Although this blog has little confidence in the audit findings by the Auditor General on 1MDB, we shall nevertheless give it the benefit of the doubt.
But only if we know beforehand, what will the AG be auditing on.
For every audit, there should be a pre-determined scope of work and terms of reference before the audit can be executed.
As for the audit on 1MDB which was announced so many times by the Prime Minister, what are the scope of its work and the tasks it being asked to do?
Does any minister sitting in the cabinet know about it? Because, this is very important.
Malaysians want to know if the so called AG Report will be comprehensive enough and wide enough to answer all the questions raised by the people for the past two years.
For instance, can the AG investigate how the PM’s stepson had allegedly bought multi million dollar apartment in New York and financed the production of a multi million Hollywood movie? All these were suspiciously accomplished after 1MDB’s money amounting to USD700 million was remitted to Good Star Ltd in 2009.
With little trust given by Malaysians towards the leadership, and the admission by MACC that they are powerless to probe the mismatch of income and assets on any individuals unless preliminary investigations have been carried out, the importance of this upcoming AG report cannot be underestimated.
With so many bright and intelligent cabinet ministers, some even graduated from prestigious universities around the world, we would assume they are competent enough to know what are the parameters and deliverables of the Auditor General in auditing 1MDB.
Because God forbid, if the AG Report fall short of unearthing the answers we had asked, then we do not want to hear the cabinet ministers whining and admitting that they got to know the pre-determined scope of work ONLY DURING the presentation of the report. That would be grossly incompetent.
Therefore, what is the scope of work and terms of reference of the AG Report?
The Prime Minister seemed to be hiding behind the mantra “wait for the AG report” as his only mode of defence. But does he know the AG’s scope of work? Or will that too be answered with, “wait for the AG report”?
In a news report last month, the PAC had revealed that the AG’s terms of reference is determined by the Finance Ministry. Thus, can the Finance Minister who happens to be the Advisor of 1MDB governs how the AG should investigate? In Malaysia, where the public (and the politicians) are ignorant, it is sad that issues on this conflict of interest do not arise.
The same news report stated, “if the scope of work is to only determine and verify the figures that are already in the annual reports of 1MDB, the Auditor-General cannot do a better job than what has already been done by the fund’s current auditor – Deloitte. Also, there is no deadline set for the report to be ready.”
Again, what is the exact scope of work? This should be made transparent to the public.
The Cabinet has meetings frequently. Can any ministers tell us if the Auditor General’s scope of work is comprehensive enough? What are they? Should a forensic audit be needed? And if it does, will that take till the year 2017 to complete?
The last thing we want is for the Prime Minister and his entire cabinet destroying the credibility of the Auditor General with incorrect terms of reference and vague scope of work to begin with.
The Prime Minister issued his latest FAQ which yet again did not answer any of the questions posed to him.
We would have thought that he could at least explain what exactly the cash/paper assets/units fiasco all about since he is also the Finance Minister and the Advisor of 1MDB. But he did not.
In fact, when it is concerning 1MDB, the PM (or maybe his coterie of failed consultants) are desperately spinning the issue further.
Indeed, some of the allegations that have been made have no grounding in reality, for instance Tun’s claim that I am responsible for a loss of RM42 billon on 1MDB’s balance sheet. This appears to be a deliberate twisting of the facts as 1MDB has not made a loss of this amount. This is the amount of its total debt; debt that is far exceeded by the company’s assets of RM51 billion, as audited and confirmed by Deloitte. Most large companies around the world have high levels of debt, there is nothing unusual about this.
In the first place, Tun never claimed that there was a RM42 billion loss in 1MDB. He said, and every rational people in Malaysia agreed that the RM42 billion loans 1MDB took are unaccounted for and some may have been lost. Disappeared. Vanished.
Surely the Prime Minister must not think that Tun and the rest of fellow Malaysians are too stupid to discern between the words ‘loss’, and ‘unaccounted money lost’?
In Bahasa Malaysia, lost is ‘hilang’, ‘lesap‘. While the word loss means ‘rugi’.
If the Prime Minister’s so called corporate comms team could not grasp this most basic of definition, then no wonder the Prime Minister has an image of a clueless leader.
The fact that the Prime Minister is deliberately trying to mislead the people in his own FAQ while accusing Tun as twisting the facts is so ironic, we just had to smile at this sheer foolishness.
Nobody ever said that 1MDB is suffering a P&L loss of RM42 billion. People were asking, if the assets bought was RM15 billion at cost, while the loans taken was RM42 billion, then where is the balance of RM27 billion?
It does not matter if 1MDB has assets worth RM52 billion. The truth is in the pudding. If 1MDB is having a really strong balance sheet, then why the need to borrow from MOF, nearly RM1 billion in standby credit last March and RM2 billion from a billionaire last February just to pay off its loan interests?
What happened to the often repeated mantra – ‘there is nothing wrong with 1MDB, they have billions of cash and a lot of assets’?
He further added:
He (Tun) also claimed that I do not answer issues surrounding 1MDB, but I have gone beyond that – and instructed the Auditor General to conduct an audit of 1MDB, the results of which will be presented to the bipartisan Public Accounts Committee. This should ensure that the process is transparent, and all questions that have been asked of the company are independently answered by legitimate bodies rather than politically motivated sources.
Enough with the AG report already please. Going beyond answering, but veering the topic by saying you have instructed the AG to audit 1MDB is still not answering the questions!
Why are we, the questioning people, being treated like an idiot by this Prime Minister?
Simple questions like, ‘who is Jho Low?”, or why did 1MDB enter into a JV agreement with Petro Saudi and its contracts signed just within 3 days without any due diligence done before accepting the dubious ‘oil exploration rights’ in exchange for USD1.5 billion in equity?
The Auditor General could never answer these two questions let alone other tougher questions. Yet, the PM is asking people to wait for the report. What can it prove? Just like 1MDB’s external auditor, the AG report might prove nothing. There are so many unscrupulous companies that had obtained good, unqualified audit reports from external auditors throughout history.
And who are these legitimate bodies independently answering questions about 1MDB? Please don’t tell us, it is all those dubious Facebook accounts set up just to defend it? What credibility do they have? Are they the staff of 1MDB? Are they getting paid by the Prime Minister?
