HOW PM GROSSMELDAJIB LOST RM3.5 BILLION (US$975 MILLION) OF 1GDB & THE RAKYAT'S MONEY!!

by the idiot's guide to stealing, donplaypuks® intrepid correspondent for thieving affairs

You only have to follow the paper and money trail to understand how Prime Minister Grossmeldajib who wears the pants and her husband who wears the skirts, have skilfully lost at least RM3.5 billion of 1Grossmeldajib Development Bunco (1GDB) artistes scheme money. 

This sordid episode, the end of which is nowhere in sight, clearly demonstrates that this prime minister who never earned a uni degree, but pathetically claims he has a degree in industrial economics from UK and that he is a"trained economist", whatever that means, has not an iota of sense in business, economics or finance, and of course, governing a country. Remember that this is the man who praised ISIL as liberation fighters, and today, analysed that liberalism was the cause of a Malaysian student being sentenced to 5 years in prison in London for paedophilia.

To-date, 1GDB has a paid up capital of RM 1 million and bond debts, bank and other loans totalling RM46 billion (not RM42 billion as is touted about by the uninformed). On top of this, there are RM3 billion in trade and other creditors, giving a total of RM49 billion in liabilities (hutang) vs RM51 billion of assets, most of which cannot be sold quickly to pay for the liabilities. Also, few are clear if these assets are worth their book values, and if sold, can cover the RM49 billion liabilities. If they don't, the government (Rakyat) will have to pump in more billions of ringgit to bail out 1GDB more.

Any business model in which an entity borrows 46,000 times its capital in secrecy, off-shore, in places like the Cayman Islands to avoid central bank scrutiny, is a sure sign of a recipe for financial disaster, and one where thievery, fraud, looting and cover-ups are bound to happen. This thing did not happen by accident, it was planned from the very beginning by PM Grossmeldajib and his close friends. More so, when way above normal market rates of interest are contracted, and stratospheric commissions paid, in complete secrecy, and sealed off from the Rakyat's eyes.

Of the RM46 billion borrowings, 1GDB's actual know investments total a miserable RM15.6 billion as follows:

Overpriced IPP bought from Anak Keling (AK) - RM8.5 billion.

Overpriced IPP bought from Pahang Resorts Casino - RM2.7 billion.

Overpriced IPP bought purportedly from a royal family - RM1.2 billion.

Under & overpriced Land (3 parcels at cost) - RM3.2 billion.

The IPP's were clearly way overpriced, resulting in goodwill write off, some say, RM3 billion in 1GDB's books, i.e. the difference between the NTA of the IPPs acquired and the cash price paid for them. Shortly after the 2013 general elections, it was revealed that at least two public companies controlled by ex-owners of these IPPs "donated" some RM250 million to political parties BUMNO/SCUMNO/DUMBNO/Barang Naik. Do you think these "donations" were altruistic in nature and actually came from the pockets of these IPP owners or, the IPP deals were overpriced to facilitate corrupt and illegal kick-backs to the ruling political party? Hmm?

So, the $64,000 questions are:

1. What and where has 1GDB invested the balance of RM32 billion (46 minus 14) in? 

2. On whose professional advice? Only Jho Paris Hilton? Remember, professional fund managers are liable to their clients for bad and/or negligent advice. 

3. What are these investments worth today? 

4. How are Grossmedajib and 1GDB proposing to repay the RM46 billion in borrowing and service debt interest of about RM2.5 billion a year?

As we do not have 1GDB's detailed profit & loss account, balance sheet and notes to the financial statements, WE the Rakyat, do not have a clear picture. PM Grossmeldajib, 1GDB's Chairman and CEO (past and present) are all hiding this huge elephant behind the Official Secrets Act and threatening those who ask legitimate questions, such as MP's, with law suits and the Sedition Act. WE the Rakyat own 100% of 1GDB which is a 100% (wholly owned subsidiary) of the Ministry of Finance. Yet, the prime minister, whom we elected and gave the power to rule, is deliberately hiding the truth from us and the world. 

The Chairman of 1GDB is linked to a armed forces pension Group fund, which in 2002 bought 2 overpriced Scorpene submarines for RM7.5 billion approved by then Deputy Prime Minister and Defence Minister Grossmeldajib, and also received RM575 million in dubious "facilitation and co-ordination" fees in the Altantuya murder saga. The same group also bailed out a crony senator by buying out for RM160 million, a real estate company given a sweetheart BOT deal for a national defence centre. The senator was being sued by a businessman connected to Grossmeldajib's wife, and who threatened to tell all about this deal and the Altantuya murder!!

So, why are we at all surprised that these people PM Grossmeldajib surrounds himself with and appoints to all these sinecure positions in government and government linked companies, court controversy, mega fraud and financial disasters and mess and even murder?

To secure some of these humongous bonds and borrowings, for reasons we cannot as yet understand, PM Grossmeldajib approved and and 1GDB's Chairman and CEO, signed a legal agreement with companies owned by the Abu Dhabi goverment to:

1. Provide guarantees for the bond redemption.

2. Placed a deposit of RM3.5 billion to secure the guarantees.

3. Gave a 10-year option to buy up to 49% of  the shares of 1GDB's IPPs if listed.

4. Gave an option to share in 49% of the profits if the IPPs were sold.

Following this, the Abu Dhabi government wrote to 1GDB informing it that they would not exercise the two options above in return for compensation for US$975 million or RM3.5 billion. This was agreed to and paid by 1GDB.

