Najib Razak / Socio-economy / Umno & Barisan Nasional

The case of missing USD850 million; 1MDB tried to be clever, but failed miserably

Last week Wall Street Journal published an explosive story revealing that last year, 1MDB had transferred at least USD850 million (RM3.66 billion) to an offshore company set up to appear that it was owned by IPIC, the white knight which is bailing out 1MDB’s massive debt.

This revelation is the latest exposé on all the billions unaccounted for since 2009. Based on this new evidence obtained and sighted by the WSJ, it seems that 1MDB had transferred those billions to a company called ‘Aabar Investments PJS Ltd’ instead of to ‘Aabar Investments PJS’ – the proper subsidiary of IPIC.

This is a clear cut allegation, based on investigations which initially had led to the sacking of IPIC’s own managing director – Khadem Al Qubaisi back in April.

But how did 1MDB respond to this?

They beat around the bush by saying:

The fact is that the allegations contained within this article are simply a regurgitation of old claims carried by the Wall Street Journal in September, which it has re-written and re-published without offering any new information or evidence.

With respect to 1MDB’s past dealings with IPIC, the two companies continue to enjoy a strong business relationship..

Furthermore, IPIC has since reaffirmed its commitment to working with 1MDB via a public statement issued in October 2015, and made interest payments on the aforementioned bond in October and November 2015.

Any person with an IQ slightly above a chimpanzee would have realised that 1MDB did not address any of the allegations at all. The Wall Street Journal did not publish a story that alleged the business relationship between IPIC and 1MDB is in disarray nor have they published a story saying that IPIC is backing out from any business deals they had mutually agreed upon.

WSJ is alleging that 1MDB purposely had sent billions of ringgit to the wrong company which was set up and closed down as soon as it received the money.

Underneath this smile, me and my PR team are just plain stupid.

Underneath this glowing smile of mine, my PR team and I are just plain clueless.

The fact that 1MDB did not answer this directly and repeated the now boring phrase – ‘recycling old allegations’ shows that they clearly are under pressure. This allegation is new and have never been brought up. Everyone was shocked by this allegation; embezzlement and a blatant breach in corporate governance is not a laughing matter.

It’s either 1MDB do not understand English and misread the whole story by WSJ or their press release was written by overpaid nincompoops.

We are more incline to believe the latter.

But the fact that they could not satisfactorily answer this new allegation give rise to the perception that they really did make those wrongful transactions. It really should have been a yes or no answer.

1MDB cannot claim they have answered the allegations. And it is shameful that they are consistently trying to trick the public into believing that they have.

We should be thankful to WSJ for exposing this matter because their external auditors could not have detected this inter-company transactions when there’s mala fide involved. For the year ended 2015, Deloitte must send at least manager level auditors to dissect and discern any transaction which would have otherwise be missed by lower level auditors.

Audit firms have the habit of sending junior auditors to do the menial and routine work in order to save cost, knowing the fact that the top management of these clients they are auditing could easily dupe the lower ranking auditors. And audit firms usually close one eye on this because after all, the clients are the ones paying the audit fees.

We had so many financial fiascos involving audit firms failing to do their work diligently. Enron, Worldcom and Tyco are a few such examples. Even the great old Barings Bank was brought down because none of the auditors could detect Nick Leeson’s losses hidden in one of the accounts.

It just took a few unscrupulous people in world renown organisations to bring the whole thing down in split seconds.

The fact that 1MDB hoped it could hide things from the public is a stark reminder on how this organisation is filled with unsavoury characters compounded by their own ineptitude.

You might also want to read:

1) Playing Games With Names — Jho Low’s Modus Operandi

2) Isu Bayaran $850 Juta Kepada Syarikat Mirip IPIC – 1MDB Kekal Konsisten Dengan Cara Macam Jawab Tapi Tak Jawab Langsung!

3) 1MDB sent US$850 million to entity made to appear owned by UAE firm

4) 1MDB confirmed in writing outflow of funds WSJ says went to a dummy corporation in the BVI-Delloite appears to have been hoodwinked

5) Parti Bermaruah yang Memartabatkan bangsa Melayu!

6) UCAPAN PRESIDEN UMNO

7) Another 1MDB shocker by WSJ: Where did RM3.7bn go?

8 thoughts on “The case of missing USD850 million; 1MDB tried to be clever, but failed miserably

  1. ‘recycling old allegations’ is an auto-generated response that was initially reserved for Tun Dr Mahathir’s repeated queries.

    Tun was also accused of “working hand in glove with foreign nationals”.

    After reading both sides, a rational person will incline towards believing Tun.

    Recently, Tuan Ibrahim Tuan Man, PAS Deputy president, requested Najib to go on leave until the investigation committee of the Public Accounts and Audit completed an investigation and report on the 1MDB.

    Like

  2. Kandasamy has since improved 1MDB’s level of rhetoric by several degrees of syntactical correctness.
    Hollow semantics unfortunately. The rats.

