PM GROSSMAJIB, 1GDB - $51 BILLION IN ASSETS, BUT NO CASH FLOW TO SERVICE INTEREST & DEBT? WHAT ABOUT $49 BILLION IN LIABILITIES? WTF ARE YOU HIDING?

by gross development and private funding initiative bunkum, donplaypuks® intrepid correspondent for debt affairs

Once again, instead of coming clean and being transparent about the details of its "investments" and true state of affairs at 1GDB (1 Gross Development Bunkum), PM Grossmajib has defended his management of 1GDB's borrowings and serious cash flow deficit by bleating the slogan that 1GDB has RM51 billion in assets. 

In particular, the Rakyat has been asking how the RM46 billion 1GDB borrowed has been "invested". 

PM Grossmajib has been openly opaque by saying that 1GDB has passed a blood test conducted by its internal doctors, and so it's as healthy as a bouncing baby.

This is also like saying that a bedridden man in ICU should whip himself up and get back to work, since he has his major faculties intact, while ignoring his two missing hands and legs.

From the beginning, it was a venture in folly. 1GDB was created as a national, not a Bumiputra, sovereign fund from the ashes of the  wound up RM10 billion Terengganu Investment Authority. It was 100% the idea of PM Grossmajib, whose principal adviser was the 20-something tub of lard of a grey whale, "investment guru" Jho Paris Hilton. 

Whatever brilliant discussions took place between Jho and PM Grossmajib, it's incredible that their settled business plan resulted in 1GDB being financed with a paid up capital of RM1 million and borrowings of RM46 billion, guaranteed one way or another by the Taxpayer. A 100% government owned company cannot abdicate from its debts by filing for bankruptcy and asking the lenders and creditors to take a hike. In any event, some RM10 billion of the RM46 billion debt is irrevocably guaranteed by the Federal Government. So, there's no running away from Armageddon!

PM Grossmajib, who is also the clueless Finance Minister, clearly does not understand accounts or how to read and interpret the figures in 1GDB's balance sheet.

To put it simply, as at 31st March 2014, 1GDB had RM51.4 billion in assets - cash and "investments" - AND RM49 billion of liabilities in bonds, bank borrowings, derivative debts and trade and other creditors. The surplus of net assets audited and reported were therefore RM2.4 billion (51.4 - 49), represented by RM2.4 billion of capital and reserves.

However, the RM2.4 billion in capital and reserves is inflated by RM3.6 billion of paper profits from revaluation of 1GDB's land bank. If we remove this window dressing, 1GDB's assets would be reduced to RM47.80 billion, i.e. by matching original cost of all assets with all known liabilities. In other words, its liabilities would exceed its assets by RM1.2 billion (49 - 47.8). 

More than that, there is a huge probability that a significant portion of 1GDB's "investments" financed by the RM46 billion borrowings, are showing huge permanent loss in values that cannot be salvaged.

So, the real net asset value of 1MDB, due to gross mismanagement, CBT, fraud and looting, may be negative RM30 billion!!

What PM Grossmajib is saying in trying to pull the wool over everyone's eyes is, never mind, he made a small miscalculation, but 1MDB's land bank has an upside that will more than make up up for the unexplained and missing billions of ringgit. So those asking for his goolies and neck, should close one eye and forget about sending him and the top management of 1MDB, past and present, to prison and be whipped. The PEOPLE should have an amnesia about the gross mismanagement, CBT, fraud and looting at 1GDB.

Today's announcement that Abu Dhabi Commercial Bank Group's IPIC (International Petroleum Investment Company) will finance 1GDB's US$975 million (RM3.5 billion) debt to Duetsche bank and its consortium members, poses more questions than answers. PM Grossmajib has successfully recruited another Deputy Minister in being deliberately vague and obstructive:

"1GDB will provide IPIC and AAbar with a number of financial assets, including "units" that are held in the company's BSI Singapore account."

What does PM Grossmajib and his baruah Deputy Finance Minister mean by this, what deal has one devil done with another?

My reading of this 'new deal" with a "white knight is:

1. The top management of 1GDB, past and present, are not prepared to hop On His Majesty's Service, with a long stay in Kamunting prison. So, they have delivered PM Grossmajib an ultimatum - "Unwind the mess or will will sing like a canary. We have been offered immunity to testify!!"

2. PM Grossmajib in turn, has laid the law down with Jho Paris Hilton, and Abu Dhabi, which must have been in on the scam from day one. The money was probably originally diverted for (CBT) deals that had nothing to do with 1GDB. The beneficiaries, besides Abu Dhabi, would also have been PM Grossmajib, his wife and son, Jho Paris Hilton, Anak Keling (AK) and BUMNO/SCUMNO/Batang Naik. Now that PM Grossmajib is near to being hanged by his goolies, he's begged for the deals to be reversed and money's returned. At the bare minimum, there is a case of CBT had 1GDB.

What is clear as daylight is that 1GDB does not have sufficient cash flow to service debt interest or redeem loans. This is pathetic planning and management. It bespeaks of a PM who has faked a  degree he never had in Industrial Economics.

So, PM Najib should be sacked and sent to prison anyway. 1GDB's land bank is not his personal property. Long, long before 1GDB materialised and hijacked it, many real estate companies had submitted proposals to the government to develop the 565 acres of Sg. Besi and TRX land. They were willing to pay market prices in open tender. So, it never required 1GDB, which had no experience and track record whatsoever in real estate development, to maximise the wealth from these parcels of land on behalf of the PEOPLE.  

I also have not an iota of confidence that the PAC or AG will deliver justice. Name 1 case in recent years where a PAC inquiry or AG's Report resulted in anyone being prosecuted for mismanagement and fraud, and convicted of it in court. They will not nail the culprits. Where such bodies are headed by government nominees, it would be silly of us to think that they will ask for anyone's head on a platter, especially if they are BUMNO/SCUMNO/Batang Naik's members and/or cronies.

So, we have to rely on the likes of an ageing ogre like Maha Firaun to defend the PEOPLe and exact justice. 

In today's blog post, Maha Firaun has again mentioned the RM30 billion private initiative for fraudulent spending by the MoF, funded by two pension funds. The usual suspects - PM and Finance Minister Grossmajib, chief civil servant, sec general of MoF and Economic Plundering Unit - are all involved in cooking up fictitious leasing agreements to siphon RM30 billion out. The beneficiaries of this mega scam are likely to be BUMNO/SCUMNO/Batang Naik whose war chest needs filling to fight by-elections and GE14. The RM30 billion private initiative funding government fraud was first exposed by an opposition politician and publicised also by Kinibiz.

We know there is no hope from the PAC, since after a close-door briefing by the MOF, the PAC head was gushing around saying "Whoa, what wonderful innovative financing scheme!" 

Another worrying piece of news is that ADCB's AAbar owns 49% of Powertek. But, it was announced that 1GDB paid Abar US975 million (RM3.5 billion) to rescind the Powertek option. So, what gives? Have Anal Keling and 1GDB gazumped us again? 

It is everyone's duty to constantly remind Maha Firaun to pursue PM Grossmajib to the end of the earth till we nail him  and his government of thieves for the RM46 billion 1GDB fraud and the RM30 billion "private initiative finance" ponzi scheme.

In such bleak times and in the face of mega billion ringgit thievery and fraud by PM Grossmajib and his government of thieves, beggars can't be choosers; we must take our allies as we find them!

Donplaypuks® with RM76 billion of fraud by government, man!