History / Najib Razak / Socio-economy / Umno & Barisan Nasional

Arul Kanda caused the IPIC – 1MDB dispute

Let us tell a simplified story on what Arul Kanda did with our money during his tenure as the little boss (President and Group Executive Director) of 1MDB. We call him ‘little boss’ because in reality, he is there just to follow orders and be the fall guy should something goes wrong. He was a product of Royal Military College; and all his life there, he was instructed to follow orders.

“Yes sir, yes sir, three bags full.”

Regardless if the directives were wrong or right, Arul Kanda proved to be the rodent that poked even more holes that finally sank a huge ship.

A lot of wrong things did happen during his watch.

Arul Kanda went in voluntarily into the 1MDB cesspool like an idiot who then claimed himself to be the saviour of this sovereign wealth debt fund. Too bad he went in after all the taxpayers’ money in it had been plundered by the very people who had appointed him.

Remember last year when IPIC came to the rescue and helped 1MDB pay its USD1 billion loan with Deustsche Bank?

Arul Kanda said the payment ‘is not a loan, not a bailout’.

Well Arul Kanda lied because PAC Report confirmed that it was indeed, a loan.

Why did you lie Arul Kanda? From now on, you must not be angry if random people call you a LIAR straight to your face because frankly speaking, you are one.

Okay where and how did this USD1 billion loan from IPIC come about?

It’s like this:

This is from PAC report itself

This is from PAC report itself

It all started in May 2014 when they had to get USD250 million loan to pay off Aabar Ltd (supposedly a subsidiary of IPIC) for the termination of option. At this point of time, the public have not yet known that Aabar Ltd was actually a fake company which does not have any relationship to either the real Aabar company nor with the flagship company – IPIC.

1MDB actually sent USD250 million (nearly RM1 billion) to some bogus company! The idiots at 1MDB at that time did not even bother to perform due diligence (statutory audit/checking with company secretaries/banks etc). Those fools’ defence was – “Oh, since the MD of IPIC himself said ‘please bank in into this company accounts’, then we just followed his instructions.”

Yes the owner of the fake Aabar were the MD of IPIC and its Chairman. But everybody and their cat knows that those two were in cahoots with the people behind 1MDB (guess who there are) to siphon off transfer our money into that fake company.

Lo and behold, our own auditor general could not ascertain the ownership of this fake Aabar and 1MDB officials could not even provide the relevant documents to support their justification for sending this money to a company not related to IPIC.

All this wrong doings were recorded in the PAC Hansard and Report.

Moving on, after the initial USD250 million debt obtained from Deutsche Bank were successfully transferred into the fake Aabar, they applied for a bigger loan in September 2014 from the same bank. A whopping USD975 million loan was asked!

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What did they do with this money? They used it to pay off the loan (USD250 million) obtained just 5 months earlier and its balance (USD725 million) was used to pay off  the fake Aabar. Again, they gave the excuse that it was for the termination of option.

So they dug a hole, then covered the hole with another loan. That is the kind of business the macais in UMNO are defending.

Anyway at this point of time, the fake Aabar and the people associated with it has a cool USD975 million (nearly RM4 billion) in their pockets by year end 2014.

How could they obtained the loan twice? They used their misleading audited accounts of 2013 to show that its business would have no problem in paying off the loan. Plus they told Deutsche Bank that it has over USD1 billion in cash in BSI Bank, Singapore.

In February 2015, Arul Kanda The LIAR even lied in public saying that he has seen the cash statements. But by March, the lie crumbled. In Parliament, Najib said it was merely paper assets. By April, the bumbling Husni Hanadzlah said they were all in the form of units. Worthless, with unrecognised value in the banking world.

Deutsche Bank sensed that something is wrong and called out for an early settlement of the loan. 1MDB supposedly had one year to pay off the USD975 million (until August 2015) but news report saying that they had demanded for an early repayment surfaced in early May 2015.

If they do not pay within that few weeks, it will trigger a cross default.

