Friday, September 18, 2015

Another Missing Billion

10 days ago, the respected Wall Street Journal reported that US$1.4 billion (RM6.02 billion) was missing from 1Malaysia Development Berhad (1MDB). The money was supposed to be payment from 1MDB to an Abu Dhabi state investor’s subsidiary, but the payment in November 2014 was missing.

Today The Wall Street Journal reported that another US$1 billion is missing. 

According to the newspaper, IPIC (a United Arab Emirates state investment vehicle) had guaranteed US$3.5 billion in bonds that 1MDB issued to finance the purchase of power plants in 2012. In return for the guarantee, IPIC got an option to buy a 49% stake in the power plants as well as collateral for the bond. 

1MDB reported it repaid IPIC US$1 billion for the guarantee, but IPIC insist it never receive the payment. Officers in the UAE are now trying to trace the US$993 million that 1MDB reportedly paid to IPIC. This on top of the missing US$1.4 billion means a total of US$2.4 billion are missing.

Wait a minute; didn't Malaysian Prime Minister Datuk Seri Najib Razak say that the RM2.6 billion deposited into his personal accounts ahead of the 2013 general election was "donated" by a Middle-Eastern donor? The currency used is different but the numbers match (2.4 vs 2.6). So does that means we now know who this donor from the Middle-East is?

Unfortunately, the UAE is saying the money wasn't "donated" but is "missing". It is any surprise that UAE are now trying desperately to get out of their deals with Malaysia and 1MDB? Seems the 1MDB fiasco has caused Malaysia a friend in the Middle-East. 

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