So, the solution to 1GDB's penury inevitably means government intervention and/or bailout.
It is not merely the 1GDB debt that is worrying the financial markets. There are also contingencies and off-balance sheet items found nowhere in thr government's budget. The government is repeatedly being vague about the MoF's $30 billion debt to two pension funds funds for so-called "private initiative projects". It is yet again hiding behind the OSA and has not only not satisfactorily explained who and for what exactly this stupendous cash outflow went to, but also, how it is going to repay the $30 billion borrowing. This reeks of yet another government and MoF induced fraud and looting scheme. Need I remind you that PM Grossmajib has also been the Finance Minister since 2008?
Among the most favoured of buzzwords savoured and worshipped by salivating and drooling scorch-earth corporate raiders, otherwise known as corporate rapists and sodomisers across the world world, are, 'synergy' and 'asset unbundling'.
How is this possible in the share markets of the real world, that 1 + 1 can often = 3, and 2-1, also = 3?
So, what is the real market acceptable value of 1GDB's IPP asset, if the government gives Tenaga a free hand to negotiate? The government is presumably hoping to cook the books just as it has done recently with awarding a 48-year concession to Kidex for a Highway Toll concessions headed by an ex-DPP and the wife of a former Chief Justice. For sure, if PM Najib is still around, he will force more tariff increases across the board, and lock in regular tariff escalation clauses, regardless of performance, efficiency or productivity. This is his idea of equality - every citizen has the right to be equally screwed by his crooked government.
If the Tenaga deal is not viable due to public outrage and pressure, PM Najib will strong-arm EPF, Socso, KWAP, Tabung Haji, Khazanahn PNG and LTAT to become cornerstone investors of 1MDB's IPP flotation, grossly over-valued at $17 billion on paper. These "national service" heroes will then lock these worthless share certificates in their safes and throw away the keys. Those shares will soon be trading at below 50% of their IPO values, a story similar to a recent Grossmajib engineered palm oil conglomerate IPO flotation.