JUST JUSTO

As posted by Dr. Mahathir Mohamad at Che Det on June 29, 2015

1. Some people are very excited about Justo. Now they say the critics of the Prime Minister should apologise. Apologise for what? The fact remains that vast amounts of money has disappeared. Can Justo bring all the money back?

2. Justo was dismissed and Petro Saudi gave him 15 million Ringgit. Is he being bribed or what? That is a handsome amount to pay an employee or director after he had done something wrong. Normally he would just be kicked out. But we are told he is not happy with this amount and demanded for more or else he would leak documents. What is the proof that he tampered with the documents or he has more incriminating documents. How does he negate the fact as admitted by the Prime Minister in a written reply to Parliament? He said that, “a US1.9 billion dollar loan from 1MDB to a subsidiary of Petro Saudi International Limited was in order to reduce the risk on the equity holding.” Giving a loan to a joint-venture partner who was found unsuitable as a JV partner would increase the risk, not reduce it.

3. When the JV was dissolved after only 6 months of its formation, it must be because 1MDB realised that the venture was bad. What it should do is to demand the equity and the loan amounting to US1.9 billion be returned. Instead it was converted into a loan (murabahah).

4. Having given this US1.9 billion loan, where is the money now? The Government has not clarified. Is it in Cayman Islands, or in Singapore or where. That amount of money cannot be shifted around without being recorded by the banks involved. Surely Najib knows. Yet the money has not returned.

5. Even if Justo tampered with the e-mail, it does not alter the fact that 1MDB forked out US1.9 billion to the JV with Petro Saudi, which within 6 months was so worthless that the JV was aborted. And after that the investment and the loan of US700 million was converted to a loan to a partner you no longer believe could deliver through the JV. You had some direct control over a JV, but not over the borrower.

6. So what has all this to do with Justo blackmailing Petro Saudi: N othing.

7. The supporters of the Prime Minister seem unable to understand that 1MDB borrowed 42 billion Ringgit to invest in shady businesses. In the process large amounts of money has disappeared.

8. It is not just about Petro Saudi or the JV. The money has been used to buy IPP at inflated prices. This is wrong. Attempts to sell to Tenaga have only cause Tenaga shares to fall. Unless the IPP are sold at a loss there is no way investments in Edra would give profits. But if the sale is at a loss 1MDB will face problems of paying debts.

9. The restructuring of 1MDB seems to be based on settling the 42 billion Ringgit loan.

10. The money is to come from the sale of TRX and Bandar Malaysian land. 1MDB paid extremely low price for this land. But can 1MDB do so?

11. The London Stock Exchange News Service reported that International Petroleum Investment Company (IPIC), Aabar Investments PJS entered into a binding term sheet with Minister of Finance Inc., Ministry of Finance and 1MDB for the following.

• IPIC on 4 June, 2015 provides US1 billion to 1MDB to utilise immediately to settle certain of its liabilities.
• Also on 4 June ’15 IPIC has assumed the obligation to pay all interest due under two IPIC guaranteed 1MDB financing accounting amounting to US3.5 billion (RM13.3 billion) in aggregate principal amounts.

12. For this takeover of the loans, on 30 June, 2016, IPIC is to receive transfer of assets with aggregate value of an amount which represent the sum of the cash payment (US1 billion or RM3.8 billion), and the assumption of the debt of US3.5 billion or RM13.3 billion.

13. IPIC has met the cash payment and will meet the interim interest payment.

14. Curiously no mention is made of what the 1MDB asset are which will belong to IPIC.

15. What are the possible assets? If it is the power plants or the land, it would mean that these assets no longer belong to 1MDB to sell. So how does 1MDB recover the RM42 billion it had borrowed?

16. Is Justo going to reveal there is anything worse than what the London Stock Exchange has revealed? So who needs to apologise?

VERSI BM

1. Sesetengah orang sangat teruja dengan Justo. Sekarang mereka mengatakan pengkritik Perdana Menteri perlu meminta maaf. Meminta maaf untuk apa? Hakikatnya sejumlah besar wang telah hilang. Bolehkah Justo membawa kembali semua wang itu?

2. Justo telah dihenti kerja dan Petro Saudi memberinya 15 juta Ringgit. Adakah dia disogok (dirasuah) atau apa? Itu satu jumlah yang lumayan untuk dibayar kepada seseorang pekerja atau pengarah selepas dia telah melakukan perkara yang salah. Biasanya beliau ini akan ditendang keluar sahaja. Tetapi kita diberitahu dia tidak berpuas hati dengan jumlah ini dan menuntut untuk dibayar lebih, kalau tidak dia akan bocor dokumen. Apa buktinya yang dia mengubah meminda dokumen atau dia mempunyai dokumen yang lebih membabitkan. Bagaimana dia dapat menyangkal fakta seperti yang diakui oleh Perdana Menteri dalam jawapan bertulis kepada Parlimen? Beliau telah berkata, “Pinjaman US1.9 bilion dolar dari 1MDB kepada sebuah anak syarikat Petro Saudi International Limited adalah untuk mengurangkan risiko pada pegangan ekuiti.” Memberi pinjaman kepada rakan usaha sama yang didapati tidak sesuai sebagai rakan usaha sama akan meningkatkan risiko, bukan mengurangkannya.