1MDB should be answering the questions themselves, on daily basis. This is crisis management 101. But the Prime Minister himself is telling the people that external bodies are answering on behalf of 1MDB. How incompetent!
There is also evidence that the Prime Minister has no clue to what the role of external auditors is all about when on May 18th, he stated:
“Auditors will not sign if even RM1 million is missing. Now it is said that RM42 billion has vanished. How can it vanish? It hasn’t vanished, there are assets, there are liabilities.”
The auditing community had a good laugh when the PM said that. In reality, when auditing billion ringgit company like 1MDB, the auditors will not even check something relatively miniscule as RM1 million.
Auditors use sampling method, and materiality testing. There is no way auditors can audit anything 100%. Their audit opinion and report even stated that.
And on top of it all, obviously the RM42 billion loans can be seen in 1MDB’s accounts. It is there for all to see in the balance sheet. It’s called historical accounting. But the money is vanished, obviously used up by unknown people (unknown at this point of time). How can we make ourselves clearer to this clueless PM?
This what happens when we have a career politician as a leader, and non-financial people as speech writers. To digress, a career politician is a person who never gained any meaningful experience in other sectors than politics.
It is sad to see how an embattled Prime Minister is desperately trying to hoodwink the people into supporting him. Worse, his efforts to defend himself fall flat on his face due to the incompetent advisors surrounding him.
Perhaps the Prime Minister need to apply the bullshit indicator onto himself first before giving out further FAQs.
Last night in a sudden move to appease the growing disgust from the public, 1MDB had issued a brief statement that its CEO, Mr. Arul Kanda Kandasamy has denied that he is snubbing the PAC probe which is scheduled for him today.
In the statement which was reported in The Malaysian Insider, Arul Kanda is “looking forward to appear before the committee and having the opportunity to clarify 1MDB’s position.”
However he added that the date to actually appear in front of PAC is “currently being finalised due to a date proposed earlier being in conflict with previously scheduled overseas commitments.”
This is in contrast to a statement made by a member of the PAC, MP Tony Pua in his tweets yesterday which stated, “These jokers claimed to be overseas this [sic] 2 days despite having been given the notice to attend some 3 weeks ago..”
1MDB itself had given assurances on May 12th that it has nothing to hide and its Chairman, Tan Sri Lodin Wok Kamaruddin asserted that he will attend if he is invited and that “the rest of the management have to attend as well.”
Many argued that Arul Kanda’s most recent press statement which said he could not appear for the stipulated PAC session due to some pre-scheduled commitments is an amateurish excuse even for his stature. Worse, it is a slap in PAC’s face and disrespecting Parliament.
Nur Jazlan had issued early warnings that PAC will start its investigation on April 14th, some 6 weeks before today’s date.
Amazingly, 1MDB’s former CEO, Datuk Shahrol Azral Ibrahim Halmi even requested a further 1 month extension to prepare for the investigation. That will overall be 10 weeks of preparation to face a PAC probe. Surely something is amiss.
And as recent as 22nd May, Nur Jazlan had urged the public not to doubt PAC’s investigation. Being the Chairman of PAC, he had said, “PAC holds the right to call witnesses. Why is it that PAC members are now being doubted, questioned? How will we then carry out a transparent and meaningful investigation?”
But all he could said with regards to the snub was that “the PAC secretariat received a letter from the Finance Ministry requesting for a postponement, and after discussing this just now, the members have agreed to it.”
The Finance Minister even acted like a messenger boy for both CEOs of 1MDB.
Certainly the conduct of those two had belittled and put a dent in public’s confidence towards the firmness and potency of PAC. How indeed can PAC carry out a transparent and meaningful investigation when the subject of their investigation can come and go as they please?
The gross incompetence that had been shown throughout 1MDB’s board, management and operations must not infect the PAC.
The Prime Minister, who is also the Advisor of 1MDB should have given a stern advice and ample warning for the CEOs to attend all the scheduled sessions.
Ultimately, the public wants to see how PAC could reign in the arrogance portrayed by 1MDB’s top management in snubbing the Parliament. As it is, the public are beginning to realise that when certain quarters had expressed doubts this investigation will not be dragged on for months or maybe years, they could be saying the truth.
We look back into a rather amusing past when Pak Lah was getting the heat by bloggers who had enjoyed themselves writing about his administrative mistakes. Those were the days when blogs were fun to read and everyone believed in the bigger cause.
And this video was always the ‘go to’ video by bloggers back then.
*clip from the Yes, Prime Minister series, The Tangled Web episode.
If 1MDB could not even properly explain the nature of USD1.1 billion (RM3.6 billion) supposedly kept in BSI Bank in Singapore, then certainly 1MDB could not even explain how they had accumulated RM42 billion worth of loans within 5 years, and of course telling us what had happened to the difference of RM27 billion loans they took when assets bought were only RM15 billion would be way beyond their ability.
According to news report, the USD1.1 billion that was originally backed by government for nearly RM7 billion has disappeared. 1MDB’s CEO back in February had said in an interview with The Edge that the money is in the form of cash and he had seen the bank statement.
And this was confirmed by the Prime Minister himself in March. But last week, the Prime Minister admitted that the money was not in cash but in ‘paper assets’. The MOF then clarified that the ‘money’ in Singapore was just in ‘units’, not even paper assets.
To make matters worse, the Prime Minister is going business as usual without seeing the implications for lying in Parliament, urging people to support him.
First, the confidence level from the rakyat has quickly diminished to the point of outright disgust.
Second, the flip flopping statements from the CEO, the PM and MOF heightens the perception that there is something rotten in 1MDB.
Third, a Prime Minister lying in Parliament is not something that can just easily be brushed off as trivial (except for crooks and liars).
Fourth, if the Prime Minister did not lie on purpose, then he could still be criticised on the grounds of incompetence, since he is also the Finance Minister and the top boss of 1MDB.
Fifth, nobody can trust a lying Prime Minister and everyone should remove an incompetent Prime Minister.
Sixth, a former Prime Minister had accused the current Prime Minister as a liar. Technically, he did lie otherwise the MOF would not have corrected his earlier parliamentary reply. Therefore the accusation has merit.
