Tuesday, January 6, 2015

1MDB: Front Page of The Edge FD Today

Until the government is really truthful about what is going on with strategic investment fund 1Malaysia Development Berhad, Malaysians will persist in speculating about one of the prime minister’s pet projects – and also getting more and more worried by the day.
The Edge Financial Daily today puts it plainly: “3 CEOs, 3 auditors, 2 chairmen in 5 years, and still nothing’s wrong at 1MDB?”
If, as a Malaysian, you are not at all concerned, you should be! The above alone is a red flag!
1MDB had borrowings of RM42 billion and suffered a negative cash flow of RM2.25 billion in FY14. Its debt servicing is around RM2.5 billion. Given the steady slide of the ringgit against the greenback, this can only aggravate the debt servicing as 1MDB’s income is almost all in ringgit.
If Najib Razak knows his sums, he should be peeing in his pants right now. But then again, he has displayed an amazing ability to conceal his stupidity.
Celtic dominated play to carve an easy 2-0 win over Kilmarnock with goals from Emilo Izaguirre (36) and Stefan Scepovic (72) in yesterday’s Scottish Premiership game.

Also yesterday, Steven Gerrard scored twice (12, 62) to give his team an FA Cup third-round victory against Wimbledon. The League Two side did give the Reds a scare when Adebayo Akinfenwa equalized in the thirty-sixth minute before Gerrard saved the day for Liverpool.

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