NEWS

Gov’t bailout of 1MDB is inevitable

Published
Modified 7 Mar 2015, 2:35 am

YOURSAY ‘Rakyat will be the ones holding the bill after the guests have left.’

'1MDB to be dismantled under debt plan'

Moontime: Granted, every business would want to expand and increase their profit by purchasing assets that generate revenue. But with 1Malaysia Development Berhad (1MDB), it looks more like a Malaysian case of Enron.

In a nutshell, 1MDB tried to expand too fast without waiting for the assets to produce enough revenue and profit to pay back their liabilities. The company probably wanted to be like Singapore's Temasik Holdings but it failed spectacularly.

And as always, the rakyat will be the ones holding the bill after the guests have left.

Aries46: If there is any truth to the above report that 1MDB is to be consigned to the 'potong kereta' yard to be dismantled and disposed, it would have serious international and local repercussions on our economy that would likely plunge the nation into further financial turmoil.

It vindicates the persistent campaign of the Pakatan Rakyat to expose PM Najib Razak's 'mother of mother of all scandals' and hopefully bring the Najib era of obscene indulgence and scandals to its end.

But a matter of more consequence to the rakyat is the question of who is to bear the colossal losses likely to befall the nation.

1MDB assets were valued and revalued upward for appreciation to raise loans and keep it afloat. This means it has been over-valued and would not reflect actual market value which would be lower.

Regardless of whether these assets are to be disposed or taken over by the Finance Ministry, there would be significant shortfalls. Will these losses be dumped on the taxpayers? Or as tradition demands, on Employees Provident Fund (EPF) members?      

Ferdtan: If this political hot potato is so profitable as we were led to believe by the BN government and the officials from 1MDB, then why is it necessary to kill the goose that was supposed to lay the golden egg?

Why was 1MBD so debt-stricken that it cannot pay its loan installments on time?

Out of 1MBD’s total estimated assets of RM51 billion, how much of the value came from revaluation of the properties purchased from the government?

From the high revaluation value, which included the valuation of its properties over a rather short period of time, it only means that the government had been quite ‘generous’ with their land sale to 1MBD.

No doubt, to close 1MBD is a correct step as we know it is not a viable project.

However it is not that easy; we cannot let the culprits including top leaders in the government to escape by closing down the controversy-ridden company and not accounting for the alleged ‘siphoning’ off the public funds (indirectly).

Sali Tambap: After the much public debate over the exposure of the debt-ridden 1MDB, somebody is sane enough to cut the losses and dismantle the company. Hopefully, not too much money will be lost on this unsuccessful experiment.

The proposed audit plan should go ahead and if there is any criminal breach of trust involved, appropriate action should be taken against the culprits responsible.

Commentable: A pack of cannibals - and of the worst kind actually. With the backing of Finance Ministry, the people involved had strung up 1MDB and stuffed it with nice assets so that it looked good and pretty to the world's financial eyes.

Quietly a string of debts and liabilities were piled onto the company and eventually they were so heavy it was simply paralysed financially. Knocked down and helpless, it looks like the daggers and meat cleavers are ready in hand.

The cannibals can't wait to carve out the juiciest cuts, right down to the skeletal remains. Yes, this is SOP (standard operation procedure) and it is about cannibalising a company and asset stripping. It is prevalent and has been done umpteen times.

A certain minister has done it before during his time when our national airline was taken over, all in the name of restructuring. Even today, the airline is still in its skeletal form.

It’s only in Bolehland aka Kangkungland where we see skeletons walking around.           

Dare: We can see clearly that the attack on the 1MDB represents a form of attack on the country and the attackers must be responsible for each false accusation and slander on 1MDB.

Action should be taken by the government to stop these false accusations by bringing those irresponsible individuals to justice.

Odin: Right-minded Malaysians ought to offer their special thanks to Clare Rewcastle Brown/Sarawak Report, Andrew Rininsland and his colleagues at the Sunday Times , MPs Tony Pua, Rafizi Ramli and any others who have contributed in one way or another towards the revelation of the heist of the century.

It goes without saying that news portals such as Malaysiakini and The Malaysian Insider deserve the special thanks, too. Without the obviously hard work of all these parties, and their tenacity in digging out the truth and informing us all, the nefarious deeds of the accursed knaves would not only have gone unabated but also intensified in scope and depth as well.

Their efforts have denuded the pack of lies and obfuscating statements fed to the hoi-polloi which are now presented in their vile nudity and which are accurate reflections of the putrescent, vitiated knaves.

Anonymous_4031c: Even if this is the intended path to resolve the debt woes, there must be accountability on whether there is any impropriety or breach of any laws in the matter surrounding 1MDB.

Sweeping these issues under the carpet does not remove the cloud of dust that have permeated the air of concern. If 1MDB was a viable business entity which we have been led to believe and making profits, why has it come to this?

This is not a political play and the defenders of 1MDB ought to be reminded its beyond the likes of Dr Mahathir Mohamad or Pakatan to pull off the kind of publicity that it has attracted.

Negarawan: In China, financial corruption, mismanagement, and public fund losses of this huge magnitude would have easily seen the chairman, CEO and all those accountable sent to the firing squad or gallows.

1MDB is not only a huge international embarrassment to Malaysia, but it has also caused the ringgit to plunge to its lowest level (now at US$1 = RM3.6) since the lifting of capital controls. This represents a financial crime beyond description.

Together with the plunge in national oil revenues, the huge financial losses caused by 1MDB and the loss of investors’ confidence will lead to an economic crisis soon. Every Malaysian will suffer due to the greed and incompetence of Umno.

Wg321: So it looks like Arul Kanda Kandasamy is hired as undertaker for 1MDB. Whether he is an undertaker or not, I still want to know where he get the money to pay the RM2 billion debts to Maybank, RHB and other debtors.

Even as an undertaker, he cannot run away from answering the many questions raised by Malaysiankini readers about 1MDB.


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