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.
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.