1MDB by Dr M

UPDATED - Below is former Prime Minister Tun Dr Mahathir Mohamad's partial reasoning on WHY NAJIB RAZAK CANNOT CONTINUE TO BE PRIME MINISTER OF MALAYSIA.

Earlier today, addressing a group of investors gathered in Kuala Lumpur, Najib reportedly said that he doesn't feel lonely in telling the truth. I hope Najib gathers enough guts to now stand up and address the pertinent questions posed by Dr Mahathir on the missing BILLIONS of Ringgit of Government funds. 

Please read Dr M's list of questions again Mister Prime Minister (don't worry, the crooked bridge is certainly not in the list) before you make your next looney...I mean lonely statement. TQ

1MDB

1. The management of Government finances is governed by laws, rules, regulations and practices. Companies also have similar systems but Government manages huge sums of money, basically the people’s money and it is imperative that the managers follow the laws, rules and regulations.

2. Corruption prevails in almost all Governments. But usually they involve relatively small sums. The work of auditors are supplemented by special anti-corruption authorities to ensure that as little as possible of Government money is misused, abused or basically stolen by the people authorised to manage it.

3. Governments can lose money through bad investments. We would know where the money is lost. But when huge sums of money disappear, then those entrusted with its management must answer for the disappearance. Disappearance is different from just losing. Disappearance is about money lost which cannot be traced. This can be because of corruption or theft.


4. In Malaysia the PM and DPM usually hold one extra portfolio. Usually the Ministry of Home Affairs and Ministry of Defence alternate between the two. Occasionally while waiting for suitable candidate, the Ministry of Finance is held by the PM. Dato Sri Najib however prefers to keep the Ministry of Finance under him all the time. He has appointed a second Minister of Finance. This is his prerogative of course, but he must ultimately be responsible for what happens to the country’s finances.

5. The first requisite for the management of Government money is the yearly budget. Prepared by the Ministry of Finance from feedbacks by all ministries and departments, the budget is first presented to the Cabinet. If passed it is then presented to Parliament.

6. Government is expected to spend money according to the budget. If the yearly budget cannot meet an urgent need of the Government, a supplementary budget can be presented by Cabinet to Parliament. Drafts of the budgets are prepared by officers of the Ministry. Government raises money through taxes and fees of all kinds. Government may own special businesses such as Petronas, which may contribute to the budget.

7. In Malaysia there is also off-budget-funds which may not be presented to Parliament but are still subject to scrutiny and approval of the Cabinet.

8. Cabinet papers are secret of course. But in the case of 1MDB the presentation to the Cabinet and approval by it seems to be unclear. There seems to be attempts to hide behind official secrecy.

9. What we do know is that 1MDB has as its advisor the Prime Minister and Minister of Finance. It is inexcusable that the management which is appointed by the PM would reject his advice. So like the British Advisor of old, the advice of the Advisor is a directive.

10. Since then three CEOs of 1MDB have resigned without explanation. Could it be because they could not accept the advice!

11. The Government invested one million Ringgit in the 1MDB. According to known records 1MDB then borrowed from various sources 42 billion Ringgit.

12. A company with 1 million Ringgit capital with no assets cannot borrow 42,000 times its capital with no collaterals. That 1MDB is able to do so is because of Government guarantees.

13. In other words it is Government which is borrowing the money. If 1MDB loses money, the Government will bear the loss. Yet the operation of 1MDB is not overseen by Government officers responsible for the management of Government funds.

14. Why has the 1MDB become controversial? What is wrong with 1MDB?

15. From the beginning it was wrong. It started off as an off-budget and it was not put before the Parliament.

16. The money was borrowed. So it is not sovereign wealth but sovereign debt.

17. The bond raised by Goldman Sachs costs more than is usual for Government borrowings. The interest rate at 5.9% was too high. Government loans usually attract about 3% or below.

