:(
1MDB
1Malaysia Development Berhad
Winding down
AT first reaction, DESI on reading the PRINT COPY thought he was just being ignorant that the day marks either :
THE DEATH OF A DIGNITARY
or
THE DEMISE OF A NATIONAL ICON
MAYBE the Star editor-in-chief/editors do have a sense of humour after all!
THE 1MDB IS indeed an ICON, YES!
THE three-liner body paragraph follows:
The controversial 1MDB is set to wind down as early as next year in a move to stave off the
relentless attacks on the Government, particularly the Prime Minister. The plan is to reduce its debt by almost one-third with funds coming from Abu Dhabi. > SEE reports on PAGE 2
(PS FROm DESi: I have a copy for which I Paid RM1.50 this mouRning, so if any ER wants to buy it off me, hey, bank into DESi's AC RM1,500!)
PPS (DESI THInking ALoud, STill ALlowed hear!:)
A badder headline would be:
1MDB BEING WOUND UP
___I will explain WHY later cun?! HINT: READ my 4-parter >>>> "WHY I SAY MALYSIA IS HEADING TOWARDS THE ABYSS". THE KEY WoRD IS "Unravelling" from the first paragraph of PART I via http://desiderata2000.blogspot.com/2015/03/why-i-say-malaysia-is-moving-towards.html ___________________________________
FROM Page 2, The Star:
1MDB to scale down ops
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PETALING JAYA: 1Malaysia
Development Bhd that has come under relentless attack for its financial
transactions will be wound down by early next year.
According to sources, a programme is being crafted whereby Abu Dhabi will inject sovereign funds of up to US$4.5bil (RM16.4bil) into 1MDB – money that would be used to reduce its debts of RM42bil.
“The first tranche of the money will come in next week. The announcement is already out. The remaining amounts will come in batches and by early next year 1MDB will be wound down,” said a source.
The reduction of its debts will allow 1MDB to “downsize” its operations significantly and transfer the remaining liabilities to its three subsidiary companies, which are into property development and generation of electricity.
“The subsidiaries have assets and can hold some amount of debt. The
holding company does not have adequate assets and that is why it faces
cash-flow problems to service its debt obligations,” said sources.
The power generation company, which is Edra Global Energy, has three major power plants worth some RM13bil.
The property subsidiaries are broken into two – one holding the Tun Razak Exchange Development and the other the 200.3ha Sungai Besi airport land that is to be developed into Bandar Malaysia.
“The value of the land in TRX and Bandar Malaysia is estimated to be RM4.3bil,” said a source.
Yesterday, 1MDB announced that it had entered into an agreement with International Petroleum Investment Company (IPIC) and Aabar Investments whereby the Abu Dhabi companies would inject US$1bil (RM3.6bil) into the Malaysian fund.
By early next year, it is estimated that an additional sum of US$3.5bil (RM12.6bil) would be pumped in as part of the agreement.
In return, the Abu Dhabi companies would take over some of the assets held by 1MDB, including the “units” held in Singapore’s BSI Bank.
1MDB, established in 2009, is the brainchild of Prime Minister Datuk Seri Najib Tun Razak. It was supposed to spearhead Malaysia into projects that bring high impact to the economy.
However, it has come under scrutiny for its opaque financial transactions with companies based in the Middle East.
Among them is Petro Saudi International (PSI), which was the first joint venture partner that 1MDB locked up with in 2009.
**The joint venture with PSI started with an initial sum of US$1bil. But the investment later ballooned to US$2.32bil (RM8.5bil) that was parked with funds based in the Cayman Islands.
*A portion of the funds came back last year, according to 1MDB. But an amount of US$1.1bil (RM4bil) that was supposed to find its way back to help 1MDB redeem its debts was placed with BSI Bank in Singapore. The Finance Ministry has said the sum was in the form of “units”.
Apart from the investment with PSI, the fund has also come under fire for the high cost incurred in raising US dollar debt papers.
***It raised US$3.5bil (RM12.7bil) in 2012 and another US$3bil (RM10.9bil) on March 19, 2013 – just a few weeks before the general election.
The funds were raised with a high degree of collateral and cost, something that is not usual for an entity such as 1MDB that is fully backed by the Government.
According to sources, the Cabinet was briefed that 1MDB has become a political hot potato to the extent that it is hurting Umno.
“The party comes above everything else for Najib. That is why he is deciding to wind down 1MDB,” said the source.
Related stories:
Abu Dhabi to inject RM3.6bil lifeline
Dr M says losses must be accounted ford don't mind beinga capitalist
Shahrir defends meeting with Arul
According to sources, a programme is being crafted whereby Abu Dhabi will inject sovereign funds of up to US$4.5bil (RM16.4bil) into 1MDB – money that would be used to reduce its debts of RM42bil.
“The first tranche of the money will come in next week. The announcement is already out. The remaining amounts will come in batches and by early next year 1MDB will be wound down,” said a source.
