Thursday, May 14, 2015

Six Jittery 1MDB Lenders

Singapore's Business Times reported yesterday that the six "jittery lenders" (all are foreign banks) have turned "panicky" because the $975 million (RM3.6 billion) loan was secured by 1MDB's wholly owned Brazen Sky's $1.103 billion, which is currently said to be parked at Swiss-based BSI Bank Singapore.
The business daily, quoting sources, said "securitisation document" for the loan was now deemed "incomplete", as one of the covenants was not fulfilled. These meant lenders could demand for repayment from the state investment vehicle any time before its due date of end-August 2015.
On the same day too, Pandan MP Rafizi Ramli revealed he had received information that the debt-ridden 1MDB had listed their “questionable” account in BSI Bank Singapore as collateral. He said if this was true, 1MDB may have to resort to using public funds (!) to meet the payment deadline, since their account in BSI Bank reportedly had no actual cash.
On April 22, whistleblower site Sarawak Report had said 1MDB’s account in BSI Bank merely contained “paper assets”, the “true value of which cannot be determined”. I suspect the said “paper assets” are monopoly money!?!?
Anyway, despite the alarm and anxiety, the idiot who is the 1MDB President and group executive director Arul Kanda Kandasamy could only come out with a lame statement that he could not comment because he was bound by a "confidential banking matter".
All this while, I thought banking confidentiality only applies to the banker and not the customer. And now this Arul Kanda is telling me differently. I must be stupid then.
But I am waiting impatiently to see how 1MDB will wriggle themselves out of this mess.
Yesterday, I was in Menara ExxonMobil in KL's Jalan Kia Peng to attend the Tiger Toastmasters meeting. I was the General Evaluator and it was a marathon speech session. A good meeting that saw twenty-three people in attendance. Better still, we started and ended on time. I would give this meeting a 7.5 over 10 score.

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