New Jho Low-1MDB ‘exposé’: All garbage or more to come?

By admin-s On Sep 26, 2014

(The Ant Daily) – SR understands that the former PM was prompted in this criticism after also being made privy to the material, accessed from an insider close to 1MDB’s investment activity.

Malaysians have every right to demand accountability and transparency in the management and use of funds by 1Malaysia Development Berhad (1MDB).

1MDB is the country’s second national sovereign fund, after Khazanah Nasional Berhad (Khazanah), and thus its survival depends on its support from the federal government (read as tax payers) and its business investments.

Just like Khazanah having to do “national duty” by coming up with a RM6 billion bailout to save Malaysia Airlines (MAS), the same would apply to 1MDB if needed.

Of course what’s happening in 1MDB, Prime Minister Datuk Seri Najib Razak’s pet project to help the country’s development, is the concern of all Malaysians.

That’s because 1MDB has raked up a RM37 billion debt at the financial year end of March 2013. This is no meagre amount!

On June 3, 1MDB denied a Reuters report that 1MDB’s debt poses significant risk to the sovereign’s rating and stability of Malaysia.

1MDB had said, as a limited liability company, it poses limited liability risks to the government as its shareholder.

The government guarantees RM5.8 billion of the Group’s total loan, on which 1MDB has significant interest cover. 1MDB has never missed any payment schedule.

All of 1MDB’s debts are backed by the Group’s operational assets, with healthy cash flows and strong growth potential beyond their finite life.

There is sufficient asset cover by 1MDB’s group assets. The Group’s total assets stood at RM46 billion at the financial year end of March 2013, compared to total debt of RM37 billion.

But, what’s worrying is the rakyat (people)’s perception of 1MDB in failing to address clearly and convincingly persistent allegations of abuse or misuse of funds.

It will do well for 1MDB to put a stop to the many detrimental allegations by taking convincing action to address such haunting financial issues.

Failing to take tough and convincing action only serve to legitimise the allegations and public perception.

And such allegations, if allowed to fester, would in the long-run affect the credibility and accountability of 1MDB and its reputation as a viable development enterprise for Malaysia.

Whistleblower Sarawak Report (SR) in its latest “Exclusive” titled “More Links – Jho Low’s Spending and Malaysia’s Development Money” is nothing new but the fact remains 1MDB is unable to respond effectively with stern action to dismiss such allegations of misuse of funds.

SR claims the record level spending on the world’s most expensive Cristal champagne in San Tropez, accompanied by events girl Paris Hilton; was this Malaysia’s “development” money going pop?

After years of denials, SR claims it has accessed documentary evidence showing the spendthrift tycoon, Taek Jho Low, has been enjoying a hands-on role in the management of the controversial 1MDB.

SR alleges the evidence further indicates that the huge sums that the young man has ostentatiously spent on record purchases of Cristal champagne; yacht hire; parties with film stars in Las Vegas; fleets of Cadillacs; multi-million charity donations and the purchase of up-market apartments in the US originated from Malaysian public borrowing.