Tag: 1MDB

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Companies And Debts

I’m again sharing this with you:

1MDB:
Jumlah Hutang: RM42 Billion
Jumlah Aset: RM50 Billion

CIMB:
Jumlah Hutang: RM398 Billion
Jumlah Aset: RM438 Billion

Tenaga Nasional Berhad:
Jumlah Hutang: RM66 Billion
Jumlah Aset: RM113 Billion

Sime Darby:
Jumlah Hutang: RM29 Billion
Jumlah Aset: RM59 Billion

Gamuda:
Jumlah Hutang: RM5 Billion
Jumlah Aset: RM11 Billion

Malakoff:
Jumlah Hutang: RM25 Billion
Jumlah Aset: RM29 Billion

IJM:
Jumlah Hutang: RM9 Billion
Jumlah Aset: RM19 Billion

About RM8b of the RM42b debt by 1MDB was inherited when 1MDB took over all those IPPs.

These RM8b are also project financing for the IPP and covered by the IPPs cash flow.

I guess many have forgotten the facts above.

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1MDB, IPP et al

I find this a must-share:

Eol Zari
1MDB : A PERSONAL VIEW

E. Zari 18 May 2015.

In the past, I have not said much about the controversial issue surrounding 1MDB. Why 1MDB? What are the roles of 1MDB and its contributions to our national economy? I have been keeping this information to myself for sometimes as I feel it may not be the right time to share with my esteemed readers. However, today I was taken by the information transmitted to me by my close friend. This piece of information is similar to the one which I have been keeping all this while.

I am convinced that this is a non-biased piece of information. Being a LNG Consultant and in the course of my works, I have the opportunity to interact with PETRONAS, TNB, TNB Fuel, PEMANDU, Energy Commission and other known organizations for nearly 3 years from 2011. I help to educate the personnel from PEMANDU, TNB, Energy Commission on the new source of energy – Liquefied Natural Gas as a feed for the power plants and city gas.

My area of specialization is energy. I was once a principal specialist in LNG shipping operations in PETRONAS. I have spent 35 years of my career in this field. Energy is the life blood for infrastructures development and this is a major ingredient for our country in achieving economic progress to become a developed nation.

I leave it to my esteemed readers to interpret on what I have outlined. After all we are human and I expect each and every one of us to have their own views.

Back in 1990s, Malaysia introduced the concept of Independent Power Plant (IPP) for electricity generation. This initiative was under our former Prime Minister, Tun Mahathir. The main players who owned the IPPs were Tan Sri Syed Mokhtar, YTL group, Genting and Anand Krishnan. Sime Darby was also one of them but being a Government linked company not much attention was given. These players got the most attractive deal and it was a one sided. The former chairman of TNB, the late Tan Sri Ani Arope, a man of integrity refused to sign the agreements and he voluntarily resigned in protest.

The opposition parties took the Government to task for granting a one sided deal. They argued that it was a “crony’s agreement” and questioned the needs for the Government to grant substantial subsidy to the IPPs. Even in May 2011, one of the opposition members regarded these IPPs as “a major drug factory” that required substantial subsidy from the Government of estimated RM19 billion a year.

In the mid-2011, I was taken as a LNG Consultant to look into the possibility of importing LNG through the Malacca Regas Terminal at Sungei Udang. This terminal is an open gate similar to the one I used to do in United Kingdom – the Dragon LNG Regas Terminal located at Milford Haven in Wales. The Sungei Udang’s LNG Regas Terminal is owned by PETRONAS and the imported LNG is vaporized as gas to flow into the PGU pipelines. This is in view of the insufficient domestic gas from the East Coast of about 950 mmscfd. TNB requires about 1350 mmscfd. The capacity of Sungei Udang is about 500mmscfd or equivalent to about 40 cargoes of imported LNG via the Q Flex LNG ship of capacity 210,000 m3 each.

Actually, I am humble to note that the concept of the floating LNG storage using two of our old LNG ships with an island jetty, the first in the world was mooted by me to the CEO of PETRONAS Gas the ownership of this project. This idea came by while discussing with him in the car on the way to Narita Airport from Tokyo. With this idea, PETRONAS saved for not doing the dredging and a greenfield shore LNG storage which costs would be very substantial.

As a result of the marked disparity between imported LNG and domestic gas price, TNB who earned a thin margin from the IPPs was not able to absorb this disparity in prices and therefore was not able to buy the gas from the imported LNG directly. Ultimately, PETRONAS has to be the importer and therefore a subsidizer.

