1 MDB CEO Arul Kanda has said:
…..the first step in the rationalisation plan was achieved through the debt-for-assets swap with International Petroleum Investment Company (IPIC), which reduced 1MDB’s debt by RM16 billion.The second step was completed with the sale of all its energy assets….The sale will reduce its debts by up to RM17 billion once the transaction is completed by February next year.
“And now, on the last day of the year, the end of the six-month period that was promised by the honourable prime minister of Malaysia, Datuk Seri Najib Razak, we have achieved the final piece of the puzzle,” said Arul Kanda. “The monetisation of our stake in Bandar Malaysia, with the total value, in terms of debt reduction, is of up to RM12.35 billion.”
However, apart from the power stations and Bandar Malaysia land, 1 MDB has precious little that is worth giving away.It has always been assumed that assets that would be “swapped” with IPIC are the power assets and Bandar Malaysia land.Now however that has all been sold to Chinese interests, and the cash apparently earmarked for something else. There seems to be nothing left to give IPIC.
The PM and his side-kick Arul Kanda must be wishing they had ended public education at primary school grade 2.
Anyone with better maths can see the holes behind the claim that 1MDB’s problems have been solved by this year’s end, as the handy sum sheet provided by this blog points out:
“the deals have been done ,and the rough tally stands at RM 12.35 B + RM 7.4 B equals RM 19.75 B , which is not equal USD 5 B”
So 1MDB has nothing left to sell or swap in order to pay back Abu Dhabi’s IPIC, which has made plain that it is expecting its pound of flesh in June.
No worries, in his other role as Minister of Finance Najib guaranteed the loan – so Malaysian taxpayers can be forced to pay back these missing billions from 1MDB.
Now, repeat after teacher what a marvellous leader Malaysia has and how it is every faithful person’s religious duty not to question his judgement or decisions in any way.