{"id":27251,"date":"2022-03-15T17:50:41","date_gmt":"2022-03-15T09:50:41","guid":{"rendered":"https:\/\/www.therocket.com.my\/en\/?p=27251"},"modified":"2022-03-31T15:04:15","modified_gmt":"2022-03-31T07:04:15","slug":"najiibs-imaginary-1mdb-profits","status":"publish","type":"post","link":"https:\/\/www.therocket.com.my\/en\/najiibs-imaginary-1mdb-profits\/","title":{"rendered":"Najib\u2019s imaginary 1MDB profits"},"content":{"rendered":"\n
\"\"<\/figure>\n\n\n\n

Last week I said former Finance and Prime Minister Najib Razak was making a complete fool of himself by showcasing how financially illiterate he was, after claiming that the Government could redeem 1MDB bonds early to save on interest.  This, as I have previously responded, is not practically possible as bonds are structured very differently from loans taken from banks.<\/p>\n\n\n\n

\"\"
Yesterday, Najib claimed that 1MDB could have instead made RM9.7 billion in profit. This statement only confirms that our former Finance Minister is indeed financially illiterate.<\/em><\/strong><\/figcaption><\/figure>\n\n\n\n

Najib wrongfully<\/em> argued that, since there was only RM17 billion of debts to be repaid, if we were to sell Bandar Malaysia for RM12 billion, and enforce the Abu Dhabi guarantee of US$3.5 billion (~RM14.7bn), 1MDB would make a profit of RM9.7 billion.<\/p>\n\n\n\n

Firstly, a first-year accountancy student will be able to educate Najib that the latter has completely confused a company\u2019s \u2018balance sheet\u2019 with its \u2018profit and loss\u2019 statements.  A \u2018balance sheet\u2019 typically records a company\u2019s assets and debts, while the \u2018profit and loss\u2019 talks about 1MDB\u2019s accumulated revenue (very little) and cost (including massive interest expenses) over the past 13 years. Najib has completely messed up the two.<\/p>\n\n\n\n

Secondly, it is utter stupidity to say that if the Abu Dhabi guarantee of US$3.5 billion could be enforced, and that\u2019s a very, very big \u2018if\u2019 \u2013 the matter is in UK courts at this point of time \u2013 then 1MDB gets away scot free, and will get to keep its remainder assets.  Guarantees don\u2019t quite work that way.<\/p>\n\n\n\n

\"\"
Najib has perhaps forgotten that he, as the former Finance Minister signed a back-to-back guarantee with Abu Dhabi, on behalf of the Malaysian government. <\/em><\/strong><\/figcaption><\/figure>\n\n\n\n

This means that if 1MDB failed to repay the US$3.5 billion bond, and Abu Dhabi was required to fulfil the guarantee, then Abu Dhabi can make the claim against both 1MDB (whose current assets don\u2019t add up to any where near US$3.5 billion) AND the Malaysian government.  So the rakyat would have to pay, regardless of the guarantee.<\/p>\n\n\n\n

Yes, that is the extent of Najib\u2019s idiocy.<\/p>\n\n\n\n

Thirdly (do I really need a thirdly?), he also seems to have forgotten that the Bandar Malaysia land was owned by the Government, even before it was sold to 1MDB for a song (at RM72 per square feet).  Hence if the Bandar Malaysia land can indeed be sold for RM12 billion, the entire proceeds should be kept by the Government for other development projects and welfare benefits.  Why should it be used to pay 1MDB debts when 1MDB had added zero value onto the land?<\/p>\n\n\n\n

Najib has shamelessly ignored the fact that the reason the remaining debts still has to be repaid by the Government is \u2018only\u2019 RM17 billion, is because after he was deposed in 2018, the subsequent governments have successfully recovered a sizeable chunk of the money Najib has \u201cmisappropriated\u201d (\u201cdiseleweng\u201d) \u2013 to quote the Finance Minister, Tengku Zafrul Aziz\u2019s reply in parliament yesterday.<\/p>\n\n\n\n

Will Najib please respond to the fact that he \u201cmisappropriated\u201d the tens of billions of ringgit which the Pakatan Harapan and subsequent government has successfully recovered from those who were complicit in his crimes against the Malaysian people \u2013 Goldman Sachs, Jho Low and his friends, Ambank and even auditors, KPMG and Deloitte Malaysia.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

What about the fact that the United States FBI investigator testified in former Goldman Sachs employee, Roger Ng\u2019s (pictured above) corruption trial yesterday that Najib has received US$756 million from the funds stolen from 1MDB?  <\/p>\n\n\n\n

Or is Najib going to continue to give his hilarious excuse that it was \u201cdonations from the Arab royalty\u201d? Or better still, that he didn\u2019t know where the money was from, or why it was deposited, but he spent some of it anyway, on expensive jewellery, birthday presents for his wife, or luxury holidays as well as buying political support in UMNO and for elections.<\/p>\n\n\n\n

Tony Pua<\/em><\/strong><\/p>\n\n\n\n

MP for Damansara<\/em><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

Last week I said former Finance and Prime Minister Najib Razak was making a complete fool of himself by showcasing how financially illiterate he was, after claiming that the Government could redeem 1MDB bonds early to save on interest.  This, as I have previously responded, is not practically possible as bonds are structured very differently […]<\/p>\n","protected":false},"author":4,"featured_media":26921,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[344],"tags":[573,1482,2736,644,1484,60,46],"class_list":["post-27251","post","type-post","status-publish","format-standard","hentry","category-weekly-highlights","tag-1mdb","tag-ambank","tag-fbi","tag-goldman-sachs","tag-kpmg","tag-najib","tag-tony-pua"],"_links":{"self":[{"href":"https:\/\/www.therocket.com.my\/en\/wp-json\/wp\/v2\/posts\/27251","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.therocket.com.my\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.therocket.com.my\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.therocket.com.my\/en\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/www.therocket.com.my\/en\/wp-json\/wp\/v2\/comments?post=27251"}],"version-history":[{"count":3,"href":"https:\/\/www.therocket.com.my\/en\/wp-json\/wp\/v2\/posts\/27251\/revisions"}],"predecessor-version":[{"id":27262,"href":"https:\/\/www.therocket.com.my\/en\/wp-json\/wp\/v2\/posts\/27251\/revisions\/27262"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.therocket.com.my\/en\/wp-json\/wp\/v2\/media\/26921"}],"wp:attachment":[{"href":"https:\/\/www.therocket.com.my\/en\/wp-json\/wp\/v2\/media?parent=27251"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.therocket.com.my\/en\/wp-json\/wp\/v2\/categories?post=27251"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.therocket.com.my\/en\/wp-json\/wp\/v2\/tags?post=27251"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}