Najib Razak / Socio-economy / Umno & Barisan Nasional

Husni Hanadzlah and the misrepresentation of 1MDB facts

Update 1.43pm:

The former CEO of Prasarana, Dato Seri Shahril Mokhtar tweeted just now:


This is concerning Lie Number 3


Original article:

Upon hearing that the cabinet has appointed the 2nd Finance Minister (Dato Seri Husni Hanadzlah) as the official spokesperson of 1MDB, we immediately tweeted below:

What we tweeted

What we tweeted on 29th May 2015

A few hours ago Husni Hanadzlah was interviewed by two RTM1 hosts in a show entitled “1MDB: Di mana wangnya?”

We had asked in the previous article 5 questions, of which none of it was answered by him. This is of course not a fault of his as a few of the questions, however frequently asked, weren’t asked by the host at all.

Even when it come to Jho Low, Husni only said that he does not want the former to be glamourous.

But what is more alarming is the fact that Husni gave a lot of misrepresentation of facts.

1) LIE number 1:

When the host pressured the minister about Sarawak Report’s expose on Good Star Ltd (Jho Low’s company) receiving USD700 million, Husni claimed that Petro Saudi had lodged a police report in London saying what the portal had published was not true.

This is a lie.

PetroSaudi did not make a police report saying the portal was inaccurate. They made a police report when its email server was hacked; indirectly admitting that the emails published were indeed true.

If indeed Sarawak Report had published lies, 1MDB would have sued the portal and its editor a long time ago.

Husni lied to deflect the allegation of USD700 million of 1MDB’s money being siphoned out to Jho Low. With this lie, we can almost say that the transaction was indeed true. But what Husni could only say was: “We got back our initial investment of US$1 billion and returns from the joint venture. So there is no issue of Jho Low in this.”

Well, that is of course how siphoning money works. You cover the tracks by saying no money is lost.

2) LIE number 2:

When asked why did 1MDB changed auditors, Husni said that they chose Deloitte because auditors have to be rotated and it was time for KPMG to be changed after 3 years being an auditor.

This is a lie.

First off, KPMG was not changed because it was due to be rotated (in practice, this seldom happens as audit firms will fight tooth and nail to retain their client, and the audit fees). They were changed and replaced midway while auditing the the Financial Year 2013.

KPMG themselves were very reluctant to disclose why they were replaced – a peculiar behaviour for what should is touted as a ‘normal’ rotation exercise.

Husni had to lie about this to give confidence to the public that there is nothing wrong in the 1MDB accounts.

3) LIE number 3:

Husni had said that due to 1MDB’s joint venture with PetroSaudi, Prasarana was able to operate the Arafah – Mina Metro System in Mecca in May 2015.

This is absolutely not true.

Prasarana won the contract to be the operator without any involvement of any 1MDB or PetroSaudi. In fact his statement had greatly under-appreciated the effort by Prasarana for the past many months.

Obviously, losing all arguments as to why 1MDB had to be involved in a joint venture with PetroSaudi, Husni had to justify the partnership with an outright lie.

In fact, PetroSaudi even made an announcement that the business partnership ended in 2012, years before Prasarana even started bidding for the contract.

It won’t be a surprise if our PM will be in Saudi Arabia next week to give due credit to 1MDB instead of Prasarana.

On a side note, 1MDB did not go into a joint venture with PetroSaudi proper. It went into a business deal in 2009 with its subsidiary PetroSaudi Holdings (Cayman) Ltd, back then a newly set up shell company of Tarek Obaid, a friend of Jho Low’s. But this is another complicated story which the PAC/forensic audit can investigate.

4) LIE number 4:

Husni repeatedly saying that all the monies from the joint venture with the Arab business partners have borne profits and have returned home (pelaburan semua kita bawa balik).

This is a lie.

We have always find it preposterous when the PM, and CEO of 1MDB said this. And now that the FM2 is regurgitating what the two are saying, then we know that what Husni said was tutored and rehearsed.

The fact is, the monies from those investments have never returned home. All of it was parked in Cayman Islands and just like Husni said in the show, ALL of those redeemed money were used to pay the loans. Not one sen have returned into our soil.

The rakyat did not get anything from those deals. But the loan lenders and bankers got everything, with interests. So what is so good about 1MDB?

And of course, even with this revelation, there will be people who do not find this despicable. Everything is fine and dandy in 1MDB.

5) LIE number 5

At the start of the show, Husni mentioned that the RM27 billion debts are not missing, because if they were, the government and banks will be very alarmed (they might not get the loan repayments) and this could lead to credit risks.

What was said on May 25th 2015

What was said on May 25th 2015

This is a lie.

The banks did become nervous.

On May 25th, Husni mentioned that 1MDB’s massive loans have to be restructured because he did not want those loans to be defaulted and cause systemic effect on the country.

True enough, reports came early last month that the consortium of banks had demanded an early settlement for the USD975 million (RM3.6 billion) which was due in August. This is because, they felt 1MDB has no money to pay them. If the loan is not paid immediately, it could trigger a cascading default over the rest of the RM42 billion loans.

This had made Husni issued that statement on May 25th.

In a state of panic, 1MDB and the Ministry of Finance concocted a devious plan to pay this loan but dubbed it ‘as part of the rationalisation plan’ to reduce the overall loans, including ‘winding-down’ 1MDB altogether.

