Stop confusing the public, Tony Pua!
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Please check, double check and triple check your facts; it’s a mantra that was drilled into a rookie reporter even from day one! A journalist principal obligation is to report on facts of public interest in an exact and comprehensible manner.
The same rule applies to responsible lawmakers; to tell the public the truth and not confuse them by twisting facts to score points!
1MDB which is a favourite punching bag for the opposition politicians was in the spotlight again after it announced the share sale and RM7.41 billion land sale valuation to a Malaysia-China consortium as part of its rationalisation process.
News reports said China Railway Group Ltd may have caused the initial confusion when it informed the Hong Kong Exchanges and Clearing Limited (HKEx) that the consortium comprising its unit China Railway Engineering Corporation (M) Sdn Bhd (CREC) and Iskandar Waterfront Holdings Sdn Bhd, is paying RM5.28 billion instead of the RM7.41 billion reported earlier.
1MDB had on January 6 clarified that China Railway’s revised figure for the controlling stake in Bandar Malaysia was in reference to the joint venture company’s estimated share of the land’s net equity value and did not refer to the land sale valuation.
“The valuation contained in the announcement made by CREC to HKEx refers not to the land sale valuation, but instead to their estimated share of the net equity value of the Bandar Malaysia project, based on certain assumptions, which are subject to further negotiations during the Completion period between January and June 2016.,” 1MDB said in a statement.
The starting point of any net equity value calculation, is the land sale valuation of RM12.35 billion, of which the Consortium’s 60% share equates to RM7.41 billion. This is the basis upon which the 10% deposit of RM741 million has been calculated and agreed upon by all parties.During the completion period, adjustments may be made to the RM7.41 billion land sale valuation, depending on whether ornot certain Bandar Malaysia related liabilities can be passed to the Consortium e.g. the remainder contract costs for relocation of the existing facilities and the Bandar Malaysia sukuk debt.
The agreement executed between the parties on 31 December 2015 provides for a robust and objective mechanism to determine, amongst others, these matters, which all parties have committed to.”
Now that 1MDB has clarified the matter, so YB please stop confusing the public! As usual you always demand answers butrefuse to accept even when a rational explanation is given.
1MDB’s clarification on Bandar Malaysia on 5 January 2016 1MDB notes that certain quarters have attacked the RM7.41billion land sale valuation contained in a recent announcement on the successful Share Sale and Purchase Agreementexecuted with the IWH-CREC Consortium (Iskandar Waterfront Holdings Sdn Bhd (“IWH”) and China Railway EngineeringCorporation (M) Sdn Bhd (CREC)] for 1MDB to sell 60% of the equity in the Bandar Malaysia project.
These appear to be last ditch attempts by members of the opposition to undermine the company’s rationalisation process.
The valuation contained in the announcement made by CREC to HKEx refers not to the land sale valuation, but instead to their estimated share of the net equity value of the Bandar Malaysia project, based on certain assumptions, which are subject to further negotiations during the Completion period between January and June 2016.
The starting point of any net equity value calculation, is the land sale valuation of RM12.35 billion, of which the Consortium’s 60% share equates to RM7.41 billion. This is the basis upon which the 10% deposit of RM741 million has been calculatedand agreed upon by all parties.
During the Completion period, adjustments may be made to the RM7.41 billion land sale valuation, depending on whether ornot certain Bandar Malaysia related liabilities can be passed to the Consortium e.g. the remainder contract costs for relocation of the existing facilities and the Bandar Malaysia sukuk debt.
The agreement executed between the parties on 31 December 2015 provides for a robust and objective mechanism to determine, amongst others, these matters, which all parties have committed to.
1MDB is focused now on taking the necessary steps and to procure the relevant consents in order to implement the legally binding agreements executed in 2015 for the sale of Edra, the debt for asset swap with IPIC and the sale of 60% equity in the Bandar Malaysia project.
