CYA (COVER YOUR ASS) PROGRAM BEGINS AT 1GROSSMAJIB DEVELOPMENT BOARD (1GDB)!

by 1bernie madhoff, donplaypuks® intrepid correspondent for global CBT and fraud affairs

Well folks, before you could say CBT and fraud at 1GDB, PM Grossmajib who wears the pants, together with her husband who wears the skirts, have swung into rapid action to initiate a massive cover up of the international stink emanating from the financial affairs, investments and borrowings of 1GDB.

But let's dispel some myths and misapprehensions under which most lay people are labouring under:

1. As at 31st March 2014, 1GDB's total borrowings and debts, excluding trade payables, was almost RM46 BILLION and NOT RM42 BILLION. This is because most have failed to spot that while bond and bank borrowings total some RM42 BILLION, included in 1GDB's balance sheet is an additional RM4 BILLION OF DEBTS classified as DERIVATIVES.

Derivatives were very popular in the '80's and 90's, but became a dirty word and re-named JUNK BONDS after billionaire financier Michael Robert Milken (dubbed the "Bond King") caused the collapse of Drexel Burnham Lambert, one of Wall Street's largest investment banks. In 1989 Milken was convicted of racketeering and securities fraud, fined US$600 million and sentenced to ten years in prison! Refer http://en.wikipedia.org/wiki/Michael_Milken

So, who did 1GDB issued these RM4 BILLION of corporate (junk) bonds to, at what tenure and at what stratospheric interest rates and premiums?

2. 1GDB owes its existence entirely (100%) to Grossmajib who has been its Chairman from day one. Therefore, the statement by the PMO that PM Grossmajib does not handle the day to day affairs of 1GDB deserves the same consideration and treatment that most statements from the PMO these days deserve - to be flushed down the toilet, quickly before we are overcome by its toxic fumes. The buck stops with PM Grossmajib and if CBT and fraud are exposed, his neck is the first one that ought to be lopped off.

3. The key question about 1GDB's dealings with the Saudi's is not whether the capital (plus some US$488 million profit?) was returned to 1GDB. It is whether 1GDB's agent, the Grossmajib's toy-boy Jho Paris Hilton, committed CBT (Criminal Breach of Trust) and Fraud with 1GDB's money, alone or with the connivance of th Grossmajib's, 2 resigned CEO's, directors and auditors of 1GDB? 

4. Did BUMNO/SCUMNO receive generous "donations" from Jho Paris Hilton's off-shore companies before GE 2013, as they did some RM 250 million from 2 Plc's who had sold their IPP's at a whacking premium to 1GDB?

5. Did Jho Paris Hilton misuse 1GDB's sovereign status to bid for three top hotels in London?

6. Did Jho Paris Hilton misuse 1GDB's money to buy out a certain bank owned by a certain ex-Chief Minister of Sarawak at a whacking premium, and thereby commit CBT and fraud? How much profit did Jho Paris Hilton make for himself from these and the Saudi transactions as opposed to 1GDB?

7. While Goldman Sachs International (GSI) claims it did not pay out commissions, fees or expenses to anyone other than their staff and professionals from the incredible US$500 million (10% as opposed to the norm of 0.25% - 1%) it charged 1GDB for being its bond master, it cannot have escaped notice that a Singapore based Malaysian GSI banker who was principally behind the entire program, resigned from GSI in April 2014. Who was his initial contact in 1GDB - Jho Paris Hilton, the Grossmajib's, Reza? Who approached him for the bond issues? Is it possible he was acting as a front for Jho Paris Hilton and the Grossmajibs, but GSI was not aware of it? If pigs could fly, yes!

Next, newly appointed CEO Kaunda Kundi began defending the Grossmajib and 1GBD even before he could possibly have read 10% of the thousands of documents and emails in his files or understood the complex financial wheelings and dealings of the Grossmajibs and their toy-boy, Jho Paris Hilton. This is a sure sign of a gooli massager handpicked by PM Grossmajib and his PR machinery, in the wake of the relentless pursuit by the gloriously sleuthing Sarawak Report to continually expose endemic corruption and economic pillaging, plunder and looting by the Grossmajibs, BUMNO/SCUMNO and a certain Chief Minister of Sarawak who is reputed to have amassed wealth estimated at US$60 BILLION!.

Why else would Kaunda Kundi order all staff to erase all data from their computers if not to cover up past misdeeds of the order of Atlas? The old adage that if you have done nothing wrong, you have nothing to hide or fear applies here.