3. Apabila usaha sama (JV) telah dibubarkan selepas hanya 6 bulan ditubuhkan, ia mestinya kerana 1MDB sedar bahawa usaha itu tidak baik. Apa yang perlu dilakukan adalah untuk menuntut ekuiti dan pinjaman berjumlah US1.9 bilion itu dikembalikan. Sebaliknya, ia telah ditukar menjadi pinjaman (murabahah).

4. Setelah memberi pinjaman US1.9 bilion ini, di mana wang ini sekarang? Kerajaan tidak memperjelaskan. Adakah di Kepulauan Cayman, atau di Singapura atau di mana? Wang sejumlah ini tidak boleh dipindahkan ke sana sini tanpa direkodkan oleh bank-bank yang terlibat. Pasti Najib mengetahui. Namun wang tidak dikembalikan.

5. Jika sekali pun Justo telah meminda mengubah e-mel, ini tidak mengubah hakikat bahawa 1MDB mengeluarkan US1.9 bilion kepada usaha sama dengan Petro Saudi, yang dalam tempoh 6 bulan sahaja didapati tidak begitu bernilai dan usaha sama tersebut telah digugurkan. Dan selepas itu pelaburan dan pinjaman sebanyak US700 juta telah ditukar kepada pinjaman bagi rakan kongsi ini yang tidak boleh anda memperpecayai lagi untuk menjayakan sesuatu melalui usaha sama ini. Anda mempunyai beberapa kawalan langsung ke atas rakan usaha sama tetapi tidak atas peminjam.

6. Jadi apa yang kena mengena semua ini dengan Justo memeras ugut Petro Saudi: Tidak ada apa-apa.

7. Penyokong-penyokong Perdana Menteri nampaknya tidak dapat memahami bahawa 1MDB meminjam 42 bilion Ringgit untuk melabur dalam perniagaan yang diragukan. Dalam proses ini jumlah wang yang banyak telah hilang.

8. Ianya bukan sahaja mengenai Petro Saudi atau usaha sama. Wangnya telah digunakan untuk membeli IPP pada harga yang dipertinggikan. Ini adalah salah. Percubaan untuk menjual kepada Tenaga hanya menyebabkan saham Tenaga jatuh. Kecuali IPP ini dijual dengan kerugian, tidak ada jalan pelaburan dalam Edra akan memberi keuntungan. Tetapi jika penjualan itu adalah pada paras kerugian, 1MDB akan menghadapi masalah membayar hutang.

9. Penyusunan semula struktur 1MDB nampaknya berdasarkan penyelesaian pinjaman 42 bilion Ringgit.

10. Wang ini akan datang daripada jualan tanah TRX dan Bandar Malaysia. 1MDB membayar harga yang amat rendah bagi tanah ini. Tetapi bolehkah 1MDB berbuat demikian?

11. Bursa Saham London News Service melaporkan bahawa International Petroleum Pelaburan Syarikat (IPIC), Aabar Investments PJS telah memeterai “a binding term sheet” dengan Menteri Kewangan Diperbadankan, Kementerian Kewangan dan 1MDB untuk yang berikut.

• IPIC pada 4 Jun 2015 memperuntukkan US$1 bilion kepada 1MDB untuk digunakan dengan serta-merta untuk menyelesaikan liabilitinya yang tertentu.
• Juga pada 4 Jun 2015 IPIC telah mengambil alih tanggungjawab untuk membayar semua faedah yang kena dibayar oleh 1MDB di bawah dua perakaunan pembiayaan yang dijamin oleh IPIC berjumlah US3.5 bilion (RM13.3 bilion) dalam jumlah prinsipal agregat.

12. Bagi pengambilalihan pinjaman ini, pada 30 Jun, 2016, IPIC akan menerima pemindahan aset dengan nilai agregat jumlah bersamaan dengan jumlah pembayaran tunai (US$1 bilion atau RM3.8 bilion), dan pengambilalihan hutang US3.5 bilion atau RM13.3 bilion.

13. IPIC telah memenuhi pembayaran tunai dan akan memenuhi pembayaran faedah interim.

14. Agak menghairankan tidak disebut apakah aset 1MDB yang akan menjadi milik IPIC.

15. Apakah kemungkinan bentuk aset itu? Jika ia adalah loji kuasa atau tanah itu, ini bermakna aset-aset ini tidak lagi dipunyai oleh 1MDB untuk dijual. Jadi bagaimana 1MDB hendak mendapatkan balik RM42 bilion yang telah dipinjam?

16. Adakah Justo akan mendedahkan perkara yang lebih teruk daripada apa yang telah didedahkan oleh Bursa Saham London? Jadi yang perlu diminta maaf?

RACIAL EQUALITY

As posted by Dr. Mahathir Mohamad at Che Det on June 23, 2015

1. “Foreign Affairs” is an American magazine. It is highly respected in America but it is not my favourite magazine.

2. Recently while flying I came across its latest edition. Its theme in the issue is on race and colour and on how they affect relations between people. I became interested because I felt sure the magazine would have nothing good to say about Malaysia.

3. There is an article on colour-blindness in America – meaning to say that all Americans of whatever colour are equal. Apparently the equality between people of different colours has not produced good results. What it really means is that everything, including opportunities must be based on merit.

4. Sure there is a black man sitting in the Presidential chair in the White House. There was once a black general as Chief of the armed forces of America and as Secretary of State. And there has been and there are presently blacks holding high office in Washington.