The reduction of its debts will allow 1MDB to “downsize” its operations significantly and transfer the remaining liabilities to its three subsidiary companies, which are into property development and generation of electricity.
The power generation company, which is Edra Global Energy, has three major power plants worth some RM13bil.
The property subsidiaries are broken into two – one holding the Tun Razak Exchange Development and the other the 200.3ha Sungai Besi airport land that is to be developed into Bandar Malaysia.
“The value of the land in TRX and Bandar Malaysia is estimated to be RM4.3bil,” said a source.
Yesterday, 1MDB announced that it had entered into an agreement with International Petroleum Investment Company (IPIC) and Aabar Investments whereby the Abu Dhabi companies would inject US$1bil (RM3.6bil) into the Malaysian fund.
By early next year, it is estimated that an additional sum of US$3.5bil (RM12.6bil) would be pumped in as part of the agreement.
In return, the Abu Dhabi companies would take over some of the assets held by 1MDB, including the “units” held in Singapore’s BSI Bank.
1MDB, established in 2009, is the brainchild of Prime Minister Datuk Seri Najib Tun Razak. It was supposed to spearhead Malaysia into projects that bring high impact to the economy.
However, it has come under scrutiny for its opaque financial transactions with companies based in the Middle East.
Among them is Petro Saudi International (PSI), which was the first joint venture partner that 1MDB locked up with in 2009.
**The joint venture with PSI started with an initial sum of US$1bil. But the investment later ballooned to US$2.32bil (RM8.5bil) that was parked with funds based in the Cayman Islands.
*A portion of the funds came back last year, according to 1MDB. But an amount of US$1.1bil (RM4bil) that was supposed to find its way back to help 1MDB redeem its debts was placed with BSI Bank in Singapore. The Finance Ministry has said the sum was in the form of “units”.
Apart from the investment with PSI, the fund has also come under fire for the high cost incurred in raising US dollar debt papers.
***It raised US$3.5bil (RM12.7bil) in 2012 and another US$3bil (RM10.9bil) on March 19, 2013 – just a few weeks before the general election.
The funds were raised with a high degree of collateral and cost, something that is not usual for an entity such as 1MDB that is fully backed by the Government.
According to sources, the Cabinet was briefed that 1MDB has become a political hot potato to the extent that it is hurting Umno.
“The party comes above everything else for Najib. That is why he is deciding to wind down 1MDB,” said the source.
Related stories:
Abu Dhabi to inject RM3.6bil lifeline
Dr M says losses must be accounted ford don't mind beinga capitalist
Shahrir defends meeting with Arul
NOTE: I WILL Resume this piece peacefully IF I Survive HI-TEA!
Back the day after because I was behaving like a Kapitalist yesterday evening -- I did say DESI is socialist on most weekdays, and often become a KAPitalist on wickedends -- an outstation buddy who wanna be a KOboi like DESi the sext life came down from Kajang to FUrong to buy me Seefood; hey, didn't you know I can eat two kilos of crab at one go, what is uneaten is tapau-ed lah! PLUS endless rounds of Chinoserie TEA; NO liquor for me, as I am a teatotaller -- I totally drink ALL Teas-- especially when my matey brings the best Pu-erh from Yunnan....Sorry I Digress and make thee salivate!
*************************************
NOW back to the subject as informed by The STAR in the report reproduced above here: My reaction after the first complete reading is that the PM heading the SHIP OF FOOLS and his CRONIES heading 1MDB think we Malaysians all are still at Kindergarten! The editors of MSM may be "KINDer", but we the well read Malaysians are able to digest critically what we read, and make our own INTELLIGENT CONCLUSIONS.
LET me highlight some points as rebuttal:
1. THE smartalecks at 1MDB get a company -- from Abu Dhabi, the MIDDLE EAST again! -- to additionally invest, the first tranche to be injected into 1MDB next week of about RM4billion. TO "URGENTLY" PAY BACK RM3.6BILLION DUE SOON!
DIGRESSING, BUT RELEVANT: Did the 1MDB inform us WHY DID THE GERMAN CONSORTIUM OF BANKS LED BY DEUTSCHE BANK ASK FOR EARLY re-payment of RM3.6billion BY THREE MONTHS OF THE ONE-YEAR LOAN? My common sense CONCLUSION IS THE BANKS MUST KNOW MUCH MORE THAN WE KNOW - AND following a REVIEW, had come to a CONCLUSION that 1MDB IS a RISKY BORROWER some nine months later, and it's Desi's educated GUESS that it's GREAT MINDS THINK ALIKE! ~~ it's better and more prudent to ask for pre-payment, maybe sacrificing some or all of the interest in the process?
