I hope you watched Husni Hanadzlah's 'macam kucing curi ikan' performance on TV1 last night. He bungled so many times. I am sure he will get slaughtered for all the crap he mentioned.
Husni's problem was that 'dia sendiri tak faham apa dia cakap'.
I am reproducing again Jebat Must Die's Blog in full. You can click on the link. Jebat has done a quick analysis on Husni's befuddled performance last nite.
JEBAT MUST DIE
JEBAT WAS A MALAY HERO. BUT DESPITE HIS GOOD INTENTIONS, HIS METHODS WERE CRUEL, MISGUIDED AND UNWIELDY. HIS ANGER TOWARDS A SULTAN, LED HIM TO MURDER THOUSANDS OF INNOCENT LIVES. IN THE END…
Husni Hanadzlah and the misrepresentation of 1MDB facts
Upon hearing that the cabinet has appointed the 2nd Finance Minister (Dato Seri Husni Hanadzlah) as the official spokesperson of 1MDB, we immediately tweeted below:
WHAT WE TWEETED ON 29TH MAY 2015
A few hours ago Husni Hanadzlah was interviewed by two RTM1 hosts in a show entitled “1MDB: Di mana wangnya?”
We had asked in the previous article 5 questions, of which none of it was answered by him. This is of course not a fault of his as a few of the questions, however frequently asked, weren’t asked by the host at all.
Even when it come to Jho Low, Husni only said that he does not want the former to be glamourous.
But what is more alarming is the fact that Husni gave a lot of misrepresentation of facts.
1) LIE number 1:
When the host pressured the minister about Sarawak Report’s expose on Good Star Ltd (Jho Low’s company) receiving USD700 million, Husni claimed that Petro Saudi had lodged a police report in London saying what the portal had published was not true.
This is a lie.
PetroSaudi did not make a police report saying the portal was inaccurate. They made a police report when its email server was hacked; indirectly admitting that the emails published were indeed true.
If indeed Sarawak Report had published lies, 1MDB would have sued the portal and its editor a long time ago.
Husni lied to deflect the allegation of USD700 million of 1MDB’s money being siphoned out to Jho Low. With this lie, we can almost say that the transaction was indeed true. But what Husni could only say was: “We got back our initial investment of US$1 billion and returns from the joint venture. So there is no issue of Jho Low in this.”
Well, that is of course how siphoning money works. You cover the tracks by saying no money is lost.
2) LIE number 2:
When asked why did 1MDB changed auditors, Husni said that they chose Deloitte because auditors have to be rotated and it was time for KPMG to be changed after 3 years being an auditor.
This is a lie.
First off, KPMG was not changed because it was due to be rotated (in practice, this seldom happens as audit firms will fight tooth and nail to retain their client, and the audit fees). They were changed and replaced midway while auditing the the Financial Year 2013.
KPMG themselves were very reluctant to disclose why they were replaced – a peculiar behaviour for what should is touted as a ‘normal’ rotation exercise.
Husni had to lie about this to give confidence to the public that there is nothing wrong in the 1MDB accounts.
3) LIE number 3:
Husni had said that due to 1MDB’s joint venture with PetroSaudi, Prasarana was able to operate the Arafah – Mina Metro System in Mecca in May 2015.
This is absolutely not true.
Prasarana won the contract to be the operator without any involvement of any 1MDB or PetroSaudi. In fact his statement had greatly under-appreciated the effort by Prasarana for the past many months.
Obviously, losing all arguments as to why 1MDB had to be involved in a joint venture with PetroSaudi, Husni had to justify the partnership with an outright lie.
In fact, PetroSaudi even made an announcement that the business partnership ended in 2012, years before Prasarana even started bidding for the contract.
It won’t be a surprise if our PM will be in Saudi Arabia next week to give due credit to 1MDB instead of Prasarana.
On a side note, 1MDB did not go into a joint venture with PetroSaudi proper. It went into a business deal in 2009 with its subsidiary PetroSaudi Holdings (Cayman) Ltd, back then a newly set up shell company of Tarek Obaid, a friend of Jho Low’s. But this is another complicated story which the PAC/forensic audit can investigate.
4) LIE number 4:
Husni repeatedly saying that all the monies from the joint venture with the Arab business partners have borne profits and have returned home (pelaburan semua kita bawa balik).
This is a lie.
We have always find it preposterous when the PM, and CEO of 1MDB said this. And now that the FM2 is regurgitating what the two are saying, then we know that what Husni said was tutored and rehearsed.
