Petaling Jaya Utara MP Tony Pua says while it is true that 1MDB has never defaulted on its loans, it has missed two repayment deadlines for a RM2 billion debt. – The Malaysian Insider file pic, January 12, 2015.If 1Malaysia Development Berhad (1MDB) was a "responsible borrower", the strategic development firm would not have accumulated a debt exceeding RM42 billion, nor would it have failed to pay off its debts, DAP lawmaker Tony Pua said today.Responding to 1MDB group executive director Arul Kanda Kandasamy's comments in an interview with Bloomberg last week, Pua said 1MDB had been reckless in its borrowing and paying excessive fees to obtain the funds.The Petaling Jaya Utara MP said that if Arul ignored 1MDB's past mistakes, the new CEO would not be able to turn the loss-making state investor's fortunes around."It is absolutely true that 1MDB has never defaulted on its loans, not yet anyway. However, that does not at all mean that 1MDB does not have any trouble paying its debts or does it in anyway qualify 1MDB as a 'responsible borrower'," Pua said in a statement today."The fact of the matter is that 1MDB has missed two repayment deadlines for a RM2 billion debt in November and December 2014. This RM2 billion loan itself is part of a rescheduled and restructured debt it couldn’t pay in November 2013."The DAP publicity chief added that in 2010, 1MDB had lent US$1.2 billion (RM4.3 billion) to Petrosaudi International, and borrowed more money to lend an additional US$700 million to the firm, despite its lack of a tangible track record."Petrosaudi was founded only in 2005 by a Tarek Essam Ahmad Obaid who was then in his late 20s. How were such borrowings in any way “responsible"?"Pua said that while the loan was fully redeemed in 2013, the money was "controversially invested" in Cayman Islands.He added that 1MDB had reneged on its commitment to its auditors, Deloitte Malaysia, that the funds would be fully redeemed and received by the end of November 2014, noting that the sum of US$1 billion had yet to be repatriated to date.Another example of its "irresponsible borrowing" was its tendency to borrow money at extremely high interest rates, said Pua.He said 1MDB borrowed its first RM5 billion in 2009 at 5.75% interest and still gave a 12% discount for their 30-year bonds despite a Federal Government guarantee.
1MDB newly appointed group executive director Arul Kanda Kandasamy says 1MDB is a responsible borrower. – Reuters pic, January 12, 2015."The effective interest rate paid was hence 6.71%, despite the 10-year Malaysia Government Securities being priced only at 3.85% then."Subsequently, they issued another two bonds in May 2012 amounting to US$3.5 billion, paying a coupon rate of 5.99% despite a guarantee by International Petroleum Investment Corporation (IPIC), an investment arm of the Abu Dhabi Government."On top of the excessive 'commissions, fees and charges' exceeding 11% of the funds borrowed, 1MDB had to deposit 40% of the funds with Abu Dhabi and grant them options to 1MDB’s power plant investments," said Pua.He said that two years ago, 1MDB further issued a US$3 billion bond and paid Goldman Sachs US$282 million in commissions, fees and charges, "well exceeding international norms of less than 2%".Pua said that while the loans' proceeds were meant to be invested in a joint venture called the Abu Dhabi Malaysia Investment Corporation (ADMIC), nothing had transpired."After nearly two years, ADMIC remain stillborn while nearly half the money raised have been siphoned for 'working capital and debt repayment purposes' last year," said Pua.He said that while Arul was not responsible for 1MDB’s present state, it would be "foolhardy" for him to pretend that nothing much was wrong."Without recognising the major mistakes committed to date, he cannot possibly cure 1MDB’s ills and turn around the fortunes of the besieged company," said Pua.In an email interview with The Malaysian Insider last week, Arul, 38, acknowledged that the company had hurdles to overcome, especially in terms of negative public perception, but pledged to address them head on, including being transparent to all parties, even critics.Arul said 1MDB was a responsible borrower and had always fulfilled its financial obligations.He said people tended to forget that the company has very "impressive assets", including 15 power plants in five countries, valuable land bank and its human resources."With the right strategy, I have no doubt that we can maximise the value of these assets and overcome the challenges the company faces," he had said. – January 12, 2015.
ไม่มีความคิดเห็น:
แสดงความคิดเห็น