1MDB/MoF failed to cough up one cent of its RM2.6 billion (US$603 million) debt to IPIC by 31 July (with an additional grace period up to 5th August).
Subsequently, PM/FM Najib’s accessory to 1MDB $46 billion fraud, MoF Chief Secretary Tan Sri Dr. Mohamed Irwan Serigar bin Abdullah, announced that IPIC had agreed to extending the repayment date to 31 August, with the proviso that an interim payment of at least RM1.3 billion (US$310 million) be made by 12 August.
Serigar was quoted as saying that 1MDB had defaulted on its loan repayment “due to the need for additional regulatory approvals.”
Here are the relevant stories:
1. Najib, 1MDB and MOF had 92 days from end April 2017 to plan for the debt repayment.
The truth is all of them had planned for the cover-up and illegal bail out of 1MDB in July 2016, as exposed by Sarawak Report. CLICK HERE.
Serigar, who should have been sacked particularly for this scheming, had egg all over his face as the Dalian Wanda Group failed to show up, amidst rumours of its Chairman being involved in corruption. It would also appear that China was not too amused at the mistreatment of CREC (China Railway Engineering Corporation) by Serigar who had cooked up stories that IWH-CREC had failed to stick to payment schedules. In the end, MoF was forced to refund IWH-CREC RM786 milliono of deposits and advances that it had paid.
Part of Najib’s plan included 1MDB receiving RM3.7 billion (US$850 million) from China state-owned company CCCC (China Communications Construction Company), in exchange for its 234-acre Ayer Hita, Penang land land and “other assets”.
However, this plan did not materialize in time presumably due to the China funds freeze on state-owned companies and 1MDB being unable to deliver “other assets” represented by fake “units”.
Now we come to the crux of the fraud.
Almost every project mooted Najib has to have the tag-line ‘GAME CHANGER’ without which it would appear a project cannot be important or succeed.
CCCC was banned from participating in international tenders in 2009 by the World Bank, for fraud and shoddy work. CLICK HERE.
Yet Najib and 1MDB have signed a RM55 billion inflated contract with CCCC without open tender. Had there been one, any number of countries would have been willing to provide cheaper loans, e.g. Japan where interest rates range from 0% to negative -.01%!
CCCC is apparently charging 3.25% interest per year for a 20 year loan, with no repayment of interest or principal loan for the first 7 years. As the ECRL project is scheduled to be completed 2024, it will have to repay CCCC the RM55 billion by 2044.
ECRL need not service interest or principal for the first 7 years. Presumably, interest will be accrued for 7 years and become payable over the next 13 years. At 3.25% p.a., that works out, compounded, as RM13.8 billion. The interest on the full loan on a reducing basis thereafter, will about RM14 billion. Where is the government going to find RM83 billion (55+14+14) to repay CCCC?
As analysed by Mkini columnist P.Gunasegaram, CLICK HERE, ECRL is:
1. A single electrified railway track built on a double-tracking formation for 688km, running from Port Kelang on the west coast to Tumpat on the east!
2. It is not economically or financially viable, given that the RM36 billion west coast double-tracking project is an utter failure in terms of generating profit or servicing loan.
3. Much of the freight volume and rate increases are based on China as a single customer. Can China generate enough business from 2025, transporting goods via ECRL from and to our west coast to east coast. The Chinese may save money bypassing Singapore, but can we generate meaningful profits with a price tag capital cost of RM83 billion? CLICK HERE.
4. ECRL is unlikely to break-even for the next 50-100 years!
5. No estimation has been made for loss of business on the existing railway lines from KL to Mersing and Mersing to Kota Bahru!
Since CCCC is willing to collude with Najib/MoF/1MDB to commit international fraud, this will likely be the route:
1. The contract with CCCC wil incorporate a lot of fake work and bloated prices to justify RM55 billion.
2. Over the next 7 years the crooks will have to issue a lot of false invoices for work NOT done.
3. As CCCC is paid the RM55 billion, it will transfer the money back to China or off-shore. From there it will use the excess RM29 billion to settle 1MDB’s debts, claiming either to have bought its infamous fictitious “units” and non-existent “investments for sale” reflected in 1MDB’s 2014 balance sheet.
4. CCCC will not pay for 1MDBs fictitious assets in Malaysia, as they will have to overcome regulatory approvals and valuations from Bank Negara and the Securities Commission. Najib is a crooked Finance Minister who will only too willingly break BNM rules to save his own skin, as he did in 2015!
5. 1MDB will then claim that it had liquidated all it fictitious units and investments to part pay its huge debts estimated currently at about RM80-85 billion. It will gladly falsify its accounts which will be “audited’ by well paid and compliant auditors.
6. Who will really pay for it all between 2031-2044? It will be all those young students now who will be saddled with 15-year car loans, 20-year PTPTN loans and 35-year housing loans!
And that is how the sting will be played out by Najib and his government of thieves, looters and plunderers, as they laugh all the way to the bank, happily singing “That’s How It’s Done, Stupid!”
Unless we stop them.
Our real enemy is ignorance. UMNO/BN under Najib has killed our education system, with the ‘O’ level pass mark for some subjects being as low as 15! Many out there just do not understand the danger of a RM83 billion fraud on top of a RM46 billion fraud at 1MDB and another RM30 billion at PPFI (and more).
This is being passed on to future generations, when under Najib again, our national debt has already more than doubled and ballooned to RM687 billion!
I have read opinions and comments on twitter and Facebook from people who think that projects like the ECRL should go ahead as it will generate economic activity, regardless of the true cost to the Taxpayer.
And as the day soon arrives when we can’t pay the train drivers or repair faulty signal lights, relays and railway tracks, what then? Abandon the trains where they stop and complete the journey by foot?