One thing which seems certain and constant in present day Malaysia is 'uncertainty'. Don't take any press statement or report for sure the first time it appeared. There will be statements later of changes by the same person or by others, relating to the matter.
Last Sunday Star had its cover page showing pictures of Tony Pua and Arul in a face-off, with the headline screaming, 'The stage is set'. I had my doubts when I read that, and sure enough, news in the internet shows Parliament Speaker objecting vehemently to the proposed debate, and even threatening to resign as Speaker if the debate were to be held. Anyone reading it would have thought that Pandikar is personally involved in 1MDB.
To understand why the sudden strong reactions to the proposed debate, especially the threaten-to-resign tantrum thrown by Parliament Speaker, please read Tony Pua's 10 questions which he gave advance notice to enable Arul to be prepared:
Link
Last Sunday Star had its cover page showing pictures of Tony Pua and Arul in a face-off, with the headline screaming, 'The stage is set'. I had my doubts when I read that, and sure enough, news in the internet shows Parliament Speaker objecting vehemently to the proposed debate, and even threatening to resign as Speaker if the debate were to be held. Anyone reading it would have thought that Pandikar is personally involved in 1MDB.
To understand why the sudden strong reactions to the proposed debate, especially the threaten-to-resign tantrum thrown by Parliament Speaker, please read Tony Pua's 10 questions which he gave advance notice to enable Arul to be prepared:
'While we wait for the much anticipated face-off, I would like to offer Arul Kanda the heads up, so that he can prepare the necessary answers whether during replies or debate speech. This way, Arul cannot feign ignorance or pretend that the documents were unavailable with him to provide the necessary answers. Therefore, let me disclose here the 10 questions which I will ask during the “live discussion, or talk show, or debate”:
1. Why did Bank Negara withdraw its approval for 1MDB to transfer more than US$1.8 billion overseas? Was it because most of the funds were transferred to an account which is unrelated to the 1MDB joint venture project with Petrosaudi International Limited as revealed in the leaked Board meeting minutes which Arul Kanda has acknowledged to be true? How much was transferred to this unrelated account? Did this unrelated account belong to Good Star Limited and who owns or controls Good Star Limited?
2. Is it true that 1MDB had invested the initial US$1 billion cash to acquire 40% of 1MDB-Petrosaudi while Petrosaudi only need to invest its rights to certain oil reserves in the Caspian Sea and in Argentina for its 60% stake? In addition, were the rights to the Caspian Sea oil reserves terminated by Petrosaudi within 2 months after the signing of the joint venture agreement, which meant that Petrosaudi secured their 60% stake without investing anything significant?
3. Is it true that 1MDB had proceeded to sign the joint venture agreement with Petrosaudi in a rush, without securing the necessary Board of Directors approval at that point of time as revealed in the same Board minutes?
4. 1MDB Financial Statements dated 31 March 2013 and 2014 stated that US$1.4 billion was held as a deposit by International Petroleum Investment Corporation (IPIC) as a condition for IPIC to guarantee 1MDB’s US$3.5 billion bond issue. However, the IPIC Financial Statements dated December 2013 and 2014 audited by Ernst & Young did not disclose any such condition for the provision of the guarantee. The balance sheet of IPIC also did not reflect any such refundable deposit received or held. Why hasn’t 1MDB sought IPIC to clarify where the money has gone?
5. Did 1MDB pay US$993 million from the US$1.22 billion it partially redeemed from the Cayman Islands investment fund AND another US$975 million borrowed from Deutsche Bank led consortium to terminate options 1MDB granted to Aabar Investments as part of another condition by IPIC to guarantee 1MDB’s US$3.5 billion bond issue? What exactly is the total sum paid and payable to Aabar or IPIC? Why is it that IPIC disclosed in its December 2014 Financial Statements that 1MDB still owes IPIC a sum of US$481 million for the said termination?
In addition, if the US$993 million from the US$1.22 billion redeemed from Cayman Islands was not paid to Aabar or IPIC, where did the money go?
6. It has been disclosed in 1MDB’s financial statements, parliamentary replies and media releases that 1MDB Global Investment Limited borrowed US$3 billion in March 2013 for the purposes in investing in a 50:50 joint venture with Aabar Investments Limited where the joint venture will invest in the development of Tun Razak Exchange. The question is, how come more than US$1.5 billion of the borrowings have been utilised for purposes other than specified as disclosed in the March 2014 Audited Accounts, particularly since the joint venture has yet to be activated to date?
7. Arul Kanda had earlier informed Malaysians and 1MDB Directors, according to the above leaked minutes, that the balance of the Cayman Islands investment amounting to US$1.108 billion was fully redeemed and was held in cash in BSI Bank Singapore. However, the 1MDB President has since admitted that the redeemed amount was not cash but they were “fund units” worth US$940 million. Why are these “fund units” which were redeemed from the Cayman Island fund still in the form of “fund units” and not in cash or, raw assets like property and shares? If they were in “fund units”, doesn’t it mean that the Caymans fund was never redeemed in the first place?
8. Arul Kanda announced the “debt for asset-swap” deal with IPIC where the latter assumes some RM16 billion of 1MDB’s debts in exchange for 1MDB’s assets. IPIC has already advanced more than US$1 billion in the deal. Where is 1MDB going to produce these RM16 billion worth of assets to transfer to IPIC by 30 June 2016?
The Ministry of Finance (MoF) has also indemnified IPIC in the “debt of asset-swap” arrangement. Does it mean that if 1MDB fails to produce the necessary RM16 billion worth of assets by 30 June 2016, the MoF would have to compensate IPIC accordingly?
9. Arul had declared that the disposal of its subsidiary, Edra Energy will allow it to remove RM16-RM18 billion of 1MDB’s debt. However, the total debts associated to 1MDB’s energy arm amounts to approximately RM36 billion, comprising of US$3.5 billion of bonds, RM5.7 billion of direct loans and more than RM8 billion of inherited loans. Hence reducing up to RM18 billion of debt via the disposal of Edra Energy will still leave 1MDB with more that RM18 billion of outstanding debt associated with its energy acquisitions. Therefore how will the sale of Edra solve 1MDB’s cash flow problem since there’ll be no assets left to pay the balance of the RM18 billion debt?
10. Did the Federal Government issue a “letter of support” in May 2015 to Bank EXIM to borrow US$150 million (RM600 million) where the funds was utilised by 1MDB to pay for its land acquisition from Tadmax Resources Bhd for approximately RM300 million? If so, what was the balance of the proceeds from the borrowing used for?'
Source from Tony's blog: http://tonypua.blogspot.my/2015/11/10-questions-i-would-pose-to-arul-kanda.html?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed:+blogspot/hRZc+(Philosophy+Politics+Economics)
Arul will be like a sitting duck if he were to answer those questions. The truthful answers (if revealed) will incriminate PM cum FM and this must be avoided at all costs. To follow Tony Pua's format, it will not be a normal debate, more like a Congressional Inquiry in the USA. In fact, PAC's inquiry should be televised instead. But to our government, transparency is like poison to their own survival.
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