At this point 1MDB can only act stupid.
Giving stupid answers just to fill the space in their official website.
Take for instance their latest press release.
Their first defence in investing money into Petrosaudi back in 2009 is to say that the key objective of it is to achieve a 40% equity stake in that ridiculous multi billion ringgit joint venture. This 40% equity costs Malaysia USD1 billion initially. But it doesn’t stop there.
PM Najib had often proudly announced that 1MDB had only RM1 million in capital when it first started, so where did they get billions of ringgit to pump in that USD1 billion in equity?
It came from RM5 billion debts issued in May 2009 when 1MDB was still called Terengganu Investment Authority (TIA). This company is the predecessor of 1MDB, with Jho Low as its adviser extraordinaire.
That RM5 billion Islamic bond was guaranteed by the Government and the purpose of obtaining them in the first place is for 1MDB to “seek, explore, and participate in business and economic opportunities which result in the enhancement and promotion of the future prosperity and long-term sustainable economic development of Malaysia.”
This supposed to be their key objective. But somehow due to the problems and the money lost, this objective has been changed to ‘obtaining 40% equity’.
Now what kind of future prosperity and long-term sustainable economic development in Malaysia has that joint-venture created?
It seems that in order to justify the USD1 billion given to Petrosaudi, achieving that 40% stake is now considered a success. The standard has been set so low, even a dodgy business deal is considered a job well done.
1MDB had proclaimed (without documented roof) that Jho Low had resigned from being an adviser prior to the name change from TIA to 1MDB. But photographs placing him and the prime minister together with the owners of Petrosaudi in a yacht cast doubt over 1MDB’s assertion.
Subsequent letters between the advisers of 1MDB and Petrosaudi had proven that the yacht rendezvous was where both parties had schemed for the joint-venture.
All sundry knows that Petrosaudi is an obscure privately owned company prior to the joint venture. Its website published no business deals and commercial news before the joint venture schemed was hatched. It only got active after 1MDB gave them the billions guaranteed by Government.
It was also proven via documents that Petrosaudi has no ownership of the assets it claimed to have!
So question is:
- why did the Government enter into an agreement with a privately owned company with no track records and no assets?
- why did the Government gave USD700 million to Good Star Ltd; without the approval from its Board of Directors? If 1MDB is too stupid to understand this, what were the services Good Star gave in return to Malaysians in order to justify this kind of payment?
The blabbering fools behind 1MDB propaganda machine kept on saying that the joint venture yielded USD488 million in profits. But these profits were in the form of units.
Any sane businessmen will say that if you make an investment at RM180 and sell at a price of RM228 in cash, then yes the profit that you make is RM48 in cash.
But in the case of 1MDB, the investment they pay in cash at RM1.83 billion (for promotion of the future prosperity and long-term sustainable economic development of Malaysia) changed form a few times, revalued in the form of equity (which nobody seems to know why) and suddenly when 1MDB wanted to sell it for cash, it was transformed into units at a new revalued amount of USD488 million higher than the original cash investment.
To some idiotic businessmen, this is a good deal to them. Put in cash USD1.83 billion, get USD2.318 billion of units. That is a USD488 million of extra units! But where is the cash? Where is the future prosperity and sustainable economic development in Malaysia? What can Malaysians do with that extra units?
Some idiots said that USD2.318 billion of units were used to pay debts. We doubt that. But if we do believe this, then why on earth would you give billions of cash to a company, which in the end, the ‘proceeds’ were just used to pay debts?!
That is like getting a RM1,000 loan, put that money in a company, a couple of years later, you use that initial investment + ‘profits’ to pay off debts! Why get a loan, to pay off loan, without doing anything substantial with it?
What kind of stupid ‘economic development in Malaysia’ strategy is this, 1MDB?
This is what Bank Negara Malaysia had ruefully complained and hoped that 1MDB be charged when they had given fraudulent information with regards to that USD1.83 billion investment. BNM wanted the money to be repatriated back because let’s face it, it was remitted into companies which did not fulfill the original objectives on why the joint venture and the RM5 billion debts had been created.
These are evidence presented to the public. Evidence in the form of official documents. Documents which authenticity are not being denied.
1MDB is only good at words but lack the substance and substantial evidence to prove them innocent.
Note that when in the US, Najib said that 1MDB business model is too idealistic and flawed. In other words, it is a failed business model. Only a stupid leader would proudly strut around for months claiming 1MDB is good where it started with just RM1 million in capital and managed to acquired billions of debts in the process.
You ought to read these to understand the whole issue: