Najib Razak / Umno & Barisan Nasional

1MDB is confirmed to be in bad shape; will be dismantled by MOF

So it is confirmed that 1MDB is in trouble. Otherwise, why would the Ministry of Finance decided to wind-down 1MDB in the effort to lessen the massive debts it has stupidly acquired for the past 6 years?

Since this is the weekend, let’s not talk about the technical details of this bailout. Let’s talk about the morals behind it.

Isn’t it strange for the Finance Minister to come up with a rescue plan when none other than the Prime Minister himself had assured Malaysians in his FAQ (Falsely Answered Question)  not to worry about 1MDB as its assets are more than its liabilities?

Wasn’t he the one that has been telling the public not to be hasty in their judgment and everyone should wait for the AG report as well as the PAC investigations to complete?

At every opportunity, he would say, “wait for the AG report”.

But it seems the Prime Minister and the Finance Minister are the ones who couldn’t wait and must dismantle this financial monstrosity soonest possible. So which is which?

Is 1MDB in critical shape, or is it not?

With more and more people beginning to realise that the leaders involved had misled Malaysians into thinking this company is in good shape and that the critics had been right all along, one wonders if this ‘winding-down’ strategy by MOF will just going to be a pyrrhic victory for the Prime Minister.

Obviously they would want to absolve all 1MDB’s mismanagement for the past 6 years under the pretext that this exercise will help reduce the RM42 billion debts.

They will wipe their hands clean and pat themselves on the back for the job well done. And when AG and PAC report is presented, it will be superfluous as the revamp exercise is going to be underway and the board of directors and advisors can walk away with a huge severance package.

This plan would not work unless there are no intelligent ministers in the cabinet to expose this nonsense.

Hoping this will be over soon..

Hoping this nightmare will be over soon..

The desperation is reeking from all angles. And to make matters worse, this is not the first time 1MDB is bailed out. The first was in February when it was rescued by Ananda Krishnan before loan payment of RM2 billion was defaulted. The second was in March when MOF extended a RM950 million standby credit for 1MDB to use in settling its loan interests.

And for the third, foreigners from the Middle-East are sought to help this troubled pile of stinking mess – to help reduce loans amounting RM16 billion which shouldn’t have happened in the first place. Begging the arabs to save us from our own mistakes.

So what will these arabs investors get in return?

“The deal reached with Abu Dhabi-based IPIC and Aabar will help reduce the debt by RM16 billion and in exchange, 1MDB will provide IPIC and Aabar with a number of financial assets, including units that are held in the company’s BSI Singapore account.”

Be afraid, be very afraid.

Will anyone be accountable and take the fall for this fiasco? Highly unlikely.

Will our original questions be answered? Next to impossible.

The emperor is busy fiddling while his pants is on fire.

18 thoughts on “1MDB is confirmed to be in bad shape; will be dismantled by MOF

  1. Typical reply of a macai, Mr Guevara? As advised by the blog owner, please astound us with intelligent rebuttals instead.

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  2. As-Salam bro JMD.., its been awhile since i posted anything on ur page..,neway gue dun know whether u have read this comment as appended below from a blog call abatasa2.., sent chills to my spine.., wat else can I say..,heheh.., (,”)

    Wan Ahmad Fayhsal

    GOLDMAN SACHS DAN 1MDB: BUKAN “PLAIN VANILLA”

    Ini kupasan terakhir saya tentang 1MDB. Dan sebenarnya ini hal yang teknikal, bak kata orang Perak “renyah” untuk orang awam nak faham.

    Ada yang tanya (baca: persoalkan kredibiliti) saya macam mana anda graduan Chemical Engineering tahu pasal corporate finance, etc.?

    Disamping saya ada “brief stint” di PETRONAS sebagai Business and Strategic Planner dan di Jabatan Perdana Menteri (TERAJU), saya ada sedikit “exposure” tentang penstrukturan dunia korporat. Saya masuk PETRONAS pun ketika era peralihan kuasa Tan Sri Hassan Merican kepada Tan Sri Shamsul Azhar. Banyak saya belajar di Technology and Engineering Division selaku planner. Juga di TERAJU.

    Saya bukan pakar Corporate Finance. Tak pernah saya mengaku pakar tapi saya seorang Felo di PUTRA Business School. Dan saya tulis berkenaan 1MDB dalam The Malaysian Reserve dan kupasan di MOBTV bukan sebagai graduan Chemical Engineering atau pelajar MA di CASIS UTM tetapi sebagai Felo di PUTRA Business School. Saya diberi izin dan pengesahan oleh majikan saya untuk bercakap dan ulas bagi pihak mereka.

    Sudah tentu saya ilmu yang saya dapat tentang nak selamatkan aset 1MDB ini bukan bersifat “bookish”. Kalau Puan Ainon Mohd. ada jaringan (network), saya pun ada jaringan juga terdiri daripada peguam, investment banker, sejarawan, banker, fund manager, regulator sekuriti etc.

    Sebelum saya tulis dan berhujah saya akan rujuk pakar-pakar dalam pelbagai bidang ini untuk sahkan apa yang saya ingin panjangkan kepada umum.

    Niat saya bukan untuk tulis sesuatu yang teknikal tetapi sesuatu yang bersifat “helicopter view” atau dalam adage Inggeris: “don’t mistake the forest for the trees” tentang 1MDB dan cabaran Kedaulatan Negara.

    Adalah hamba Allah, pelajar ekonomi UM persoalkan fobia dan paranoia saya terhadap Goldman Sachs dan juga persoalkan cadangan saya untuk meminta Kementerian Kewangan untuk buat rundingan semula dengan “bookrunner” dan “underwriter” 1MDB iaitu Goldman Sachs berkenaan hutang tertunggak yang saya kata berisiko tinggi untuk aset-aset strategik negara jatuh ke tangan asing.

    Apa yang dilakukan oleh Goldman Sachs kepada 1MDB – bak kata orang-orang investment banker bukan “plain vanilla”. Ianya sesuatu yang “unik” dan jarang dibuat.

    Malah banyak penganalisa yang lebih wibawa daripada saya dalam Bloomberg dan Financial Times melihat perkhidmatan yang dilakukan oleh Goldman Sachs kepada 1MDB adalah sesuatu yang ganjil dan mirip kepada skandal Goldman Sachs di Greece yang akhirnya meletus kepada krisis ekonomi besar-besaran kini yang dipanggil “Grexit” (Greece mungkin keluar dari EU).

    Cara bon (kertas hutang) yang disusun dan dikeluarkan oleh Goldman Sachs untuk 1MDB dalam jumlah yang besar sehingga mereka mendapat komisyen yang amat “masyuk” ($500 juta) bak kata investment bankers adalah sebenarnya bersifat “best efforts underwriting” yang membawa maksud Goldman tak janji boleh pastikan bon tersebut dilanggan sampai habis kesemuanya dan selalunya ianya bersifat risiko tinggi dan jarang-jarang berlaku.

    Ini yang kita risau sebab jenis kontrak apa yang dimeterai antara 1MDB dan Goldman Sachs yang entah dari mana mereka dapat cari pelanggan dan pemiutang yang memberikan $6 bilion USD kepada 1MDB.

    Kononnya komisyen yang mahal itu sebab nak kejar satu joint venture dengan PetroSaudi. Maka sebab itu Goldman Sachs minta upah lebih daripada upah “underwriting” yang biasa.

    Kita tak tahu secara tuntas apa sebenarnya kerana hal ini hanya Lembaga Pengarah 1MDB yang perlu “come clean” kepada forensic audit. Kita tak mahu tengok-tengok dengan “high gearing/leverage” yang Goldman Sachs buat ini nanti jadi macam kes “currency swap” seperti Goldman buat untuk Greece. Kalau macam itu wassalam Malaysia. Balik kampung lah kita tanam jagung dan UMNO boleh bungkus.

    Maka adalah mustahak untuk Kementerian Kewangan melalui Ketua Setiausaha Perbendaharaan (KSP) berunding semula kontrak apa yang diistilah secara teknikal sebagai “NOVATION” dengan pihak Goldman Sachs selaku kepala kepada “Club Deal” dengan “sub-underwriters” yang lain yang terdiri daripada entah bank mana, kot-kot ada hedge funds dan institutional investors mana entah yang terdiri daripada orang asing yang sedang menangguk di air yang keruh.

    Mereka dah keluarkan pinjaman kepada 1MDB dalam jumlah yang banyak dan dah masuk dalam rekod mereka sekian-sekian tempoh, riba’ yang mereka ambil adalah sebanyak ini.

    Kalau kita buat rudingan semula (novation) ke atas kontrak, sudah tentulah kita kena bagi pampasan kepada Goldman Sachs (dalam bentuk apa itu terpulang kepada kebijaksanaan KSP, Tan Sri Dr Mohd Irwan Siregar) yang mana Goldman Sachs kena runding balik kontrak yang Goldman tanda tangani dengan underwriters lain.

    Jangan fikir bila Goldman buat kerja yang bukan “plain vanilla” ini seolah-olah lepas kutip $6 billion USD untuk 1MDB mereka cuci tangan. Ini bukan bon biasa, dan para peminjam dan pelanggan bon 1MDB ini sanggup langgan bon yang tidak ada rating sebab mereka percaya kepada nama GOLDMAN SACHS. Ya, pelik sekali, bon 1MDB hanya diberi rating selepas dipungut nilai $6 bilion yang mana dilakukan dengan penuh RAHSIA.

