TIA SAME MODUS OPERANDI AS 1MDB? Only 9 months old, yet RM250 mil in commissions paid out, mystery RM5 bil bank loan unpaid

The rakyat and now the cabinet ministers are increasingly sceptical after the finance minister’s announcement that 1MDB is going to wind down. Is it going to be a ‘Now You See It and Now You Don’t’ financial mirage like the Terengganu Investment Authority (TIA)?

TIA existed for only about nine months before it ceased to operate, after at least more than RM250 million was paid out as commissions. During its short existence it obtained a RM5 billion bank loan although it had no known assets or obtained any projects. Recent sighting of the company’s memorandum of associations confirms the prime minister’s approval is needed for all TIA’s and 1MDB’s deals. The cabinet seems to be in the dark.

If 1MDB is a serious business entity, why is its lifespan going to be only slightly longer than the nine months of TIA? IMDB is just like TIA, full of mysteries and unanswered questions.

The previous Terengganu menteri besar, Ahmad Said, claims that there was an attempt by TIA to collateralise Terengganu’s future oil and gas earnings which he opposed. The present Terengganu Menteri Besar Ahmad Razif Abdul Rahman denies any knowledge of such arrangements. Ahmad Said claimed he was removed as menteri besar due to his opposition to the idea.

The rakyat of Terengganu want to know why and who was paid the RM250 million commission and what other liabilities is Terengganu exposed to? Questions and more questions, and no answers have been given since I raised these issues in Parliament over the past two years.

If we study the matter closely, there are similarities in the modus operandi how money was obtained and siphoned out from both TIA and 1MDB. In TIA’s case, Terengganu’s future earnings from oil and gas were supposed to be used as collateral for its activities. This is risking the future of the young by splurging on some questionable ventures since no assets and projects had been identified or announced at that time.

Only the previous menteri besar’s opposition prevented its execution. In 1MDB's case, as pointed out by some analysts; Abu Dhabi’s injection of US$4.5 Billion into 1MDB is effectively deferring payments to future taxpayers. In both TIA’s and 1MDB’s cases our nation’s future income is being put at risk by our leaders so they may splurge today.

Dubai has skyscrapers, 1MDB only has vacant land

Abu Dhabi’s loan will come at a heavy cost to us, just as the loan they made to Dubai. The big difference between Dubai and Malaysia is that Dubai has built a city of giant skyscrapers of offices and apartments, while Malaysia’s 1MDB has only got vacant land and some old power plants of questionable value.

The Malaysian cabinet had turned down 1MDB’s request for funds of a few billion ringgit, which resulted in the prime minister using his own authority to approve only RM950 million of funds. Out of desperation, 1MDB sought help from the foreign country of Abu Dhabi. We are selling the nation to foreigners who may end up financially colonising Malaysia.

When the prime minister’s own cabinet members doubted 1MDB’s viability, the prime minister sought foreign help. Now Najib Abdul Razak tells the cabinet, its either my way or the highway. Those who don’t agree with him are told to leave.

We seek and demand answers from Najib on what actually happened in TIA in order to try to understand what is happening in 1MDB as they both seem to be going down the road of the same short-lived existence. If 1MDB is such a well-planned company, why is it suddenly being wound down and facing a similar fate to the earlier failed TIA? Is it another half-baked failing company like TIA? The rakyat demand and await the answer. - M'kini