Recently, 1MDB has disclosed the ‘where and how’ of the RM42 billion it borrowed earlier. As I read through the disclosure , I just find the information so bizarre and yet appalling. I am sure many Malaysians are equally concerned.

Some have assured that the problems in 1MDB will not adversely affect Malaysia’s economic fundamentals or financial stability. But this is beside the point; I think the amount involved is just too enormous to ignore.

As a layperson, I will ask simple questions and make simple calculation/observations of the information disclosed. I will leave the more sophisticated and difficult ones to those who are more savvy.

First, how did 1MDB come about? I know it originated from TIA but how did it evolve into such a gigantic monster? Since when is it the business of the government to become like a giant hedge fund, raising and putting money in the most opaque and dubious manner we can imagine?

Please don’t laugh off my question because this is fundamental. Did the cabinet and Parliament ever know of 1MDB and its activities before this? It showed complete breakdown of oversights and checks and balances in government finance and operations.

Then we look at the ‘business model’ of 1MDB, it is just so blatantly adventurous - borrowing excessively using sovereign guarantees and investing recklessly without thinking. I know one of those associated with 1MDB had studied in a very prestigious business school in the US, but what about the rest, did they go to school at all?

If you have not noticed, 1MDB has only spent a paltry RM1.7 billion to own the most valuable assets it now possesses - the lands in TRX, Bandar Malaysia and Penang. I am quite sure the ‘assets greater than liabilities’ mantra being tossed about is due to repeated revaluation of these lands many times over during the past years. But what has happened to the rest of the money?

Now we know 1MDB paid RM6 billion more (as inherited debts) when they bought the IPPs. This is over and above the RM12 billion paid earlier which many have already complained was overpriced. With RM6 billion (or 50 percent) more, the overpricing could be much worse than we originally thought. This mandates immediate response; there is no need for an audit.

Then we have RM4.5 billion ‘finance cost and working capital’ incurred. What is finance cost and working capital here - commissions, fees and discount given when raising the loans? I don’t think RM4.5 billion are interest charges accruing over time because as we speak 1MDB is in the midst of raising more money to pay interest charges.

To borrow RM42 billion with a RM4.5 billion ‘finance cost’ (not interest charges) is more than 10 percent which is ridiculous, especially with sovereign guarantees thrown in. Again, no auditing is needed to provide the answer?

Then what about the massive RM16.4 billion for investments funds (RM6.1 billion in Brazen Sky + RM4.2 billion in Aabar Deposit + RM5.1 billion in GIL Funds)? I am sure most Malaysians would like to know the details of these investments - how much are they worth now and whether these are denominated in US dollar or ‘units’? Are these investments liquid, unshackled, and usable?

I urge 1MDB to provide the answers that subscribe to rationale, reasons and logics.  Malaysians are not nincompoops.