    Like

  3. Humpty Dumpty sat on the wall,
    Humpty Dumpty had a great fall
    All the king’s horses
    And all the king’s men
    Couldn’t put Humpty Dumpty
    Together again.

    First, an accountant, I’am not.

    Questions are still need to answer. Is it just the figment of our imaginations?

    As I understand it, 1MDB borrowed 42 billion through financial model of various transactions from the third party of the obscured financiers.

    They have established the cardinal terms of conditions which are, high financial consultant fees and higher rate of interest than the institutionalized banks. Above all, the architect of the financial ‘scam’ could be the chief of the ‘hidden hands.’

    Assume the yearly interest charge, the rate is 5%. Meaning which, just the interest alone, 1MDB has to pay the sum amounted to 2.1 billion a year. The last 5 years 1MDB supposedly had paid the interest of ‘10.5 billion.’

    On record the interest payments and other entries, termed as the ‘financial cost’ with total of 5.8 billion. Interest payment paid of year 2012-2013 was 1.6 billion and 2013-2014 was 2.4 billion. And the balance was paid for transactions of doing business.

    The overall total interest payment is 10.5 billion minus 5.8 billion is equaled to the outstanding of 4.7 billion not paid. Itu baru bunga saja, belum pokoknya lagi.

    This is Arul’s rationalized program. Time will tell how this interest payment exercise would end. What is left for 1MDB’s assets and equity throughout the interest payment saga? only the Devils know.

    Is this 1MDB’s way of doing business? In mind, 1MDB has yet to earn its first penny from all the efforts of ‘doing business.’

    1MDB’s bad debt cash-flow is an ongoing exercise to be reconstructed so that it looks good and accurate. In reality, the actual transaction of 1MDM’s T-Account is still in a holy mess.

    I believe and there is no two ways about it, fraudulent and malpractice already occurred. The fact is, someone has pocketed huge uncounted sum from the borrowed 42 billion. As mentioned another of 1MDB’s concealment, the RM3.6 billion was transferred to Aabar Investment PJS LTD appear owned by IPIC but it was not.

    Selling off Edra, national asset, is a mean to recover back some of the exhausted money. Arul calls it ‘the rationalization program’, one would ask, to rationalize what? Could it be to rationalize the pocketed money? Every Tom, Dick and Harry share these questions in mind. Even the blinds can hear that questions.

    Arul said to ‘match up’!….the bad dept cash-flow? He must be kidding or out of his flickering mind. Everybody knows the rationalized exercise is going to be a manipulation of 1MDB’s record of book-keepings and its T-Account entries in order to show forth a sound balance sheet.

    The call for the international tender is another whitewash and hokey-pokey exercise. Simply mean to pay back the huge pocketed sum.

    To Arul, it is the ‘rationalization program’. But to the Nation, this exercise could be an act of betrayal and treason. This is because the sovereignty of National assets (energy and land) are soon going to be in the hands of foreigners.

    In the nut shell, these questions are leading to, in relation to the emergence of Malaysia and Trans-Pacific Partnership’s (TPP) and Malaysia Inc. is in ‘partnership’.

    The economy colonization is in the making with permission and endorsed by the ‘Architect’. I bet you all the above is not the figment of our imaginations!!

    Like

  4. Corruption in the Bn administrations have been going since mahathir.When Mahathir stole from the Malays blatantly agencies like BERNAS an agency for poor malay rice growers and not a squeak from UMNO members, the thieves got more daring.
    No UMNO MP dare to ask, and those who did will receive a call from the crooks , to say keep quietlah.. Sabah mp Bung Moktar asked why everything was given to Benggali son Syed Mokhtar? He was silence and given a big post. This is how the indian crooks steal from the malay govt. And the irony of it, even UMNO No. 2got the same treatment.So we all should be searching for that invisible hand that even UMNO Deputy and Vice Presidents are not aware of who is making financial policy. Who in khazanah approve 400million to indian Yepme? Who in khazanah give 3 billion to yayasan hasanah for social works?
    Arul Kanda is just one little indian stealing from UMNO government.
    Who approve 4.2billion klia2? That indian ceo.An indian Ray nair is given airline license..An indian given free airline..or rm1.
    Not a squeak from the malays or UMNO members. Who is the bin Abdullah in Felda?
    Who is the bin Abdullah ceoin FinaNce ministry.
    Who is the Merican here and there?
    UMNO is running the country? Check again..

    Like

    • Yea…we got that a lot from pro-najib camp but not an iota of evident put forward to back this claim. I just like you tangan ghaib to one by one revealed the documents starting from bernas till merican here and there for public scrutiny.

      There’re few claims before, people has this idea that they know everything when in fact they know nothing.

