Saturday, May 30, 2015

1MDB: Turning the corner (with a little help from our Arab friends)


Husni The Hitman

The US$1 billion deal the 1MDB signed with the International Petroleum Investment Company and its subsidiary Aabar Investment caught everyone by surprise. A corporate player agrees with me this morning that 1MDB may have "turned the corner" with the deal. The diehard naysayers are not expected to agree with that at all. Even before the full details are out, the detractors say that 1. we are digging a bigger hole to fill up the existing one, and 2. It's beneath us to run to the Arabs for help. These are valid concerns, especially given our great disdain of our fellow Muslims (see Marina Mahathir's Arab colonisation of Malaysia). Perhaps they should have gone to Shylock, instead.

The fact remains though that by June 4, the deal with IPIC, which is the investment arm of the government of Abu Dhabi which controls more than 90% of the UAE's oil reserves, will render the so-called scandal that was BSI Singapore a non-issue and the Deutsche Bank will get its money long before it's due. 

The deal will involve IPIC and Aabar gaining a number of assets ,INCLUDING the units that are held in the company's BSI Singapore account. "So who says assets from the PetroSaudi JV and murabaha has no value? By June 4, it would have fully redeemed the last US$939.9 million units towards full early settlement of the Deutsche Bank facility."

Questions will and must continue to be asked about this and that hole but with the interested parties, ie the lenders, the 1MDB and IPIC/Abaar, paid and contented, everybody else will have no choice but to move on ...

Deadline, Jan 2016. They will have to move on to the next punching bag, ie the rationalisation of the 1MDB, and the poor man who's just got the job as main spokesman for the rationalisation, Husni Hanadzlah (pic). 

What's this wretched rationalisation all about?

In a nutshell, the rationalisation program will break up the 1MDB into three separate entities:

1. Edra
2. TRX
3. Bandar Malaysia

Completion date: Early 2016

I don't have all the details but one CEO blogger wrote earlier this week that the 1MDB Real Estate Division would be announcing soon its next phase of strategic property game with Bandar Malaysia, a 486-acre development that is expected to realize RM145 billion in 15 years. All units in TRX are taken up as well - you can't buy even if you have the money. And abroad recently, the PM was approached by parties interested to take over not part but the whole of Bandar Malaysia, or so I was told. 

Read Putih Mata, Lagi (or Why Tabung Haji should keep its TRX parcel and be damned) by Zakhir Mohamad, 27/5/2015.




The press statement on the IPIC deal
MEDIA RELEASE-1MDB
MINISTRY OF FINANCE MALAYSIA
PRESS STATEMENT
YB MINISTER OF FINANCE II
DATO’ SERI AHMAD HUSNI HANADZLAH 
Earlier this morning, I presented a plan for the rationalisation of 1MDB to the Cabinet. This followed an announcement by 1MDB, in February 2015, of the conclusion of a strategic review. 
As has already been achieved with Edra Energy, this will see TRX and Bandar Malaysia established as standalone companies, with full autonomy and accountability for their operational and financial performance
Whilst options are being pursued with respect to the monetisation of Edra Energy, the Ministry of Finance will remain a key shareholder in TRX and Bandar Malaysia, which will raise equity via third party investors. Proceeds raised will be used for capital expenditure and to reduce 1MDB’s debt. 
Given the above, I am pleased to announce that 1MDB has entered into a binding agreement with the International Petroleum Investment Company (“IPIC”) and its subsidiary Aabar Investments (“Aabar”). As part of this agreement, IPIC will make a payment of USD 1 billion, on or before 4 June 2015. This USD 1 billion payment will be used to repay a USD 975 million (RM3.5 billion) loan, in advance of its due date, to a syndicate of international bank lenders. The agreement will also include further measures to comprehensively address the various financial asset and liability transactions between the parties, further details of which will be announced in due course. 
This agreement marks a significant step towards reducing 1MDB’s overall debt levels, and is a crucial part of the rationalization plan I presented to Cabinet earlier, which we expect to be implemented in full by early next year. 
MINISTRY OF FINANCE
29 MAY 2015


23 comments:

Anonymous said...

