How Petronas Was Used As A Bailout Bank

I found this on FMT and this is good especially for those born after 1970 and never knew the man:

Malaysians must never forget that under former prime minister Tun Dr Mahathir there were monetary losses amounting to tens of billions of ringgit unaccounted for, and irretrievable.
These include:
Forex scandal in early 90s : RM30 billion
The Perwaja Steel Scandal : RM10 billion
Bank Bumi scandal: RM10 billion
Maminco-Makuwasa Affair RM1.6 Billion
Mahathir used Petronas as a ‘bank’ to bail out many companies, banks etc.

Opposition politician Syed Husin Ali said, “Petronas has neither been fully transparent nor accountable with how it spends its money, especially in aiding and abetting Tun Mahathir to indulge in unproductive construction of mega projects, to bail out ailing crony companies and corporate figures, and to involve [itself]in excessive and wasteful spending on celebrations and conferences.”

Mahathir used his position to bail out his children or to give them special benefits.

Konsortium Perkapalan
In early 1998, Petronas acquired a debt-laden shipping concern controlled by Mahathir’s eldest son Mirzan Mahathir’s Konsortium Perkapalan for RM 226 million and assumed its debts of more than 324 million, according to Far Eastern Economic Review stating the debt at RM 1.6 billion.
In early November 2012, Petronas Carigali Sdn Bhd reportedly awarded a RM700 million contract to a Sapura-Kencana Petroleum Bhd wholly-owned subsidiary where Mahathir’s son Mokhzani is a vice-chairperson.
Mahathir replied in a sarcastic tone when asked during a press conference whether there was conflict of interest in the deal.

“Yes of course, he (Mokhzani) is given it because I instructed Petronas. Put that in your paper. I presided over everything. I told them, please give to my son and not to anybody else. That’s what I have been doing all the time. When I was the prime minister, everything was given to my children. But when everything goes to the children of the other Prime Minister, you don’t want to mention because he is a nice man. He enables you to read, doesn’t he?” Mahathir said in reply.

Can Mahathir explain and repay all the above losses?
In sharp contrast, 1MDB is facing a cash flow situation but has strong assets.
When president of UMNO, Mahathir introduced a quota system for party elections to ensure he was not challenged. Now he is telling UMNO members to remove the PM.
When he was PM, he was infamous for using the ISA jailing opposition. Can you ever forget Ops Lallang I and II?
Has the current regime done that? No.
Tun Dr Mahathir could never be criticised by anyone, not even Soros. Today, old and filthy rich, he wants to criticize and remove Najib who has silently endured all attacks and is ready to be transparent.
Malaysians seem to have forgotten how ‘wonderful’ Malaysia was under TDM and are sharpening claws to attack Najib whom, thanks to the TDM media psywar, is perceived as the bad guy when actually the worst villain ever to have walked Malaysia is TDM!

Lim Kit Siang Stands By His BMF RCI Request

It was supposed to be a press conference to announce la granouille extraordinaire Zaid Ibrahim’s yet another leap into a political party.

Minutes after the announcement Zaid’s joy was short-lived when U-Turn Mahathir took a swipe at him saying to the press that he hopes Zaid’s stay in DAP would be longer than the ones he had had in other opposition parties.

U-Turn Mahathir has never had anything nice to say about Zaid and I doubt he has anything good to say now either.

Zaid Ibrahim never had anything nice to say about U-Turn Mahathir either. You can read a special section on the old Pharaoh  from Page 215. Don’t bother buying the book now because he now has to like the old Pharaoh. Just get one from someone who plans to return the book for a refund.

Talking about books the best moment of the press conference was when a reporter asked what is DAP owner Lim Kit Siang’s current stand on the Royal Commission of Inquiry for the BMF scandal.

The author of two books blaming the BMF scandal on U-Turn Mahathir went through the roof!

This is how DAP would behave once power is being given to them. We can already see how charged-for-corruption Chief Minister Lim Guan Eng has been behaving in Penang.

Like father like son.

Anyway, Kit Siang says that he stands by his request for an RCI to he set up to investigate the BMF scandal.