Here’s the latest blogpost by Che Det (if his blog is not accessible):
Najib Dan Pembohongan
1. Amatlah menyedihkan apabila saya dapati saya tidak dapat elak dari kenyataan bahawa Perdana Menteri membohong . Dalam kes wang 1MDB yang dikatakan telah dibawa balik dari Cayman Islands dan disimpan dalam bank BSI Singapura, jawapan tertulis oleh Perdana Menteri kepada soalan Parlimen tidak menepati kebenaran sama sekali.
2. Pembohongan yang pertama ialah tidak ada wang tunai 1MDB yang dibawa balik.
3. Kedua, tidak ada wang tunai yang dimasukkan ke dalam bank BSI di Singapura.
4. Ini jelas dari pindaan kepada jawapan yang pertama, iaitu bukan wang tunai berjumlah USD 1.103 billion (RM3.6 billion), dimasuk dalam bank BSI tetapi dokumen (surat pengakuan) yang disimpan dengan bank. Apa dia nya surat ini tidak dijelas tetapi yang jelas ialah ia bukan wang tunai.
5. BSI bank telah menyatakan selepas itu bahawa dokumen yang menyatakan simpanan dibuat oleh “Brazen Sky” anak syarikat 1MDB adalah palsu dan bukan daripadanya. Maka jelaslah kenyataan bertulis yang kedua oleh Najib kepada Parlimen bahawa yang disimpan adalah dokumen juga tidak benar.
6. BSI bank telah lapur kepada Monetary Authority of Singapore (MAS – Penguasa Kewangan Singapura) bahawa tidak ada wang 1MDB yang disimpan dengannya.
7. Pada kebiasaannya MAS melapur maklumat ini kepada Bank Negara. Ini jelas dari pengakuan bahawa kononnya lapuran ini tertakluk kepada protokol kerahsiaan antarabangsa (Egmont principles of information exchange) dan kehendak kerahsiaan di bawah seksyen 10 AMLA. Dari kenyataan ini adalah jelas bahawa Bank Negara telah terima lapuran Monetary Authority Singapore.
8. Tujuan merahsiakan tentulah kerana ada sesuatu yang tidak kena atau pembohongan yang telah dilakukan apabila Najib menjawab soalan bahawa wang tunai telah disimpan dengan bank BSI di Singapura.
9. Perbuatan “cover-up” atau menyembunyi kesalahan dalam urusan Kerajaan adalah salah di segi undang-undang.
10. Saya perturun di sini peruntukan dalam Malaysia Penal Code (Undang-undang Jenayah Malaysia) Section 218.
11. “Whoever being a public servant, and being as such public servant, charged with the preparation of any record or other writing, frames that record or writing in a manner which he knows to be incorrect, with intent to cause, or knowing it to be likely that he will thereby cause, loss or injury to the public, or to any person, or with intent thereby to save, or knowing it to be likely that he will thereby save any person from legal punishment, or with intent to save, or knowing that he is likely thereby to save any property from forfeiture or other charge to which it is liable by law, shall be punished with imprisonment for a term which may extend to three years or with fine or with both.”
12. Adalah jelas bahawa dalam kes wang tunai yang didakwa oleh Perdana Menteri dan pegawai-pegawai Kerajaan, Bank Negara dan 1MDB telah dibawa balik dari Caymans Islands dan disimpan di BSI bank di Singapura serta pindaan kepada jawapan pertama bahawa bukan wang tunai yang dibawa balik dan disimpan di Singapura, tetapi dokumen, kesemuanya tidak benar. Mereka yang membuat lapuran yang salah ini telah melanggar undang-undang jenayah Seksyen 218.
13. Perkara yang amat serius sedang berlaku. Wang syarikat milik Kerajaan yang dihutang dengan jaminan Kerajaan sebanyak tujuh billion (tujuh ribu million) Ringgit sudah tidak dapat dikesan di mana ia berada dan percubaan dibuat untuk membohongi Parlimen dan Negara berkenaan dengannya. Ada unsur jenayah berkenaan kes ini yang memerlukan siasatan oleh polis dan jika wang ini tidak juga dapat dikesan maka proses undang-undang hendaklah diambil terhadap semua pihak yang terlibat.
Sorry to say, things have gone from bad to worse. No wonder last year, the Prime Minister did a Pak Lah’s style of defence – elegant silence. Maybe he should have not spoken anything. It is clearly logical that the Prime Minister should relinquish his Finance Ministry post since the job is dragging him down further.
Tan Sri Muhyiddin Yassin said: “I have nothing to fear except God” when he urged the all powerful Prime Minister aka Finance Minister-cum-1MDB’s Chairman of the Board of Advisors to sack the top management of 1MDB. Well at least, that is a start.
video taken from http://www.apanama.my
A lot of things are not getting better under the surface. Yesterday the Eleventh Malaysia Plan was announced. But the economic figures from the previous Malaysia Plan did not come to expectations. Read HERE for the full details.
…and he did not even have to wait for the AG report to tell him that.
Finance Ministry Moves To Reduce 1MDB’s Debts
PUTRAJAYA, May 19 (Bernama) — Prime Minister Datuk Seri Najib Tun Razak said the Finance Ministry would take the appropriate measure to reduce 1Malaysia Development Bhd (1MDB)’s debt.
Najib who is also Finance Minister said issues surrounding 1MDB would be answered when the Auditor-General presents the audit report to the Public Accounts Committee (PAC) soon.
“I hope everyone will wait for the report,” he said at the finance ministry’s monthly assembly here Tuesday.
On March 4, Najib directed the auditor general to verify 1MDB’s accounts.
“We believe with this measure, we can reduce 1MDB’s debts. I’m confident of the finance ministry’s ability to execute it amidst all the criticisms.
“We will prove with this move, we can achieve the objective. From time to time, we will take the necessary measures,” he said.
The problem with 1MDB is its debt and the dodgy ways they have concocted to get it. Now, due to its high debt, the public had to pay more than RM2 billion per year on interests alone!
Is there no heads to roll because of this overly careless and ridiculously ill-advised venture perpetrated by the Ministry of Finance and 1MDB Board of Directors?