You will also notice Kaunda Kundi making statements such as "I have not seen any or come across any documents...I am not aware of...." which is of course PRspeak (or plain outright lies) when you seek to deceive. Technically, he is right; only technically. He may not have come across any incriminating documents, particularly, if the files have been kept away from him by the Grossmajibs or the 2 CEO's who resigned. But that does not mean everything is kosher at 1GDB. Kaunda Kundi knows this for sure. It's obvious he's braving it out as his remuneration, perks and bonus compensation must run into the tens of millions of US dollars!

With the announcement that 1GDB will now be audited by the Auditor-General, PM Grossmajib is seeking to buy some time from the knock-out blows rained upon 1GBD and him by Sarawak Report. Make no mistake, Sarawak Report is out to expose corruption and crime. There is nothing political in it for them and Claire Rewcastle is not bidding to be the next PM of Malaysia or seeking a direct-nego multi-$Billion give-away sweetheart deal contract from PMO, with built-in kickbacks to BUMNO/SCUMNO.  Nor is The Times of London plotting with Zionists/Satan USA/Rogue Chinese Traders for regime change in Malaysia.

This is investigative journalism at its best. The documents and email they have disclosed reek of  massive criminal conduct by 1GDB, Jho Paris Hilton, some Saudis, UK/USA bankers and BUMNO/SCUMNO's IPP cronies who fleeced it for billions. E.g., instead of buying the IPP's for a song, they ended up paying $billions and then immediately wrote-off goodwill impairment of some RM2 billion in its accounts. Jho Paris Hilton set up off-shore dummy corporations to facilitate CBT and fraud. The PetroSaudi deal is a straight out-and-out case of CBT and fraud.

PM Grossmajib did not state what the scope of the AG's audit would be. Would it go back to day 1 and the deal with the Saudi's? Would the AG be looking at the thousand of email and documents revealed by Sarawak Report? Would the AG merely look at whether the Saudi's returned the money to 1GDB's bank account or go for 'substance over form' audit? Would the AG look at these donations made by the IPP Plc's and money transfers between Jho Paris Hilton and Reza and the Grossmajibs, and how the Grossmajibs acquired their millions?

More than that, by any account, 1GDB is technically insolvent. It's RM 1million paid up capital has been wiped out by cash operating losses masked by paper profits from continual revaluation of land gifted to them by the Rakyat (citizens) and the Federal Governent (read as PM Grossmajib and BUMNO/SCUMNO). It has been kept afloat by issuing new bonds (substantial sums of it guaranteed by the Government) to retire expiring ones. This 'teeming and lading' fraud is bound to catch up on 1GDB since it has insufficient cash flows (dividends from IPP's) to service ever-increasing bond, junk bond and loan interest and flotation costs.

PM Grossmajib should be fired today anyway since it is his disastrous business model of capitalising 1GDB at RM 1 million and borrowing RM46 billion that has paved the way for the looters, fraudsters and CBT criminal like Jho Paris Hilton and the Saudi mafia to profit at our expense. Which sane businessman or PM/economist/finance minister in his right mind would gear up with a debt:equity ratio of 46,000:1?

Whatever excess cash 1GDB raised has either been invested in quoted/listed foreign funds which, if sold now, would result in an unacceptable huge loss, or has been loaned out (fraudulently) without adequate security or properly documented contracts to the likes of the Saudi's and private corporations which just now cannot/ will not return the moneys. This has to be the reason 1GDB is unable to service its debts as and when they mature, and why they are hiding these "investments" in the balance sheet behind carefully worded items such as "segregated portfolios" which are not written down to current market values. One of 1GDB's $Billion fund managers is a unknown Hong Kong based firm handpicked by Jho Paris Hilton. This is why 1GDB has not posted it's full or abbreviated financiastatements ever, at its official website!

It is obvious to anyone who has a modicum of intelligence, that PM Grossmajib is laying the foundation to place the entire blame for this RM46 BILLION fiasco and fraud on Jho Paris Hilton and his mafioso gang. PM Grossmajib, his 35-strong (wooden IKEA) Cabinet, the 2 ex-CEOs and their financial controllers, the 3 audit firms and new CEO Kaunda Kundi will eventually wash their hand off it all, claiming they were diddled by Jho Paris Hilton, who will never be brought to trial in Malaysia, as he will be holed up somewhere in Beverly Hills, California, USA sipping Pina Coladas, Singapore Gin Slings, Pearl of The Orient and Darling Sir Francis Light cocktails, partying with showbiz glitterati and the Grossmajibs, Reza and the Wall Street Wolves in New York, Paris and St.Moritz and laughing all the way to the untouchable banks in Cayman Islands and Switzerland.

Donplaypuks® with an insane PM!