Bro..the TRX and Bandar will still belongs to Malaysian after all this? I doubt it. Its obvious now that all the money shuffling in 1MDB serves as a grand plan of money laundering to enrich "a few people". Most likely the govt land will end up on the hands of foreigners after all on the excuse that "the rakyat" objects to PM Najib ideas of "high impact income" to the nation...so padan muka rakyat lah...that I suspect will be the main defense cry by PM Najib and his "supporters".

Anonymous said...

najib bisnes ideal. buat hutang , tak bole bayar hutang.jual segala yg ada...hatta tanah yg digazettekan untuk AHAB pun tak apa.

end up lost the lands and lost the monies.

org meniaga buat hutang utk beli aset, aset yg dibeli sepatutnya jana duit utk servicing loans, dan after certain period making profit. najib punya styles buat hutang beli aset yg tak bole jana duit nak bayar hutang dan servcing loans sampai jual segala hartanah.

muomari

Anonymous said...

USD1b and all 1MDB problem gone?
so eazy?
why not the govt just pump in the money themselve?
why bring in the arabs?
what is the hidden cost?

DO ASK SOME SMART QUESTIONS,
DON'T BUTA BUTA ACCEPT ONLY!!!!!!!!!

paktam said...

I understand that Qatar had 5 separate JV with 1MDB. The money coming back is part of 1MDBs capital from those JV. ???

maae said...

Hopefully "ada jalan nya, InsyaAllah." What is the best for now ? Still if they remember - Demi Bangsa, Agama Dan Negara.

Sedih bukan tidak sedih, Bro, Melayu selalu nya bernafsu besar, nafsu jahat mengalahkan fikiran tidak seberapa. Jika lah ada Melayu "midas touch" , sekarang, Melayu itu ada sistem perekonomian nya tersendiri, bersaing dengan mekanisma perekonomian sedia ada.

Jika terbukti ada penyelewengan terancang 1MDB, di harap tiada siapa di bebaskan ! Lavish style, tunggang langgang - in bukan Maqasid Syariah !

Anonymous said...

What if tok arab having second thot? Have they thot about tok arab cheating and decide not to extend the money coz the tok arab is also penipu? Masa tu baru tau ape P Ramlee lama dah cakap dulu...penipu tipu penyangak. I hope they really have their assess covered this time.....

Anonymous said...

1. What does 1MDB do? Is it like Khazanah? What business does it do?

2. You don't borrow money to do Investments.

3. You don't borrow money to repay back your loans.

4. You don't trust the Arabs.

Period

Anonymous said...

Are the foreign banks asking for an early settlement? If yes, why? I thought PM Najib said there is nothing wrong with 1MDB. Maybe he should just explain it to those foreign banks. Plus its assets are more liabilities. The foreign banks should take comfort in this. Why do they want to ask for early settlement?

I don't understand. Hope someone can clarify this.

Obesedogdotorg said...

Someone says jump.

Din replies, "how high sir?"

and to think that all the money that is bandied around, could have gone straight into the government's coffer if not for some amateur shuffling by the dumbest pm of all.

Dr Kasim said...

Rocky.
It a con job by 1MDB and IPIC or Abu Dhabi Arab.

1MDB had to pay IPIC US$939 million to buy back the put option they issue to IPIC.They borrow the money from a consortium of bank led by Deith Bank..Bulk of the money come from Abu Dhabi Commecial bank.
Now the Arab give back US$ 939 million they receive to help 1MDB repay the loan.In return they have to surrender something to Abu Dhabi in a binding agreement.

Husni also mention that next year Abu Dhabi will give another US$16 billion to 1MDB to help them repay the loan.
Now Husni confirm that US$ 17 billion disapper from 1MDB.($1billion they paiy in June and balance US$16 billion next year)
This is what Tun Mahathir had been asking "where the US$ 17 billion disappear.
I am sure when the Abu Dhabi pay anorher US$16 billion next year they will be given something in return.
Maybe a shares in TRX land and Bandar Malaysia land and Power plant.

We want to know from Najib and 1MDB wgere the US $ 17 billion gone to.

Anonymous said...