The fact is, the monies from those investments have never returned home. All of it was parked in Cayman Islands and just like Husni said in the show, ALL of those redeemed money were used to pay the loans. Not one sen have returned into our soil.
The rakyat did not get anything from those deals. But the loan lenders and bankers got everything, with interests. So what is so good about 1MDB?
And of course, even with this revelation, there will be people who do not find this despicable. Everything is fine and dandy in 1MDB.
5) LIE number 5
At the start of the show, Husni mentioned that the RM27 billion debts are not missing, because if they were, the government and banks will be very alarmed (they might not get the loan repayments) and this could lead to credit risks.
WHAT WAS SAID ON MAY 25TH 2015
This is a lie.
The banks did become nervous.
On May 25th, Husni mentioned that 1MDB’s massive loans have to be restructured because he did not want those loans to be defaulted and cause systemic effect on the country.
True enough, reports came early last month that the consortium of banks had demanded an early settlement for the USD975 million (RM3.6 billion) which was due in August. This is because, they felt 1MDB has no money to pay them. If the loan is not paid immediately, it could trigger a cascading default over the rest of the RM42 billion loans.
This had made Husni issued that statement on May 25th.
In a state of panic, 1MDB and the Ministry of Finance concocted a devious plan to pay this loan but dubbed it ‘as part of the rationalisation plan’ to reduce the overall loans, including ‘winding-down’ 1MDB altogether.
How ironic it was when Husni himself admitted at the end of the show that 1MDB had to restructure its debt because if they do not do anything, the loans will be defaulted and Malaysia’s overall credit ratings will be downgraded.
The fact that there is a need to revamp 1MDB’s debt tells us that 1MDB, with all of its RM42 billion liabilities and RM52 billion of assets are facing a major crisis and all the players involved are still walking about traversing the world scot-free.
For a Finance Minister of Husni’s calibre it is indeed worrying that he sees nothing wrong for a company with only RM1 million paid up capital could acquired and accumulated over RM42 billion of debts in a span of just 5 years. And he said that proudly in the show as if it is a form of accomplishment of sorts.
No wonder due to his naivety, he is chosen to clean up other people’s mess. And along the way, in the effort to boost up 1MDB’s dead and buried integrity, he has lost his credibility.
It is unfortunate that when people ask questions, the experts in 1MDB themselves give misrepresentation of facts. Widening the trust deficit and lowering confidence.
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First off I want to take up from Jebat's Lie No. 3. Husni repeated the lie that Petro-Saudi is a company linked to the 'pimpinan Arab Saudi' - implying Petro Saudi was a Saudi Arabian government owned company. This has been proven to be not true.
Petro Saudi Caymans (the JV partner with 1MDB) is a shell company set up by Jho Low and strip club fan Tarek Obaid.
But what I caught Husni saying was that Goodstar (that strange Seychelles registered company owned by Jho Low) was a wholly owned subsidiary of Petro Saudi. (Did anyone record Husni's interview? I am willing to be corrected on this). This was the company that received that US$700 Million (and so they felt "the earth moving" under their feet).
Husni also said that since Goodstar was a wholly owned subsidiary of Petro Saudi, then it was up to Petro Saudi to transfer the money to wherever and whoever they wanted.
If this was the case then the BOD of 1MDB should not just be fired but they should be charged with criminal negligence (To the BOD of 1MDB, this will happen. Some of you will end up paying a heavy price for this fiasco. Mark my words. And from what I hear this is going to happen soon. If you have any brains you should start cooperating and maybe negotiate some reprieve for yourselves. Do you honestly think that RM42 billion is just going to be blown away without anyone going to the gallows? Do think again.)
Because how can you pay so many billions of Ringgit to a foreign company with little or no track record without securing how the money would be applied?
And if Husni says Goodstar is wholly owned by Petro Saudi Caymans (the JV partner), it means either
i. the Saudi gomen is also behind Goodstar (which is not the case) or,
ii. Jho Low is indeed the owner of Petro Saudi Caymans (which is the real situation).
Husni refused to answer the question about Jho Low. The moderator guys had to ask the question twice before Husni gave his bungled answer about Jho Low.
Now here is the stuff that Arul Kanda and 1Mdb have released to the media yesterday. These guys really need a brain. Brother Arul you cannot cover an elephant's carcass with pandan leaves ok. This is what 1MDB has put out:
Someone else sent me this. It is the same thing with an extra column showing what was alleged and 1MDB's clarification.