After months of telling the public that the finances of 1MDB is strong and secure by saying nonsensical stuff like the assets is more than the liabilities, 1MDB will not miss any payment schedule so on and so forth, the government finally today admits that yes, we have a problem.
The mess 1MDB created had caused the Prime Minister to have finally identified what the Finance Minister and 1MDB advisors had done wrong, and now wanted the Finance Ministry to find solutions to this problem.
Obviously he was talking to the mirror when he made that announcement.
This blog have always believed that the Prime Minister must, at the very least resign from his Finance Minister post in order to regain credibility. The easiest way is to not appoint himself to that particular post in the upcoming, long overdue cabinet reshuffle.
What better way to re-strategise and regenerate a flaccid performance? As it is, there is enough deadwood in his cabinet which could build a sampan.
Amat malang apabila Perdana Menteri kita kelihatan tidak keruan dan terumbang ambing ketika ingin mempertahankan kedudukan beliau. Lebih teruk lagi, beliau seakan-akan bercakap seperti para hadirin yang mendengarnya adalah terdiri dari mereka yang tidak mampu berfikir.
Semalam, telah keluar berita di mana Dato’ Sri Najib telah menyamakan diri beliau dengan Tun Dr Mahathir dari segi jangkahayat politik masing masing. Beliau berkata:
Saya Juga Boleh Pimpin Negara 22 Tahun
KUALA LUMPUR: Datuk Seri Najib Tun Razak membidas tindakan Tun Dr Mahathir Mohamad yang mendesaknya meletak jawatan sambil menegaskan beliau adalah Presiden Umno pertama yang dipilih menerusi sistem perlembagaan parti yang baharu.
“Saya presiden yang dipilih secara demokratik terbuka. Kalau dulu 2,600 orang di Kuala Lumpur (pemilihan). Dulu ada undi bonus… lepas itu ganti dengan kuota. Nak cabar presiden kena dapat 63 bahagian. Ingat senang ke nak dapat? Tidak mudah.
“Sebab itu dia (Dr Mahathir) boleh kekal 22 tahun…kalau saya nak kekal 22 tahun pun boleh tetapi saya nak dipilih dengan ikhlas… dipilih dengan demokratik. Tapi kenapa ganggu saya?,” katanya pada majlis sepetang bersama veteran Umno di Pusat Dagangan Dunia Putra (PWTC) di sini pada Isnin.
Hampir tertawa kami mendengarnya. Bukan kerana memikirkan bahawa mungkin Najib terlihat begitu terdesak, tapi kerana beliau lagi sekali tidak tahu apa yang diperkatakan oleh para pengkritiknya.
Rakyat mendesak supaya beliau meletak jawatan Perdana Menteri, bukannya jawatan Presiden Umno. Akan tetapi beliau memilih untuk memperkatakan mengenai jawatan Presiden parti kerana itu sajalah modal beliau untuk membidas Tun Dr Mahathir.
Dari pandangan kami golongan rakyat jelata, keinginan Najib untuk menjadi Presiden Umno selama 22 tahun mungkin boleh tercapai. Tetapi untuk menjadi Perdana Menteri selama 22 tahun sambil memenangi 5 pilihanraya umum berturut turut dengan undi melebihi 2/3 amatlah diluar kemampuan tuan punya diri.
Tidak usahlah Perdana Menteri yang sekarang ini membandingkan diri dengan Tun Mahathir, kerana ianya seperti langit dan bumi. Tun Mahathir cuma menghadapi masalah kepimpinan di dalam parti di dalam tahun 1986 – 1988. Dari tahap nasional, Tun Mahathir sepanjang pemerintahannya telah mendapat kepercayaan dan mandat yang kuat dari rakyat dan ini terbukti di dalam setiap pilihanraya, bukan sahaja beliau sering mendapat undi 2/3 di parlimen, beliau juga mendapat undi popular melebihi 50% (ada yang setinggi 65%!).
Lagi pula, Tun Mahathir adalah satu satunya Presiden Umno sejak tahun 1981 yang telah dicabar hingga ke peringkat undian Presiden. Usahlah Najib ingin mendabik dada kerana jawatan Presiden parti Umno pun sebenarnya telah diserahkan kepada beliau secara skim pindah milik dan bukannya secara demokratik.
Dan sekarang beliau bukan sahaja tidak mempunyai mandat yang besar dari rakyat sebagai Perdana Menteri, malah menghadapi krisis kepimpinan yang teruk di kalangan rakyat.
Tolong hentikan dari membuat perbandingan yang hanya akan ditertawakan orang. Kerana jika hendak berkokok berdegar-degar, ekor seharusnya bersih dahulu. Dan buat masa ini, ekor tersebut sedang bergelumang dengan tahi.
Orang ramai pun tahu ini hanyalah taktik Perdana Menteri untuk mewajarkan agar dirinya tidak perlu meletak jawatan. Jika begitulah hendaknya, maka cita cita beliau untuk menjadi Presiden Umno untuk 22 tahun mungkin akan menjadi kenyataan.
Yang bezanya, selepas tahun 2018, beliau cuma Presiden untuk parti Umno yang mungkin sudah jadi parti pembangkang ketika itu.
Ingatlah, mendapat kepercayaan majoriti ahli Umno yang dicucuk hidung tidak penting. Yang penting ialah untuk mendapat kepercayaan rakyat.
Dear Umno members and rakyat Malaysia in general.
When your Umno President and Prime Minister was told that his performance was worse than Pak Lah, it was regarding his performance as a Prime Minister. Everyone knows this. Tun Mahathir said:
25. I had great hopes when Najib took over from Abdullah.
26. But he did even worse than Abdullah, losing more badly in Selangor where he was the Head of UMNO. There are so many scandals surrounding him now. His popularity is now even lower than when he led the BN in 2013. In a number of constituencies the margins won by Barisan Nasional (BN) are very narrow.
27. Sabah and Sarawak, are now no longer safe, no longer BN’s fixed deposits.
28. Is it too absurd to predict defeat for the BN in 2018?
Is there anybody out there who do not understand this? Were we talking about the Umno President, or the Prime Minister? Is Dato’ Sri Najib Tun Razak just the Prime Minister for Umno, or Prime Minister for Malaysians?
