A dubious business deal between 1Malaysia Development Berhad (1MDB) and PetroSaudi International Ltd is costing taxpayers more money, claims an opposition parliamentarian.
Tony Pua (DAP-Petaling Jaya Utara) told the Dewan Rakyat today that 1MDB had given US$500 million (or RM1.6 billion) to PetroSaudi in March 2010 and US$200 million (RM640 million) in May 2011 to PetroSaudi’s subsidiaries.
1MDB had previously made a questionable RM4.2 billion investment in PetroSaudi, after which it decided to sell off its share by converting its equity into an 11-year loan, at a coupon rate of 8.67 percent.
“Which means we are paying them in order for them to pay us. This is makes it similar to an illegal Ponzi scheme,” hit out Pua during the debate on the Supplementary Supply Bill which began today.
Tony Pua (DAP-Petaling Jaya Utara) told the Dewan Rakyat today that 1MDB had given US$500 million (or RM1.6 billion) to PetroSaudi in March 2010 and US$200 million (RM640 million) in May 2011 to PetroSaudi’s subsidiaries.
1MDB had previously made a questionable RM4.2 billion investment in PetroSaudi, after which it decided to sell off its share by converting its equity into an 11-year loan, at a coupon rate of 8.67 percent.
“Which means we are paying them in order for them to pay us. This is makes it similar to an illegal Ponzi scheme,” hit out Pua during the debate on the Supplementary Supply Bill which began today.
According to the information derived from the government-owned firm’s financial statement, Pua stated that PetroSaudi has to pay US$105 million to 1MDB annually.
Pua (right) pointed out that when 1MBD had inked the joint-venture with PetroSaudi in 2009, the latter was to invest 60 percent in equity, but instead it was allowed to pump in a “potential oilfield” in the Caspian Sea, prior to divesting in the company.
“Is it 1MDB’s objective to be an international Ah Long (loan shark)? If we are no longer interested in investing in a joint venture, why didn’t we just ask for our money back?” he queried.
Pua also cast aspersion on the authenticity of PetroSaudi, which was supposedly set up in the Seychelles Islands.
1MDB is currently being probed by Parliament’s Public Accounts Committee over the alleged discrepancies in its business dealings with PetroSaudi.
Among other concerns Pua raised was that the loans dispersed to PetroSaudi were not based on ratings by the Ratings Agency Malaysia (RAM) or Malaysia Ratings Corporation (MARC).
He added that the lack of proper explanations increases doubts that the entire dealing is “a big scam” by the BN administration.
“What is there to hide? If PetroSaudi is really that great, let the Dewan Rakyat know, give us the accounts and financial statements,” he said.
Pua (right) pointed out that when 1MBD had inked the joint-venture with PetroSaudi in 2009, the latter was to invest 60 percent in equity, but instead it was allowed to pump in a “potential oilfield” in the Caspian Sea, prior to divesting in the company.“Is it 1MDB’s objective to be an international Ah Long (loan shark)? If we are no longer interested in investing in a joint venture, why didn’t we just ask for our money back?” he queried.
Pua also cast aspersion on the authenticity of PetroSaudi, which was supposedly set up in the Seychelles Islands.
1MDB is currently being probed by Parliament’s Public Accounts Committee over the alleged discrepancies in its business dealings with PetroSaudi.
Among other concerns Pua raised was that the loans dispersed to PetroSaudi were not based on ratings by the Ratings Agency Malaysia (RAM) or Malaysia Ratings Corporation (MARC).
He added that the lack of proper explanations increases doubts that the entire dealing is “a big scam” by the BN administration.
“What is there to hide? If PetroSaudi is really that great, let the Dewan Rakyat know, give us the accounts and financial statements,” he said.
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