So how did 1MDB pay off USD975 million to the bank? Remember, the loan money has been long gone into the pockets of the people behind the fake Aabar company. Therefore, we the rakyat has to pay off the USD975 million debt to Deutsche Bank.

Enter IPIC with their USD1 billion cash to the rescue.

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Please note that by this time, the Managing Director of IPIC and Chairman of the real Aabar company (Qubaisi) has been sacked by the Board of Directors of IPIC.

Arul Kanda negotiated this loan deal. Back in Malaysia he told everyone that this is neither a loan nor a bail out. Maybe it’s just something only an idiot would say. But he and Husni Hanadzlah hid it behind the pretext off ‘Rationalisation Plan’. Remember that catchphrase?

1MDB made a lot of irrational decisions that it had to be rationalised by the lying Arul Kanda and the bumbling Husni Hanadzlah. It got worse. Money lost into the void, and 1MDB (that’s the rakyat) had to bear the burden.

In May 2015, Arul Kanda announced that the mounting debts will be cleared by the end of 2015. IPIC even issued a statement to the London Stock Exchange that they will forgive 1MDB of certain debts (remember, they thought they should get the option termination money). They will also pay off in cash USD1 billion so that 1MDB can pay off Deutsche Bank. 1MDB at that time had a lot of assets (land in Bandar Malaysia as well as EDRA ENERGY IPP).

In summary, based on the term sheet, this is what IPIC will do for 1MDB:

a) give USD1 billion cash

b) take over the ownership of USD3.5 billion bond 1MDB took out back in 2012 (IPIC was the guarantor for this loan)

c) in exchange for (b) above, 1MDB must give assets worth that amount by June 2016

d) IPIC will pay interests on the USD3.5 billion bond which is due in multiple stages in 2015 onwards

e) that USD1 billion cash must be paid back by 31st December 2015

IPIC thought that by June 2016, they will get billions worth of assets from 1MDB in exchange for all the money they had coughed up for 1MDB. But unfortunately, like a pack of deceiving crooks, 1MDB sold EDRA and Bandar Malaysia to the Chinese instead!

Not only they sold what was promised (our precious assets) to somebody else, Arul Kanda did not even bother to pay back the USD1 billion cash loan!

No wonder IPIC was livid.

Arul Kanda the incorrigible liar said it wasn’t a loan. But in actual fact, it was.

By April 2016, Arul Kanda (THE LIAR), with his stupefied face calmly said, “There is one crucial item on the term sheet, which is that 1MDB has to transfer the amount that IPIC paid, the cash plus the interests — US$1.15 billion — by Dec 31, 2015. Actually, we were in default since December.”

How can you people stomach this monster? He is getting paid huge sums of money on monthly basis using our tax money yet he is running around as if he is the Saviour. This idiotic former RMC student could not even negotiate properly. Not only we lost our assets to outsiders, we now have to contend with a dispute. Does he not know the word ‘accountability’? Does he have it?

Some idiots in Facebook said this is a friendly dispute. Yes, perhaps when they have basked under the tutelage of the Worst Asian Finance Minister of 2016, they see this failure to pay off debts as something nice and friendly.

Since 1MDB lied to them, IPIC initially decided not to pay the bond interests for the year 2016. 1MDB claimed that they will not pay it too because that it is just a matter of principles. At that point of time, the blatant shamelessness shone through the face of Najib and Arul Kanda.

Imagine, 1MDB raised USD3.5 billion loan and begged IPIC to be the guarantor of it. When 1MDB could not pay, they unashamedly let their guarantor to hang high and dry. What kind of principle is that?

Malaysia – the country who could not pay its debts and have no qualms to backstab its guarantor? Is that the principle?

Just like a whore who borrowed money to buy a car and her sugardaddy became the guarantor for the loan she made, IPIC was made to look bad because their ‘whore’ failed to settle the loan by itself.

Are you not ashamed of yourself?

IPIC had no choice as guarantor to pay off the interest payments and thus the dispute happens.