Helo bro..for once in ur life use your brains..try to b objective ..no one loans a billion us dollars to a company that has problems paying their debts..Ipic n aabar..doesn't this sound familiar to u..it's the same shitty companies that caused 1mdb to be in debt..crap that billion dollar probably came from the money they siphoned out in the first place.If u care to b transparent for once..tell us the terms of the 1billion loan....and as for trx n bandar Malaysia ..it's rightfully money belonging to the Rakyat that the government lost billions of dollars selling to 1mdb!!! Tolong lah pakai otak udang awak to blogger2 prepaid, underpaid ..I can understand that ur support brings in money..but try to remember..cari lah rezeki yang halal untuk suap anak bini..sampai bila lah nak buat kerja haram jadah ni..have a conscience..say it as it is..somebody made off with a lot of billions in 1mdb..tak kan lah masih nak berpura2 tak tahu siapa!?this is not about any political affiliations, it's about the future of our country and our children and grandchildren.

Anonymous said...

Bsi, a so-called scandal? Are you sure? Or thats what Kanda and Stadlen told you last night? Ambrin still auditing bro

flyer168 said...

"1MDB: Turning the corner (with a little help from our Arab friends)"

Salam Dato' Rocky,

In this Rothschild controlled Global World of Business & Politics (NWO), "Nothing happens by Accident"...

Rather it is all by DESIGN executed by well Trained & Groomed Rothschild's Global PAWNs/Economic Hit Men on assignments to create Global DEBTs in Third world Kleptocratic nations...(GREED...TRAPPED them into the SCAMS!!!)

Just to share this...

"...Swiss Bank BSI will pay a $211 million penalty after acknowledging it helped clients create sham identities to evade US taxes, the Justice Department announced Monday.

BSI employed myriad schemes to facilitate tax evasion, such as creating false-front corporations and trusts to hide money.

BSI had more than 3,000 active accounts secretly tied to US taxpayers after 2008, many of which it knew were not disclosed to US authorities, Justice said..."

30 March 2015 - http://www.dailymail.co.uk/wires/afp/article-3018555/Swiss-bank-BSI-fined-211-mn-US-tax-evasion-case.html

IPIC & Abu Dhabi Commecial Bank - "Khadem Al-Qubaisi"

Apr 20 2015 - http://www.sovereignwealthcenter.com/Article/3446139/IPIC-Governance-in-the-Spotlight.html#.VWobaUazRpg

http://www.ft.com/intl/cms/s/0/daa1d42e-ddf3-11e4-8d14-00144feab7de.html#axzz3bZg3hEIy

"...In fact, the documents seen by Euromoney reveal that the nature of Mansour’s investment was much more complicated than the drafting error revealed, involving a series of shelf companies called PCP Gulf Invest 1, 2 and 3 first set up in Staveley’s name and that of her partner at PCP, Craig Eadie, that were then transferred into Abu Dhabi’s beneficial ownership. But not in Mansour’s name.

The transfer was into the private company of his close colleague, "Khadem Al-Qubaisi", the managing director of Ipic and one of the most prominent businessmen in the Gulf."

http://www.euromoney.com/Article/3198637/Revealed-The-truth-about-Barclays-and-the-Abu-Dhabi-investment.html?copyrightInfo=true

"...Which brings us back to Amanda Staveley, a Yorkshire landowner’s daughter who made a fortune in the City before moving her somewhat secretive business’s headquarters to Dubai in the early 2000s.

She went into business with Mellor in 2008, at the height of the financial crisis, when Barclays Bank was teetering on the brink of collapse and required an injection of around £7 billion.

The former politician, with his contacts in the Arab world, was seen as a perfect fit in Staveley’s efforts to find a source for that cash in the Middle East.

Documents detailing their collaboration, which I obtained this week, show how Mellor — whose business cards were printed in Arabic and English — helped her to orchestrate a deal which saw £3.5 billion provided by Sheikh Mansour Bin Zayed Al Nahyan, of the Abu Dhabi royal family..."

http://www.dailymail.co.uk/news/article-2862965/How-grasping-Mellor-millions-Hectoring-emails-vicious-court-cases-failed-companies-lucrative-deals-Arabs-spectacular-falling-Prince-Andrew-s-glamorous-ex-Amanda-Staveley.html#ixzz3beikVJtC

Finally to share this...