How ironic it was when Husni himself admitted at the end of the show that 1MDB had to restructure its debt because if they do not do anything, the loans will be defaulted and Malaysia’s overall credit ratings will be downgraded.

The fact that there is a need to revamp 1MDB’s debt tells us that 1MDB, with all of its RM42 billion liabilities and RM52 billion of assets are facing a major crisis and all the players involved are still walking about traversing the world scot-free.

For a Finance Minister of Husni’s calibre it is indeed worrying that he sees nothing wrong for a company with only RM1 million paid up capital could acquired and accumulated over RM42 billion of debts in a span of just 5 years. And he said that proudly in the show as if it is a form of accomplishment of sorts.

No wonder due to his naivety, he is chosen to clean up other people’s mess. And along the way, in the effort to boost up 1MDB’s dead and buried integrity, he has lost his credibility.

It is unfortunate that when people ask questions, the experts in 1MDB themselves give misrepresentation of facts. Widening the trust deficit and lowering confidence.

18 thoughts on “Husni Hanadzlah and the misrepresentation of 1MDB facts

  1. Yeah, “special people” are still supporting the 1MDB couple. They prefer to remain in SODA (state of denial always).

    One blogger claims that it’s simply withdrawing FD before maturity. Another piously claim he wants to stay away from “dosa kering”. One freely advertised “#Nothing2Hide PM @NajibRazak”.

    If these bloggers still support LIARS-in-power, the well-being of Malaysia is at stake. And the ones paying will be themselves, their families and their descendants for years to come.

    Let’s hope they see the light SOON.


  2. Pingback: Husni Hanadzlah Commits Suicide | Berita Malaysia

  3. “The shepherd drives the wolf from the sheep’s throat, for which the sheep thanks the shepherd as his liberator; while the wolf denounces the shepherd for the same act as the destroyer of its liberty.”

    – Abraham Lincoln


  4. It is of the adab of the high path of Islam to be honest when one speaks. The Prophet (Allah bless him and give him peace) said, “Honesty certainly leads to goodness, and goodness leads to paradise. Truly, a man keeps speaking the truth until he is inscribed as being true through and through. And lying leads to going wrong, and going wrong leads to hell. Truly, a man lies and lies until he is inscribed as being a liar through and through.” (Sahih Muslim, 4.2012–13: 2607. S).


  5. Thank you JMD for facts you have written. I think most of the viewers who are following 1MDB fiasco would have realised all the facts that have been wrongly quoted by MKII. Pity him. I just wonder how much exactly that he really know about the financial and business dealing of 1MDB before this.

    Besides the obvious misrepresentation that he blurted, me and my wife were also entertained by Husni’s body language. He surely was very uncomfortable, his hand was shaking, his voice sometimes not coming out properly and several time he coughed (psychology 101: people cough or make small laugh when trying to avoid certain question).

    And the best of all this, RTM started to play music to end the programme even when the Minister was still talking to the 2 hosts that started to bash him with the Jho Low questions that when unanswered.

    Wow…talking about crashing your credibility.


  6. Bro JMD,

    You may want to add this another lie from the Husni Hanadzlah interview.

    Check minute 26 – 28 of this youtube record:

    When ask to clarify the reason why the money/unit from Cayman was not brought back straight to Malaysia instead it was park in BSI Singapore, Husni alluded that this was due to the “agreement” between Aabar and 1MDB to appoint BSI as the custodian of the cash/unit??? So 1MDB could not simply park the cash/unit wherever they want.

    Notice how this is in stark difference to the reason given by the PM which is due to the Bank Negara “difficult” regulation!

    So which one of them is/was lying? The Finance minister 1/PM or the Finance minister 2?


    • Yes, there is a disconnect between FM1 and FM2. Or, nobody knows what was going on in 1MDB, including the Advisor of 1MDB himself.


  7. Excellent analysis of Husni’s interview over RTM. This post has peeled off the onion layers of what Husni had said and provides us with much better understanding of what is and what’s not. As it is, instead of resolving some of the issues, this 1MDB official spokesman had actually opened up more questions. Besides confirming a few previous allegations. High quality post here.


  8. Wonder if more light could be shed on 1MDB if TV1 were to invite Jho Loh, Rosmah and Riza. Najib and Husni are still in the dark trying desperately to “tegakkan benang yang basah kuyup”.


  9. I would summarize this as one issue but numerous lies and contradictions by those answerable and believe that the ” analysis paralysis ” syndrome has actually set in. The idea here is to confuse all those who are seeking answers so that the culprits can escape through the back door.


  10. 3 brains are involved : 1 Tun DrM high order thinker 2 PM moderately low order thinker 3 MOF SPOKEMAN extremely low order thinker with stupidity index close to 5. DrM trigger the siren…PM trying hard to silence it…MOF switch on fairy tale song all the way … NATION AT RISK


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  14. Dulu ada jugak melayu botak dan sekor cina chubby cuba defend Husni Hanazlah. Bila Husni dah sedar dan keluar dari lubuk rasuah dan gua berhantu, melayu botak dan cina gemuk attack Husni pulak. Siap cakap depa tak pernah defend Husni dulu. Melayu paria dengan cina hamsap memang suka buat perangai taik dalam Facebook.


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