5. But the fact remains that most of the blacks are poor, are constantly involved in drugs and crimes. Despite the blacks making up just about 10% of the population, the percentage of blacks in prison is nearly 50%. The per capita income of the blacks are well below the national average.

6. Being equal with the whites has not benefitted the blacks much. No mention is made of the deliberate killings of blacks by the police, who then escape indictment.

7. As I expected the magazines included a study of Malaysia’s record on race relations. It admitted that despite the affirmative action under the New Economic Policy, Malaysia’s economy performed better than most other developing countries. The races seem to be living in relative harmony. There were no serious racial clashes.

8. The affirmative action under the NEP seem to have reduced the disparity in wealth distribution between the indigenous Malays and the Chinese. There is mention of the bumiputra’s owning only 2 per cent of the countries wealth before NEP and their wealth has now increased to 19%. The disparity is still there but is much reduced. (In America Joseph Stiglitz writes that the disparity between rich and poor has reached a dangerous level).

9. India and South Africa have also tried affirmative action. But their results are not as good as in Malaysia.

10. It would seem that Malaysia has done a better job of building a more equitable multiracial society than most multiracial countries including the US. The policy of equality of treatment i.e. meritocracy has not yielded tangible results.

11. The magazine Foreign Affairs seems to admit that Malaysia’s affirmative action has merit. Like the reversal of the opinion on Malaysia’s fixed exchange rate policy, there now seem to be a reversal of condemnation of our affirmative action, at least by the Foreign Affairs magazine. Other foreign media simply copy the biased reports made a long time ago without trying to investigate the realities regarding Malaysia’s management of race relations and development of its economy.

THE 1MDB REPLY

As posted by Dr. Mahathir Mohamad at Che Det on June 18, 2015

1. To all my criticisms 1MDB, can only say that they are all wrong. But there are no proofs given. The answer is always about secrecy of Government matters.

2. I know about the TIA refusal to allow the future products of Terengganu oil wells to be used as collateral by talking to the people who were actually involved with the TIA. The Federal Government as guarantor for the RM5 billion loan was because Terengganu rejected the absurd. Why should Terengganu pull out of the Federal Government’s initial proposal that its oil wells future production be the collateral.

3. No Cabinet paper on the 5 billion loan was presented. Produce the paper for the public to see. Of course you will say Cabinet papers are secret.

4. If the loan is not off-budget then show in the Government yearly budget provision for raising the loans. There is none.

5. There are written evidence about Golden Sachs terms for the bond issue. Show that Golden Sachs or Ambank did not impose high interest rate and 10% commission on the loan. Don’t just say it is a secret.

6. So 1MDB issued a 30-year bond. When it borrows money the suggestion is made that 1MDB would make money.

7. The yields accrue of 6.15% or whatever is for the purchasers of the bonds. 1MDB will have to dole out money for 30 years as interest which means it borrows now and our children will bear the burden. And 1MDB will get only 88 cent to 1 Ringgit. What is so good about that.

8. Okay. The interest p.a. is RM 2.4 billion and not RM3 billion. Can 1MDB pay that amount? Already it had to get money from Ananda and the IPIC to pay. Borrowing money to pay interest does not reduce the principal. It only increases the debt. Even if it is payment for shares or whatever the loan would still be there. So you cannot explain more. It is confidential – secret.

9. Thirteen power plants bought. But the big ones in Malaysia can be bought for a song. But by paying RM18 billion, 1MDB overpaid at least by RM3 billion. Why? If they are good assets, why cannot they be listed? Why is it that when Tenaga and Malakoff were rumoured to buy 1MDB power plants, their shares all plunged.

10. 1MDB is a Government company but when it bought Government land at 1/50th of the market price, the Government lose a huge sum of money.

11. When 1MDB sells the land, it is merely taking what should be Government earnings from the sale. That process is no different from people who sell APs, contracts and licence. Is this how 1MDB expects to make money?

12. Is 1MDB a strategic development company? What has it developed – nothing. Even TRX is all fence and nothing else.

MORE INVESTMENTS BY 1MDB

As posted by Dr. Mahathir Mohamad at Che Det on June 15, 2015

1. 1MDB entered into a JV with Petro Saudi. It is not a Saudi Government company. 1MDB paid USD 1billlion as its 40% share of the JV. As far as can be ascertained Petro Saudi did not pay a single cent.

2. Then Petro Saudi is said to have bought the assets of Petro Saudi International, which is not owned by Petro Saudi. The JV between 1MDB and Petro Saudi then requested 1MDB to pay USD 700 million to settle the loan from Petro Saudi International to Petro Saudi.

3. The ownership of the oil fields in Argentina and Kazakhstan (or is it Turkmenistan) is not very clear, nor is the ownership of drilling ships.

4. Then suddenly USD 300 million of the payment by 1MDB is converted to a Murabaha loan. This USD 300 million seemed to have changed hands with lightning speed. We really don’t know where it is. And 1MDB will not tell us either.

5. Then there is the story of the investment in Cayman Islands. 1MDB did not invest directly but the money seems to have gone to Hong Kong companies owned by Jho Low. These companies apparently invested in Cayman Islands.

6. Then we are told by the Prime Minister that actually the fund is only recorded in Cayman Islands. The money is elsewhere, probably in Hong Kong. It is apparently invested in a hedge fund in Hong Kong.

