Kindred spirit / Najib Razak / Socio-economy / Umno & Barisan Nasional

Game over for 1MDB and Najib? – P Gunasegaram

This article below (excluding the pictures) was taken from MalaysiaKini:

Out of that RM51 billion of assets that 1MDB has, as much as RM33 billion may never be recovered, allegedly embezzled through a number of crooked deals which no Malaysian authority is investigating at the moment.

And if you include other losses such as mispricing of bonds (RM6 billion), overpayment to advisers (RM2 billion) and overpayment for energy assets (RM3 billion), the figure comes up to an astronomical RM44 billion in losses to the country.

No, these are not crazy figures plucked from the air. Here’s how we derived them.

In July last year, it was reported that then deputy prime minister Muhyiddin Yassin said that 1MDB’s total debts amounted to RM50 billion. Previous reports cited an asset base of RM51 billion, the higher asset base being due to revaluation of government land acquired cheaply earlier.

That RM50 billion figure remains unchallenged to this day. 1MDB sold its power assets to Chinese interests for just under RM10 billion late last year. The sale has been completed now. Using 1MDB’s own figures, the sale of the power assets, extinguished RM16 billion debt, out of which half was inherited debt, that is debt within the various energy companies.

IMG_0651

Take that RM16 billion out of RM50 billion in debt, and the amount remaining is RM34 billion. 1MDB likes to proudly say that it has no more bank debt, but fact is it has tonnes of debt still in the form of bonds – a RM5 billion Islamic term note, RM2.4 billion sukuk, US$3.5 billion (about RM14 billion in two equal bonds, both guaranteed by the International Petroleum Investment Company or IPIC of Abu Dhabi), and US$3 billion (about RM12 billion) in bonds issued with a letter of support from the Malaysian government.

Where has the money taken from these bonds gone? We know that the US$3.5 billion or RM14 billion went, or was supposed to go to IPIC and its subsidiary Aabar Investments PJS. Instead it went into a similar-named company Aabar Investments PJS but incorporated in British Virgin Islands. Why? No one knows. But the money is missing, and neither IPIC/Aabar nor 1MDB know where RM14 billion has gone – or at least that’s what they say.

Next is the US$3 billion or RM12 billion bond. This was supposed to be 1MDB’s 50% contribution into Abu Dhabi Malaysia Investment Co Ltd or ADMIC, a blank cheque investment with no specified investment target. Aabar is supposed to put an equal US$3 billion into the company but there is no indication that it did.

Here’s what the Goldman Sach’s bond document dated March 8, 2013 said: “…it is anticipated that Aabar will not yet have contributed sufficient capital to meet its obligations under the joint-venture agreement. The issuer has no control over Aabar and there can be no assurance that Aabar will meet its funding obligations.”

It is not clear where that RM12 billion went and it may well be at risk. These are treated in detail in this article.

And then the first RM5 billion Islamic medium term notes in 2009 – the one that set it all off. All of it and more was invested – eventually over RM7 billion – in a dubious venture called 1MDB-PetroSaudi Ltd with Saudi Arabian personalities. It is still not clearly established where this money is.

Now, add that up, and at least RM33 billion (RM14 billion + RM12 billion + RM7 billion) out of these bonds may never be recovered. There may well be more. Besides the energy assets bought from Malaysian companies for which it overpaid by about RM3 billion, what did our self-styled strategic development company invest in? Not much.

Numbers cannot be hidden

1MDB did a dirty sneaky trick when it allowed others to make an estimated RM6 billion by deliberately mispricing some of its key bonds. By flipping these bonds at higher prices once they are traded in the market, those who got first bite made billions. Meantime 1MDB and the nation pays higher interest rates.

"Worry not taxpayers, 1MDB has more assets than liabilities! You can help me pay its debts too!"

“Worry not taxpayers! 1MDB has more assets than liabilities.. You can help me pay its debts too!”

And then there was the overpayment for their advisers, Goldman Sachs, by about RM2 billion for the various bonds they arranged – a loss of RM2 billion to the nation.

Add these up (RM3 billion + RM6 billion + RM2 billion), and they amount to RM11 billion. Add this to the RM33 billion in bond proceeds and investments that may never get recovered, and you get that RM44 billion. The final figure may well exceed that!

Those numbers cannot be hidden or hushed up. You can’t hide the movement of such large sums of money across international borders forever. Eventually the international authorities will get to the bottom of it and all will be revealed. The amount of fraud committed will become obvious and it will become impossible to deny it.

All the land that 1MDB has now is not worth that much – it’s not enough to cover the losses. The black hole that is 1MDB is already very obvious and soon more and more losses will crystallise while investigators across the globe tighten their noose on the miscreants – it’s a matter of time before they are nailed.

That means game over for 1MDB with losses of at least RM44 billion or more, and by extension for Najib Razak, the prime minister and 1MDB sponsor whose reign at the top continues to prolong the agony and prevent investigation to bring this to closure, among the saddest, longest chapters of our country’s history. – P. Gunasegaram

Who cares

We both are too cowardly and too young to comprehend what our crooked boss had done so we will just laugh it off like a pair of idiotic runts.

You might also like to read:

1) Arul Kanda Replies Jebat JMD

2) Hikayat 1MDB

3) Ayat DiPotong Hasan PAC Bukan Hanya Isu Kaitan Jho Low Tapi Ia Adalah Master Key Penipuan 1MDB!

4) PENIPUAN DALAM 1MDB

5) More Of Jho Low’s Foreign Helpers Feel The Squeeze – Coutts Zurich Questioned

6) Arul, come clean and own up to all the frauds in 1MDB

7) Royal Bank of Scotland sucked into 1MDB probe

8) 1MDB IPIC FEUD – SEE YOU IN COURT

6 thoughts on “Game over for 1MDB and Najib? – P Gunasegaram

  1. Poor Najib!

    He had the impression that to be a great PM, all he needs is to read pre-prepared scripts at official functions, with that carefully tutored ‘British’ accent.

    The thinking and the execution of duties will be carried out by highly paid consultants. He merely delegates and creates numerous special committees to solve pressing problems.

    Wow, great to be PM!

    Like

    • Najib probably cannot believe his luck in inheriting UMNO power. He probably thinks he is now a king and the nation coffers is his to distribute.
      Najib must end his days in jail, whenever and whoever replaced him as an example to Malays who think the power of the Malays is the right to plunder.
      The effort now must be to recover all the money fraudalent taken by 1MDB.
      Since the arabs IPIC have denied receiving the 12billions then the police must get back the money.
      MACC must freeze Genting and Ananda to recover the 3 billions overpaid.
      Stop making noise. Take action to recover these moneys which is possible as they are frozen.

      Like

  2. Game over 1mdb may be game over for Malaysian too. It is more on the money stolen from us then Malaysia made famous for the wrong reason that is killing us. Imagine what 50 billion can do for Malaysian. Effort must be made to find to salvage the money if there is any left to be repatriate back to us. Following is the altimatum lay down by rakyat to those that will be voted to power comes PRU14 is, should BN be defeated , all those responsible for this scam must be thrown behind bars so as to comfort Malaysian suffered soul the least they must do.

    Like

  3. 1MDB will be terminated and become the subject of financial criminality forensics on a global stage. It is too late for any of the crooks to jump ship; they have truly begged for this inevitable outcome…

    Liked by 1 person

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