1MDB desperate, Najib more so

umar mukhtar

Umar Mukhtar

The TH-1MDB rushed land transaction was a clear sign of 1MDB’s desperation in its scramble to pay its creditors. Why are its interest obligations beyond its means? Wasn’t there any buffer and provisions for interest payments? There were, but the money is missing. Stolen perhaps, and that upsets all the conventional financial planning.

Also, there was supposed to be operating capital for proposed revenue-generating activities. But the banks will lend no more because of the shenanigans in 1MDB. They can see stuff that Najib cannot. So fund-raisings had to be cancelled. The energy arm’s initial public offering had been indefinitely postponed and the sukuk for the proposed capital expenditure for the 3b power project was cancelled.

But interests keep piling up. In its desperation, 1MDB resorted to it’s favourite way of raising money. Screw the people – Najib’s government will sanction it with some urging from the Muse. Because of the almost incestuous relationships between the golden boys of Tabung Haji and 1MDB, Tabung Haji was chosen to help raise funds for the coming interest payment.

Use TH depositors’ money to buy some of 1MDB’s land at inflated prices. And PAY NOW. No sensitivity at all to fact that these were the Rakyat’s savings towards a religious pilgrimage. In fact the executives are now actually puzzled by the public outcry That’s what Porches and Ferraris do to your sense of communal reality. Anyway, this is easy business. Rakyat’s money, who cares.

Soon, questions will be asked how much will Tenaga Nasional have to pay 1MDB for its portion of the proposed 3B power project awarded earlier by the government to 1MDB. TNB did bid, but lost to 1MDB.  Surprise, surprise!. Find out how much and find out why TNB as a business entity may agree to take over at a price, giving 1MDB a yummy profit for just sitting on their fat asses.

Chances are TNB, to recover its purchse price may be promised yummy deals to off-set the arm-twisting for TNB to contribute to save 1MDB. Increase in tariffs perhaps? In other words, the profit of sale to be gained by 1MDB will eventually be recovered from the Rakyat.

Rakyat’s money again. Who cares! Lucky the Energy Commission cares and gave 1MDB the middle finger. Hopefully, TNB will take over for free. The project has been delayed because 1MDB could not come up with the equity. 1MDB is under Najib, and yet such a pariah?

So no money, no capital, no projects, no income, no profits, just a pile of debts to pay. If this persist, guess who have to pay up? Our children and grandchildren and great grandchildren.

In Najib’s Malaysia it’s so easy to screw the Rakyat. Use the carrot and the stick and these highly-paid custodial executives will kow-tim. Who speaks for the Rakyat? Apparently, if we are to believe Najib’s spinners, all who do are just pretending to.

Dr Mahathir purportedly has a personal agenda and the opposition just want power. The independent critics like the academics, the government retirees, the NGOs and the bloggers and social activists are just armchair smart-asses with no experience in running a government like Ahmad Maslan and Hassan Malik and Azeeeeez Rahim_

So Najib believes his own lies and the inner circle that was specially chosen for him. And now he gets himself into this hole which he has no idea how to get out of, except screw the Rakyat further. In his desperation, more silly crap will be committed and more desperate he will get to be. Why can’t he depend on his inner circle for meaningful advice? Oh, they were recommended not for their abilities but their vicarious loyalties.

What compels Najib to save 1MDB in spite of the mess it is in? Who ordered Najib not to give up the prime ministership?

The answer are stuff movies are made of – sharmans, eunuchs, courtesans, hangers-on, the jet-setting and viewing of the new year’s sunrises, the lavish glamour parties and functions, the conman and the soft-porn, the raining champagne, the dicey in-laws, the disappearing funds, the diamond rings, the Birkins, the nouve riche syndrome, the ugly expensive hair-do, the submarines, the model, the C4 maybe, the fugitive, the self-exile, the ‘I-love-PM’ crowds, the carpet-seller, the private investigator, the wily old man, and the village idiots (for the comic relief). So much material! The ending is to be written soon by ordinary Malaysians.

‘THE WOLVES OF PUTRAJAYA’. Riza Aziz, care to finance?