7. When there was public uproar over the money being in Cayman Islands 1MDB agreed to bring it back. Although the money was said not to be in Cayman Islands, but the money was brought back from Cayman Islands in two tranches.

8. We are not told much about the first tranch. It was claimed to have been used to pay debts.

9. Then the second tranch with over 1 billion USD was brought back but not to Malaysia. It was brought back to Singapore and was deposited in a Swiss Bank.

10. Arul Kanda said he saw the cash there and Prime Minister said the money was there. It was not brought back because Bank Negara would ask too many questions. But Bank Negara must get the approval of the Minister according to the law for approving or disapproving any transaction. And the Minister is the effective head of 1MDB. So what is so difficult about getting Bank Negara’s approval?

11. Then the true reason came out. The Swiss Bank said no money had been deposited by 1MDB in the bank. The documents presented were false.

12. Then the Prime Minister amended his reply to Parliament stating that no money was brought back – only documents. What documents?

13. The second Minister of Finance now says it is “units”. Units of what?

14. 1MDB and the Prime Minister have not shown proof of the existence of the money from Cayman Islands. Is it in Singapore or has USD 1 billion dollars disappeared?

15. Statements without documentary proof are, as we have seen, quite useless. We need proof of all the investments and payments made by the 1MDB. But no proof has been shown accept for the acquisition of the power plants and purchase of Government land in Kuala Lumpur and private land in Penang. Until signed documentary proofs and not just statements by the Chief Executive Officer or Prime Minister, are shown, we have to assume that the money borrowed by 1MDB has disappeared.

THE 1MDB STORY

As posted by Dr. Mahathir Mohamad at Che Det on June 12, 2015

1. From the comments on my blog and the questions I have been asked by people while shopping, it is clear that many do not know much about 1MDB. They know enough that Najib has done something wrong with the RM42 billion borrowed money, but are not clear about what is so wrong that I should call upon him to resign.

2. So I think I need to explain why 1MDB is wrong in stages.

The Terengganu Investment Authority

3. Firstly the attempt to hijack the Terengganu Investment Authority (TIA) money. Petronas pays 5% of its gross earnings to the Terengganu Government. Over the years their royalty has grown quite big.

4. Jho Low persuaded Najib to make the TIA into a sovereign fund for investment like the Kuwait Investment Fund but under Najib’s control. Appointments of staff were made by Najib without Terengganu’s knowledge. Terengganu agreed at first but when Najib decided to raise through bonds RM5 billion using Terengganu oil wells as collateral, the istana and the Government thought it was not right.

5. Terengganu requested that the issuance of the bonds be deferred. Najib went ahead. Terengganu accordingly withdrew as it cannot let its’ oil wells be put at risk.

6. Jho Low then advised Najib that the Federal Government should guarantee the loan. Strictly speaking such a matter should be discussed and approved by Cabinet. There is no evidence that a cabinet paper was prepared and presented for approval despite the amount being unusually big. In fact for a long time Cabinet was not aware of the activities of 1MDB.

7. To avoid scrutiny by officials, the loan was classified as off – budget i.e. outside the annual budget presented to and approved by Parliament. Off – budget spending can be made but usually only limited in amount. RM5 billion have never been borrowed by Government or any of its agencies. It should not be off-budget. It should get Cabinet approval first and then presented to Parliament. None of these procedures were followed.

8. It is not clear whether any Government department or agencies have scrutinised the terms of the loans. But the terms were very unfavourable to 1MDB and the Government.

9. Goldman Sachs which was entrusted with raising the loan was given;

• Commission of 10%
• The interest rate was fixed at 5.9%

10. What this means is that of the RM5 billion borrowed 1MDB would get only RM4.5 billion. Goldman Sachs would get RM500 million as commission, an inordinately large sum.

11. But 1MDB would pay 5.9% interest on the whole of RM5 billion. Since it gets only RM4.5 billion the rate of interest on this amount would be 6.6% plus. Goldman Sachs need not pay interest on the RM500,000,000/- it got as commission.

12. Loans taken by Government or guaranteed by Government would normally carry 3% interest or less. But the 1MDB loan cost almost 7% interest i.e, about RM350 million a year or almost RM1 million per day.

13. Who approved such terrible terms for a loan to a government owned company? We would like to know who. There must be some documents with the signature of the approving authority. If not somebody needs to answer for this stupidity. Or is it abuse of authority.

14. But more loans were raised from local as well as foreign banks. In all RM42 billion were borrowed. It is not clear what the terms are. But interest on RM42 billion must come to almost RM3 billion a year. Unless the investment yield fantastic returns, the interest burden would sink 1MDB. In fact as everyone knows Ananda Krishnan had to make available RM2 billion to pay the interest. Is it a loan or a free gift? Later 1MDB had to sell shares or properties for USD1 billion (RM3.7 billion) in order to settle short term loan from a German bank.

15. 1MDB is effectively headed by the Prime Minister who is also the Minister of Finance. When loans of more than 100 million are raised for investment overseas Bank Negara has to approve. But the final approval must come from the Minister responsible. And the Minister responsible is also the effective head of 1MDB.

Investments

16. The best known investments by 1MDB were in the purchase of power plants and Government land as well as private land.

Power Plants

17. RM18 billion was spent to purchase IPP belonging to Ananda Krishnan, Genting Sanyen Power (now known as Kuala Langat Power Plant) and Jimah Energy.