But yesterday, in his poorly executed FAQ (probably concocted by a highly paid British media ‘expert’), his response to the issue above was:
Claim: “Najib did worse as UMNO President compared to Pak Lah”
- In the last general elections (GE13), BN won 11 state governments compared to 9 in the previous GE. We regained Kedah, maintained Terengganu and solidified our position in Perak.
- UMNO won more seats in GE13 when compared to GE12.
Barisan Nasional won 140 seats (63% of parliament) under the sleeping Pak Lah.
Barisan Nasional won just 133 seats (60% of parliament) under this clueless PM.
With much less popular votes than his predecessor, this administration pinned all of their defence on:
a) Umno won more seats. Can Umno alone become the government?
b) Won back Kedah (Perak returned to BN during Pak Lah’s premiership)
Kudos for changing the question to fit your own preferred answer. It was quite a hilarious read. However, it did not mention how the reigning Umno President who doubled himself as the Head of Umno Selangor, did more badly in Selangor than how Umno did in GE12. Embarrassing isn’t it?
Now, for the rational among us, has this FAQ really solidified his leadership.. or accentuated his desperation and weaknesses?
And by the way, has the chinese tsunami been successfully reversed by BN? From the look of Rompin and Permatang Pauh by election, there might also be a malay tsunami against the Prime Minister soon.
To remind those who are handling the PM’s media propaganda: You must not expose yourself with careless mistakes. If you know neither the enemy nor yourself, you will succumb in every battle. Politics 101.
The Prime Minister, in his usual tactics of delay and diversion had failed in his responsibility of answering questions about 1MDB and had shirked on his duty as its Chairman of Board of Advisors and also as the Finance Minister, He is now shifting the accountability of answering the questions to the Auditor General and PAC.
He had since 2013 to answer the allegations himself but waited till last month to order the investigations, and now hiding behing AG and PAC as if these two are a pair of judges that must not be questioned while overseeing a trial.
He said in his blog:
- It is unfair for certain politicians to convict the government in the court of public opinion way before the actual facts are laid down by lawful authorities, namely the Auditor-General and the bi-partisan Public Accounts Committee (PAC).
- When concerns began to be raised, I wanted a detailed explanation, so I ordered the Auditor General and PAC to investigate 1MDB’s books. Anyone found guilty of embezzlement or misappropriation will be brought to justice.
- 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.
- We all want detailed answers but it is only proper to let the auditors do their job and tell us clearly what the situation really is. If we pre-empt it, we would be undermining them, as many others have done. This is not the proper procedure. If we are sincere in finding out the truth behind those allegations, we need to get the information from legitimate sources (like the Auditor General) and not third-party news portals or online blogs that might have hidden agendas.
Firstly, the Auditor General and PAC are not the judiciary where there will be a ‘contempt of court’ if anyone, including the Prime Minister should answer the questions regarding 1MDB. As it is, there are a few feeble attempt to defend 1MDB in the media, namely Salleh Keruak and a few facebook/twitter accounts set up by the PM’s social media office.
Secondly, and this is quite perplexing; why would the PM need a detailed explanation on 1MDB when he is actually for all this time holds two other posts (as FM and top boss of 1MDB). Is he not accountable for the operations and management of 1MDB? It is after all, a 100% subsidiary of Ministry of Finance.
This only exposed him as the most lackadaisical Prime Minister who has been ignorant of grave issues that are happening under his nose.
Plus, if the Prime Minister himself does not know how to explain about 1MDB, his barking dog Salleh Keruak certainly knew less about 1MDB than the Prime Minister.
The PM is after all, the most legitimate of all sources. But he wasn’t sincere in giving us the truth for the past couple of years.
Thirdly, and this is confirmed by an auditor friend in a Big Four firm – Auditor General will not find anything wrong in 1MDB’s accounts because, just like the international audit firms that had been auditing 1MDB, it will be bound by auditor’s scope and procedures. And these procedures will audit on form, rather than substance. To put it in layman’s terms – it will not audit ‘intention’ of a transaction. It will only audit the procedures of the transaction.
For instance (we start with the easiest for now):
1) Who is Jho Low and why is he dictating the business and acting on behalf of 1MDB as proven in the hacked email correspondence between him, 1MDB and the middle eastern business partners?
Most likely answer in AG report: Our investigation found nothing unusual in the accounts as all transactions are approved and signed by the relevant parties and had authorisation by the Board of Directors of 1MDB.
(the PM could have just called this business partner of his to get to the bottom of it and let us know how it went)
2) Why are the IPPs bought in 2012 at a price more than its market value and paid higher than normal commission rate to Goldman Sachs (at 10%) for the issuance of subsequent bonds?
Most likely answer in AG report: The purchases were done according to proper Board resolutions with friendly parties a.k.a. accredited valuers being called to get the market value of those assets. Payment of 10% to Goldman Sachs were done accordingly and the appropriate banks have confirmed its remittance.
(as the Chairman of the Board of Advisers, the PM could have easily gotten the answers for this since 2013 but of course he waited until 2015 and will let the AG report answer on his behalf)
3) The valuation report on the oil exploration reports in Turkmenistan and Argentina received only on 29th September 2009, a day after 1MDB’s joint venture deal with Petrosaudi was signed. 1MDB put in USD1 billion for the JV yet Petrosaudi put in USD1.5 billion of dodgy ‘oil exploration rights’ which revealed on hindsight, did not exist at that point of time. On the same day of signing, Petrosaudi asked 1MDB to repay the 3-day loan worth USD700 million which Petrosaudi had ‘supposedly’ given to the JV company on 25th September. The questions is.. WHY to all these?
Most likely answer in AG report: We could not get the 3rd party confirmation from Petrosaudi regarding those transactions but all the paperwork seemed to be in order. The Chairman and the shareholder of 1MDB had sighted the paperwork and given their approval in September 2009. We deem the transaction as immaterial as total number of assets in 1MDB is worth RM52 billion while the money unaccounted is less than 10% materiality level.
(good luck in explaining this one)
4) According to 1MDB accounts, at least RM7 billion was deposited in Cayman Islands by 1MDB through its many vehicles. But this has been denied by the Prime Minister during his delayed telecast interview last month. So where is the money?