18. In addition 10% commission went to Goldman Sachs which means that 1MDB gets only 90% of the money borrowed yet has to pay interest on 100%, raising the interest rate to 6.6%. Averaging at 6%, yearly interest on 42 billion Ringgit is about RM 2.5 billion. Since 2009 there has been no income from all the assets. And 1MDB had to borrow RM2 billion to pay the interest. The loan is now RM42 billion.

19. Total initial borrowings amounted to 42,000,000,000 (42 billion Ringgit). As far as can be ascertained the investments are as follows:

a. Purchase of Tanjong Energy (now known as Powertek Energy Sdn Bhd) from Ananda Krishnan for RM 8.5 billion. This is higher than market price. The licence was about to expire.

b. Purchase of Genting Sanyen Power (now known as Kuala Langat Power Plant) for RM 2.3 billion. Again high above market price. The licence was abut to expire.

c. Purchase of Jimah Energy for RM 1.2 billion.

d. Purchase of 70 acres of land in Jalan Tun Razak for RM320 million i.e: RM64.00 psf. Land last sold in the area was at RM7,000 psf.

e. Purchase of 495 acres of land in the former Sungai Besi TUDM airport (now known as Bandar Malaysia) about RM 363.5 million i.e: at RM 91.00 psf. Estimated value RM1,000 psf.

f. Purchase of 234 acres land in Air Itam in Penang RM 1.38 billion i.e: at RM135.00 psf.

20. It should be noted that TRX land is close to land recently sold at RM7000.00 psf. Assuming the market price is RM3000.00 psf the true value of this land is 6 billion Ringgit. The Government has therefore lost 5 billion plus because 1MDB paid only RM320 million.

21. With regard to the Sungai Besi Airport land, 1MDB paid 363.5 million Ringgit for 495 acres – i.e at RM91 psf. Assuming market price for this land is RM1000 psf. the Government lost approximately 20 billion Ringgit.

22. The land in Penang is of poor quality and has more than 1000 squatters. Yet 1MDB paid RM1.3 billion i.e at RM 135 psf.

23. These are all the purchases that are known. They all add up to RM14.7 billion. So there is approximately 27 billion Ringgit left.

24. More than 1billion US Dollars were said to be paid to Petro Saudi without verification as to the value of this company or its assets.

25. Where is the rest of the money?

26. A certain amount was registered in the Cayman Islands. What was the money used for? What was brought back to Malaysia. What was brought back and deposited in a Swiss bank in Singapore. Why? Where was the money brought back from? Why is this money not used to pay the RM 2 billion interest. Why did Bank Negara allow the first tranche to be repatriated to Malaysia and not the second tranche. Now the Swiss bank has told the Singapore authorities that the document did not originate from them and does not represent a true account of the assets of 1MDB. So where is the money said to be registered in the Cayman Islands and is now brought back.

27. Clearly 1MDB is not getting any return from its investments. Not only is it losing money but the Government has lost money when 1MDB paid only RM683 million for TRX and Sungai Besi. Total loss incurred by the Government is approximately 25 billion Ringgit.

28. 1MDB revalued all its assets at 52 billion Ringgit. That is because Government land was brought at far below the market price. It can only use this money to repay loans if it succeeds in selling them off as land or after development. Progress on TRX is very slow and there is no work on Sungai Besi land. No money will be generated during development; only outflows.

29. It is this disappearance of a huge amount of borrowed money by 1MDB and the inability to answer questions regarding what happened to the funds that disqualifies Najib from being Prime Minister of Malaysia.
www.chedet.cc 

UMNO leader lodges police report on 1MDB

Batu Kawan Umno Division deputy leader Datuk Seri Khairuddin Abu Hassan speaking to members of the media after lodging the police report on 1MDB at the Dang wangi police station in Kuala Lumpur after Friday prayers today.

