YOURSAY ‘Many concerns were brought up for which no answers were available.’
MP to get foreign gov'ts to trail 1MDB RM7bil
Mushiro: The forum on Wednesday night by Pandan MP Rafizi Ramli and Petaling Jaya Utara MP Tony Pua was gripping but frightening.
Both Rafizi and Pua were very cautious and they spoke of the only points where they have the facts and evidence and so far they could account for only RM20 billion. They are yet to dig up information on another RM22 billion.
Among the missteps by 1MDB (1Malaysia Development Berhad) that they pointed out include:
1. Initial denial by Malaysia of the government guarantee for the US$3.5 billion bonds.
2. Commission of above 10 percent paid to Goldman Sachs, which is 100 times higher than industry practice.
3. Interest rate of 13.2 percent which is ridiculous.
4. The deal with PetroSaudi where more than US$1.2 billion was paid to them and when PetroSaudi could not pay the loan, 1MDB gave them more loan to pay back the earlier loan.
5. The over-priced cash purchase of Tanjung and Genting Sanyen IPPs (independent power producers).
6. The non-negotiated awards to 1MDB to build two power plants in Malaysia, which is not even required yet. YTL, despite being the lowest bidder, lost out.
7. The below-market price award of the Sungai Besi airport land to 1MDB and the spiral revaluation of this asset in their books.
8. The below-market price award of the Tun Razak Xchange centre and the spiral revaluation of this asset.
9. The resignations of international auditors, EY (Ernst & Young) and KPMG, without submitting the accounts in the first two years.
10. The control by a Saudi bank which issued another guarantee, whereby the bank retain 40 percent of the money obtained and charged 5.9 percent interest for the total amount of loan.
There were many other concerns brought up for which no answers were available. It may be because of this that Rafizi is resorting to getting more information from relevant foreign government and sources.
If former PM Dr Mahathir Mohamad had come to the forum, he would have shared some of his concerns.
Indeed, Deputy Finance Minister Ahmad Maslan and the CEO of 1MDB missed a golden opportunity to defend the government but understandably they stayed away - they would be turned into minced meat.
Farhan: Substantial portions of 1MDB’s overseas funds have gradually made their way back to Malaysia to be reinvested in energy projects and real estate, and meet financial obligations. The funds had been earmarked for the development and acquisition of specific assets.
The 1MDB board has full control over its funds managed in the Cayman Islands. These funds are managed under the mandate given by 1MDB and can be withdrawn.
So stop talking nonsense, Rafizi.
Sea Wolf: Some have always mentioned the negative impact if 1MDB fails. But what is the positive impact if 1MDB succeeds and successfully restructures the IPP industry in Malaysia and becomes the number one IPP owner as planned and if the ambitious projects of Bandar Malaysia and Tun Razak Exchange succeed?
What would be the GDP, jobs and economic benefits Malaysia would get if 1MDB succeeds? Would Rafizi and Pua rather 1MDB fail?
Vincy: Please go ahead, Rafizi, because I know Pakatan Rakyat has been working hard asking all over the world regarding 1MDB but up to now, you have found nothing.
Disgusted: Vincy, you should have attended the forum on Wednesday, otherwise you would not have make the statement that Rafizi found nothing.
Do you think Rafizi and Pua are so foolish to hold a talk in public without having any evidence? They both will be sued by 1MDB and the government.
I want to ask Sea Wolf, what is 1MDB's total exposure or liability to creditors (bond holders)? What is their repayment required as per bond requirements?
Are they fulfilling all these repayments according to schedule? How are they funding these repayments? How are they deriving the income to repay just the interest alone?
If you or Najib Razak's govenment can provide in a transparent manner satisfactory answers to these, then perhaps Rafizi and Pua will shut up.
Victor Johan: Both Rafizi and Pua shared a lot at The Club, Bandar Utama. Bravo. And they will continue to do so, so that all thinking and financially literate and concerned Malaysians and foreign investors know the truth.
To those adverse commenters in Malaysiakini , please attend such forums. You may not like what is revealed but alas, the truth has to be told.
Sirach: Kudos to you, Rafizi. All Malaysians are fully behind you in your (and Pua's) unrelenting efforts for greater transparency in this matter.
Bank Negara should act now, and not wait to clean up the mess long after the horses have bolted.
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