|Bandar Malaysia will make not only Johor rich|
KL, Tues 5 Jan:
One ex-Minister making such a din about 1MDB "selling out" to China amuses me to no end. The ex-Minister refused to even listen to any explanation that the parties involved in the Bandar Malaysia deal. "No need to clarify, 1MDB has sold us out!" the ex Minister exclaimed. "The nation has lost billions!"
Has the nation, now?
This is the problem with most of the oppoents of the 1MDB, from YB Tony Pua to Perkasa chief Ibrahim Ali. They ask questions but don't want answers. They will believe only if the answer confirms their claims and supports their allegations and results in one man - PM Najib Razak - quitting his post. The deal on Bandar Malaysia is between 1MDB and a China--Malaysia consortium but they insist that Arul Kanda has sold us out to the Chinese.
Aiyah. Doesn't sound so rational to me.
In any case, here's 1MDB's latest explanation about the latest ruckus over the deal on Bandar Malaysia:
Clarification on Bandar Malaysia1MDB notes that certain quarters have attacked the RM7.41 billion land sale valuation contained in a recent announcement on the successful Share Sale and Purchase Agreement executed with the IWH-CREC Consortium for 1MDB to sell 60% of the equity in the Bandar Malaysia project. These appear to be last ditch attempts by members of the opposition to undermine the company's rationalisation process.The valuation contained in the announcement made by CREC to HKEx refers not to the land sale valuation, but instead to their estimated share of the net equity value of the Bandar Malaysia project, based on certain assumptions, which are subject to further negotiations during the Completion period between January and June 2016. The starting point of any net equity value calculation, is the land sale valuation of RM12.35 billion, of which the Consortium’s 60% share equates to RM7.41 billion. This is the basis upon which the 10% deposit of RM741 million has been calculated and agreed upon by all parties.During the Completion period, adjustments may be made to the RM7.41 billion land sale valuation, depending on whether or not certain Bandar Malaysia related liabilities can be passed to the Consortium e.g. the remainder contract costs for relocation of the existing facilities and the Bandar Malaysia sukuk debt. The agreement executed between the parties on 31 December 2015 provides for a robust and objective mechanism to determine, amongst others, these matters, which all parties have committed to.1MDB is focused now on taking the necessary steps and to procure the relevant consents in order to implement the legally binding agreements executed in 2015 for the sale of Edra, the debt for asset swap with IPIC and the sale of 60% equity in the Bandar Malaysia project. We intend to issue further updates on this in due course.
p.s. What the ex-Minister should do is ask the Johor Menteri Besar why he's so excited about the Bandar Malaysia deal. If Khalid Mohd doesn't want to layan him, go seek an audience with the Sultan of Johor. You think Tuanku Yem will allow a Johor party to get involved if the deal amounts to selling out the nation? Bandar Malaysia to make Johor rich, The STAR 4 Jan