In an interview with The Edge this week, 1MDB President Arul Kanda boasted that 1MDB was not bailed out by the government like in the cases of national carrier Malaysian Airline System Bhd (MAS), or national carmaker Proton.
He claims, “now that we have legally binding agreements for the IPIC swap, Edra sale and Bandar Malaysia, we don’t need to take any money from the government. There is no question about a bailout.”
Arul Kanda perhaps has been a little too quick to forget that the Najib administration granted RM950 million of emergency credit to 1MDB in February last year, despite having promised the Parliament that the Government would not bailout 1MDB.
Sunday, January 10, 2016
Saturday, January 09, 2016
With the sale of Bandar Malaysia land parcels, 1MDB must refund the Malaysian Government the RM2.7 billion cost of the airbase relocation
1Malaysia Development Bhd (1MDB) had made “further clarifications” with regards to the different values – RM7.41 billion and RM5.28 – billion announced by 1MDB and China Railway Engineering Corporation on 6 January 2015. The clarifications disclosed a key fact: that 1MDB intends to recover the cost of the existing military airbase (PUKL) relocation projects.
1MDB stated “the main relocation contract and development agreement was executed between 1MDB and the Government of Malaysia for a contract value of approximately RM2.7 billion. This cost includes, amongst others, new land acquisition costs, construction costs, fit out/equipment costs and relocation costs”.
1MDB also stated that “it is the intention of 1MDB and the Consortium to transfer the remainder PUKL Relocation construction costs… to the new special purpose vehicle”, of which 60% is to be acquired by the Iskandar Waterfront – China Railway Engineering consortium (IWH-CREC).
The share sale and purchase agreement will be subjected to, among other things, receiving the necessary consent from the Government of Malaysia.
We call upon the Government to withhold all approvals for the transaction to be completed unless 1MDB agrees that any relocation costs recouped and received by 1MDB will be returned to the Malaysian Government.
1MDB stated “the main relocation contract and development agreement was executed between 1MDB and the Government of Malaysia for a contract value of approximately RM2.7 billion. This cost includes, amongst others, new land acquisition costs, construction costs, fit out/equipment costs and relocation costs”.
1MDB also stated that “it is the intention of 1MDB and the Consortium to transfer the remainder PUKL Relocation construction costs… to the new special purpose vehicle”, of which 60% is to be acquired by the Iskandar Waterfront – China Railway Engineering consortium (IWH-CREC).
The share sale and purchase agreement will be subjected to, among other things, receiving the necessary consent from the Government of Malaysia.
We call upon the Government to withhold all approvals for the transaction to be completed unless 1MDB agrees that any relocation costs recouped and received by 1MDB will be returned to the Malaysian Government.
Thursday, January 07, 2016
The discrepancy between 1MDB’s “further clarification” and China Railway’s Hong Kong Exchange’s announcement becomes even more bizarre
Let me state upfront that we welcome the more detailed “further clarification” issued by 1MDB yesterday with regards to the discrepancy over the purchase price for the 60% of equity of Bandar Malaysia Sdn Bhd to the Iskandar Waterfront Holdings and China Railway (IWH-CREC) joint venture.
1MDB had earlier made the announcement that the state-owned investment firm will receive RM7.41 billion for the sale, while China Railway announced to the Hong Kong Exchange that the RM5.279 billion was the transacted price.
However, the more detailed “further clarification” yesterday effectively contradicted both 1MDB’s original statement issued on the 31 December 2015 and China Railways stock exchange announcement on 3 Jan 2016.
1MDB had earlier made the announcement that the state-owned investment firm will receive RM7.41 billion for the sale, while China Railway announced to the Hong Kong Exchange that the RM5.279 billion was the transacted price.
However, the more detailed “further clarification” yesterday effectively contradicted both 1MDB’s original statement issued on the 31 December 2015 and China Railways stock exchange announcement on 3 Jan 2016.
Wednesday, January 06, 2016
Only a clarification from 1MDB over the actual price paid for a 60% stake in BMSB could leave Malaysians and the financial community more confused than ever before
Finally, after a full day of confusion, 1MDB issued a statement late morning yesterday to “clarify” the actual price paid for the 60% stake in Bandar Malaysia Sdn Bhd.
The initial confusion arose because 1MDB announced that
On the other hand, China Railway Group announced to Hong Kong Exchange (HKEx) that
From 1MDB’s announcement, it appears that 1MDB will be paid RM7.41 billion, but from China Railway Group’s announcement, the latter will only be paying RM5.28 billion. This has caused many to ask questions with regards to the missing RM2.13 billion.
The initial confusion arose because 1MDB announced that
The Iskandar Waterfront Holdings (IWH) – China Railway Engineering Corporation (CREC) Consortium has valued 100% of the Bandar Malaysia land at RM 12.35 billion. Accordingly, its 60% share of land will cost RM7.41 billion. 1MDB will receive a 10% deposit of RM741 million upon execution of the Share Sale and Purchase Agreement, with completion of the transaction expected by end June 2016.
