SELLING THE CROWN JEWELS TO PAY FOR FRAUD, CBT, GROSS DERELICTION OF DUTY, INCOMPETENCY, NEGLIGENCE, EH YOU SCOUNDREL GROSSMELDAJIB?

by TRX tricks and treats, donplaypuks® intrepid correspondent for real estate fraud affairs

The sale of 1.56 acres of 1GDB's (1Grossmeldajib Development Bunkum) land at the proposed TRX financial centre site to the cash rich Poor Pilgrim's Fund for RM188.5 million, constitutes yet another criminal betrayal of the peoples' totally misplaced trust in the government of thieves under the mistress and master of malfeasance, PM Grossmeldajib who wears the pants, and her husband who wears the skirts, respectively.

The indecent haste and secrecy with which this real estate transaction was completed confirms that 1GDB has no other money to service bond debt interest of RM189 million coming up for redemption next week or so. The speed with which land was valued at a staggering RM2,774 per sq. ft. and S&P price of RM188.5 million accepted and paid by the Poor Pilgrim's Fund, betrays the shaking and shivering hands of a desperate and disgraceful cornered rat, Grossmeldajib. 

It is akin to Queen Elizabeth selling off  the crown jewels of England to pay for the overheads of Buckingham Palace.  Mind you Grossmeldajib was only following in the footsteps of his mentor Maha Firaun. During his 22-year premiership Maha Firaun blew the taxpayers' money in several bailouts, among others, $10 billion for MAS,  $2 billion for rescue of Pekapalan, his son's failed Plc, $2 billion on Bank Bumiputra collapse etc.

With this fantasy price tag, which is not supported in KL by any real estate market transaction near this price, it is very clear that the pricing has been worked backwards, massaged, to enable 1GDB to service its debt interest cost. More than that, the pricing has been tinkered with so that, 1GDB will not show a transaction loss in its falsified profit and loss account, since it had previously re-valued its completely undeveloped land bank to mask and mislead the Rakyat into thinking that it had made profits of some RM3.6 billion to cover inexplicable and unexplained operating losses of RM3.5 billion!

With this kind of stratospheric pricing, the cash rich Poor Pilgrim's Fund has no hope of making a development profit unless City Hall gets in on the con job. Permit me to explain this. The Petronas Twin Towers and Suria Mall were ONLY financially viable, AFTER Maha Firaun strong-armed City Hall into increasing plot ratios from the usual 1:5, to 1:20. Otherwise, the project would have been a non-starter from day 1. (The other con job perpetrated by Maha Firaun on the Rakyat vis-a-vis KLCC was in bypassing the Environment Act. He skilfully replaced a massive green-lung comprising some 100 acres of grassed horse racing tracks in the heart of the city, with steel, concrete, glass and a massive increase in traffic which has greatly enhanced pollution and incidences of asthma, emphysema and chronic bronchitis in KL).

My guess is that KLCC paid around, max, RM100 per sq. ft for the 100 acres (4,356,000 million sq.ft.) of land. The price per sq. ft. that 1GDB has flogged the cash rich Poor Pilgrim's Fund for 1.56 acres or 67,954 sq. ft., is nearly 30 times that amount! In order for the project to be financially viable, and for the market to bear the high selling price of condos or office units at TRX, the plot ratios will have to be on the higher side. My back-of-the envelope quick calculation shows that for a development of this size and land cost, they would have to sell units at above RM1 million each, just to break even!!

With this artificially inflated  cost and selling pricing, no ordinary Bumiputra or  non-Bumiputra will be able to afford buying anything in this real estate development. And that is exactly how the rich get richer, and the poor, poorer. All this land gifted to 1GDB at below market price by the Rakyat, will result in upmarket developments beyond the reach of the masses. 

But it is not the business of government to be in business. That is the singular failure of 1GDB. In wanting to outdo his predecessors, the greedy and grasping, incompetent and crooked Grossmajib has broken every law in Malaysia, and then some, no doubt inspired by another crooked man who had a crooked penny and who still wants to build a crooked bridge to start a crooked war. All the Sg. Besi and Imbi Road could have sold by open tender to experienced real estate players, and the huge profits used to build better infra-structure, schools, hospitals etc. for the Rakyat. But, the clueless Grossmajib has now lumbered us with RM46 billion of debt, and is ruthlessly and without a shred of conscience, hocking our future for a fist full of cheap ringgit and to save his face.

No doubt the Chairman and Board of Directors of the cash rich Poor Pilgrim's Fund, 1GDB and Grossmeldajib will all swear on a stack of holy books that they have followed the law, that proper land valuations were made, "sound" discussions and deliberations were undertaken and resolutions passed and contract inked. But, in their hearts of hearts, they all know that when you look at substance over form, one set of thieves has accommodated another in 1st class thievery and highway robbery. There is so much conflict of interest issues here that it would not surprise me if the religious authorities charged the cash rich Poor Pilgrim's Fund and 1GDB' s Board of Directors with incest!

The proof? Today's announcement by the cash rich Poor Pilgrim's Fund that they have been "advised" by the same crook, Grossmeldajib, who ordered them to buy the land in the first instance, to sell it to 3rd parties, and that they already have 3 interested buyers. If this was a kosher deal:

1. You would pay 2% deposit down before signing S&P, 8% on signing and complete the contract 90 days later, AFTER all approvals have been received from the authorities, compliance with other conditions and proof of transfer of title deed, furnished. How was this S&P completed in under a month before approval from the authorities and transfer of title? It looks like the full RM188.5 million was paid to 1MDB in advance!

