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1MDB must disclose where funds to pay IPIC came from

Published:  |  Modified:

YOURSAY | ‘The late payment, which incurred interest, must be explained.’

1MDB makes partial payment of US$350m to IPIC

Kim Quek: 1MDB has made a US$350 million payment to the International Petroleum Investment Company (IPIC). The payment was made before the investment firm was scheduled to pay IPIC US$310 million on Aug 12, as part of its settlement with the Abu Dhabi state-owned fund.

The coincidence of the announcement of 1MDB’s payment to IPIC two days after the joint ground-breaking ceremony of the East Coast Rail Link (ECRL) project evokes the memory of the leaked information from China in July 2016 that the price of ECRL was allegedly doubled up to cover 1MDB’s debts.

In an article by Sarawak Report on July 26, 2016, screenshots of the leaked documents were published to show how the originally estimated cost of RM30 billion was purportedly inflated to RM60 billion to pay off 1MDB’s debts in advance (allegedly to meet IPIC debts) and progressively thereafter.

And unless the government truthfully discloses its specific source of funds for the IPIC payment and the feasibility study undertaken by its own consultant that showed construction cost at half of current cost, one is inclined to associate the ECRL-China contract with 1MDB’s debt payments.

The Axman: A default is a default. Once you have a late payment, your ability to borrow takes a big hit.

This is not you making a late payment for your car loan, this is a very large corporate loan. Your integrity and governance will be questioned, as will your financial ability.

Now we have late payment with default interest. Default interest is usually many times normal interest. Why would you pay late, spoil your reputation (a late payment is a default in the financial industry), and incur higher-than-normal interest?

There is only one answer - the funds were not available. The fact that it suddenly became available 11 days later will not quash the problem that there was a default in the first place.

Anonymous #44199885: What is the actual source of the money? Why is there no disclosure of the source? I suppose the facts will eventually come out.

In any event, why isn’t 1MDB taking steps to recover money that was wrongfully diverted, and if it was not diverted as claimed by 1MDB, why do we then need to repay IPIC? This has never been answered.

DOJ hits pause on 1MDB suits, FBI says criminal probe ongoing

Legit: The US Department of Justice (DOJ) has applied to stay its civil forfeiture suits on assets allegedly purchased using misappropriated 1MDB funds to facilitate ongoing criminal investigations by the US government.

It certainly looks like the noose is tightening on Malaysian Official 1 (MO1) and his gang. It also shows the DOJ is acting very independently of US President Donald Trump who is embroiled in a multitude of problems of his own.

I wonder what US Secretary of State Rex Tillerson was here for earlier this week, and what he told Prime Minister Najib Abdul Razak and Deputy Prime Minister Ahmad Zahid Hamidi besides the photo ops.

SusahKes: Might the DOJ just "give" MO1 a break? Hold your horses, folks, before you derive and pronounce your conclusions.

Tony Soprano: The US no doubt still cultivates the Malaysian government as a whole, money-laundering on US soil notwithstanding, as an ally in a volatile region.

MO1, meanwhile, as the ally's head of state, did not personally fly to the US and launder funds by buying up various properties.

I would think any indictments would be aimed at Jho Low and any cronies of his who were complicit within the US.

With regards to anyone indicted who is in Malaysia - I wonder whether MO1 will throw them under the bus (i.e., have them extradited to the US) to distance himself from further embarrassment.

Vijay47: There are no two ways about it, Malaysia has to break off diplomatic relations with the US.

Despite Malaysia conducting itself in a manner befitting a friendly nation, the US has consistently intruded into our domestic affairs, especially when this so-called 1MDB issue has been duly investigated by the attorney-general and all relevant authorities who have concluded that no criminal actions have taken place.

This secret agenda is an attack on Malaysia's parliamentary democracy and an attempt to influence our citizens in the imminent general elections. It is clearly an affront to our rulers, our race, and our religion.

Unless Washington ceases such hostile acts forthwith, Malaysia will bring this matter to the United Nations to impose sanctions on the US, and we reserve our options to render all necessary assistance to our ally North Korea should it wish to pursue its threat to incinerate Guam, Dallas, and San Jose if it knows the way there.

Be warned, our navy and its assets are on standby.

Pemerhati: The FBI agent said, "Such disclosures could result in the destruction of evidence, the flight of potential subjects and targets, or the identification and intimidation of potential witnesses."

After reading this news, all the suspects like Jho Low and his many accomplices, who allegedly stole billions using the 1MDB scam, are likely to leave the US, if they are now there, and go to safe haven countries where the DOJ cannot reach them.

Perhaps a better strategy would have been for the FBI to quietly complete the criminal investigations and then arrested the culprits before they could flee.

Now the FBI would have to rely on Interpol, and it would be extremely difficult or even impossible to apprehend these alleged billion-dollar thieves.

Wira: Why is DOJ now roping in the FBI to investigate the criminal aspect of 1MDB?

It means they have more evidence now than before when they started the civil action to recover money for Bolehland.

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