P GUNASEGARAM questions 1MDB's secrecy and sensibility in operation

1MDB was launched with much fanfare and Jho Low was portrayed as someone with all the right connections (especially with international glitterati like Paris Hilton) and with the magic touch. But then again, with financial matters, everything still boils down to accountability and bottom line. Every company needs revenue-generating assets or sales to keep going, and every loan needs to be repaid. There is no way any company can survive by borrowing more from B to pay A, if there is no genuine and sufficient incomes to cover at least the loan interest in the short term and the loan eventually.

"1MDB’s cloak-and-dagger style of operation with many unanswered questions and dubious dealings is very unbecoming of a sovereign fund which is supposed to to make strategic investments that will be of value to the country."

Why was the first bond issue of RM5 billion done with so much secrecy? ...
The joint-venture with PetroSaudi International Ltd. How come PetroSaudi put in an oil reserve in the Caspian Sea as part of the deal?...
On the exit from the JV with PetroSaudi - Why accept debt papers from PetroSaudi as payment?...
Why increase the debt to PetroSaudi even more to the extent of RM5.71 billion - more than the RM4.4 billion raised via the bond?...
The second bond of US$1.75 billion was made at very favourable terms to buyers and described as a mysterious placement. Why the secrecy?...
Is there a  plan to issue another US$3 billion bond as reported by Bloomberg?...
Why was there such a hurry to buy power assets? Is it to get some cash flow in? Why the overpayment?...
Jimah Energy Ventures Holdings - is there a plan to acquire this power asset for RM1.7 billion as reported?...
Why bring in foreign partners for the two main real estate developments - the RM27 billion Tun Razak Exchange (TRX) and the RM20 billion Sungai Besi airport land? This was on land obtained cheaply from the government. Why pass on benefits to a third party?...
Who is directly responsible for this series of highly questionable decisions by 1MDB? Are the 1MDB board and its advisory panel all fully aware of what is going on? If they are, why have they agreed to these?...

"If government companies and sovereign funds are to set an example for standards of corporate governance, transparency and accountability, it is very clear that 1MDB has failed on all accounts...."

More:
http://www.malaysiakini.com/columns/225764

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