Najib Razak self-proclaimed that the RM42 billion scandal involving his pet project 1MDB was over before the unleashing of New Year 2016 fireworks. So did 1MDB President Arul “Anaconda” Kanda. Was it really over? Going by today’s exchange rate, 1MDB’s US$11 billion in debt have ballooned to a whopping RM48 billion.
Najib’s second scandal, the highly explosive US$700 million discovered in his private banking account, remains a mystery and equally controversial till today. Despite PM Najib and President Arul “Anaconda” declarations that the 1MDB was water under the bridge, the scandal is far from over, let alone the unexplainable US$$700 million scandal.
Guess what, the US$700 million scandal is now a RM3 billion scandal, not RM2.6 billion anymore thanks to Ringgit depreciation. A RM48 billion 1MDB “scam project” and a RM3 billion “donation money” are no chicken feed. They don’t simply disappear just because Najib Razak, Arul Kanda and their band of bloggers and cybertroopers say so.
Let’s digest what Mr. Genius Arul and Najib have done to supposedly solve 1MDB debt problem. In a special deal, 1MDB has sold 100% of its power assets under Edra Global Energy Bhd to China General Nuclear Power Corporation (CGN) for RM9.83 billion, when it had bought it for RM12 billion. So, there was a net loss of RM2.17 billion in the bailout.
Together with debt, the Edra sale would relieve 1MDB of RM17 billion in debt, reducing its debt to RM25 billion. Earlier, there was the debt-for-asset swap with Abu Dhabi’s IPIC (International Petroleum Investment Co). Scheduled to be completed by June 2016, the swap would take another RM16 billion off from 1MDB’s debt account, shrinking its debt further to RM9 billion.
Hey, wait a minute! What the heck was Abu Dhabi getting for taking over the RM16 billion debts from 1MDB? Well, who cares because Abu Dhabi was not only rich but they were dumb. Perhaps Abu Dhabi has been sweet talked by the “Anaconda” into believing that the Middle East kingdom would get both Edra power assets and Bandar Malaysia land in exchange.
Unfortunately, not only Edra power assets have gone to China, the Bandar Malaysia land has disappeared into thin air too. Shhh, don’t wake the idiot Sheikh Abu Dhabi up but let them sleep. Malaysians should be proud that a Malay PM Najib and an Indian Arul Anaconda could easily “con” the wealthy Gulf nation, thanks to a Chinese Jho Fatty Low.
However, Sheikh Abu Dhabi has very little to worry because as the Minister of Finance, Prime Minister Najib Razak can always print some “IOU” papers to guarantee the RM16 billion. And Malaysian taxpayers would gladly pick up the tab, as usual. Damn, don’t you like working with the dumb and idiots (*grin*)?
Yes, the Bandar Malaysia land has gone to yet another Chinese company – China Railway Engineering Corporation (CREC) – who together with Iskandar Waterfront Holdings (IWH) forms a consortium (40:60 basis) to pay RM7.41 billion for a 60% stake in Bandar Malaysia. Essentially, 16-plots of extremely valuable Sg. Besi land were used to bailout 1MDB.
Still, RM17 billion + RM16 billion + RM7.41 billion equals to RM40.41 billion, insufficient to pay off RM42 billion in debt, let alone RM48 billion due to currency depreciation. And we haven’t even talk about losses in loan interest. Okay, let’s assume 1MDB’s US$11 billion in debt has finally been paid. But can you see the net effect of the mess that Mr. Najib has created to the country?
The country loses 100% stake in Edra Global Energy Bhd, which means power assets of Edra Solar Sdn Bhd, Edra Energy Sdn Bhd, Powertek Energy Sdn Bhd, Jimah Teknik Sdn Bhd, Jimah O&M Sdn Bhd, Mastika Lagenda Sdn Bhd and Tiara Tanah Sdn Bhd have been given away to China to partially clean up Najib’s mess.
Not only the country lost 100% Edra power assets, part of 486-acre prime land making up the old Sungai Besi airport has also been surrendered in exchange for money to bail out Najib’s pet project. The best part is, despite giving away power assets and land to China, Malaysians still don’t know what Najib has promised to give Abu Dhabi – in exchange for the bailout money amounting to RM16 billion.
If you still couldn’t get the juice of it, consider the following – the power assets and 486-acre of the old Sungai Besi airport land and RM16 billion in cash – which belong to the 30-million populations have suddenly (*poof*) gone because of 1MDB. The RM42 billion (or rather RM48 billion) debt is still there. They are now in new formats – the national power assets and land and IOUs – which belong to foreigners.
Here’s another fun part – the bailouts are not considered done as long as those buyers haven’t pay in cash. With China’s gloom and doom economy, the Chinese buyers could chicken out from the deals. Until the cash comes, 1MDB still need to serve the 4.4% interest on US$3 billion (RM13.12 billion) bond arranged by Goldman Sachs, not to mention RM5 billion worth of Sukuk.
Just when Najib Razak and Arul Kanda thought the Year of the Fire Monkey could be kinder to them, naughty Sarawak Report (SR) dropped a bombshell that MACC’s (Malaysian Anti-Corruption Commission) investigation papers on SRC International (involving RM42 million) concluded there are at least 37 separate charges that could be made against Najib.
But the temporary A.G. Apandi plays “Tai-Chi” and deliberately delays making decision on it. SR also alleged that deputy public prosecutor Kevin Morais was murdered because he is believed to be the key prosecutor on the case and the source of the leak of the original charge sheets (warrant arrest) drawn up against Najib, before the prime minister fired ex-A.G. Gani Patail.
To add salt to injury, badass SR also alleged that some UMNO warlords are furious because their boss, PM Najib son of Razak, didn’t take RM2.6 billion but actually RM4 billion. The Malaysian prime minister was also accused of shopping to the tune of RM449,000 and RM2.8 million using VISA (4585 8180 0000 5496) and Master (5289 4380 0003 8961) credit cards respectively.
Hell no, the 1MDB is not over yet because EPF (Employees Provident Fund), Ministry of Finance, KWAP (Retirement Fund Incorporated), Tabung Haji and Takaful Malaysia, among others, have not received billions of dollars in bailout money extended to 1MDB during the crisis when it was on the brink of bankruptcy and couldn’t serve the interest on external loans.
True, critics seem to be screaming about what appears to be old 1MDB issues. But that’s because the old issues have not been resolved yet. The 1MDB and US$700 million scandals will never go away. In fact, the twin scandals are just the beginning. And it could only get uglier until the next general election. At least Mahathir hasn’t given up yet, has he?
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