SOMETHING FISHY'S UP: Tony questions Najib's sudden flip-flops in 1MDB rescue exercise

CIMB Group Holdings Bhd announced last week on 26 March 2015 that they have been appointed by the Ministry of Finance (MoF) to find strategic investors for the potential sale of 1Malaysia Development Bhd (1MDB) energy arm, Edra Global Energy Bhd.

“CIMB’s role will include identifying potential buyers and running a competitive process for Edra to drive an optimal outcome for MoF,” said the bank in a statement.

This is a far-reaching decision which directly implies that 1MDB has all but abandoned the original option to raise funds via an initial public offering (IPO) of Edra Global. No company with any confidence with its own business and financial valuation to raise funds via an IPO would concurrently appoint another investment bank to conduct an auction for its assets.

The above announcement was made immediately the day after the Second Minister of Finance, Dato’ Seri Husni Hanadzlah informed the Parliament during his winding-up speech. He said that

…kita telah minta CIMB sebagai third party buat evaluation daripada segi nilai pasal hari itu saya kata kita hendak buat IPO. Biar nilai yang dengan izin, dievaluated, evaluate by 1MDB itu dengan third party, CIMB, kita hendak tengok macam mana nilai supaya kita dapat pastikan bahawa keseluruhan daripada nilai bila buat IPO nanti dapat nilai yang saksama.

This was completely different from what CIMB announced as he claimed that CIMB was appointed only to provide a third-party valuation of 1MDB’s energy arm strictly for the purposes of the IPO.

Now, in a complete flip-flop by the Ministry of Finance, CIMB announced yesterday that

“CIMB has been informed by the Ministry of Finance (MoF) that the MoF has decided not to consider a sale of Edra to strategic investors and as such, CIMB's services as Adviser to the potential sale are no longer required.”

What in the world is happening to MoF and the management of 1MDB? Who exactly is leading the entire restructuring exercise?

Is it the newly announced taskforce comprising of Second Finance Minister Dato’ Seri Ahmad Husni Hanadzlah, Minister in the Prime Minister's Department Datuk Seri Abdul Wahid Omar, Chief Secretary to the Government Tan Sri Dr Ali Hamsa and Treasury Secertary-General Tan Sri Dr Mohd Irwan Serigar Abdullah?

Or is it the new President and CEO of 1MDB, Arul Kanda Kandasamy with his board of directors chaired by Tan Sri Lodin Wok Kamaruddin?

Or for that matter, is the Finance and Prime Minister, Dato’ Seri Najib Razak calling the shots? Or worse, is it once again, the wheeling-dealing billionaire prodigy Jho Low masterminding behind the scenes?

The fickle-minded decision-making process in the mechanisms to rescue and bailout the financially distressed 1MDB only goes to prove that we have a bunch of clueless ministerial clowns managing the RM42 billion debacle. The Government and 1MDB have only become the ultimate butt of jokes in the global financial community.

Tony Pua is MP for PJ Utara