"The Malaysian Insider somehow chose to twist some of the words in their reporting dated 17 April. May Allah SWT guide us all to do the right things." - Abdul Wahid Omar, Minister in the Prime Minister's Department
Taken from the Unspinners' Insider spin AWO's simple explanation on 1MDB, 18/4/2015
MALAYSIAN INSIDER TWISTING THE FACT AGAIN
The following is the transcript of AWO's answer to a question on 1MDB during a dialogue at Akademi Kepimpinan Kapten Hussein on 16 April 2015.
|Latest victim of TMI's sincere misreporting|
"1MDB is a wholly-owned subsidiary of MOF Incorporated, so meaning that it is wholly-owned by the Government. It was set up as a strategic investment company with a paid-up capital of RM1 million.
So their model was to raise long term bonds and aided by Government guarantee that helped to lower the cost of funds.
And hopefully with that money, can be invested into projects that will generate high returns. So that was actually the so called the capital structure or the model how 1MDB started.
So over the years, they have expanded by way of borrowing from the banks or borrowing from the capital markets. And they have been buying many assets including some of the power IPPs and it has gone to the level where the debt level had hit RM42 billion as of 31 March 2014.
And if you can imagine the burden of servicing such a high debt is actually quite, is very high, is very difficult. So until and unless your assets are able to generate that cashflow, it is not sustainable.
So that is something that the Board and Management of 1MDB had realised. And therefore they have undertaken a strategic review of their business model and of their capital structure and they have decided on three things among others.
Number one, they have decided not incur any new debts, any new borrowings unless it is to meet the current debt obligations or to refinance their current debt obligations. So that's number one.
Number two, they have agreed not to embark on any new projects or any new venture and focus their effort on executing the two big projects that they have which is Tun Razak Exchange and Bandar Malaysia. So these are highly valuable projects that needed to focus on.
And the third thing that they have to do is to work as much as possible to get the IPO of Edra Energy going.
So this IPO or the listing of Edra Energy, Edra Energy is the holding company for their IPP assets they are hoping to get listed.
And they will benefit in two ways. So from the IPO, they will get proceeds that can be used to reduce their debts plus if they were to reduce their shareholding to below 50%, so they are then able to de-consolidate all the debts at subsidiary level.
So that will help to reduce the overall gearing of the company. So that's the strategic review undertaken by the Management and Board of 1MDB." .
A bit like a certain expired ponytailed hack who claimed gleefully that one person could actually cause the ringgit to slide?
It's all that taxpayer money they keep stuffing in your ears and other orifices, hensum.
It makes your hearing very selective.
No matter whatever took place and no matter who came up with the failed ideas. The fact remains they it was an idea to enable the Umno's schmucks to get rich fast and easy, period.ReplyDelete
Just name an idea or a project that came from these schmucks that was or is successful.
Everything is this country is in a shamble because of the constant ideas from the Umno scumbags.
Just think hard when did this country start to fall apart. It was started by the repugnant and avaricious Mahahathir who did everything possible to stay as PM of Malaysia especially for 22 years. He cheated and lied in order to remain in power and of course before the policies he implemented during his administration he cunningly retired. Of course he is now getting this LKS guy to try and get him into bed with him just to maintain his popularity and support. This only shows what politicians are willing to do just to stay popular.
LKS has run out of idea when PAS is going their way and as such the only way left for him to stay popular is to try to go to bed with the half breed. This mad dog LKS indeed has very short memory of what the half breed did to the non Malays in this country. It only shows what wouldn't he do just to remain in parliament. So that the useless politician can continue to collect his pay. Very short memory indeed !charlesk
You are very polite aren't you.
You are right, 6.07. Everything is in a shamble and everything is a downright failure. Inxluding you yourself.Delete
ok lah. ur correct on this. How abt all those slander from Utusan, The Star, NST.. basically all BN controlled media? apahal hang tak marah depa?ReplyDelete
the BN govt yg kasi duit kat rocky bru suruh jilat bontot Najib.
cmon la bru. dah kantoi sangat kau dah kena suap.
Is this explained to DR M ?ReplyDelete
Could you tell us ,did the Government had preliminary plan to overcome headwinds that could possibly storm 1mdb in the future when the gov decided to buy out all the IPP sometimes 6 years ago??ReplyDelete
Dude, greed and reckless , two word tht can potrayed how our current government handle this country.....
They might think the energy price will be all time high, and this is wht happen today....
And no one dare to bag the responsibility... skam!
Doesn't matter, what really suxs is RM2.4billion is to be paid (wasted) yearly just to serve the loans interest.... more than enough to build multiple Crooked BridgesReplyDelete