Under PM Najib, a company, My Power was formed by the Government to initiate renegotiation with the IPPs for a balanced deal. Thereafter, 1MDB purchased the IPP from Ananda in March 2012 and followed by the purchase of Genting in August 2012. Subsequently, in October 2012, Energy Commission announced the decision on the concessionaries agreement with the IPPs. As outlined in this agreement, there is no further extension of concession for the IPP owned by Ananda and also new concessions for the other three IPPs. Only new concessions are to be given to 1MDB and TNB. This new arrangement will ensure that private companies will not earn excessively at the expense of Government’s subsidy.

As a result of the mistake done since 1990s, for the past 20 years an approximate of about RM100 billion was lost by PETRONAS and TNB because of this inferior deal. Actually, credit should be given to PM Najib, Energy Commission and 1MDB for saving our country from this excessive subsidy granted to these favored companies from the earlier regime. To me credit should be given to whom it is due.

Actually, the rates of tariff for consumers for Peninsular Malaysia should be increased by July 2014 and January 2015 under the Fuel Cost Pass Through (FCPT). But it was never increase because the new revised agreement was improved and was more attractive and balanced to TNB, the final purchaser. Instead, the electricity tariff was reduced from March 2015 due to the reduction of coal prices and the reduction of tariff of these IPPs.

Under this new arrangement, TNB started to register substantial profit from 2013, 2014 and the first quarter of 2015. It records a profit of RM2.3 billion in the first 3 months of 2015. Therefore, with this revised arrangement the benefactors are:

1. TNB registers higher profit,

2. The Malaysian consumers benefit from lower tariff partly due to the reduction of oil prices.

3. PETRONAS will not have to incur higher subsidy which in the past benefit only these private companies, and

4. Consumers of electricity are the ultimate winner.

The losers are the original owners of the IPPs. And this may be the reasons why they are not happy with 1MDB and PM Najib even from the senior members of UMNO.

The issue of Tun Razak Exchange (TRX) and the purchase of land by Tabung Haji is insignificant compared with the amount saved by the revision of the agreement initiated by the present Government.

On the other side of the coin, there are allegations by the oppositions for the misused of fund by 1MDB, the role played by Jholow, the disappearance of proceeds from the Petro Saudi investment and latest the controversial sale of a piece of land of about 1.5 acres for RM188 million to Tabung Haji’s subsidiary. These issues started late last year when 1MDB was not able to raise enough fund to pay their loan installment.

The issue is now further twisted and makes it looked as though 1MDB is losing RM44 billion which is not the case. Actually, 1MDB does not lost RM44 billion. What it lost will be the substantial amount of loan repayments which they have to dig from somewhere because of the reversed operating leverage. Temporarily, their current income is not able to cover the loans and other expenses. However, given time they will be able to reverse this situation. Additionally, because of this bad publicity it is feared that Deutsche Bank may request for early settlement as 1MDB is not able to secure additional collateral. We should refrain from speculating further pending the outcome of the Auditor General’s findings which will be available the latest by end June 2015.

Other personalities including the prominent lawyer and former minister, Zaid Ibrahim commented that as the Chairman of 1MDB, Najib should stand up and face this by responding to the allegations. The Chairman of CIMB, who is Najib’s younger brother, during the luncheon meeting also asserted that the Chairman of the Board and its members of 1MDB to do the same.
Continue reading “1MDB, IPP et al”

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Let Sleeping Dogs Lie

My father is 76 this year. He is still as sharp as ever. He only learnt to use a smartphone about a year ago after the passing of my late brother. He relied much on his trusted Nokia mobile phone until that got spoilt. He now sends and forwards Whatsapp messages to his children and grandchildren. Previously they were all sent as SMS. Of course, some of the messages he forwarded to us make me cringe as they were either older than the age of his smartphone, or unauthenticated; something you would not see if this was 21 years ago when he was still the IGP that he was for 20 years.

Having been the IGP for 20 years means that his opinions, in law and order as well as public moral and safety, count. This he continues to speak out at public forums. When he does so, he would relate it to the history of this nation most would have forgotten, or never experienced. He does so without interfering with or meddling into how the current leadership of the Royal Malaysian Police manages the force, and law and order. He knows his place – he was the IGP. He no longer is one.