This is the fact of the matter. Who should pay off the USD3.5 billion bond in the end? IPIC demanded USD6.5 billion in total from 1MDB. Who should pay this? 1MDB has no more significant assets that they can sell to IPIC. They only have 40% of Bandar Malaysia, some land in Penang and TRX. It will not come to USD6.5 billion (RM26 billion) in value.

So who’s fault was it? Who in the right mind could give away billions of ringgit to the people in fake Aabar? Only the most crooked mind would do that.

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One more thing. Tomorrow is the deadline for the audit for 2015. They had an extension till 30th September 2016 to present the 31st March 2015 audit. Their excuse for the extension was – they have to wait for the return of the seized documents. Well, PAC and Auditor General had concluded their investigations back in April 2016. What is the hold up?

1MDB has the track record of being serially late in submitting their audited accounts. Imagine, a multi billion dollar company could not even keep a proper set of accounts. Yet they had the audacity to start an IPO. Laughable! News flash, no investor will trust you if you keep on turning up late in class.

Furthermore, Deloitte had quit as the auditor for 1MDB so who is auditing them right now?

In fact, 1MDB must re-audit the 2013 and 2014 accounts too after Deloitte issued a statement saying that the public must not rely on their audited accounts anymore. Who will perform this re-audit and when will we know the extent of the damage done back in 2013 and 2014?

We remember some clueless people said that the audit report is like a bible. We must trust its veracity. But auditors are not perfect. They can be misled, lied to and deceived by the crooked bosses of any company. If you hear an accountant who says that 1MDB audited accounts had shown nothing wrong, then trust us, he is an idiot. He could be Arul Kanda in disguise.

Or perhaps Husni Hanadzlah needs to come clean and tell us why did he say (in June 2015) that 1MDB auditors were not sacked. The PAC Report had revealed otherwise, that KPMG and EY were indeed sacked.

We wrote an article back then saying that Husni had lied on national TV (some smart-aleck even wrote a long article trying to defend him), but until now Husni has not come clean on the wrongs he did to us the rakyat. Lying is wrong. Covering up is wrong. If you do not know Hell, you will know it sooner or later. A minister has a duty to tell the truth.

God gave you such small benefit in this world, and a little bit responsibility as an honest leader. But if you still could not manage to safeguard this duty, then you are worse than a greedy pig.

Unless of course you have no religion to fall back on.

Yes sir, yes sir, three bags full.

Gali lubang, tutup lubang. Rakyat juga yang kena bayar hutang.

You might also want to read this:

1) HOT Dari WSJ – Dua Surat Dari Aabar IPIC Dedahkan Penipuan Najib Dan 1MDB!

2) Economic Crisis: Ignoring Lessons of the Past

3) Serially late – 1MDB’s tale of missed deadlines

4) 1MDB and Malay Nationalism

5) Depan Umno DOJ Adalah Dajal! Depan Wartawan Asing, Kita Akan Beri Kerjasama Penuh – Hahaha Najib Munafik!

6) Establishing an honest government and ridding of a dishonest leader is our overriding objective.

7) UAE’s IPIC takes Malaysia fund dispute to London court, seeks $6.5 billion

8) Tarek Obaid Questioned

3 thoughts on “Arul Kanda caused the IPIC – 1MDB dispute

  1. tqvm 4 d easy 2 understand article.

    hope somebody can help translate into bahasa.

    the urban folks r already well aware that najib is living amongst thieves n together device n elaborate scheme 2 steal money under our nose.

    it is d rural innocent population that is still oblivious 2 d massive stealing that has/is taking place.

    we r fully aware that d battle royale 2 decide future govts will b fought in d rural constituencies.

    BERSATU has 2 seriously help disseminate this important information especially 2 d rural folks.

    Like

  2. Break all these into a very easy read by the public
    And relate it with basic simple human traits like being honest. Or be truthful.

    Or rather the lack of any of the two.

    Like

  3. Pingback: Arul Kanda caused the IPIC – 1MDB dispute | ajai62

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