18. The prices paid for Genting Sanyen and Ananda’s IPP were well above market price. 1MDB also paid RM6 billion for unpaid loans. The Jimah IPP was to put up another power plant. But 1MDB had no money to build this plant

19. Genting Sanyen and Tanjung Energy (now known as Powertek Energy Sdn Bhd) were nearing expiration of their licenses. Had 1MDB waited until the licenses expired, the price would be next to nothing.

20. Why 1MDB did not wait until the expiry of the license is a mystery. Genting and Ananda clearly made more money than they were entitled to. One estimate is that the high price netted the sellers an extra RM3 billion. Besides they are relieved of the loan of RM6 billion.

21. So not only is the borrowing costly but the high cost of investments will mean low returns. Why is 1MDB so stupid.

22. As stated above 1MDB is unable to get the IPP listed again. Who would want to own overpriced and obviously unprofitable power plant.

Purchase of Land

23. The land along Jalan Tun Razak was actually meant for an agency to build shops etc for Bumiputras. But instead the Government sold the 70 acres to 1MDB for RM320 million i.e. at RM 60/- psf. Land close by had been sold at RM7000 /-psf. 1MDB should pay at least RM3000 to RM4000 /- psf.

24. Government lost a huge amount of money from the sales. The question is why did the Government sell at such a low price. One cannot help thinking it is because the PM ordered the sale. If so it is wrong and it constitutes abuse of authority. The full value should be paid to the Government now.

25. Then 1MDB decides to sell a small part of the land at the price it bought the whole 70 acres of land. Payment was made by Tabung Haji even before the transfer of ownership was completed. Apparently 1MDB needed the money immediately.

26. The directors of 1MDB and Tabung Haji are the same people. They claim that they abstained from voting. But obviously it was not an arms– length deal.

27. If the Government could sell to 1MDB at RM60 /- psf, it should also sell at the same price to TH. But effectively it has used money saved by intending pilgrims to give enormous profit to 1MDB.

28. It is the same with the Sungai Besi airport land. 1MDB acquires it at the ridiculously low price of RM90 /- psf. The value of the land is at least RM2000 /- psf.

29. But 1MDB bought private land in Penang at a much higher price. Yet the land is not at the centre of the city, has more than 1000 squatters and has not obtained the Penang Government approval for development. Seems like 1MDB had overpaid the seller for useless land. Why?

Assets

30. 1MDB claims it has assets worth RM52 billion.

31. So far no explanation has been given as to how these assets are valued. How much is the value of all the power plants. And how much are the prices of land worth?

32. Future values after development may be big but billions of Ringgits must be invested before the property can be sold. After deducting cost, the return cannot be very big. The power plants and the land cannot be worth RM52 billion.

33. Even if this money is used to repay debts, the disappearance of billions of Ringgit must be recovered, or 1MDB should be charged for the loss.

WHO’S BEHIND THE CRISIS

As posted by Dr. Mahathir Mohamad at Che Det on June 11, 2015

1. Prime Minister says Dr M (that’s me) is behind the crisis.

2. I will admit that I am behind the “crisis”. I am behind it because there is a climate of fear in this country.

3. Lots of people know about the loss of billions of Ringgit by 1MDB. These people are in a position to know because they have seen evidence of this loss. But they are afraid because of actions which the Government can take against them. They may lose their jobs, or contracts or expectations of titles etc.

4. So they come to tell me. And they ask me to “do something”. For a long time I desisted because I know if I reveal the wrong doings of 1MDB, it will lead to the Prime Minister being questioned.

5. I had tried to do it privately. But there was no result. I told the Prime Minister I no longer supported him. No result.

6. So I had to go public. Najib has destroyed UMNO and BN. I know he would lose the next election. And then the whole country will see turmoil as no party, would have the majority to run the country.

7. The opposition cannot because they would be quarrelling among themselves. A Pakatan Government would be weak and unstable.

8. Without a strong Government this country would become anarchic. The crisis that would accompany the anarchic situation would be worse.

9. So I decided to expose the wrong-doings of 1MDB of which the Prime Minister is effectively the head.

10. Is there a crisis? There is. It is caused by the Prime Minister creating 1MDB borrowing huge sums of money and losing billions of Ringgit.

11. The crisis can be ended immediately if the Prime Minister resigns and allow a full investigation to be made on the RM42 billion borrowed by 1MDB. As long as the Prime Minister is there, no proper investigation can be made. Already we are seeing not only are reports to the police on 1MDB and Jho Low not being investigated, but the person who made the report being declared a bankrupt, his house confiscated and sold and he himself being investigated for money laundering and financing terrorists. The court has decided he is not bankrupt.

12. If no crimes can be detected and all the money is returned, Najib can come back as Prime Minister and lead BN in the next election.

13. By accusing me of being responsible for the crisis, Najib is saying let us accept the disappearance of the billions of Ringgit and behave as if nothing wrong has been done. From the interest and concern shown by the people over the losses suffered by 1MDB, the matter cannot just be ignored. The people responsible must be investigated and if found guilty, they must be punished.

14. A crisis may be the result but should we allow thieves to steal billions of Ringgit in order to avoid a crisis.

HOW 1MDB MONEY WAS INVESTED

As posted by Dr. Mahathir Mohamad at Che Det on June 09, 2015

1. I am intrigued by the ability of 1MDB to invest 42 billion Ringgit in so many businesses. Really I should be fully satisfied with how 1MDB expended the huge loan that it borrowed.