I, too, find that as I age, I grow more sensitive. There are times when I wish I am still wearing my uniform. There are times when I wish that the Air Force still runs on the same tradition and system as those times when I was a serving officer. I meet up with veterans from other services as well, and just yesterday I was with a former army commando talking about old times. He keeps talking about “how it was then, as compared to how it is now” something I am also inclined to do.  However, I smiled at him and said, “times have changed. This is the present generation’s time.” I do engage former colleagues and squad mates who are still serving. I give ideas when asked, but always remind myself that I am no longer part of that life I sorely miss.

Tun Dr Mahathir was a towering statesman. For 22 years he managed this country with an iron fist along the line of his favourite Sinatra song, “My Way.” My way or the highway was his style. It was his style that propelled this beloved nation to where it is now. For all the good that he had done, many remember that his ways were often brash and snubbed many people in and out of this country that former Prime Minister of Australia, Paul John Keating, branded Mahathir an incalcitrant.

When Dr Mahathir was at the helm, there were dozens of accusations made against him. From bailouts to cronyism to interference in the independence of the judiciary to name just a few.  Of course when the Bumiputra Malaysia Finance Ltd bailout happened and its auditor got murdered, many of those who cry out against bailouts today were still in diapers. When Perwaja steel was bailed out, the Internet in Malaysia was still in its infancy, hence never received the same level of amplification that the recent “bailouts” have seen.  It was a time when UMNO cohorts thumped their chest and said, “UMNO and the government are one.” I don’t have to dwell on this as Tunku Abdul Aziz and numerous blogs have covered these “abuse of power.”

I don’t care for those in the opposition because it is their job to criticize come what may, but it is those in UMNO who are now taking the same line as the opposition. When the judiciary came under attack for not coming up with a verdict that favoured Anwar Ibrahim, UMNO members were quick to defend the judiciary, or any other government agency for that matter, the Audito-General’s office included.  Now, they too say that the audit report by the Auditor-General may not be transparent or not impartial.

Why the about turn now? Why the change in behaviour from UMNO to becoming the opposition? Why the incessant attack regardless of whatever explanation is offered? Isn’t this the very same opposition method that these same UMNO people criticized and ridiculed? How can public attacks on UMNO’s President be beneficial to UMNO if it means adding friendly fuel to the opposition’s fire?

Of course, now is about now and how best we move forward from here. Calls for Najib Razak to step down have not been accompanied by who should succeed and who should succeed next after the successor. The business continuity plan just isn’t there.  Even Dr Mahathir has stated that he doesn’t know who should lead the nation should Najib step down. So should we continue with this onslaught on Najib?

Dr Mahathir is whom I would describe as a once-in-a-lifetime leader. There is no doubt that I will never live to see another great leader such as he. Sharp, witty, acid-tongued, sarcastic to the point that the west has this love-hate relationship when it comes to Mahathir. I love the legacy he has built for us all, but now I am beginning to have my doubts about the relevance of his spoken facts. It was still okay when in the beginning he asked about 1MDB. However, when he raised the issue of Altantuya not only was he underscoring the opposition’s stand that the judiciary is not impartial, but his act was in contempt of a court decision. Is that the case that he is putting forth? The straw that broke the camel of my respect’s back was the announcement he made on the resignation of the Speaker of the Dewan Rakyat. In my eyes the pre-emptive announcement was a low blow. It would have been alright had such an announcement been made AFTER the fact that a resignation had indeed taken place.

How different is that than Anwar’s 16th September 2008 announcement of having the numbers to form a government?  The funny part is, the announcement was spun by pro-Mahathir people as “the trump card of all announcements.”!

Sometimes I wonder if it is the people around Dr Mahathir, especially those in want of something out of all this or just in want of a raison d’etre, who keep prodding the 90-year old to continue attacking Najib? Why are they taking advantage of an old man? Why use him as a shield? Is there no shame in that? That goes to the pro-Najib people too! Why make matters worse by attacking Dr Mahathir and family? Why are you bringing yourselves down to the pro-Mahathir level if you find their methods despicable?

I just wish they would stop the quarrel and leave Najib and the old man and his legacy alone.

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Tabung Haji Buys 1MDB Land

I look at the above issue from a layman’s point of view. A slightly different layman that is. When I saw the headlines that discussed this issue I asked myself, “What the heck? Tabung Haji has lots of investments and has invested in many things other than the 1MDB land at the Tun Razak Exchange (TRX).  How the 1MDB acquired the land, at what price whatsoever to me should be left aside as that is not the crux of the matter.  The question now is of Tabung Haji’s decision to acquire the land.