March 16, 2015 - https://mocsarawak.wordpress.com/2015/03/16/why-did-jho-lows-company-good-star-pay-aabars-top-executive-khadem-al-qubaisi-usd20-75-million/

Jho Low - "How PM 'agreed' plans to make USD500M (“Minimum”) profit from insider deal against CIMB/Maybank"...

You be the judge.

flyer168 said...

"1MDB: Turning the corner (with a little help from our Arab friends)"

Salam Dato' Rocky,

It's hard for many of us to grasp the concept one million dollars, let alone one billion, one trillion or even the amount of our current debt...

Also to add this...

Here’re 14 Crazy Facts How Huge (1MDB) RM42 Billion Debt Is - http://www.financetwitter.com/2015/05/here-are-fourteen-crazy-facts-how-huge-1mdb-rm42-billion-debt-is.html

March 11, 2015 - Najib: Malaysia's external debt tripled to RM740bil due to 'new loan definitions' - http://www.thestar.com.my/News/Nation/2015/03/11/Najib-Msian-debt-triple-definitions/

At RM1 repayment per sec...

RM1 Billion will take 32 YEARS to pay off...!!!

What Can You Buy With $1 Billion? - https://www.youtube.com/watch?v=dMJM0b-WALM

So just calculate RM42 Billion & RM740 Billion repayment x 32 years will take...!

RM1.0 Trillion repayment will take 31,688 YEARS...!

How much is 1 trillion dollars? - https://www.youtube.com/watch?v=IAZy75RKb84

What could you buy for 1 trillion dollars? - https://www.youtube.com/watch?v=fKoscGcSr-U

Why the National Debt Cannot Be Paid Off - https://www.youtube.com/watch?v=rQL_4UJVctE

You be the judge.

charleskiwi said...

The shambles that are facing Malaysia, really the present and past schmucks in Umno, are just beginning to reveal the magnitude of what went wrong. If one is to add up the billions of ringgits the past and present Umno thieves have stolen and hidden abroad must be in the trillions. The amount would have easily lifted not only the poor Malays out of the poverty that have been in all these while which is what the aim is.
This is what they say you are not only helping these thieves from stealing but you are now also helping them count their stolen wealths. A wealth that is so gigantic that you need a computer to add them all up before you know what the totals are. An end result the repugnant and avaricious half breed and the turncoat Najib never thought it would happen.
I will personally donate, with a bank guarantee a hundred thousand ringgit, to engage an internal organization to track down the hidden fortune of the 'chap chong'. This is just only a starter and promise that more will be donated if and when it becomes necessary. In fact a lot more just to recover the stolen wealth of this shenanigan. I am beginning to rejoice such a commendable initiate, it is surely a long overdue one. Please don't let this initiate to become a 'talkable' proposal but one that would give the richest man in Asia many and I mean many sleepless nights. I hope and pray that the half breed will remain in this world long enough for the trace to reveal to the people what a real thief he is. Most of all please will Najib ensure that all the exits out of Malaysia are shut immediately to impede the richest man of Asia from leaving the country before the trace is completed.
Please remember this half breed is very crafty and as such he would have even the back lanes leading to his hidden fortune very well closed. He started this and let the end results be his also.
For once I feel very delighted that finally someone is allowing me, not just me, but I am sure millions of others too, to see the light at the end of the tunnel. Let Allah be praised for this to take place.

Anonymous said...

I am so dissapointed in you, Mr RockyBru. Reading what you just wrote.."all problems gone"...wow! That does not answer ANY of the questions posed on 1MDB. Someone stealing the people's money and then getting another foreign entity to "give" the same amount of money does not negate the theiving process. This only perpetuates the problem...it just means that now they are obliged to another. Najib has to go. And all of Najib's supporters bringing Tun down, with the latest offering RM1 million for info on his corrupt practices...how low can one go? It seems with Najib and gang, very low. The more you attack and not answer, the more it confirms that Najib and gang are liars and thieves. If this persists, BN will lose the next election. And to think, my family and I WERE hard ore BN supporters. Najib...just go away!

Anonymous said...

Common lah Rocky! Looks like all your talk about integrity bla bla bla is being clouded by RM. What a shame... You are just as corrupted as the UMNO fella's!

charleskiwi said...

