This is from the Wall Street Journal:
By Bradley Hope and Tom Wright
May 3, 2017
Deal to Prop Up 1MDB Falls Apart
Chinese refuse to authorize real estate project
major reason for failure was China govt declined green light
consortium given 12 extensions last expiring on April 30th.
failure of deal blow to MO1
MO1 heralded deal as “final milestone in 1MDB rationalization plan”
In 2015, 1MDB rushed to announce deal
MO1 included it in New Year’s message
Dec ’15 China agreed to 60% stake in Bandar Malaysia
valued at RM7.4 b (US$1.7b)
cornerstone to sell 1MDB assets
after 1MDB ran up over $13b debt
China Railway unable to complete sale
consortium included Iskandar Waterfront Holdings
received “notice of termination”
1MDB hasn’t published financial statements 2015 or 2016
current financial situation unclear
deal’s failure to add pressure to pay 1MDB’s debts
484-acre plot an old air force base
site planned to be terminus of proposed high-speed rail to S’pore
My comments :
This whole thing is just suey. Bad karma, bad luck or bad joss.
Even if they develop the land will investors be happy buying into such tainted projects? Stolen moneys, people have died mysteriously, others have been jailed, fired, prosecuted and it goes on.
News is Chief Thief was already about to go to Bandar Malaysia yesterday for a planned event when the event was suddenly cancelled. Malunya.
Now where is 1MDB going to get that RM7.4 billion?.
That IPIC settlement requires a first payment of RM2.5 billion by July 31, 2017.
RM7.4 + RM2.5 = RM9.9 billion ! ! Duit mana mau mari?
The Chinese have also pulled the handbrake on Chinese nationals buying properties overseas. So the Iskandar Waterfront project is also stuck because they are depending on sales of units to many Chinese buyers.
The GST may go up. O’wise how else are they going to raise the money?
I have a simple suggestion which the Chief Thief has possibly not thought about before.
Get that JoLo fellow and his family to return some of the stolen money. Just to cover the RM2.5 billion IPIC payment due by July 31st. Then at least you will have some breathing room.
It is only RM2.5b. He has plenty more stolen money left. Think about it lah.
Prepaids, you may wish to take up this suggestion, privately.