… yet the stupid Umno people who attended this morning’s session in PWTC clapped their hands when Arul Kanda told them that Malaysia pays RM5 billion of service charge and fees in the course of 5 years for the RM42 billion debt borrowed; making the cost of borrowing to be alarmingly high. The banking creditors and Goldman Sachs says THANK YOU MALAYSIA AND THANK YOU NAJIB RAZAK!
Roughly, giving away RM1 billion on average per year just for service charge and fees is not a bad business deal for the people in 1MDB.
Shahrir Samad, in his stupidity also declared there will be a happy ending when Arul Kanda declared that 60% of the government land meant for bumiputra development in Bandar Malaysia will be owned by foreigners. Obviously Shahrir is happy because he received RM1 million from the Prime Minister and had not furnished any documented evidence that the money was not used for personal amusement and benefit. The Prime Minister haven’t given the public such evidence as well.
If 1MDB hadn’t lost the billions of money that can be used to pay the debts, they could have the resources to develop Bandar Malaysia and TRX on their own and don’t have to sell it to foreigners at all. That would be a happy ending. Is Shahrir Samad the kind of politician to be happy giving away our sovereign lands to foreigners? He must truly be an idiot.
And did Shahrir Samad express his delight when 1MDB will be left only with RM10 – RM12 billion from its so called RM52 billion of assets? He must have.
Imagine, to pay off RM42 billion of debts, 1MDB had to sell nearly RM42 billion of assets.
Basically that is RM42 billion of assets lost to other people’s hands. And 1MDB had to pay billions of interests and pay billions of fees along the way! People actually clapped their hands when he announced that 1MDB will lose about 80% of their assets to pay off debts.
If for example the CEO of Apple had announced 80% reduction of assets, he and the board of directors would have been hung dry by the shareholders. But yesterday, some Umno people gave him an applause! Unbelievable.
And there were idiots who were giddily happy when Arul Kanda in his silly smile proudly telling them that 1MDB will sell the assets belonging to Malaysians to foreigners just so that the money they get will be given to creditors.
It is not enough that the rakyat had to pay RM950,000,000 in the form of standby credit for 1MDB, now they will lose majority of the assets to foreigners!
1MDB is on the verge of bankruptcy and they had to perform this asset stripping exercise dubbed ‘the rationalisation plan’ so that 1MDB will appear to be a success. The only success 1MDB has done so far is to stupefy the cabinet ministers and Najib Razak’s cybertroopers.
Another lie Arul Kanda said was that 1MDB bought the IPPs in 2012 at above market prices because they want to reduce the tariff, in order to help the rakyat.
“End of the day, the people will benefit”.
That is what he said.
In the first place, the answer to the question as to why the IPPs were bought at above market prices did not have any correlation with the increase or decrease of rakyat’s electricity bills.
The immediate impact it had was that 1MDB incurred about RM18 billion of debts! The end game unfortunately is – the rakyat had to lose their IPPs after this stupid company had bought them at such high costs and on top of that, they had to pay higher electricity bills!
So what kind of stupidity have Arul Kanda said when he told the simpletons at PWTC yesterday that buying private IPPs from their owners at an astronomical prices will bring down the tariffs?!
Did he eat a bottle of stupid pills yesterday morning and hoped for the best?
Which part of this had benefited the rakyat? 1MDB promised that the tariff will be reduced, but that was just a lie. Worse, the tariff rate did not even maintain at the current level it had, it went up instead!
The only people that laughed the loudest were the IPP owners and the banks that gave the debts to 1MDB. Tun Dr. Mahathir said so many times as to why 1MDB is so stupid to pay so much for the IPPs when they could get it cheaper after their licence agreements expired.
This is what he said in June 2015:
17. RM18 billion was spent to purchase IPP belonging to Ananda Krishnan, Genting Sanyen Power (now known as Kuala Langat Power Plant) and Jimah Energy.
18. The prices paid for Genting Sanyen and Ananda’s IPP were well above market price. 1MDB also paid RM6 billion for unpaid loans. The Jimah IPP was to put up another power plant. But 1MDB had no money to build this plant
19. Genting Sanyen and Tanjung Energy (now known as Powertek Energy Sdn Bhd) were nearing expiration of their licenses. Had 1MDB waited until the licenses expired, the price would be next to nothing.
20. Why 1MDB did not wait until the expiry of the license is a mystery. Genting and Ananda clearly made more money than they were entitled to. One estimate is that the high price netted the sellers an extra RM3 billion. Besides they are relieved of the loan of RM6 billion.
21. So not only is the borrowing costly but the high cost of investments will mean low returns. Why is 1MDB so stupid.
22. As stated above 1MDB is unable to get the IPP listed again. Who would want to own overpriced and obviously unprofitable power plant.
Some people are saying that Arul Kanda was a legendary debater at a high school stage. Perhaps something went wrong along the way which made him appear to be a liar, a buffoon and a clueless hoodwinker these days.
No wonder an Umno grassroot leader sees him as a spinner. But then again, even George W. Bush went to an ivy league university at Yale.
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