Thursday, December 28, 2017

1MDB Settle with IPIC

1MDB are in the news again.

This time 1MDB are obliged to reveal how they raised the money to pay Abu Dhabi’s sovereign wealth fund “the equivalent of $350 million” (RM1.5 billion) on Thursday. 

DAP’s Tony Pua highlighted that the phrase “equivalent of $350 million” in 1MDB’s announcement of the payment to International Petroleum Investment Co cast serious doubt that the payment was in US dollars. 

What does “equivalent” imply? I take it to mean that the payment was not made in US Dollars – if it was not, can I assume it was made in ringgit Malaysia? 

Pua explained that US dollar transactions would require re-routing via US banks, and if 1MDB’s remittance was in ringgit, then it lent credence to the suspicion that international banks avoided 1MDB transactions for fear of participating in money laundering. 

In fact, he drew attention to a report by The Malaysian Insight that quoted an unnamed source as saying that the bank transfer was done by Maybank. 

This suggests the money must surely come from internal sources – does it not? 

This begs another question. Where then did the money come from? 

1MDB have, after all, sold or transferred all of their assets – both energy and real estate, and have already used their proceeds to pare down their massive debts and interest payments. 

Next year, 1MDB have another $300 million and $603 million to pay by August 31 and December 31 respectively. 

Malaysians are asking again and again for Najib Razak to stop evading the issue and come clean on the matter. The buck stops with the Prime Minister. 

Also on Tuesday, Celtic moved 11 points clear at the top of the Scottish Premiership with a 2-0 win over Dundee. 

The first goal came when James Forrest converted Kieran Tierney's low cross in the eighth minute. And then Leigh Griffiths fired the second goal in the forty-third minute. 

It looks like Celtic are going to continue their reign in the Scottish Premiership.

[Note: Three days earlier, Celtic whipped Aberdeen 3-0 in a Scottish Premiership match].

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