2. But unfortunately I am not. I am not, because the information came from the current CEO, Arul Kanda Kandasamy. And Arul has been caught lying quite a number of times.

3. Almost as soon as he took over management of 1MDB he announced that the money from Cayman’s Island has been returned. He said clearly and openly that he saw the cash i.e. one billion dollars in cash. Then he said it was statements. What are the statements? Anyway in the end the bank said no cash and only documents were deposited in it and the documents carried false signatures.

4. He must have told the Prime Minister about this fantastic pile of dollar notes so the Prime Minister answered the question in Parliament that the cash is in the bank in Singapore. It cannot be brought back because Bank Negara asks too many questions. The Finance Minister must approve or disapprove all Bank Negara strictures or approvals.

5. Then the banks denied that the cash is in the bank. Embarrassing. The vision has disappeared. No. It is not cash. It is documents. No, it is units. What units? Dunno. Which bank? Not clear. The mystery deepens.

6. So when Arul announced the investments of 42 billion Ringgit, could it be something else that he saw which was not there. And do people use borrowed money to pay tax? What tax? No profit was declared but tax was paid. How much? Cost of managing 1MDB run into billions!

7. In any case, many names which are known to have received money from 1MDB are not mentioned. Lots of money went to Hong Kong companies with funny names.

8. Has nothing been paid to Petro Saudi, to Jho Low, to Brazen Sky and others. Jho Low denies but why has he not proven that he did not receive US 260 million (RM 988 million) from 1MDB to buy a bank.

9. Arul had lied before. It is not inconceivable that on the 42 billion Ringgit Arul may be lying again. Where a chunk of the 42 billion Ringgit went is still questionable.

10. I don’t think we can resolve the problem of where the 1MDB money has gone through four-eyed meetings. Najib can resolve through proving beyond reasonable doubt that no money has disappeared from the 42 billion borrowed.

11. The intention of 1MDB I presume is to make money for the Government. Show how much profit the Government has made since 2009. Why do you have to borrow money to pay interest on the debts?

12. Why cannot the power plant shares be listed?

13. Why does 1MDB pay only 60 – 90 Ringgit for Government land which it now wants to sell at 2000 – 4000 Ringgit psf? And now the land bought by Tabung Haji has been sold to some Indonesians at a loss. The loss will be borne by the pilgrims.

14. Actually there are many questions that the Prime Minister can answer not to me, but to the public. The money does not belong to me alone. From the question asked by so many people they want to know where their money is.

15. The money belongs to the people. It is the duty of the police, the anti-corruption agency to investigate the complaints and the reports that has been made – including by Bank Negara. But the agencies have not investigated.

16. There is a climate of fear which restrains them from investigating. For as long as the Prime Minister is the Prime Minister, investigating things involving him is not going to be really possible. It is necessary that the PM relinquish his position and authority if the Auditor General, the Public Accounts Committee or even a Royal Commission is to reveal the truth.

17. I went to the “Nothing to Hide” forum hoping to hear explanations from Dato Sri Najib and to ask questions. But it was cancelled because of security reasons.

18. I watched a video clip of what happened. There was no threat to security except for Ali Tinju making a lot of noise. It is obvious he wanted the meeting to be cancelled. We know who he is in favour of. It is a pity. Najib could have explained everything and people like me would be silenced.

[Arkib] Majlis Bicara Negara @ Hotel Tower Regency Ipoh

Berikut adalah video Majlis Bicara Negara Bersama Tun Dr Mahathir bertempat di Hotel Tower Regency, Ipoh @ 16hb Mei 2015, jam 3.00 petang.

Part 1

Part 2

Part 3

Soal Jawab

[Arkib] Petikan Ucapan @ ‘Nothing To Hide’

Berikut ialah petikan ucapan Tun Mahathir di sebuah Majlis Dialog bersama PM bertajuk ‘Nothing To Hide’ yang sepatutnya dihadiri oleh YAB Dato' Seri Najib.

"...Bertanggungjawab untuk menjelaskan kepada rakyat apa sebenarnya yang telah berlaku dan kenapa saya mengambil keputusan untuk tidak lagi menyokong DS Najib walaupun dia adalah anak Tun Razak yang menjadi idola saya dahulu yang menyebabkan saya dapat jadi PM. 

Saya amat terhutang budi pada Tun Razak. Sebab itu saya hendak DS Najib meneruskan perjuangan Tun Razak. Sebab itu saya sokong DS Najib. 

Tetapi saya dapati banyak dasar-dasarnya tidak membawa kebaikan kepada negara. Dia terlalu tunduk kepada Singapura. Dia terlalu tunduk kepada Amerika. Sehingga nak buat keretapi di negara sendiri pun dia bertanya kepada PM Singapura. Bolehkah saya buat keretapi laju di negara sendiri? Dia bagitahu tak boleh. Jadi DS Najib sendiri pun tak bolehlah... pasal PM Singapura tak setuju. 