However, he added that an RCI should first be formed to investigate the 1MDB scandal.

Perhaps we should jog the memory of this selectively amnesiac ass.

The Commission of Inquiry set up to investigate the BMF scandal in the 1980s was not given the power to summon witnesses to testify. There was no other investigation done.

1MDB had had its accounts and other documents opened up for the MACC, police, Bank Negara, the PAC (which coincidentally has members of the opposition in it), and had to undergo a forensic audit performed by the Auditor-General’s Office.

There was no “bailout” for the 1MDB as opposed to the BMF scandal which was bailed out by Petronas amounting to RM2.188 billion on top of the RM2.255 billion that vanished through loans to the Carrian Group.

Also Kit Siang, please note that the RM4.443 billion came from the rakyat’s coffers so to speak as money at BBMB was from Petronas to assist the Bumiputera, and Petronas money used to bail BBMB out belonged to the people too.

BMF lent Malaysian money to a foreign company for the purpose of projects outside Malaysia that have nothing to do with Malaysia.

1MDB on the other hand borrowed foreign money for projects in Malaysia. There is no ‘rakyat’s money’ involved as claimed except the ones used to form 1MDB.

And also please remember, the US DOJ never named the current Prime Minister in its investigation documents, only a reference to an ‘MO1’ was made as that person was not directly involved in the investigation.

However, the CIA document specifically linked the BMF scandal to U-Turn Mahathir.

So Kit Siang. It is your credibility that is on the line here. Whether DAP makes it in GE14 depends on whether you would support the formation of a RCI for the BMF scandal without any conditions.

Your son is going to jail for corruption and you are the only one left from your family to ensure that your family continues to be relevant to the rakyat.

Or are you too busy kissing U-Turn Mahathir’s ass and defending him to even think about the end of your credibility as well as your political career as you know it?

Perhaps DAP supporters should start burning all the books written by Kit Siang and ditch he and his family.

There is no use keeping an old man who has no integrity yet is trying to dictate things to others.

The Innocent U-Turn Mahathir

I see many adverse reactions to the exposé of the BMF scandal that has implicated to a certain extent U-Turn Mahathir.

Even the man in question has gone on record declaring that he was not the CEO of Bumiputera Malaysia Finance (BMF) or Bank Bumiputera Malaysia Berhad (BBMB) when the whole affair began.

First and foremost, we must understand the structure of BBMB and BMF to understand the scandal.

BBMB was formed through monies from Petronas (RM50 million per month) with the aim to assist the Bumiputera agenda. BMF was formed as a subsidiary to invest in properties in Hong Kong using the monies received by BBMB.

A series of loans totalling RM2.5 billion were given by BMF to the Carrian Group beginning 1979 to invest in Hong Kong’s booming property industry.

As BBMB was a GLC, any investment abroad would naturally come under the Ministry of International Trade and Industry (MITI).

In 1979, MITI was already under the stewardship of none other than U-Turn Mahathir, who was also the Deputy Prime Minister since Tun Razak’s passing in 1976.

Obviously Mr U-Turn would have had to okay any form of investment to be made by BBMB’s subsidiary.

In fact, according to his old new friend Anwar Ibrahim, when the whole deal turned sour about three to four years later, U-Turn Mahathir who was then the Prime Minister even okayed for more money to be thrown into the venture to contain the damage!

In the end, BBMB had had to be rescued using taxpayers money twice, amounting to USD600 million in today’s terms.

There was never a Royal Commission of Inquiry set to investigate the causes of the losses.

After being pressured, U-Turn Mahathir in the end reluctantly formed a three-man commission led by the late Tan Sri Ahmad Nordin (then Datuk Wira) to investigate the case.

This commission had no real powers and in 1986 concluded that what was going on in BMF was just “the tip of the iceberg” and implied that bigger hands were at play.

The commission’s report was never tabled in Parliament and had limited public release (2,000 copies only at RM250 each said the Malaysian Bar).

Tan Sri Ahmad Nordin was accused of working with the Opposition and was ostracised by the Mahathir administration.

That, my friends, was how innocent U-Turn Mahathir was.