Firstly it was reported that Tabung Haji, or TH, had acquired two pieces of land at the TRX for a hefty sum of RM772 million.  Initially, the Chairman of TH, Abdul Azeez Abdul Rahim denied such a deal was made.  A day later the CEO of TH, Johan Abdullah, admitted that only one parcel was purchased at RM188.5 million, not two as reported.  So, TH has bought another piece of land which I assume was done through one of its subsidiaries.  It doesn’t really matter to me if it wasn’t.  Under Section 4(1) of the Tabung Haji Act, 1995 the Board of Directors of TH has the authority to manage the funds including to come out with policies regarding the managing of funds and pilgrims affairs. The question that should be asked here is if the decision to acquire that parcel of land was the correct decision?

TH, I believe like other corporations would, has a set of process that needs to be satisfied before an investment is allowed to be made. There would have to have a department that looks at potential investments or purchases to be made.  They would have to put up a paper and work hand-in-hand with a risk management department that would identify and analyse the risks involve.  The paper would then have to be submitted to a valuation panel before being escalated to an investment panel, while the risk assessment would have to be forwarded to a risk management committee.  The investment panel, upon being satisfied with the investment valuation will then escalate the paper up to the board of directors who in turn will be advised by the risk assessment committee before a go-no go decision is made.  However, TH being a pilgrims fund board, might have to seek the approval of a minister under whose purview it comes under.

I am not in the business of defending anyone. TH’s Investments Panel consists of seven persons including a Chairman, and a representative of the Bank Negara or a professional from the finance sector. If it had gone through the processes and had satisfied all the requirements, then why not? Why are we making such big fuss about the purchase? Would we have batted an eyelid had it been purchased from Phuying Gersang Sdn Bhd?

If you believe there are irregularities in the acquisition process, go ahead and make a police report so the authorities could step in and investigate the matter. There is no point harping on issues that had due process done and help stir things up over nothing if you don’t have evidence of wrongdoings.

Perhaps you scream foul because Azeez screwed up in his denial, or because it was made by Azeez who is said to be closely linked to Rosmah.  But that does not prove anything wrong, does it?

It is a shame that the Opposition is trying to stir shit over something that to a layman like me is not a big issue. It is an even bigger shame that some BN supporters help the Opposition members to stir the same shit.

Like I said. I am not in the business of defending anyone. I just don’t like shit-stirrers.

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Survey: Najib, Mahathir and the 1MDB

I created a survey last week just to find out what people think of the Najib-Mahathir spat regarding the 1MDB affair. The following are the results:

Q1: How do you perceive the 1MDB as?

58% said that it is a scheme that will bring trouble to us all

41% said that it is a good scheme that is badly executed

1% said that 1MDB would benefit the rakyat

Q2: Did Najib asnwer all Dr M’s questions?

79% said NO

20% said SOME

1% said YES

Q3: Does Dr M have the right to question Najib?

97% said YES

3% said NO

Q4: What should Najib do regarding the 1MDB?

52% said he should step down

27% said he should step aside while investigation is being conducted

5% said he should disregard all criticisms and carry on

17% did not agree with any of the above

Q5: Would BN lose more seats in the next general elections because of 1MDB?

70% agreed absolutely

23% somewhat agreed

6% said BN would remain with the same number of seats

1% said BN would gain more seats

Q6: Whom would you support?

95% Dr M

5% Najib

Q7: 1MDB would:

52 % said drag the nation down

47% said benefit only those with interest in 1MDB

1% said benefit the country

The Respondents:

37% of the respondents are aged between 36 to 45;  31% are aged between 46 to 60; 29% are between 21 and 35; 5% are 61 and above.

Demography:

39% of the respondents are from Selangor

30% are from Kuala Lumpur

5% each from Sarawak and Johor

4% are Malaysians living abroad

3% each from Perak, Putrajaya and Pulau Pinang

2% each from Kedah and Pahang

1% each from Melaka, Kelantan, Terengganu, Sabah, Negeri Sembilan and Perlis

Labuan did not register any response

The Overseas Respondents:

Of the 4% Malaysians living abroad:

 36% are currently in the United States of America

23% are currently in Singapore

4.5% each from Saudi Arabia, New Zealand, Australia, United Kingdom, France, Indonesia and the Republic of Korea

9.5% took the survey from unknown locations 

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The Final Curtain?