The report urges the authorities to look into the following, among other things:

• The procedures 1MDB follows in raising funds from overseas and in disbursing its funds
• The question of 1MDB paying interest at rates higher than the market rate
• The question of 1MDB paying fees to Goldman Sachs International that are considered exorbitant
• The less-than-transparent parking of funds overseas, specifically in the Cayman Islands
• Petaling Jaya Utara MP Tony Pua’s statement that the Finance Ministry had issued a letter of support to guarantee 1MDB’s loans and Deputy Finance Minister Ahmad Maslan’s subsequent assertion that no such letter had been issued
• The workings of 1MDB subsidiaries, 1MDB Global Investments Ltd and 1MDB Energy Ltd
• The purchase of energy assets from Powertek Energy and Sanyen Power Sdn Bhd at prices higher than the market price
• The purchase of 234 acres of land in Air Itam at RM1.38 billion, which will be hard to recover from the proposed housing projects
• The US$1.2 billion investment in PetroSaudi International Ltd, which was done without transparency
• The purchase of land from Tadman Resources Bhd in Pulau Indah for RM317 million
• The purchase, at a premium price, of the site for the Tun Razak Exchange project.

Speaking to the press after making the report,  he said he was not worried that Umno might take action against him. “I’ll ask them on what grounds they would take action because I made the report against a private company, not Umno,” he said. - FMT

UKRC: Another broken promise

Many among us would still remember the failed struggle to save the late Kampung Buah Pala in Penang. 

Kampung Buah Pala or better known as High Chaparral was a traditional Indian village in Penang that was slaughtered by politicians, from both sides of the divide until the more than 100-year old village was flattened. Finally it was the DAP-led state government that shooed both human and cattle away despite those rosy promises by none other than Pakatan Rakyat supremo Anwar Ibrahim himself. 

So, based on such unscrupulous, untrustworthy, sly politicians' actions in the past, the latest battle between Ulu Kelang Recreation Club and the Pakatan ruined Selangor state government is of no surprise. It has become all too convenient for some shameless politicians/elected representatives to NOT keep their promises. They also see it fit to tell lies.

But the very upset members of UKRC and their strong supporters from beyond Ulu Kelang are not going to throw in the towel and allow such shameless politicians to trample over them or their field. 

UKRC is standing up to hold up their rights and they are standing against the mighty Selangor state government's arm, the Ampang Jaya Municipal Council or MPAJ.   

The legal battle begins tomorrow - 

UKRC vs MPAJ 

Date: Monday 13 Jan 2014 

Time: 830 am 

Place: Court No 6 High Court Jalan Duta

Be there if you have the time, plus the guts. Save UKRC field!

Let's teach dirty politicians a lesson!

Lizard of Penang

Convicted illegal wildlife trader, Anson Wong aka Lizard King appears to be back in business in Penang. For the record the Government had revoked the lizard's business licenses and permits back in 2010. 

How is he then back in business?  Wong reportedly told the reporter who exposed his illicit activities in Penang to "Well, ask the Government."

Wong is right there. We should all ask the relevant Government departments and enforcement agencies, including the courts, as to how THIS is possible in Penang. 

Should we not?

Who says NO?

No wonder some cybertroopers were going berzerk, spinning their head out, after the Penang BN CNY do where megastar PSY performed the Oppa Gangnam.

...and see what ALIRAN's free, independent activist Anil Netto does for a living now.

Anil even got a POLITICAL SCIENTIST to do a head count for him. :-) 

Guess when the cheap gets cheaper, we got to take everything with a cup of salt.

DAP a 'Towkay Party' now?

                                                  
Well the latest development in 'holier than thou' DAP proves that the socialist party has transformed into a 'Towkay Party', a term which DAP leaders had lavished on the MCA for a long time. 

While the cunning DAP secretary general still goes around creating confusion trying to pit Muslims and non-Muslim (esp Christians) DAP chairman Karpal stands firm not to be easily duped by the 'dear leader's CAT shows. 

