Why keep 1MDB's RM7bil in the Caymans?

Modified 24 Apr 2013, 3:17 am

YOURSAY 'This is indeed a serious matter. How can the government's accounts be hidden from the view of the people?'

PKR queries 1MDB's RM7bil transfer to the Caymans

Ferdtan: What was revealed by PKR director of strategy Rafizi Ramli was alarming - the 1MDB had raised RM5 billion through government-guaranteed bonds for several investment ventures which were not clearly identified.

According to Rafizi, 1MDB had raised the bonds for several investment ventures, for example Petro Saudi International (PSI), whose activities and origins he alleged were "dubious".

When we raise loans of this size, we should have clear and definite investment plans, after feasibility studies concluded, on how to use the money. It seems that until now 1MDB did not inform the public on how to utilise the huge fund raised. This is putting the cart before the horse.

It is like before we borrow the money from the bank, we should know the purpose of the loan, such as to buy a house.

We have the right to know as the bond is guaranteed by the government. We also want to know who the bond owners are. Something is not right here.

Fairnsquare: If this allegation is true it will impact all the rakyat as our financial strength is being siphoned out of the country with us having to bear the liabilities of the said bonds.

Perhaps an international investigation should be initiated immediately involving Interpol. If all is above board, it will clear BN's name and put Pakatan in bad light.

If it's left to Malaysian Anti-Corruption Commission (MACC) and our police, regretfully I do not see any investigation being initiated.

Tehachapi: This is indeed a serious matter. How can the government's accounts be hidden from the view of the people?

Can be this be the reason why there was a sizeable bond issue three days before Parliament was dissolved? Investigate and demand a full account for this transfer of funds.

Heavenly King: The money is hidden in the Cayman Islands for the purpose of speculating in the Malaysian stock market after the elections.

The BN crooks and their cronies are now, before the elections, selling down the shares to very low levels.

Once election is over, some foreign fund managers will utilise the hidden money to buy the low-priced shares and sell them for huge profits. This is why the government has been boasting that foreign funds are coming in.

Pahatian: Sometimes I wonder how Malaysians think. With all these exposures of corruption and wrongdoing, they still vote them in.

Those days it was tens or hundreds of thousands, then millions and now it's billions of ringgit.

Two Eye Ball: Hello, Rafizi, don't you understand that there is no point reporting this to the police or the MACC.

If you really want to bring the culprits to court, concentrate on winning the coming general election. That is the only way forward.

Omega: I must say that I do not have any personal or business or political issues with BN, it's just that the way the country is raking up debt in recent years has got me very worried about the future of our finances.

I have seen how other countries got addicted to debt. Once hooked, it is very difficult to kick that habit.

The ringgit is not a reserve currency and that means we can't actually print our way out of our problems; neither are we part of a larger economic block like the European Union where we can ride on the coat-tails of stronger nations.

So my prediction is, if BN continues to rule, it will heap on more debts and we will all be in deep financial troubles sooner than we think.

I am a retired man, I just want to retire peacefully and comfortably, so I owe myself and other Malaysians a duty to ensure that we vote for a government who can manage our finances properly.

Malaysian1960: 1Malaysia Development Bhd (1MDB) will be dismantled and investigated thoroughly when Pakatan Rakyat forms the new government.

The government has enough agencies around to help in their investment and financing of equities such as Khazanah Nasional, Permodalan Nasional Bhd (PNB) and Equinas, just to name a few.

Why another 1MDB? I can't think of any good reason for it except that it is being used to loot the nation's wealth.

Tukangkarut: There is no point asking Premier Najib Abdul Razak to explain this fund transfer of the rakyat's money.

His best practice in handling such a controversial issue, as taught by his guru ex-PM Dr Mahathir Mohamad, is to keep mum.

Onyourtoes: Has the looting begun even before the first vote is cast? This is to be expected. Seek them out wherever they are once Pakatan takes power.

Never compromise, never set a bad example for future leaders. If the present leaders protect the past, future leaders will protect the present.

No exception, every cent must be returned so that Pakatan's first two federal budgets can be financed from the recovery of looting alone.

I am not being farfetched here. I read years ago when then president Sese Seko of Zaire was removed, he had personal wealth was greater than the national debt of that country.

Amateur: In Taiwan, the Kuomintang Party managed to salvage some of the ill-gotten gains from their ex-president Chen Shui-bian, who has since been jailed. Would Pakatan do the same to our corrupted politicians?

Luang: Putting these Umno-BN goons into jail doesn't solve the problem. We must make sure they pay back all the stolen money before sending them to jail.

Storm: I really believe Malaysia is dying. It's in stage four cancer unless we, the rakyat, unite and see beyond ourselves and think of the greater good of the country, and vote to kick out BN.

Give Pakatan a five-year trial please. It can only be a change for the better.

Anonymous #85701391: The best weapon for the PM and Umno-BN to deny and refute this allegation is to immediately instruct the Transport Ministry, all the airports, and aviation authorities to close the country's airspace to all privately-owned aircraft coming into the country and disallow all privately owned aircraft from leaving the country until after a new government has been installed.

With this, the PM and Umno-BN will be able to prove they are truly Malaysians, not as perceived by Malaysians, to be robbers or thieves, taking whatever they can out of the country before polling day.

Democrat: The Cayman Islands will be renamed the Conmen Islands once they go in self-exile there.

RM7 billion is safe, 1MDB rebuts critics

Anonymous_3e93: The press statement by 1MDB is conflicting. Why should 1MDB issue the bonds via private placements to ensure timely completion but have no urgency in using the money and instead placing it in an offshore account pending identification of suitable investments?

From a corporate finance and investment experience, this is just too fishy a deal. Worse, the private placements were given cronies at a very cheap price (with huge discount). The cronies benefitted in the hundreds of millions.

The RM7 billion of IMDB offshore funds has now been given as loans to Petro Saudi controlled by Tarek Essam Ahmad Obaid . Why is 1MDB, which is not a bank, lending money to a foreigner. What does Petro Saudi do with all these money?

1MDB has infringed the Malaysian law because it cannot lend money to a non-related company. Further, 1MDB is not a licensed money lender under the law. Then how come it loaned RM7 billion to a foreign company?

This RM7 billion is being guaranteed by the government and therefore taxpayers' money are at risk.

Just_A_Rakyat: Dear readers, please visit 1MDB site for a full release of this press statement. I like to draw your attention to the following paragraphs:

1. As a prudent government-owned entity, 1MDB considered all of its options (pricing, structure, investment bank, and others) in the recent financing and chose the optimal path in light of the various considerations. The company stressed that 1MDB opted for a private placement to ensure the timely completion of this economic initiative.

2. 1MDB has earmarked the proceeds for investments in the near future. Pending that, these funds for cash management purposes are currently placed under regulated and licensed international fund managers managing Cayman Island based international standard fund structures.

So it seems this funds are not in urgent need, why the haste? It does seems like someone is out to profit from this exercise more than anything else.

Swipenter: The exercise of raising funds through bonds via private placements at huge discount is to make money first for the politically well-connected. Placing the funds in Cayman Islands is to keep it out of prying eyes.

You don't raise funds and then scout for suitable business to invest.

Dheep: The question is: Why put the money in the Cayman Islands? The island state is notorious for we-know-what. Aren't there better places to place such funds, whether in Malaysia or Saudi itself?

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