Dr Mahathir Answers His Questions to Mohd Najib

A Kadir Jasin

TUN Dr Mahathir asked (about 1MDB, Altantuya Shaariibuu’s murder and who ordered her killers to commit the crime.

[REMINDER: No anonymous comments will be published.  Please use Google Account, OpenID or Name/URL. Pseudonym is accepted. Thank you]

According to the mainstream media, Mohd Najib Abdul Razak answered all the questions (the RTM and TV3 way).

Dr Mahathir and his supporters said that were not the answers they wanted.

They did not accuse Mohd Najib of complicity in Altantuya’s murder but he swore by the Quran repeatedly that he did not even know the Mongolian victim.

So today, in his latest blog post, Dr Mahathir “answered” the questions he asked Mohd Najib about 1MDB.

Among other things Dr Mahathir noted that 1MDB has a paid-up capital of RM1 million with neither assets nor collaterals ended up borrowing 42,000 times more than its capital. It was able to do so only because of Government guarantees.

In other words, he said, it is Government which is borrowing the money. If 1MDB loses money, the Government will bear the loss. Yet the operation of 1MDB is not overseen by Government officers responsible for the management of Government funds.

Dr Mahathir also noted that out of RM42 billion debt that 1MDB had amassed as a result of asset purchases, some RM27 billion is still unaccounted for.

"These are all the purchases known. They add up to RM14.7 billion. So there is approximately RM27 billion left.

"More than US$1 billion was said to be paid to Petro Saudi without verification as to the value of this company or its assets.

"Where is the rest of the money?" he asked.

Mahathir had listed several purchases "as far as can be ascertained" which were made by 1MDB including:

1) Tanjong Energy (now known as Powertek Energy Sdn Bhd) for RM8.5 billion;
2) Genting Sanyan Power (now known as Kuala Langat Power Plant)  for RM2.3 billion;
3)  Jimah Energy for RM1.2 billion;
4) Seventy acres of land in Jalan Tun Razak (For Tun Razak Exchange) for RM320 million;
5) Four hundred and ninety five ( 495) acres of the Sungai Besi TUDM base (renamed Bandar Malaysia) for RM363.5 million; and
6) The purchase of  234 acres of land in Air Itam, Penang for RM1.38 billion.

He added that no one knows exactly where is 1MDB's RM2 billion which was supposedly brought back from the Cayman Islands and parked in Singapore.

Dr  Mahathir said the government also lost some RM25 billion in income opportunity by selling the lands cheaply to 1MDB.

"It should be noted that TRX land is close to land recently sold at RM7,000 psf.

"Assuming the market price is RM3,000 psf, the true value of this land is RM6 billion.

"The government has therefore lost RM5 billion plus because 1MDB paid only RM320 million," said Mahathir.

Dr Mahathir estimated that the government lost around RM20 billion in opportunity cost for the Sungai Besi land which he estimated to be at RM1,000 psf but was only charged RM91 psf for a total of RM363.5 million.

"It is this disappearance of a huge amount of borrowed money by 1MDB and the inability to answer questions regarding what happened to the funds that disqualifies Najib from being prime minister of Malaysia," Mahathir said.

Dr Mahathir asked why the 1MBD bond managed by Goldman Sachs cost more than was usual for Government borrowings. The interest rate at 5.9% was too high. Government loans usually attract about 3% or below.

In addition, he said, the 10-per cent commission went to Goldman Sachs which meant that 1MDB received only 90% of the money borrowed yet has to pay interest on 100%, raising the interest rate to 6.6%. Averaging at 6%, yearly interest on the RM42-billion debt is about RM2.5 billion. Since 2009 there has been no income from all the assets. And 1MDB had to borrow RM2 billion to pay the interest.

Meanwhile Umno sources said many key leaders of the party had seen and examined the 1MDB figures and are sharing what they know with party members to ensure no further damage is done to the company and the culpable parties are held responsible.

Wallahuaklam.