      Like

  5. http://m.thesundaily.my/node/337824
    http://m.themalaymailonline.com/malaysia/article/1mdb-can-stop-losses-by-year-end-minister-says
    http://www.therakyatpost.com/news/2015/10/28/1mdb-never-defaulted-on-any-of-its-debt-payments/

    These there all available for public viewing. All pointed to end of year settlement of these fiasco

    End of year is within 4 days. And the report is scheduled (originally) on end of year. These two i need to see within 4 days

    Ticktock tictock

    Like

  6. Dah dengar apa Zahid cakap tadi?

    Zahid: ‘Najis terpalit’ dari era dulu lagi

    https://www.malaysiakini.com/news/324733

    Timbalan Perdana Menteri Datuk Seri Zahid Hamidi berkata orang ramai tidak harus menyalahkan kerajaan sedia ada terhadap kontrak penswastaan yang dibuat di era kepimpinan sebelum ini.
    “Najis yang terpalit itu dibuat dari dulu,” katanya tanpa menyebut secara langsung mana-mana pihak.
    Beliau juga mengakui kontrak lebuh raya, pengeluar tenaga bebas (IPP) dan kereta api ERL ke lapangan terbang berat sebelah.

    Zahid enggan menamakan secara khusus pihak bertanggungjawab.
    Beliau bagaimanapun dipercayai merujuk kepada perdana menteri keempat Tun Dr Mahathir Mohamad yang kini menjadi pengkritik keras Perdana Menteri Datuk Seri Najib Razak.
    Najib dalam ucapan penggulungan perhimpunan agung Umno pada 12 Disember lalu berkata kenaikan tinggi tambang ERL dari RM35 kepada RM55 hasil perjanjian ditandatangani pada 1997.

    Sementara itu, Zahid hari ini berkata orang ramai juga mempunyai tanggungjawab bersama dengan kerajaan.
    Zahid berkata demikian dalam sebuah acara bersama 50 NGO hari ini.
    Dalam acara itu, seorang pelajar pascasiswazah bertanya sama ada kerajaan akan mengeluarkan kad diskaun pengangkutan untuk pelajar.
    Menjawab soalan itu, Zahid berkata jika kad diskaun diberikan untuk ERL, kerajaan terpaksa membayar pampasan RM2.9 kepada pengendalinya Express Rail Link Sdn Bhd.

    Oi Zahid! Kome ni bodoh ke??

    Sapa yang ada dalam era kepimpinan dulu? Bukan Najib Tun Razak? Dia pun macam najis jugak ke? Apa najis-najis ni buat masa dalam kabinet dulu?

    Duduk goyang kaki, pintal misai aje?

    Semua keputusan kabinet kan ke kolektif?

    Kome semua takde rasa tanggungjawab langsung ke?

    Ate, kalau semua yang BN buat sebelum ni dah najis sangat, apa benda yang bagus sangat pasal BN? Kalau PLUS dan macam macam lagi kontrak penswastaan yang BN buat dulu kome kata najis, kome pun kena cermin diri tengok kalau ada najis terpalit kat muka kome.

    Apa lagi yang BN nak banggakan sekarang kalau kome sendiri kutuk kerajaan BN dulu?

    Masa kempen pilihanraya suka bebenor cakap kerajaan BN bagus dah bangunkan Malaysia. Maksudnya pembohong la kome semua ni. Betul la apa orang kampung aku cakap… takde bagus pun BN ni sebenarnya.

    Tak malu ke? Masa belum jadi Perdana Menteri/Timbalan Perdana Menteri dulu kome semua ni buat apa dalam kabinet?

    Cakap kome ni lagi terer dari cara pembangkang cakap.

    Dulu boleh la jugak dabik dada kata kerajaan prihatin sebab bagi pampasan pada syarikat swasta untuk elak kenaikan harga/tambang. Tapi dulu kerajaan yang kome anggap najis tu bagus la jugak sebab ada duit nak bagi pampasan dan subsidi. Ni kome dah perabih duit untuk najis najis zaman sekarang, apsal nak burukkan kerajaan BN dulu?

    Apa nak banggakan zaman sekarang?

    GST?

    1MDB?

    TRX (yang terbengkalai tu)?

    Borneo Highway (yang belum tentu boleh siap tu)?

    Kos sara hidup tinggi?

    Rakyat kena galak buat dua kerja sebab kome semua tak mampu selesai masalah ekonomi?

    Beli IPP pakai hutang, jual balik IPP sebab nak bayar hutang?

    Bil letrik naik?

    BR1M? Kalau nak BR1M, kena bayar GST?

    Kalau orang kata kome ni bodoh, marah pulak.

    Perangai macam ni nak bawak pi menang pilihanraya akan datang?

    Kalau kome sendiri cakap kome ni najis, boleh menang ke? Otak pi letak kat lutut pasal apa?

    Like

  7. Pingback: The case of missing USD850 million; 1MDB tried to be clever, but failed miserably | ajai62

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