Most likely answer in AG report: 1MDB have safely assured us by way of director’s statutory declarations and gave us enough comfort that the monies are there in the accounts although it is beyond our scope of work to check into 3rd party accounts such as Good Star Ltd and Petrosaudi. Overall, the 1MDB accounts is deemed true and fair and have followed all the relevant accounting regulations and standards.
(The AG team will be stretched and overwhelmed with the magnitude of this work scope)
There you go. The reasons why the AG report might not find anything. The PM is just buying off time by getting the AG to audit 1MDB’s accounts as an excuse to get a breather from all the questions asked. The issue is larger than just its accounts. It’s about governance, abuse of authority and corruption. This is precisely how Arthur Andersen gave a good audit report for Enron back then. Unless forensics audit is done, or MACC is brought in then the AG can never find anything at fault with the accounts. Either way, neither party can gain any credibility if the sitting Prime Minister still hold the post of Finance Minister and Chairman of Advisory Board of 1MDB while investigation is ongoing.
For more questions, please read: http://kadirjasin.blogspot.com/2015/05/soalan-penyiasat-1mdb-wajib-tanya.html
1MDB is being defended arduously by the pro 1MDB factions under the Prime Minister’s watch. It is an uphill task indeed. What more, even the younger brother of Prime Minister is gunning 1MDB down by urging its Board of Director to resign because of a complete mistrust in its financial situation.
Indeed, the financial problems associated with 1MDB is at a catastrophic stage; involving astronomical amount of taxpayers’ money.
1MDB started and funded with only RM1 million as its capital. But it was able to buy several IPPs, huge area of government lands etc totalling billions of ringgit. Among others:
a. Purchase of Tanjong Energy (now known as Powertek Energy Sdn Bhd) from Ananda Krishnan for RM 8.5 billion. This is higher than market price. The licence was about to expire.
b. Purchase of Genting Sanyen Power (now known as Kuala Langat Power Plant) for RM 2.3 billion. Again high above market price. The licence was about to expire.
c. Purchase of Jimah Energy for RM 1.2 billion.
d. Purchase of 70 acres of land in Jalan Tun Razak for RM320 million i.e: RM64.00 psf.
e. Purchase of 495 acres of land in the former Sungai Besi TUDM airport (now known as Bandar Malaysia) about RM 363.5 million i.e: at RM 91.00 psf. Estimated value RM1,000 psf.
f. Purchase of 234 acres land in Air Itam in Penang RM 1.38 billion i.e: at RM135.00 psf.
Total amount = more than RM14 billion. This does not include billions of ringgit in Cayman Islands and Singapore. The total number of borrowings as appeared in 1MDB’s books now stood at RM42 billion!
Where did 1MDB get all the money to buy all these assets? That’s right, through loans. Billions of it. And guaranteed by the government.
Is it prudent to borrow an unbelievable amount of money when you have only RM1 million as capital? Obviously if it’s any other kind of business, it would be a severe case of mismanagement. If some other board of directors are doing it, the shareholders will immediately convey an EGM to remove all of the directors for dereliction of duty.
Tell us, if you have only RM1, is it prudent to borrow RM42,000?
Nazir Razak was partly right when he said the directors should resign for failing in its responsibility in appointing an independent auditor instead of waiting for the Auditor General’s audit report.
“The immediate check for a responsible board is to appoint an independent (auditor) now … otherwise the board and management, in my view, should resign.
”It is your basic responsibility. There’s a complete mistrust in your financial situation. You have to responsibly deal with that. But instead you sit there and wait for AG.
“To me that’s irresponsible. If you do that then it’s better for you to step down and let someone else come in and take over,” Nazir told the media over a luncheon at the Asean Business Club (ABC) forum.
What he should have also said was, the board of directors should have resigned much earlier for failing to adhere the simple rule in business — never bite off more than you can chew.
Accumulating gigantic amount of debt even before seeing any returns? What a preposterous business model. The risk management department in 1MDB must have been run by monkeys.
Buying dodgy, nearly expired IPPs at grossly overpaid prices, accumulating debts along the way, while buying federal lands at grossly below market prices then selling these prized possessions to foreigners just to pay the interests of those debts!
At this juncture, we really do not understand why those pro 1MDB people have not asked the Prime Minister to resign from his Finance Ministerial post yet. We could understand that the pro Najib people have become blind sided by their inability to discern what is wrong and what is right.
But to at least see that a serious abuse of power that came from a centralised figure that holds so many portfolios simultaneously have caused 1MDB to bulldoze all levels of checks and balance. Is this acceptable?
The cabinet was in the dark, otherwise Deputy Prime Minister wouldn’t have said that even he could not explain the 1MDB scandal.
Furthermore, the Chairman of 1MDB’s Board of Advisors, wearing his Prime Ministerial hat, has ordered the AG and the PAC to investigate 1MDB; and to make matters even more ridiculous, 1MDB have not even froze its accounts or transactions pending these investigations. They are happily going about their business, albeit frantically selling everything they have just to pay off their debts.
The taxpayers will get hurt. The scandal will put a big dent on the economy. All because the government wanted to do business blindfolded… trusting dodgy businessmen and half cooked professionals. This is under this government’s watch. And they failed the people.
And yet, Najib Razak and his fans are blaming Tun Mahathir for what he did 2o years ago?
And grow a pair.
Readers might want to read:
Let’s talk about principles. Since we have politicians who don’t appear to have one. Having a principle will make you seem consistent. Consistency in your principles will make you become trustworthy. Even Tunku Abdul Aziz has become somewhat a blur from his old self. We will talk about him at the end of this article.
In the mean time let’s talk about how unprincipled and inconsistent some politicians are.
Naib presiden Umno itu berkata, Dr Mahathir perlu membiarkan dirinya dan pemimpin Umno fokus kepada menguruskan pentadbiran negara daripada melayan setiap dakwaan yang ditimbulkan.
Katanya, Dr Mahathir juga semakin keterlaluan apabila masih menyerang Najib walaupun beberapa persoalan yang dibangkitkan sudah dijawab secara terbuka, termasuk isu 1Malaysia Development Berhad (1MDB) dan pembunuhan wanita Mongolia, Altantuya Shaariibuu.