2. The Chairman of the cash rich Poor Pilgrim's Fund would not have first lied that there was no land deal with 1GDB. He played around with semantics to try and wriggle out of the net. Being a grovelling scrotum licker and 3-way massager and barua, he had to refer to Grossmajib what to say. Of course BUMNO/SCUMNO/Barang Naik's first response when caught with their pants down, is to always lie.

3. Why would  the cash rich Poor Pilgrim's Fund sell off land it claims it had bought at a discount so quickly, instead of riding the market?

4. The S&P was classified under the Official Secrets Act. Why? Why are public contracts, such as Water, IPP etc, repeatedly Unconstitutionally classified so? Why should there be a clause in such contracts needing the approval of the other party (non-Government) to disclose salient terms and conditions, unless they are sweetheart crony deals laced with corruption and kick-backs?

5. The Chairman and BoD of the cash rich Poor Pilgrim's Fund would (should) have worked out their numbers way in advance. No way would they settle for a mere RM5 million 3-month flip-over profit, when the potential long-term profit from developing the land is bound to be in the hundreds of million. There is also a 30% Real Property Property Gains Tax to think of if they sell the land within the next three years. The cash rich Poor Pilgrim's Fund is not a charity; it owes its shareholders, the depositors, a duty of care to maximise profits, not minimise it  to bail out a bunch of con artistes and fraudsters.

This entire episode is as clear a confirmation as any that 1GDB is insolvent. In accounting and audit terms, it is no longer a going concern; in layman's terms, it is bankrupt (pokai). If 1GDB were an American company it would have filed for Chapter 11 protection from creditors two years ago.

With total interest bearing debt of about RM46 billion, 1GDB has an annual debt interest cost of some RM2.3 billion. So, what are Grossmeldajib and new CEO Kenneth Kaunda Kundi's plans to service debt interest AND retire the RM46 billion debt permanently - why, sell of more of the crown jewels, of course! Only a madman would undermine Tenaga by creating an IPP hydra which depends on and milks Tenaga for its cash flow. A small country like Malaysia does not need two substantially or wholly government owned energy players. Instead of achieving economies of scale by parking these assets under Tenaga, Grossmajib has created a monstrosity which is paid on average three times the cost per kilowatt which Tenaga can generate. More than that, there was fraud in the purchase of these IPP's resulting in goodwill write-offs of some RM3 billion in 1GDB's accounts. The IPP listing has now been deferred twice; not surprising, when its books will not stand up to the scrutiny of a kampong nenek. The IPP's only have value because Tenaga has been raped and Grossmajib renewed their licences and awarded them dirct-nego contracts. Now, one by one, IGDB is being stripped of these joke give aways, and handed back to guess who, why that perennial whipping boy, Tenaga! 

Grossmajib and his new his CEO are desperados. They lied to us last month about RM2 billion being transferred from from 1GDB's bank accounts at the off-shore tax shelters of Cayman Islands to its Singapore bank account, to service debt. It turned out that this money, which was deliberately kept off-shore to escape detection and scrutiny by the central bank for money laundering, payment of illegal commissions, CBT and tax evasion, could not be touched. They had to be bailed out by a "standby credit line' of RM970 million by the MoF. More than that, RM2 billion of debt had to be rolled over, "assisted" by another Malaysian fraudtrepreneur who has his sticky fingers all over 1GDB.  

But given that 1GDB is 100% owned by the Ministry of Finance (MoF), and that sovereign guarantees have been slyly and secretly given by orders of the Grossmeldajibs, in reality it means that WE, THE PEOPLE, have been bamboozled by the Grossmeldajibs yet again. We are stuck with RM46 billion of debts like a blood-sucking leech to the legs of an unwary amazon river swimmer, regardless of whether sovereign guarantees were given or not. If 1GDB ever defaults on its debts, our international credit standing, currency and stock market will be brought down to its knees faster than a frisky Monica Lewinski would to Clinton's orders. Our economy would fold and collapse like a pack of cards. This is the millstone that the Grossmeldajibs have placed so graciously place round the Rakyat's (citizen) neck.

IGDB should not be allowed to sell 1 sq. ft. of the Rakyat's land. Had this land been given to your or my grandmother, they too would have realised the same gains as 1GDB by doing nothing but sweet FA! 1GDB should be forced to return all the land to the government at original cost; it has no experience whatsoever in developing land or construction. Since outsourcing is the name of the game, the Rakyat can always find cheaper and more effective and value-for-money alternatives.

If Malaysia should be sucked into a debilitating stretched-out recession, who would suffer the most? Of course, it would the Malays/Bumiputras. This is why they should wake up and take charge. They should throw the Grossmajibs and their 1GDB team (including the CEO's and accountants who resigned) in prison for ever and take back the reins of government from the crooks, cronies and crooked former and current prime ministers and (wooden IKEA) Cabinet and fake warlords. You fate is literally in your hands. Do not lament when it is too late, and all that is left for us to share and work on is a mountain of debt, while those scoundrels, the Grossmajibs and their cronies holiday and party in London, Paris, New York, Tokyo, Monaco, Kazakhstan and Sri Carcosa with OUR hard earned money! 

 Donplaypuks® with sovereign land, man!