    Masalah sekarang KSP duduk dalam 1MDB dan juga MOF Inc. Ada “conflict of interest”. Sebab itu saya kata DS Najib kena “step aside” agar ada entiti lain yang bukan daripada MOF untuk ambil alih tugas novation dan saya cadangkan dalam tulisan saya guna entiti seperti Danaharta yang merupakan badan berkanun yang lahir daripda akta parlimen untuk operasi selamatkan Malaysia pada awal 2000 dulu oleh Tun M.

    Kini entiti itu sudah berada di bawa PROKHAS.

    Baiklah, saya berundur diri dulu daripada 1MDB.

    Terima kasih kerana sudi membaca dan mendengar pandangan saya yang tak seberapa ini.

    Wan Fayhsal,
    Putra Business School

    Selamat mengkaji, bukan sekadar berpolitik mudah dan ringkas. Bukan politik bodoh hina menghina dan kutuk mengutuk. Najib mampu melahirkan manusia pendendam tetapi bukan manusia pemikir. Bloger upahan Najib mampu berkerja 24jam tanpa rasa penat. TDM ada blogger upahan?? jawabnya TIADA selain dari mereka yang benar2 sayangkan bangsa Melayu dan Agama Islam tercinta.

    Teruskan mengkaji…

    http://abatasa2.blogspot.com/

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  3. And 42 billion will just vanished into thin air while we and our next generations will be paying GST to cover this debt. Jho Low is smilling away and continue to party with Paris Hilton.

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  4. So all along Tun Dr M is right after all. I believe Tun has a lot more cards up his sleeve.

    Perhaps Tun should just reveal who gave the instructions to Azilah and Sirul to murder Altantuya.

    Najib may have no choice but to step down. Even his own brothers have spoken up against Najib’s family.

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  5. Aabar is a big name in Emirates and they already have a foot in Malaysia through RHB. They are gonna want a return on that billion dollar investment in 1MDB. They have property development and construction companies under them, so maybe they want to get involve directly in the property side of 1MDB.

    But 1MDB is of public interest, so they can’t just come up with a skeletal announcement like the one they did. They owe it to the people to be transparent, translucent or whatever and inform exactly what 1MDB is giving up or sharing with Aabar to entice them to invest the billions. I wich the PAC guys would check on this first and work their way backwards. Afterall, by the time PAC figure out the past, the present may have turn into another mess.

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  6. What objectivity if you have only yourselves to laud and evidence no more? Hopefully the upright in the cabinet will put a stop these vain schemes.

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  7. Guevara take a good fook at yourself – oops i mean look –
    and then go do it to the sovereign wealth fun bangang!

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  8. Salam JMD..the ramifications of the 1MDB saga.I opine that there are signs already of “civil war ” particularly involving the Malays. On one side those supporting TDM and on the side those who support DSN. There will be a public order situation . The fabric that holds the Malay unity will be destroyed. Just like the bloody American Civil War.

    On the other spectrum, it is the rakyat against the government of the day. TDM is on the rakyat side. DSN is of course on the government side. No blood will be spilled because the rakyat will not vote for the government led by DSN. The will of the rakyat will prevail. Power of the ballot box in GE14.

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  9. Do what needs to be done to save the country and its people. But whatever you do, don’t forget to answer a simple question: who took the money?

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  10. kangkong999
    May 30, 2015 at 4:25 AM

    Ini bukanlah kali pertama IPIC menjadi penyelamat kpd 1MDB. Dlm tahun 2012 semasa 1MDB membiayai pembelian Tanjong Power dan Genting Sanyen, IPIC telah menjamin 2 bon berniali US1.75 bilyon sungguhpun bon berkenaan dikenakan kupon 5.99%. Sebanyak US1.4 bilyon telah dikenakan sbg kos oleh IPIC kerana akhirnya 1MDB terpaksa menangung hutang sebanyak US3.5 bilyon dgn kupon 5.99% transaksi tersebut. Tambahan kpd itu, anak sykt 1MDB iaitu 1MDB Energy Holdings Limited telah mengambil Bridging Loan sebanyak US250 juta dlm bulan Mei 2014 utk membayar Aabar Investments (anak sykt IPIC) sungguhpun jumlah berkenaan belum muktamad dan berkemungkinan boleh mencecah sehingga US1 bilyon, hanya kerana jaminan IPIC utk bon US3.5 bilyon atau dgn lain perkataan tambahan kos tidak kurang 7.1% drpd jumlah pinjaman(bon) berkenaan. Ternyata ianya lebih teruk drpd pinjaman menggunakan ah long. IPIC ibaratnya spt “saya bukan ahlong, tapi saya mau tolong”. Bukankah ini kerja bahalol?

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  11. Pingback: Tun Mahathir Tak Malu …. Dulu Pi Lancar Buku Rosmah, La Ni …. | Berita Malaysia

  12. Allah says riba’ is bad and you can go to war with riba givers.lets go back to fundamental business.buy and sell stuffs and not papers…………………

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