Jadi apakah negara kita ini sudah merdeka? Atau kita masih dijajah. Ternampak bagi saya seolah-olah negara kita masih dijajah. Banyak sudah rancangan dan polisi lama yang dibatalkan dan digantikan dengan dasar-dasar baru ciptaannya sendiri yang saya tak bersetuju. Namun saya tahan hati. Saya beritahu kepada diri saya, saya bukan PM. Masa saya sudah habis. Ini masa DS Najib dan saya tak patut ganggu. Saya bertahan lama. Tetapi apabila kehilangan wang berbillion ringgit. Saya dapati ini tak boleh dibenarkan kerana perbuatan ini dibuat secara sulit. Tidak diberitahu kepada rakyat dan tak diberitahu kepada kabinet pun. 

Saya ingin menceritakan daripada mula, diwaktu mana cadangan dibuat, dimana duit minyak Terengganu mahu digunakan untuk pelaburan. Dan ditubuhlah satu badan pelaburan TIA, Terengganu Investment Authority. Tetapi walaupun ia milik Terengganu tetapi negeri itu sendiri tak berkuasa atas pengurusan wang tersebut. Segala pengurusnya dilantik oleh DS Najib. Saya bermula pendapat bahawa ini adalah cadangan yang baik. Seperti Kuwait dulu boleh melabur. Dan menjadi lebih kaya. Tetapi saya dapati pengurusannya tidak seperti yang dikehendaki.

Yang pertamanya, telaga minyak Terengganu mahu digadai nak dijadi collateral untuk pinjaman wang. Ini telaga minyak Terengganu adalah milik Terengganu dan telaga minyak milik negara. Kita tak boleh gadai semudahnya. Zaman dulu kita biasa gadai tanah untuk nak dapat bantuan daripada British. Bagi Pulau Pinang, bagi Singapura pada orang. Ini nak digadai harta kita kepada orang dan dibuat pula tanpa tanya orang negeri Terengganu. 

Saya diberitahu bahawa tiba-tiba cadangan dibuat untuk pinjam sebanyak 5 billion Ringgit dengan cagaran telaga-telaga minyak Terengganu. Pihak Istana tidak setuju dan disuruh supaya pinjaman ini ditangguhkan tetapi DS Najib teruskan juga sebab itu Terengganu asingkan diri daripada perkara ini. Pada masa itu pun sudah ada jolo menghasut sana sini supaya diadakan pelaburan..."

Ucapan terhenti apabila pihak Polis mula menyerbu nak ke pentas untuk memberhentikan ucapan Tun Mahathir. Apabila Tun Mahathir memberitahu sebab ucapannya kepada Polis, mikrofon dirampas dan Tun Mahathir diarahkan duduk.

LEGACY

As posted by Dr. Mahathir Mohamad at Che Det on June 05, 2015

1. A friend visited me in my office recently. I had helped him a lot when I was PM not with money or jobs, but by smoothening bureaucratic processes in the way of his projects. As a result he became a very successful educationist and was able to expand overseas. I regarded my help as essential as the bureaucrats can be unnecessarily dilatory or even obstructive. I do this for everyone and they are all very grateful. My friend was especially grateful.

2. Off and on he would drop in my office to discuss current issues. He worried about Najib’s Government policies and performance. He urged me to do something.

3. But when he dropped in this time he seemed somewhat changed.

4. He kept on urging me not to “attack” the PM. I explained why I am doing so. But he persisted in urging me to desist from my efforts at questioning the leadership regarding the current financial scandal.

5. He warned that if I continue I would lose my legacy. I told him what people think of my legacy, if there is any, is not important. I am concerned at what is happening in the country. Our good reputation is being eroded.

6. He repeated several times that I would lose my legacy. I really appreciated his concern. He is a friend and I felt he cared for me.

7. We parted as friends.

8. But now I understand better why he talked about my losing my legacy. He has been given the task of demonising me, of destroying what he calls my legacy. I think he and his boss believes that if I become unpopular then my condemnation of the shenanigans involving 1MDB would be ignored by people.

9. So we are seeing now a new and more aggressive campaign to demonise me and to show how much the PM is supported by the people. Clearly large sums of money are being spent on this campaign. My friend is now installed in the Prime Minister’s Office and is working hard to cover up the wrong-doings of 1MDB. The first pages of the mainstream media now carry explanations on how the borrowed funds were spent. They add up neatly to 42 billion Ringgit. Before criticisms were just ignored. A policy of elegant silence was followed. Now Najib has been advised to answer to explain. However, he lost an opportunity to explain when he did not turn up for for the “Nothing to Hide” forum.

10. But there really can be no explanation on the disappearance of the money supposedly brought back from Cayman Islands – six billion US Dollars. No explanation can be made on the denial by the Swiss bank that it received money from 1MDB. No explanation on Arul’s claim that he saw the cash and the PM explaining there was no cash. Now the cash has become units. What units? No explanation also on the inability to pay interest of 2 billion until Ananda donated or loaned 2 billion whatever. Nor is there any explanation as to why 1MDB needs investments of USD1 billion by IPIC to pay debts to Deutsche Bank when 42 billion investments have been made. Is there no returns on the investments? And many other questions remain unanswered.

11. My ex-friend will have to do better at demonising me if he is to earn titles etc.

1MDB RESTRUCTURE

As posted by Dr. Mahathir Mohamad at Che Det on June 04, 2015

1. The 2nd Finance Minister has presented Cabinet with a restructuring plan for 1MDB which will solve all it’s problems. I would like once again to repeat that repayment of the debt does not absolve the borrowers from responsibility for losing the money in the first place. The money is not lost through bad businesses but has simply disappeared. Somebody knows how the money disappeared and who has the money now. But that somebody is not telling.