On the other hand, China Railway Group announced to Hong Kong Exchange (HKEx) that
On 31 December 2015, the Joint Venture entered into the Share Sale Agreement with 1MDB Real Estate (1MDBRE), pursuant to which the Joint Venture will purchase 60% of the equity interest in BMSB held by 1MDBRE at a price of MYR5.279 billion…
From 1MDB’s announcement, it appears that 1MDB will be paid RM7.41 billion, but from China Railway Group’s announcement, the latter will only be paying RM5.28 billion. This has caused many to ask questions with regards to the missing RM2.13 billion.
Tuesday, January 05, 2016
Did 1MDB sell 60% of Bandar Malaysia Sdn Bhd (BMSB) for RM7.41 billion or RM5.28 billion?
For the whole of yesterday, I received messages from journalists to critics to the ordinary men on the street “informing” me of the discrepancy between the announcement made by 1Malaysia Development Bhd (1MDB) to the press on 31 December 2015 and that made by China Railway Group Limited to the Hong Kong Exchange on 3 January 2016.
1MDB announced that
On the other hand, China Railway Group announced that
I had not made any immediate statement yesterday for the simple reason that such a glaring difference in the transaction price would have solicited an immediate clarification or response from 1MDB to allay market confusion.
Instead, unlike 1MDB’s usual speed in retorting its critics, absolutely nothing was issued yesterday. Such a tardy response over such a massive discrepancy only raises the suspicions of Malaysians and the global financial community.
1MDB announced that
The IWH-CREC Consortium has valued 100% of the Bandar Malaysia land at RM 12.35 billion. Accordingly, its 60% share of land will cost RM7.41 billion. 1MDB will receive a 10% deposit of RM741 million upon execution of the Share Sale and Purchase Agreement, with completion of the transaction expected by end June 2016.
On the other hand, China Railway Group announced that
On 31 December 2015, the Joint Venture entered into the Share Sale Agreement with 1MDB Real Estate (1MDBRE), pursuant to which the Joint Venture will purchase 60% of the equity interest in BMSB held by 1MDBRE at a price of MYR5.279 billion…
I had not made any immediate statement yesterday for the simple reason that such a glaring difference in the transaction price would have solicited an immediate clarification or response from 1MDB to allay market confusion.
Instead, unlike 1MDB’s usual speed in retorting its critics, absolutely nothing was issued yesterday. Such a tardy response over such a massive discrepancy only raises the suspicions of Malaysians and the global financial community.
Monday, January 04, 2016
What's wrong with wanting to ‘expose the crooks behind the multi-billion ringgit scam behind 1MDB which has resulted in tens of billions of ringgit of taxpayers losses’?
Not for the first time, Gerakan Secretary-General, Liang Teck Meng leaped to castigate me for speaking out on 1Malaysia Development Bhd (1MDB).
Liang, who is also the Member of Parliament for Simpang Renggam, who is never heard to raise issues which matter to the man-on-the-street, has recently been impressively first-off-the-mark in criticising me whenever I comment on 1MDB.
He not only accused me of being biased, but claimed that I was deliberately trying to get suspended from the Public Accounts Committee (PAC) by speaking up on the issue.
Let me state up front that I have no intention of getting thrown out of the PAC. It is my sworn duty to Malaysians as their elected representative to get to the bottom of scandals by questioning the officers involved in them.
Liang, who is also the Member of Parliament for Simpang Renggam, who is never heard to raise issues which matter to the man-on-the-street, has recently been impressively first-off-the-mark in criticising me whenever I comment on 1MDB.
He not only accused me of being biased, but claimed that I was deliberately trying to get suspended from the Public Accounts Committee (PAC) by speaking up on the issue.
Let me state up front that I have no intention of getting thrown out of the PAC. It is my sworn duty to Malaysians as their elected representative to get to the bottom of scandals by questioning the officers involved in them.
Friday, January 01, 2016
1MDB "survived" only because it was bailed out - and its ordeal is far from over
Datuk Seri Najib Razak today said 1Malaysia Development Bhd (1MDB) had overcome its major challenges this year, just as he had promised it would in June.
"It is therefore clear that 1MDB’s major challenges are now behind it, as I promised they would be last summer, and all that remains is for the deals it has entered into to be completed and the final steps of 1MDB’s rationalisation programme to complete," said Najib on his website.
I beg to disagree with the Prime Minister’s New Year Message claiming that he fulfilled his promise made in June.
"It is therefore clear that 1MDB’s major challenges are now behind it, as I promised they would be last summer, and all that remains is for the deals it has entered into to be completed and the final steps of 1MDB’s rationalisation programme to complete," said Najib on his website.
I beg to disagree with the Prime Minister’s New Year Message claiming that he fulfilled his promise made in June.
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