..but they can’t, because they couldn’t.
The previous article on 1MDB showed that there was misappropriation of funds into shell companies in exchange for units which are deemed suspicious even by their own external auditors.
We don’t even need the investigation of PAC, the report from Auditor General or MACC to know that something is wrong in the entire business deal. People with brains will instantly know that 1MDB has zero corporate governance just by studying 1MDB’s replies.
Rubbing salt to the wound, the PAC has announced last week that the AG Report will not be made public and had also insinuated that their own investigation could last for a year!
This is highly probable since PAC will only start interviewing the main players only in August, long after they had started the investigations in early May.
So much for screaming “Wait for the AG report!” by the Prime Minister and his sycophants.
For 1MDB supporters (PM included), they pinned their faith in the external auditor’s reports as well as the AG report to see if something is wrong. This is not the most intelligent thing to do since audit report cannot guarantee there is no fraud.
This is proven in 1MDB’s 2014 audit report itself when Deloitte stated that the financial assets they have in Cayman Islands are dodgy because its fair values are doubtful (classified as level 3 assets). The audit report even stated that 1MDB is unable to exercise control over their own funds in those companies in the Caymans!
This is a huge red flag, but Deloitte insisted there is nothing wrong with it and passed the account anyway.
Basically, the audit report stated that a few billion ringgit have an unknown status yet everyone in 1MDB are saying there is nothing to be worried about!
They thought all is well, until the scandal was made public and the panicking 1MDB had to revamp their debts after facing liquidity problems.
The reality is, there is no honesty from everyone within or affiliated with 1MDB. Recently 1MDB repeated the lie that they paid RM3.6 billion to a consortium of banks “ahead of deadline to show the firm’s commitment to reduce its debt levels”.
All sundry know that 1MDB had to pay that debt ahead of time because the consortium of banks got jittery as they believe the collateral of USD1.103 billion are in worthless units. The banks wanted their loans repaid way before the September deadline and IPIC had to come and rescue them for this.
Basically, this ‘commitment to pay early’ was actually a pathetic rescue attempt and a cover up for the unnecessary loans they took. It was not so much ‘commitment to pay early’ but rather ‘the bankers are breathing down our neck and we need to pay them fast!’.
1MDB’s simplified business model is becoming more and more like:
Step A: Take massive loans
Step B: Buy assets, apply more loans
Step C: Sell those assets because loan commitments can’t be met
In the end, they built nothing except to service bank loans. Public money had to be used just to help 1MDB pay their loans, and the assets they bought could end up in the hands of others.
Seriously, you don’t need really high IQ to admit that 1MDB is a massive pile of diabolical mess. Even the Prime Minister cum-Finance Minister slash 1MDB Advisor admitted that 1MDB is in trouble and needed to be bailed out.
We don’t need the PAC or the upcoming, well guarded AG Report to tell us 1MDB is problematic.
So problematic that even its CEO was confused in providing the right information to the public regarding their funds. Its CEO had to lie twice. First in February and secondly in June in a published press release. It was a major breakdown in corporate governance and trust there.
The Prime Minister even told a lie in Parliament back in March which precipitated the MOF to amend the parliamentary answers. Regardless what the defenders of 1MDB would like to justify, the Prime Minister had lied in Parliament over something he should be aware of.
If an opposition member lied in Parliament, everyone would not think twice to vilify him/her.
But maybe these days there is a huge shift in principles and values; when a lie is condoned just because there was an amendment made afterwards.
Similar to ‘Ahmad lied about giving misleading financial information but the lie is justified because he finally amended his statement months later’.
But then again, principles can be bought at low prices while standards can be lowered to achieve the most acceptable value.
If we put a little bit of thinking and some honesty, the 1MDB epidemic would not have escalated to this current toxic level. Surely there will be no buy-in from the public when the creators of the fiasco and the abusers of corporate governance are appointing themselves to repair the damage they have done.
Going to be crucified again?
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