And now, after such brouhaha and the mismanagement of 1MDB could be contained, he is saying:
I suggest that the 1MDB board of directors appoint another international firm that is independent to examine, verify and reveal to the public all its assets, liabilities as well as the status of its investment portfolio and cash flow.
He said the public should not have to wait for the National Audit Department to complete its probe on 1MDB before getting answers, and urged the Auditor-General to prepare a report on 1MDB immediately to submit to the Public Accounts Committee.
“1MDB has become a hot issue that Malaysians are now focusing on. Hence, in my view, the government should answer the questions raised to remove negative perceptions surrounding this investment firm.
After months of defending 1MDB, most Umno ministers (not limited to just Hishammudin alone) have come out in the open to urge the government to explain and give replies to all the questions that has been asked (please refer to previous post here).
Well, aren’t you also part of the government too? Weren’t you the ones after all these months were busy defending 1MDB? What happened to your principles? You as government defending 1MDB but now you become part of the rakyat urging the government to be transparent? Are you saying you were not transparent before? Or are you saying you were defending blindly like an idiot before this?
Take the example of Umno Youth. On 13th April, Umno Youth had rallied behind the Prime Minister with regards to 1MDB. The Ketua Pemuda had said:
He added that Najib had explained all the issues raised by former premier Tun Dr Mahathir Mohamad at the meeting that lasted over an hour.
“The Youth are very satisfied with Najib’s explanation on the current issues, thus we will continue the effort by carrying Najib’s explanation, and spread it to the party members and the public,” Khairy said.
On ways to regain the trust of the people towards BN, Khairy said they need to engage with the public and explain to them the current “crisis” that Umno is facing.
“We have to reach out to the rakyat, not only the prime minister but all the government machinery including the cabinet and party leadership.
For the case of Umno Youth, they went a step higher. They announced that they will help explain to the public because they were very satisfied with the explanation by the PM back then. We wonder what kind of explanation the Youth wing had.
Because less than a month later, they made a 180 degree turn where and urged the government to answer the burning questions. Can’t they answer on behalf of the government. The last time we checked, Hishammudin and the Ketua Pemuda are members of the cabinet.
Weren’t 1MDB issue being discussed in the frequent cabinet meetings? What have the ministers been doing in those meetings?
Why are the cabinet ministers acting dumb when it comes to 1MDB? Is it because they have failed in their fiduciary duties of safeholding the
After showing solidarity with the PM, the cabinet ministers seem to be at loss. Showing solidarity and rallying behind the PM means you are supporting what the PM has been doing, that is why you were defending 1MDB. Being in solidarity means you are sharing responsibility and accountability.
Thus all this recent sudden commotion coming from these ministers are mostly because they are hedging their political position. Otherwise, a principled person will defend their original position about 1MDB and continue hoisting the top boss of 1MDB over their shoulders.
And a smart, principled person would have from the start question the 1MDB board of advisers in cabinet meetings and seek out the truth and put matters to a stop a long time ago.
All this inconsistencies show that politicians are not really honest and righteous when it comes to the people’s need and queries. They will only act when their position is in jeopardy.
Same goes to the pro-1MDB people in the sidelines like Tunku Abdul Aziz. It doesn’t matter if Tun Mahathir had bailed out companies when he was the Prime Minister. This has been talked about way back during Pak Lah’s administration, where the unofficial policy at that time was to denigrate and disparage Tun Mahathir’s legacy.
The main issue NOW is the questions about 1MDB which have not been answered.
The rakyat themselves are asking the same questions. Will Tunku Aziz and all the pro-Najib cybertroopers will then tell the rakyat: “Hey rakyat, you can’t get the answers because you also have bailed out several companies in the past!”
How come, in the effort of diverting the real issue, all these parasites and “pelesit” and “jemuan” have become stupid?
Are they the proponent of “if the people don’t know what we’re doing then the people won’t know what we’re doing wrong”?
Good luck in answering the people. Please do not dumb down the public by attacking Tun Dr Mahathir. It won’t work. Pak Lah learned this lesson the hard way. Anwar Ibrahim still didn’t learn that lesson. If this current administration repeating this mistake, then they are wishing their own political demise.
Tun Mahathir is just the messenger. If you don’t know from who the message is, you are truly stupid.
As at 11th May 2015, the Prime Minister still hasn’t replied and give answers to the original questions about 1MDB. His answers were always in the form of attacking the bearer of those questions. But now, nearly all of his bootlickers, who not too long ago were defending 1MDB have came out in the open and asked him to answer what the rakyat had wanted to know. These are the questions, they were laden with facts, not simple allegations as what Salleh Said Keruak (who took the role of Nazri Aziz as the barking dog during Pak Lah’s time) had been trying to spin. We just want to know the truth.
Taken from chedet’s blog:
6. Dakwaan-dakwaan yang telah dibuat terhadap 1MDB bukan berbentuk tuduhan melulu. Ia disertai dengan fakta yang jelas, iaitu jumlah hutang, siapa yang mengurus, siapa yang menerima wang berbillion Ringgit, pelaburan yang dibuat, dimana wang ini disimpan, dalam bentuk apa.
7. Nama Jho Low disebut berkali-kali. Demikian juga nama-nama syarikat miliknya. Tuduhan dibuat berkenaan dengan pembelian rumah mewah olehnya di London, New York dan Holywood. Lepas itu rumah dijual kepada anak tiri Perdana Menteri dengan harga ratusan juta Ringgit. Sudah tentu ini tidak disebut dalam akaun 1MDB yang akan diperiksa oleh AG.
8. Pada mulanya duit Riza Aziz dikatakan warisan harta kekayaan dari keluarga Tun Razak. Kemudian dakwaan ini dinafi. Soalannya jika tidak dari keluarga Tun Razak dari mana datang wang yang banyak ini. Apakah ianya hasil dari perniagaan? Jika ya, apa perniagaan, dimana? Sudahkah cukai pendapatan dibayar? Kepada Kerajaan mana?