SO WRT to this para, *"A portion of the funds came back last year, according to 1MDB. But an amount of US$1.1bil (RM4bil) that was supposed to find its way back to help 1MDB redeem its debts was placed with BSI Bank in Singapore. The Finance Ministry has said the sum was in the form of “units”, Desi concludes: THE LAST mentioned "units" from the highlighted para are not LIQUID AT ALL! AND THE BEAUTIFUL THING IS THE PM TOLD A "LIE" IN PARLIAMENT THAT IT WAS "CASH", now RESURRECTED AS "UNITS" BY THE DEPUTY FINANCE minister who shifted the "Mistake" to 1MDB's 6-MONTH-OLD RENOWNED BANKER IMPORTED FROM YES! ABU DHABI>>>CEO ARUL KANDA KANDASAMY. DESI hopes against all hopes the "LIARS" would serve jail time for MISLEADING THE AUGUST HOUSE called PARLIAMENT, its proceedings oversighted by a pliant SPEAKER PANDIKAR WHO WANTED to resign, but said "NO", THEN ADMITTED "YES", he prepared a letter of resignation, BUT STOPPED BY THE PM FROM PRESENTING IT. DID I SAY SHIP OF SHIT OR BN FOOLS?
2. BUT DIDN"T THE INITIAL TROUBLE AT 1MDB COME FROM THE SAME SOURCE -- THAT WELL-OILED MONEY MACHINE NAMED (Petro Saudi International (PSI). BUT, AS SHOWN BY THIS PARA ** The joint venture with PSI started with an initial sum of US$1bil. But the investment later ballooned to US$2.32bil (RM8.5bil) that was parked with funds based in the Cayman Islands.
HEY, smartalecks at the 1MDB, you are getting more FUNDS to cover an impending loan whose payment is due soon, very soon! ISN'T THAT LIKE COVERING ONE HOLE AND ANOTHER LARGER HOLE APPEARS AT THE SAME TIME?
SEE, THESE IDIOTS AT 1MDB THINK WE ARE ALL STILL AT KIDERGARTEN STILL, BUT WE MORE THEY HAVE CREATED A MULTI-HEADED MONSTER -- BEWARE THE "HYDRA" OF GREEK MYTH, AND IT'S SO IRONIC THAT "GREECE IS IN FINANCIAL STATE SO DIRE THE IMF AND EU BANK HAVE TO BAIL IT OUT OF IMPENDING BANKRUPTSY!" AND OH, HYDRA RHYMES WITH ANOTHER 1MDB'S CREATIVE CREATURE NAMED EDRA (GLOBAL ENERGY) TO BE LISTED SOON! IT Is LISTING NOW - THAT SHIP OF FOOLS!
3. Ah, MORE nuggets of INFORMATION ARE BECOMING TO THE PUBLIC DOMAIN, VIA para MARKED *** ABOVE, BUT YOU SMARTALECKS AT 1MDB did not think such information is of importance to the people. THEY tried to make SUCKERS OF TABUNG HAJI, but when nuggets of data were publicised by MPs like TONY PUA and RAFIZI RAMLI, the authorities threatened them with the SEDITION ACT. AND we saw PM Directing 1MDB to quickly dispose of the land the 1MDB first sold to TABUNG HAJI put on the market, with another smartaleck whose name rimes with O" GEEZzz at TH saying they had a ready buyer at a price yielding R5Million profit over their RM188.5million cash SMART INVESTMENT. THIS 'RATTISH DEAL" FOR A MISERABLE PIECE OF LAND AT TUN RAZAK EXCHANGE WHICH THE GOVERNMENT BESTOWED TO 1MDB at a say HAI! PRICE OF RM64psf, AND PM NAJIB STRESSED IT WAS A "PROFITBLE" INVESTMENT SOUL"D TO THE SUCKERS AT TABUNG HAJI AT RM2,800psf! IF "PROFITABLE", MR PM, TELL TH TO KEEP IT LA to reap maybe RM50million a year from now, NO?!
HEY, TO my esteemed Wakil Rakyat, ZA YOU! ZA YOU! ALSO, TO THE PEEPS @"SARAWAK REPORT" , WHO HAS BEEN BREAKING LOTS OF SCANDALS BESIEGING THE PM'S PET PROJECT NAMED 1MDB, RUN BY MANY LAPDOGS, DESI TOASTS CHEERS!:)Step up the gear, the RAKYAT and PEOPLE'S POWER ARE WIT' THEE, YES, YOU ER WHO READS DESI2! yl, desi, KNOTTYaSsusual
Desi's parting: I would be starting a new series on the NELSON MANDELA OF MALYSIA, Who can stop Malaysia from careening towards the ABYSS arising from the unravelling of 1MDB and the concurrent unravelling of the NAJIB RAZAK's adminstration.
Meanw'ile, my most esteemed readers, don't be suckered again, and again,
and be a GOOD citizen,
pray very heART to thy GOD-- however you deem HIM to be -- that we remain alert and safe from blood suckers in 1MDB and its DADDY&MUM. GODbless, my fellow countrymen&women&boys&gals2, Amen.
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