What is the logic and thinking behind all this? Grossmeldajib and 1GDB may have reasoned that paying RM 3.5 billion now was "cheaper" than giving away 49% of the IPPs shares or profits on future listing or sale.  1GDB was also forced to defer its IPP listing plan thrice, in view of its serious income, cash flow deficit, debt interest servicing and loan capital redemption problems. This caused it to abandon the 2000 megawatt RM11 billion power plant project. 1GDB had bitten off more than it could chew in a rigged tender. Abu Dhabi got nervous, and decided that RM3.50 billlion (US$975 million) now was a whole lot better and safer than nothing, if 1GDB collapsed and/or Grossmajib got thrown out of office and possibly into prison by his party or public pressure.

The short and the long of the matter is, 1GDB has now lost RM3.5 billion of cash to Abu Dhabi, in a truly dodgy deal. Criminally, 1GDB took a bridging loan to finance part of this pay out. This will have to be written off in 1GDB's P&L as a loss. However, the creative PM and Chairman, Finance Director and CEO at 1GDB may cook the books by classifying the loss as an investment to be recouped from a future IPP listing.

More seriously, 1GDB has apparently utilised RM3.5 billion deposit to secure a loan from a consortium of international banks including Deutsche Bank Singapore, to pay Abu Dhabi, in contravention of loan terms. This, unless PM Grossmeldajib institutes another 1Malaysia bail out soon, will result in 1GDB being taken to the cleaners by its bankers, much, much earlier than planned (Aug 2015). Gloom and doom loom everywhere for 1GDB. The recent MoF RM950 million "standby credit line" so generously extended to 1GDB, and the flogging of its crown jewels, its land bank, to service debt interest, bespeaks of an insolvent, bankrupt company in total disarray and panic.

This Abu Dhabi capitulation is the giveaway of the century, one which could only occur where the leader is a crook and fraudster. Only such a madman, a true imbecile, would agree to Abu Dhabi's guarantee terms with options, where they also earned an annual fee for providing the guarantee. There are any number of international banks and consortias who would have provided the same guarantee on a strict fee deal based on a Malaysian sovereign guarantee. The lop-sided options reveal fraudulent intent. How so?

There must be deals behind deals with Abu Dhabi, where Jho Paris Hilton and other Malaysians like Anak Keling (AK) whose name refuses to go away, keeps cropping up regularly. Recent exposes in Sarawak Report state that Anak Keling (AK) has options to buy back those very IPP assets he flogged off to 1GDB at an incredible premium, assets which would otherwise have zero value when the IPP licence and power buy-back contract forced upon Tenaga expire soon. Yet, 1GDB went ahead with the AK purchase. Who arm-twisted 1GDB? The snouts to the trough, whack the gravy train mentality is all over this crooked deal. We will eventually find out which other 1GDB officers, Grossmeldajib's cronies and  "patriot" thieves had their hands in the Abu Dhabi cookie jar, hiding behind the protective long shadows of well paid "Brazen" nominees in off-shore tax shelters in the the Caymans, Switzerland, Singapore and Hong Kong.

Based on the accounts to 31st March 2014 and some educated guesstimates, we can now account for RM28.7 billion of the RM46 billion loans raised, as follows:

1. Purchase of overpriced IPPs - RM12.4 billion.
2. Purchase of under & overpriced landbank - RM3.2 billion.
3. Operating cash losses to 31/03/2014 masked by paper gains on land revaluation - RM3.5 billion
4. Abu Dhabi options "compensation" cash loss - RM3.5 billion.
5. "Investment" in Mongolian coal-mine venture - RM4 billion (market value is less than RM2 billion!!)
6. Reserve for re-location of army camps contract awarded to LTAT - RM2.1 billion
  
That leaves RM17.3 billion of cash about which we have no clue what it has been "invested" in, and what is its real value today!!

We should not ask for explanations and answers from the Chairman, CEO and Board of Directors of 1GDB. It would be a total waste of time to expect lackeys, baruas, scrotum and arse lickers and gooli carriers to reveal the truth. They are answerable to the company and Ministry of Finance. 1GDB was mooted 100% by Prime Minister Grossmeldajib, he is the Chairman of its advisors and also the Finance Minister. The buck stops more than once at his door. He is the one who is responsible for this mess and who should come clean to the Rakyat and face the music and go to jail first. It is he who has been stone-walling the Rakyat with evasive answers and talk about "the opposition politicising the issue" and about political conspiracies to bring down his government.

So, Prime Minister Grossmeldajib, do you have the balls to be transparent and accountable to the Rakyat, to own up and take responsibility? Yes, now that the Rakyat is asking for your head, do you have the guts and gumption to resign? If this were Japan, you would have committed hara kiri by now, such is the concept of honour there. If this were China, your head would have been lopped. If this were the USA, you would already, like Bernie Madhoff, be serving time.

Or, are you like so many cowards, chauvinists, scoundrels and con-artistes, trying to wrap yourself around some fake Buginese clap-trap flag of convenience, produce more smokescreens and buy time, hoping that by a miracle, the fraud and misfortunes at 1GDB will reverse and put themselves right? 

In the end, it comes down to this:

Do you have the self-respect of an honest and decent MAN to do the right thing and resign?

Donplaypuks® with fraud, honour and self-respect, man!