9. Pelaburan ratusan juta untuk filem “The Wolf of Wall Street” oleh Riza Aziz, anak tiri Dato Sri Najib datang dari mana? Filem ini tidak memberi keuntungan. Tidak mungkin filem ini membiayai rumah mewah yang dibeli dengan ratusan juta Ringgit atau Dolar Amerika.
10. Semua perkara-perkara ini tidak akan terdapat dalam akaun 1MDB. Tetapi rakyat ingin tahu kerana melibatkan Jho Low. Dan Jho Low disebut-sebut berkenaan dengan pengurusan 700 juta USD dari 1MDB.
11. Ada yang disebut berkenaan Petro Saudi yang juga menerima bayaran ratusan juta dolar dari 1MDB Benarkah Petro Saudi ini mendapat konsesi kawasan minyak dan gas di Argentina, di Turkmenistan dll. Apa buktinya? Benarkah JV dibuat dengan Petro Saudi sebelum ‘due diligence’ dibuat. Katanya sementara 1MDB melabur USD1 billion dalam JV dengan Petro Saudi, tetapi Petro Saudi tidak melabur satu sen pun. Apa jadi kepada wang IMDB dalam JV tidak jelas.
12. Apa sebabnya lebih dari 6 billion Ringgit (Dollar) disimpan di Cayman Island? Kerajaan tidak pernah simpan duit di lain negara selain pembelian bond. Apakah bond dibeli? Apa hasilnya?
13. Katanya wang sebanyak USD1 billion sudah dibawa balik dari Cayman dan disimpan dalam bank Singapura. Kononnya Bank Negara menjadi masalah kerana proses menyimpan wang yang banyak mesti melalui proses yang rumit. Bolehkan Bank Negara jelas kenapa menimbul masalah sedangkan 1MDB adalah syarikat Kerajaan yang dikuasai oleh Kementerian Kewangan. Jika mudah di Singapura kenapa susah sangat di Malaysia?
14. Urusan Kerajaan pernah dirahsia. Tetapi soal bayar balik hutang adalah public knowledge (dalam pengetahuan orang ramai). Orang ramai ingin tahu benarkah Ananda Krishnan memberi pinjam RM 2 billion untuk bayar faedah ini. Apakah faedah yang dikenakan oleh Ananda? Apa cara bayaran balik hutang Ananda? 1MDB dikatakan untung. Kenapa tidak dapat bayar faedah 2 billion Ringgit.
14. Why has the 1MDB become controversial? What is wrong with 1MDB?
15. From the beginning it was wrong. It started off as an off-budget and it was not put before the Parliament.
16. The money was borrowed. So it is not sovereign wealth but sovereign debt.
17. The bond raised by Goldman Sachs costs more than is usual for Government borrowings. The interest rate at 5.9% was too high. Government loans usually attract about 3% or below.
18. In addition 10% commission went to Goldman Sachs which means that 1MDB gets only 90% of the money borrowed yet has to pay interest on 100%, raising the interest rate to 6.6%. Averaging at 6%, yearly interest on 42 billion Ringgit is about RM 2.5 billion. Since 2009 there has been no income from all the assets. And 1MDB had to borrow RM2 billion to pay the interest. The loan is now RM42 billion.
19. Total initial borrowings amounted to 42,000,000,000 (42 billion Ringgit). As far as can be ascertained the investments are as follows:
a. Purchase of Tanjong Energy (now known as Powertek Energy Sdn Bhd) from Ananda Krishnan for RM 8.5 billion. This is higher than market price. The licence was about to expire.
b. Purchase of Genting Sanyen Power (now known as Kuala Langat Power Plant) for RM 2.3 billion. Again high above market price. The licence was abut to expire.
c. Purchase of Jimah Energy for RM 1.2 billion.
d. Purchase of 70 acres of land in Jalan Tun Razak for RM320 million i.e: RM64.00 psf. Land last sold in the area was at RM7,000 psf.
e. Purchase of 495 acres of land in the former Sungai Besi TUDM airport (now known as Bandar Malaysia) about RM 363.5 million i.e: at RM 91.00 psf. Estimated value RM1,000 psf.
f. Purchase of 234 acres land in Air Itam in Penang RM 1.38 billion i.e: at RM135.00 psf.
20. It should be noted that TRX land is close to land recently sold at RM7000.00 psf. Assuming the market price is RM3000.00 psf the true value of this land is 6 billion Ringgit. The Government has therefore lost 5 billion plus because 1MDB paid only RM320 million.
21. With regard to the Sungai Besi Airport land, 1MDB paid 363.5 million Ringgit for 495 acres – i.e at RM91 psf. Assuming market price for this land is RM1000 psf. the Government lost approximately 20 billion Ringgit.
22. The land in Penang is of poor quality and has more than 1000 squatters. Yet 1MDB paid RM1.3 billion i.e at RM 135 psf.
23. These are all the purchases that are known. They all add up to RM14.7 billion. So there is approximately 27 billion Ringgit left.
24. More than 1billion US Dollars were said to be paid to Petro Saudi without verification as to the value of this company or its assets.
25. Where is the rest of the money?
26. A certain amount was registered in the Cayman Islands. What was the money used for? What was brought back to Malaysia. What was brought back and deposited in a Swiss bank in Singapore. Why? Where was the money brought back from? Why is this money not used to pay the RM 2 billion interest. Why did Bank Negara allow the first tranche to be repatriated to Malaysia and not the second tranche. Now the Swiss bank has told the Singapore authorities that the document did not originate from them and does not represent a true account of the assets of 1MDB. So where is the money said to be registered in the Cayman Islands and is now brought back.
27. Clearly 1MDB is not getting any return from its investments. Not only is it losing money but the Government has lost money when 1MDB paid only RM683 million for TRX and Sungai Besi. Total loss incurred by the Government is approximately 25 billion Ringgit.
28. 1MDB revalued all its assets at 52 billion Ringgit. That is because Government land was brought at far below the market price. It can only use this money to repay loans if it succeeds in selling them off as land or after development. Progress on TRX is very slow and there is no work on Sungai Besi land. No money will be generated during development; only outflows.
29. It is this disappearance of a huge amount of borrowed money by 1MDB and the inability to answer questions regarding what happened to the funds that disqualifies Najib from being Prime Minister of Malaysia.