver the knock-out punch against Tun Mahathir Mohamad and other critics and at the same time hoodwinking the rakyat, but their efforts have backfired!

They have now created a bigger hole from which they cannot come out.

What is more devastating to this bunch of scoundrels is that they have by their actions exposed themselves to a criminal investigation by Bank Negara and if and when convicted of the crimes would be punished with a hefty fine of RM50 million or a term of imprisonment not exceeding ten years or both!

The fact that there is now an on-going criminal investigation into 1MDB is a shame on the integrity of the BN government, UMNO and the leadership of the Prime Minister.

As the Finance Minister, he was so stupid and arrogant to declare that he would by-pass Bank Negara when he ordered the redemption of the investment in Cayman Islands to be deposited in the BSI bank in Singapore.

The Prime Minister in defiance of Bank Negara admitted to contravening the provisions of the Financial Services Act 2013 and under the Exchange Control Act 1953 that was in force prior to 2013.

If, the pack of scoundrels were to subvert the investigations by Bank Negara, our country would be a laughing stock.

If the members of the UMNO Supreme Council and its entire membership lack the courage of their convictions to demand that their President and Prime Minister take immediate leave and hand over the reins of leadership to his Deputy in the party and government pending the completion of Bank Negara’s investigations, then UMNO is not fit to lead the country any more.

This grave omission would be perceived by not only Malaysians but other countries as well that UMNO and its entire leadership has condone the blatant financial rape of our country in contravening Malaysian laws! - Matthias Chang – Future Fast-Forward - Read full article

Over 1,000 posts held by Penang PAS on the line...

If PAS were to really cut ties with the DAP, it would stand to lose slightly over 1,000 government-linked positions in the Penang government.

This would result in PAS losing any influence it presently has on the Penang government.

According to Deputy Chief Minister I Mohd Rashid Hasnon (photo), the Penang has appointed about 1,100 PAS members in the state's 290 village committees.

Although village committees tend to have a mix of DAP, PKR and PAS members, there are 56 committees which are almost exclusively made up of PAS members.

"If there are about 16 in each committee, that's about 900 people," he said.

Thus far, 15 committee members of a particular village have submitted their resignation letters, he said.

"I have already received their resignation letters and the relevant secretary is handling it before passing it to my committee of the next course of action.

"The resignations are not final. It will be deliberated by the state cabinet," he said.

Mosque committees

Meanwhile, exco member in charge of Islamic affairs Abdul Malik Abul Kassim said he has not received any resignation letters from PAS members on the state's 200 mosque committees.

Mosque committees, too, are appointed by the state government.

During the PAS muktamar over the weekend, the party resolved to order its central committee and syura council to cut ties with DAP.

Although some PAS leaders claim the matter is not final, others argued that it was fait accompli, since the syura council is controlled by leaders in the Dewan Ulama, who passed a similar resolution.

Thus far, former PAS deputy president Mohamad Sabu has pledged to resign as the board member in the Penang Water Corporation and Penang Halal Hub.

Following this, former central committee member Mujahid Yusof Rawa resigned as the director of the Penang Islamic Foundation and a board member of the Penang International Islamic Technology College (Kitab).

Long list

PAS members hold other key positions in the Penang government as well. This includes Penang PAS deputy commissioner Mohd Salleh Man, secretary Mohd Fadzil Kemi, election chief Rosidi Hussain, youth chief Afnan Hamimi Taib Azamudden, and muslimatdeputy chief Aida Yusof Rawa, among others.

Mohd Salleh (photo), who is the Permatang Pasir state assemblyperson and PAS' sole representative in the state legislative assembly, has at least four state government positions.

He chairs the Penang State Religious Council (MAIPP) and Zakat Pulau Pinang. He is also sits on the board of director for the Penang Islamic Foundation and Penang Halal Hub.

Mohd Salleh has not responded to queries sent by Malaysiakini. He is currently performing the umrah.

Mohd Fadzil sits on the Zakat Pulau Pinang board and was appointed press officer at the Penang chief minister’s office last year, replace Rosidi Hussain, another PAS member.

Rosidi, a trained lawyer, is currently a member of the Penang Islamic Council (MAIPP) and sits of the Penang Youth Development Corporation (PYDC) board.

Afnan is a MAIPP member and sits on the Kitab board.

Aida is the Penang Women Development Corporation’s board member.

PAS has two members sitting on the Penang Municipal Council and another two in the Seberang Perai Municipal Council.

Another four PAS members are the coordinators for the disbursement of state government funds in BN-held constituencies of Penaga, Permatang Berangan, Sungai Dua and Bayan Lepas. - mk

 

The PAS professionals who fell...

Story kat SINI dan SINI

cheers.