2. Now the restructuring process.

3. IPIC is said to have invested 1 billion U.S. dollar in 1MDB. It is not a loan as claimed by the 2nd Finance Minister. Certainly it is not a free gift. What does IPIC get for its 1 billion dollars from 1MDB. It must be the assets of 1MDB.

4. IPIC may be putting in another 3 billion USD. The money which 1MDB gets will be used to repay the German Bank which had lent approximately 1 billion USD The additional 3 billion USD will be for transferring the landed assets of 1MDB.

5. 1MDB had acquired Government land worth between RM4000/- toRM7000/- psf at RM60/- to RM90/- psf. Actually the price paid by1MDB for Government land represents or reflects an abuse of authority. The right thing to do is to pay the market price of the land before it is developed or disposed of.

6. If IPIC pays 4 billion USD to 1MDB, effectively IPIC become owner of the assets of 1MDB.

7. 1MDB actually gets nothing as the money from IPIC will go towards paying the interest and loans of 1MDB to reduce the total loans of RM42 billion to a smaller amount.

8. On this smaller loan 1MDB would still have to pay interest until money is found to pay off the principal.

9. So how does this restructuring benefit 1MDB. It would:

• Lose control of 1MDB to IPIC.
• Any development of the land would accede to IPIC.
• The deal would result in the Malaysian Government losing billions of Ringgit unless market price is paid for TRX and Bandar Malaysian land.
• 1MDB would still have to pay interest on the balance of the loan and eventually billions of Ringgit to settle the loans. Having lost the most valuable part of its assets, how does it raise money.
• 1MDB would still have to sell off the power plants. Since it paid higher than market value for the plants it will not be able to list it or sell at the purchase price. It will have to lose at least 3 billion Ringgit simply to get rid of the plants.

10. So far there is no evidence that money amounting to 4 billion dollars (14 billion Ringgit) from Cayman Islands is in Singapore. That money has disappeared unless 1MDB can show there are “units” with value in money in Singapore. The units must be converted to real money to be credible.

11. The restructuring plan presented by the 2nd Minister of Finance cannot erase the problem of 1MDB, cannot erase the fact that money borrowed by 1MDB has disappeared, that the Government of Malaysia will lose billions of Ringgit. Part of the loan may be redeemed but a very substantial amount will remain. Certainly the restructuring will not result in the lost money being recovered.

12. There are too many evidence of cover-ups by politician and civil servants. When Najib is defeated and I believe he will, in the next election, there will be no stopping the legal actions which must follow.

13. I hope the restructuring will help but unless the lost money is returned, paying off debts will absolve no one.

REPAYMENT OF DEBTS

As posted by Dr. Mahathir Mohamad at Che Det on May 29, 2015

1. There seems to be some confusion over repayment of debts and the loss of money by 1MDB.

2. Even if the debts are fully paid up through the sale of assets bought by 1MDB, that does not mean that 1MDB is free from the charge that it cannot account for the billions it had lost.

3. In business, money can be lost through bad investments or bad management. That is acceptable though the CEO and Managers would be sacked.

4. But when money is lost and the management cannot explain where it went and how it disappeared then management would still be responsible even if there is a bailout or the debts paid.

5. Thus with money claimed to have been invested in Cayman Islands and despite claims that it had been brought back and is now in Singapore, the money cannot be demonstrated to be there in tangible form, then management will be held responsible for its loss. The assumption must be that management had misappropriated the money unless otherwise proven.

6. As for the GST, the additional fund raised through it is at the expense of the people. They have to pay more for everything they buy, which means their purchasing power is reduced. In other words they have become poorer, in order to enrich the Government.

7. Even if what they buy is not subject to GST, but the wholesalers who supply the retailers have to increase their price because they have to pay GST. The retailers in turn have to recover the higher cost by charging their customers more. In the end the people have to bear the GST cost.

8. The Government can avoid this additional tax on the people by reducing its own cost. Giving out money to all and sundry may be popular but in most cases the recipients do not really need the money. It is far better to educate and train people for higher-paying jobs when incomes would increase substantially in return for work done. Raising wages without increases in productivity, increasing the number of holidays, substituting those falling on weekends, fixing high minimum wages, wasting money on luxuries – all these increase Government expenditure, resulting in increased deficits. With better financial management the GST need not be imposed on the people.

9. Of course adventures such as the 1MDB and Pembinaan PFI only result in unsustainable borrowings. And when these adventures lose money, the financial burden of the Government is increased. By introducing the GST, Government is actually asking the people, including those who are not in the income tax bracket to bail out the Government.

10. An elected leader is not impervious to removal before his term is out. The previous PM was also elected, in fact with a bigger majority. But he was persuaded to step down by the current PM.

11. So what is wrong with asking the current PM to step down. He has obviously made a bigger mess of the country than the previous PM.

12. Before this, there was no talk of PM’s lavish spending, of purchases of expensive things, of a life of luxury. Some of these talks may not be true. But such talks were not heard during the tenure of the previous Prime Ministers. That there are such talks must be the result of a way of life that is different from what is expected of Prime Ministers.

13. For these and many other reasons, Najib should step down.

14. As to the big crowd in support, we all saw such demonstrations before the 13th General Election. The result was worst than the 12th GE. Those demonstrations do not translate into support for Najib. They come because of various incentives.