Guan Eng appears to be trying hard to divert people's attention       (particularly the attention of unassuming Chinese DAP supporters and sympatisers) away from the shitty 'towkay' deals by Perak DAP leaders. 

Guan Eng has to jump in to defend cousins Ngeh and Nga as a wrong turn could shift the spotlight to the Pearl of the Orient where wealthy towkays are said to be sitting around Khalifah Umar's throne. 

The controversial Bayan Mutiara could just be the tip of the iceberg as some sneaky businessmen would begin exposing soon. 

The value of actual business transactions/deals involving DAP leaders could be sky-high, putting the Perak cousins to shame with their mere RM30million odd land/timber scandal in Kelantan.

BUT, the 'dear leader' had kept his promise that DAP elected representatives would not be involved in businesses or apply for state land in Penang. 

Just that Perak DAP leaders would do business and grab land in Kelantan while those from Penang could be investing in Selangor or logging in Kedah.  Some could even be flying high in Singapore for allowing the island republic to 'invest' in Penang. 

Would these 'towkays' in DAP be shown the door by their no-nonsense chairman or could it be the other way around? 

The end seems very near though, while 'dear leader' tries hard to out-maneuver the Lion of Jelutong.  

At stake is the DAP's ideals, principles and the very core of its struggle as a socialist party... and the old guard who holds firmly to these doctrines. 

STAKE IN COMPANY: It's against DAP's principle for elected representatives to be involved in business

IPOH: EMBATTLED Perak DAP chief Datuk Ngeh Koo Ham has been asked by the party's leadership to decide on his directorship in Upayapadu Plantation Sdn Bhd.

Sources told the New Straits Times that Ngeh, who had admitted that he and his cousin Nga Kor Ming have stakes in the company, was given until today to do so.

Sources also said the party leadership had also grilled Ngeh, who is also Beruas member of parliament and Sitiawan state assemblyman, in a meeting on Tuesday on his investment in the company that had been awarded a timber project in Gua Musang, Kelantan.

The meeting, it was learnt, was held following the call by party chairman Karpal Singh for Ngeh to be hauled up to explain his venture with the company which had been reportedly given 4,359ha of land for the project.

A party insider yesterday, confirmed the matter and said Ngeh and Nga's involvement in a business venture went against the grain of the party struggle.

Nga, who is state DAP secretary, is also a director of Upayapadu Plantation Sdn Bhd.

"It is not that we want to be a poor man's party but politics and business just simply do not mix," said the insider.

He said since the revelation of the duo's involvement in the timber project, people had been asking whether the party was now a "towkay party".

"Party members are angry. They are also asking if community leaders are joining DAP to get rich."

Gerakan deputy president Datuk Chang Ko Youn said Ngeh and Nga had become a political liability to Pakatan Rakyat.

He said DAP leaders, when forming the Penang government in 2008, had promised that their elected representatives would not be involved in businesses.

"But, see what happens now," he said, adding that he wondered how the cousins from Perak could have their hands on the project instead of the Kelantanese.

DAP has been under pressure to act against Ngeh and Nga over their admissions at the sidelines of the state assembly sitting last month that they had invested in the company, allegedly given the project as an appeasement for Datuk Seri Mohammad Nizar Jamaluddin to hold the Perak menteri besar's post, despite DAP's state seat majority after the 12th general election four years ago.

Comments in the social media regarding the cousins were less than flattering, with many of the commentators asking them to decide whether they want to remain in politics or to be involved in business.

Ngeh, however, had said that there was nothing wrong with him and Nga being investors as they had done so according to the law, saying that they had been invited by the company to invest in the project.

He had also said the Inland Revenue Board and the Federal Government were aware of the of the transaction. - NST

Perak DAP chief Datuk Ngeh Koo Ham (right) and his cousin, Nga Kor Ming, have admitted they have stakes in Upayapadu Plantation Sdn Bhd. The company was awarded a timber project in Gua Musang, Kelantan