1MDB belongs to the people, says veteran journalist

An artist's impression of the Tun Razak Exchange (TRX), part of troubled 1MDB's assets. – File pic courtesy skycrapercity.com, February 19, 2015.

1MDB belongs to the people, said veteran journalist Datuk A Kadir Jasin, who argued that the troubled sovereign wealth fund cannot hide behind a technicality to justify its secret business dealings.

The former New Straits Times (NST) group editor-in-chief said 1MDB was a government-owned company that is answerable to the people and so far, many of its replies to issues raised by politicians and the media were inadequate.

“1MDB is more than a listed company. It is a government-owned company and is, therefore, answerable to the people,” Kadir wrote in his latest blog posting.

“It is a well-known fact that while the opposition politicians are complaining openly about the business conduct of 1MDB, the government members are bitching behind the scene.

“As for the media, they had gone to listen to briefings and press conferences held by 1MBD’s top brass, including its chairman (Tan Sri) Lodin Wok Kamaruddin, but left with more questions than answers.”

Kadir had in the past criticised 1MDB’s opaque operations.

1MDB is a cross between a sovereign fund and a private investment firm wholly owned by the Ministry of Finance. Its debt woes were seen as pressuring the ringgit and Malaysia's sovereign credit rating.

Kadir (pic, right) questioned 1MDB group executive director Arul Kanda Kandasamy's denial that it secured a loan from billionaire Tan Sri T. Ananda Krishnan to pay its debts to several local banks.

The Malaysian Insider had reported that tycoon Ananda had stepped in to loan RM2 billion to 1MDB before it defaulted on debts owed to several banks.

Arul, however, has denied that it had borrowed money from Ananda.

But Kadir said Arul had not stated where it received the RM2 billion loan.

“Unless 1MDB states unequivocally the source of the RM2 billion fund, there will be enough people who will continue to believe that Ananda provided it.”

Kadir listed nine questions for Arul to answer, so that the public is convinced that 1MDB was not in dire straits. These are:

1. Why did 1MDB buy end-of-life IPPs from TYL, Genting and Ananda’s Tanjong Energy?

2. Has the company applied and received the extension for the concession period of the power plants and negotiated new power purchase agreements with Tenaga Nasional Berhad?

3. Who are the Malaysian and international subscribers of its US$6.5 billion (RM23.41 billion) global sukuk?

4. Apart from power plants, the TRX (Tun Razak Exchange), the redevelopment of the Sungai Besi air force base and land in Penang, what are other 1MDB assets?

5. Is it true that 1MDB paid as much as 95% above the market price for its Penang land and that part of the land is occupied by squatters?

6. Is it true that 1MDB also invested in a mining concession in Mongolia?

7. Why the necessity for 1MDB to do a land-lease development for TRX with an Australian company when all the three major property developments mentioned by Arul in a Malay Mail interview – KLCC, KL Sentral and Mid Valley – were developed by locals?

8. Until a month ago Arul was a banker. Is it a norm for a state-owned strategic investment company to be so highly geared as 1MDB?

9. Would Arul, as a banker, fund such a highly geared company?

- TMI