After more than 12 months since people have seriously asked questions about the financial scandal in the form of 1MDB, its CEO Arul Kanda made a brief press statement to show that all RM42 billion debts are accounted for.
The stupidest thing 1MDB’s spinmasters is banking on is to tell the public that the critics have been saying RM42 billion is missing from the 1MDB accounts or RM27 billion is lost. And then these spinmasters proceeded to show its accounts which stated RM42 billion is there in the books. This is exactly what Arul Kanda is doing.
“In recent weeks, there has been much speculation about the use of RM 42 billion of debt raised by 1MDB, and more specifically that RM 27 billion of debt proceeds are alleged to be “lost” or “missing”. We provide a summary of what the RM42 billion debt has been used for, information that is fully disclosed in 1MDB’s audited and publicly available accounts from 31 March 2010 to 31 March 2014. We trust this clarification will help to clear any confusion on this matter.”
Did this answer the questions:
1) Why did 1MDB used a company linked with Jho Low, Brazen Sky to invest in Cayman Islands? What happened to the money? In news report back in May 2014, the amount cannot be verified by 1MDB’s external auditor.
Based on 1MDB’s latest financial documents for the year ended March 31, 2013, its auditors were unable to determine details on the US$2.3billion (RM8.05 billion) investment. – source
Of course, the figure is stated in 1MDB’s financial statement. But what happened to that billions of money?
2) The high financial cost in acquiring those unnecessary loans which according to the books above, costing more than RM5 billion in interests which taxpayers have to bear. On top of that, why pay RM1.54 billion to Goldman Sachs being fees and commission just to raise RM15 billion bonds when only RM400K was paid to banks when Prasarana raised RM2 billion bonds? That’s 10% against 0.02%
Even Penerbangan Malaysia Bhd for example, had raised USD1 billion in bonds paying only 0.5% in fees and expenses.
From the chart above, that RM4.5 billion in cost of finance is a huge red flag. On top of it all, taxpayers are already footing the bill for RM950,000,000 in standby credit given to 1MDB in March 2015.
3) Is all the RM4.2 billion ‘investment’ in Aabar all accounted for? What are the returns for this and to who and into what was the money invested in?
4) How come 1MDB agreed to pay PetroSaudi USD700 million (RM3.2 billion) of interest free loan given just a few days before? This money was banked in into Good Star Ltd’s account. Good Star Ltd belongs to Jho Low. All this was discovered through chain of email which was never denied by 1MDB nor Jho Low. Even the ‘purported loan’ initially given by PetroSaudi to 1MDB was doubtful in its authenticity and existence.
5) Who is Jho Low and why is he handling all the business deals involving 1MDB. Is he a staff of 1MDB staff or an authorised civil servant in Ministry of Finance?
These are just some basic, uncomplicated question which Arul Kanda simply could not and did not answer in his brief press statement above.
We all know the figure is there stated in the financial statement. Even when a company which has RM1 million debt will show that RM1 million in its final audited accounts. But what happened to the loan is something which nobody was prepared to answer, if it has been siphoned off for ‘special’ usage.
But we are in luck. Hopefully the Finance Minister II can answer these 5 questions (and more) comprehensively tonight.