First of all where are the desalination plants? Dey Arul Moron, yenna da. Malu for the 'kotte community' man. Where are those desalination plants? I doubt they really even exist. A few billion was paid for the desalination plants but you dont have themi listed here.
And 1MDB has bought Powertek, Kuala Langat and Jimah for RM12 Billion PLUS inherited debt of RM6 Billion !!! So the actual purchase price for the three power companies was RM18 BILLION. You bought these companies even with their hutang !!
What is that in terms of RM per Megawatt? This must be the dumbest and most expensive purchase of 'end of shelf life', 'license almost expired' power plants anywhere in the world. You bought them together with RM6 BILLION 'inherited debt' !!
Your Air Itam land was bought for RM1.1 Billion. Did you buy the entire Penang Island? This is the most expensive purchase of land in the history of Penang. These lands are yielding almost zero returns, except that parcel you sold to Tabung Haji.
Your only operating assets are the power plants.
So now you expect the RM12 Billion worth of power plants (and no desalination plants) to generate at least RM2.5 Billion cash flow a year just to service interest alone on the RM42 Billion debt?? Banyak cantik. You and your favorite goat know that is NOT going to happen.
Then your Cost of Finance and Working Capital is RM4.5 BILLION. I say man, you are using BORROWED FUNDS to pay your interest expenses?
What kind of business model is that? This is where I say the Board of Directors of 1MDB went to business school bawah pokok mangga in the kampong.
When you borrow money you will incur interest. Interest must be paid from the business operations. If you cannot generate enough business cash flow to service interest, the company will go bust. This is what has happened to 1MDB.
They are resorting to using BORROWED money to pay interest.
And where is that RM950 MILLION STANDBY CREDIT which was given by the gomen just a few weeks ago?
Surely you must add that STANDBY CREDIT of RM950 MILLION to the full amount of RM41.8 BILLION. So the full HUTANG figure should be RM41.8 B + RM950 M = RM42.75 Billion !!
And you suffered Forex costs of RM900 MILLION? Scheiss!!
What did you do? Repeat Bank Negara's old Forex Losses fiasco? Playing the derivatives market again? Is that why those 'units' at the BSI Bank are not worth the paper they are printed on ??
And what the hell are Aabar Investment Deposits of RM4.2 BILLION ??
The last time I checked a deposit is an asset. When you pay TNB RM200 to connect power to your house, that is YOUR asset. Bukan TNB's. TNB OWES you that deposit money.
So why is Aabar holding so much of our taxpayer's money RM4.2 BILLION as deposits? And exacftly where have they kept our money worth RM4.2 BILLION? Up the Arab camel's @$$?
If that is the case, then OUR RM4.2 BILLION deposits will never see the light of day again. Tell them to return our deposits. Its our money.
Deposits for what? What did our country Malaysia get for giving Aabar RM4.2 BILLION cash as deposit. Deposit for what?
How many jobs have you created for those RM4.2 BILLION deposits? Wahid Omar says 400,000 graduates are still jobless.
Husni Handzlah says 1MDB has bought spectactles for school kids. What - RM4.2 BILLION worth of spectactles for school kids??
Tony Pua has pointed out that the Auditors have classified RM13 Billion of 1MDB's assets as Level 3. What is a Level 3 asset?
DEFINITION of 'Level 3 Assets' : Assets whose fair value cannot be determined by using observable measures, such as market prices or models. Level 3 assets are typically very illiquid.
This means RM13 BILLION worth of 1MDB's assets have disappeared up the camel's @$$.
This means RM13 BILLION worth of 1MDB's assets have disappeared up the camel's @$$.
What are GIL Funds of RM5.1 BILLION? Explain. Sounds like another black hole.
And that RM6.1 BILLION with Brazen Sky has also gone up in smoke. It is no more RM6.1 BILLION.
According to Husni Hanadzlah they are now in the form of 'units'. This is another way of saying "betting slips" for derivatives and financial futures crap. That RM6.1 BILLION money is as good as gone.
Jebat is right that Husni lied about 1MDB avoiding default. Deutsche Bank has already 'accelerated' 1MDB's repayment to June. Hence that US$1.0 Billion loan/advance/equity or entah ape payment by IPIC.
That is a default because Deutsche Bank must have legal recourse to 'accelerate' that loan repayment. Thwy wont do it just for fun.
More will follow.
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