1MDB to be stripped and sold
KUALA LUMPUR: Malaysia's indebted and controversy-ridden state investor 1MDB will be left as a skeletal structure and possibly dissolved under a debt repayment plan in which most of its assets will be sold, sources with direct knowledge of the matter told Reuters.
The power and property fund, a pet project of Prime Minister Najib Razak with assets worth US$14 billion, was hit by losses last year and nearly defaulted on a loan payment. The near-miss drove down the ringgit currency and Malaysian government bonds and prompted calls from opposition leaders to make the fund's accounts more transparent.
The state fund's 42 billion ringgit (US$11.6 billion) debt includes a US$3 billion bond sale in 2013 that was one of the largest global issues from Southeast Asia.
Under the aggressive restructuring plan, crafted by new boss Arul Kanda and blessed by the government, the fund will sell 80 percent of its power unit Edra Energy via a stock market listing, three sources with direct knowledge of the situation told Reuters.
More than 18 billion ringgit of 1MDB's debt linked to its power assets would go under Edra Energy ahead of the listing, which is due to be kickstarted in 6-9 months time, the sources said.
The fund, which has Najib as chairman of its advisory board, will also sell the bulk of its land assets and stakes in two high-profile property projects, Tun Razak Exchange (TRX) and Bandar Malaysia, after splitting them into separate entities, as already partially indicated in a strategic review unveiled last month.
The Finance Ministry, which is headed by Najib and is the sole owner of 1MDB, did not respond to a request for comment. - Singapore's CNA has the Reuters article.
I hope the Auditor General starts hiring forensic accountants and other relevant experts to audit 1MDB before the horse bolts. The above report, served just a day after Cabinet decided to call in the Auditor General and the Public Accounts Committee to vet 1MDB's accounts, is certainly interesting to note.
The Prime Minister himself has assured that the law will take its course if there are any wrongdoings.
Both the Cabinet decision and Najib's assurance are moves in the right direction but Reuters basically says 1MDB will be stripped and sold, including those vast pieces of Government-owned land. Really?
If the 'stripping and selling' is indeed true, it could be some sort of a desperate recovery plan. I don't quite understand a recovery by selling government land (we shall leave it for another day).
But is it the end of the story? Why sell if your critics are just a bunch of lunatics who don't understand finance?
p/s I'm sure 1MDB would issue a quick rebuttal if the Reuters news is not true.
10 comments:
Amok is very experienced in asset unbundling. He'll hire a few consultants, pay them hundreds of millions and get them to sell our assets. if consultants can't sell Khazana is a ready buyer. Boleh direct nego
Sell to whom? The highest bidder? What jerks eh apanama? They take us for fools. Someone once told me that in myanmmar, a revolution could start because of a cow so imagine if they had to digest 1mdb. Delegation has begun. Kita instead of aku and bersama instead of sendiri. Najib the clown on stage doing what he does best, making an ass of himself. Is this the beginning of the end for this clown and his circus or is this the beginning of the end for our sovereignity? He gambled with cash that werent his and he gambled on the now borrowed from the future gens. The clown has lost it all
"Both the Cabinet decision and Najib's assurance are moves in the right direction but Reuters basically says 1MDB will be stripped and sold, including those vast pieces of Government-owned land. Really?"
This already overinflated, overvalued bubble of nothingness will have one, final, overpriced mark-up.
Someone will make millions on the side.
And as usual, the rakyat have been played for fools.
"The Prime Minister himself has assured that the law will take its course if there are any wrongdoings."
Ah Jib Gor! Pls be reminded that you are the finance minister and 1MDB is your own malformed baby with Joe Low - so take the law into your own hands lah. Give us a break man.
Kite kena kencing hidup2... Lepas tu kena tanggung lak hasil judian pee emm ni... Last2 kte papa, dia kenyang ke cucu cicit... Ini je la permainan politik di Malaysia... Kencing rakyat dia... Kena kritik, saman / jailkan org2 yg kritik... Mcm mana... Saban hari saban meningkat kos sara hidup... Meningkat cukai sana sini... Inflasi sara hidup saban tahun lebih tinggi dari inflasi gaji... Kekayaan kerajaan habis dijudikan & diagih2kan sesama network dorg... Lepas tu tekan lg rakyat... X cukup dgn income kerajaan, dijudikannya lg hutang piutang(defisit) yg mana dipaku balik ke rakyat... Lps tu disuruh kte bersyukur... Fuh. Dahsyat...
re: "The Prime Minister himself has assured that the law will take its course if there are any wrongdoings."
But man, youre the finance chief and the sovereign wealth fund is your own baby right from the start with your pal Joe Low.... hmmm?
Reuters often have "inside information". They operate behind enemy lines during World War II, gathered intelligence and spied for the Allied forces. What was important for strategy and battle tactics remained secret information, what was not were reported as news.
But one wonders how much and for how long 1MDB Arul would be engaging the critics like he did DAP Tony Pua recently.
#arrestjholow&lilinseet
Precisely the point.
What national interest are we serving if all reduced to nothing?
What will be the quality of the audit and legal procedures if own our righteousness, wealth, rottenness has been progressively turning left and right instead of staying on the path over the years?
Salam. Esok lusa ketua umno bhg akan berjumpa dgn PM. Sy minta mereka jgn lupa ucap terima kasih kpd ananda krishnan yg membantu 1mdb. Walaupun melayu kena minta tolong seorang India, kita jgn lupa berbahasa. Ucap terima kasih pd ananda. OK
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