This fight between the repugnant and avaricious half breed Mahathir and the turncoat Najib might very well turn out to be what will send Malaysia to the poor house. Already the country is in deficit and now it i pawning, selling or giving away national assets that will never be recovered. Also we are struggling to come out of the third world and the leaders are lying to the people that Malaysia will come out of the third world and into the first world in five years from now. We are presently being rated so badly in every field that there is no way that even in ten years' time Malaysia will be in the first world, stop lying and face the truth, all the scums in Umno.
You all have 58 years in Putrajaya to deliver the many promises you made to the people, all you can now show are the bridges of Penang, the twin tower of Petronas, the international airport and the smart tunnel and so on and so forth. All these mega projects don't take the country into the first world, they are only testimonies of the mega commissions that went with them to made the half breed to become the richest man in Asia or even in the world.
Most of all daily more and more dirty skeletons hidden in the closet are being revealed to the world to see. This fight is doing the public a big favour, without it none of these corruptions that went on for so many years will never be exposed. Therefore just keep fighting and fighting the show must never ends and it will only end when the country is run by some other political party other than Umno.

Anonymous said...

rocky, i feel sorry for you. nak menegakkan benang basah.

removing the body AFTER a murder does not make the perpetrators innocent, bro.

itu yang Tun tanya tu. tak berjawab lagi.

therefore we repeat : where has the money gone ?

Anonymous said...

Rocky,

Why do you think this Arab would want to give money to a party that even government friendly bankers like Maybank would not want to touch? To save Malaysians? Think Rocky think...think hard ok

flyer168 said...

"1MDB: Turning the corner (with a little help from our Arab friends)"

Salam Dato' Rocky,

In conclusion to share this...

"...Nevertheless, one has to admit Jho Low is a genius, single-handedly conned the old fox and seasoned politician former chief minister of Sarawak, Abdul Taib Mahmud of his fortune.

If Taib was just an ordinary tycoon without the political strings, we bet our last penny that Mr Low Taek Jho wouldn’t have much problem cleaning up billionaire Taib Mahmud’s coffer, every single penny of them..."

Mar 08 2015 - 1MDB Scandal – An Ali-Baba “Scam” Partnership Goes Bust - http://www.financetwitter.com/2015/03/1mdb-scandal-an-ali-baba-scam-partnership-goes-bust.html

Also to share this...

Same Modus Operandi...

Oct 1, 2011 – Banana Republic of Iceland - https://www.youtube.com/watch?v=qI5fcAhUQVo

Jul 29, 2012 - Ministers, Bankers Arrested - https://www.youtube.com/watch?v=dmOZ3jtGtCc

Jan 26, 2013 - Let Banks Go Bankrupt - https://www.youtube.com/watch?v=DDexDNn6vSM

Jul 22, 2012 - The man who changed Iceland - https://www.youtube.com/watch?v=YH0_JQW--gc

Jan 28, 2012 - The 12 Year Old Girl Who Silenced the World for 6 Minutes - https://www.youtube.com/watch?v=eVsCnk1b5qc

Jul 21, 2009 - Alan Grayson: "Which Foreigners Got the Fed's $500,000,000,000?" Bernanke: "I Don't Know." - https://www.youtube.com/watch?v=n0NYBTkE1yQ

Feb 10, 2010 - Rep. Alan Grayson: $12 Trillion Gone and No One Punished - https://www.youtube.com/watch?v=gXhuaTfjTYM

May 13, 2012 - $9,000,000,000,000 MISSING From The Federal Reserve SHOCKING FOOTAGE - https://www.youtube.com/watch?v=1QK4bblyfsc&feature=youtu.be

Well organized criminal group we call mafia, the best organized mafia, we call the government...!

You be the judge.

devilmaycare said...

what a brilliant game najib played. I must say the years of experience in Malaysian policies has made him perfect the art of the bail-out. in fact he has redefined it. to make it look like he was pressured to do so by someone like mahathir no less, was master class now all Malay businessmen can only sit back and watch as them foreigners come into the country. well at least cina take dapatkan. bodoh files rakyat Malaysia in. all of us pawns in a game.

Anonymous said...

Congrat Dato
Main reverse saikoloji. Cunning.