Another former Minister has spoken out at Najib Razak’s apparent use of Anwar Ibrahim to attack his opponents. Former Minister, Sanusi Junid, has hinted that if Najib does not step down now, UMNO and BN will suffer.

Anwar, who has been in TV3’s bad books, and who also issued a general ban on broadcast journalists from that station to cover any of his or PKR’s events, has been given full attention by the station to lambast Najib’s opponents within UMNO.

Najib, who took over the helm of both UMNO and BN from a weak predecessor, is seen by the public as a weaker Prime Minister. That the BN fared as bad as or worse than GE12 in the last general elections says a lot about his leadership. While he does try to have a hands-on approach on many things which is good, his policies and decisions made seem to lack any prior thoughts, begging the public to ask if it is really Najib’s consultants who do the thinking while Najib just read the scripts and smile or frown as directed.

I, for one, don’t give much thought on the political squabbles. I am more concerned with those who incessantly try to run down the country; but this latest tiff between Najib and his critiques started off with the 1MDB fiasco, and it seems that someone has unearthed the leadership’s Pandora Box.

Who after Najib is none of my concern. Whoever commands majority support of UMNO with the blessing of the component parties in BN should be able to lead. However, the UMNO tradition (budaya) of never to shine before your leader does ought to be done away with. I was told that during the recent floods, although the Deputy Prime Minister was in town while many including the Prime Minister were away shopping or golfing abroad, the former did not act swiftly until instructed to do so. How true this is, I don’t know but if so, it truly is damaging that you cannot decide as a Deputy Prime Minister on behalf of the Prime Minister who was away golfing. “Mana boleh! Ini budaya UMNO!” said the person to my father when asked why did the Deputy Prime Minister not act since the Prime Minister was on holiday abroad.

Najib could easily have called for an impromptu press conference to announce that the DPM was to head the disaster management team while he had to golf with Obama to discuss pressing matters. There was a whole army of foreign press there that he could have used to convey the message to worried Malaysians, but he did not. Was he waiting for his consultants to come up with a script and a set of more acceptable wardrobe?

It was equally bad that (I’m very sure it was his consultants who prepared this line) Najib made only the home and business insurance issue as THE reason for not declaring an emergency in the flood-stricken states. There was a bunch of other stronger reasons that could have been used, but maybe his consultants thought it was best to use the insurance issue as that was more personal for flood victims. Well, it backfired. Miserably! Adding insult to injury, the disaster-relief operation was like a dumbstruck Medusa. Every agency was doing its own thing with no clear command and control until much later. Given that the head of the National Security Council is an administrator rather than a field man, and has had no experience managing disasters, with the Prime Minister being abroad, things did not move as they should have.

Anyway, I have digressed from the issue of Najib’s quarrel with his detractors. But I think Najib’s continuous display of dishing out half-baked policies and display of desperately holding on to the Premiership simply means that he is no Tun Razak, who was brilliant in character and leadership that even political dinosaurs like Lim Kit Siang misses him, and Dyana Samad remembers Tun Razak’s superb leadership although she was still swimming inside her father’s balls when the Tun died.

UMNO needs to evolve and revamp itself in order to stay relevant in the next general elections. But first, it needs a serious change in leadership.

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I Don’t Know What To Say

There is this flurry of signals flying around that factions within UMNO that are aligned to Najib Razak are at war with those pro-Dr Mahathir. Some accuse Dr Mahathir of being behind a movement to topple Najib, while the latter is being accused of using Anwar Ibrahim to hit out at Daim Zainuddin, Dr Mahathir’s long-time confidante.

I don’t really care who is fighting whom; I have stated time and time again in this blog that I was and shall remain a soldier and my loyalty is to my King and Country. However, if the allegations about both parties are true, the next general election will become UMNO’s curtain call.

You see the same thing happening in MIC where supporters of the President and Deputy President are at war, and the dormer President, Samy Vellu, has been dragged into the fray.

I don’t know what to say. But this blog posting from former Chief Editor of Utusan Melayu and former Information Minister, Zainuddin Maidin, paints the chaotic picture of the squabble within UMNO itself.

It is in Malay. Malaysians should be able to read and understand the post. Only non-Malaysians would need Google translate for this:

Salam Terakhir Zam Kepada Penulisan Politik