Where’s the balance of RM27bn 1MDB money?

 

Purchases of power companies and three parcels of land only come to RM14.7bn najib_mahathir_1mdb_600By TK Chua A news report quoted our Prime Minister as saying that “the RM42 billion was not lost; the money was now part of the Tun Razak Exchange (TRX) and Bandar Malaysia land bank”.

In accounting we learned that when we borrow money, the liability side is represented by the debts we owe while the asset side is represented either by cash in bank or the assets we bought through the borrowing we obtained.

In this occasion, I wish to refer to what Tun Dr Mahathir wrote about 1MDB on April 23 which also appeared in some of the news portals. Essentially what he said and asked were as follow:

Total initial borrowings of 1MDB amounted to 42 billion Ringgit. As far as can be ascertained the investments were as follows:

(i) Purchase of Tanjong Energy (now known as Powertek Energy Sdn Bhd) from Ananda Krishnan for RM8.5 billion. This is higher than market price. The licence was about to expire.

(ii) Purchase of Genting Sanyen Power (now known as Kuala Langat Power Plant) for RM 2.3 billion. Again above market price. The licence was about to expire.

(iii) Purchase of Jimah Energy for RM 1.2 billion.

(iv) Purchase of 70 acres of land in Jalan Tun Razak for RM320 million i.e: RM64 psf.

(v) Purchase of 495 acres of land in the former Sungai Besi TUDM airport (now known as Bandar Malaysia) about RM 363.5 million i.e: at RM 91 psf. (vi) Purchase of 234 acres of land in Air Itam in Penang for RM 1.38 billion i.e: at RM135 psf.

According to him, these are known purchases the total value of which add up to RM14.7 billion. So there is approximately 27 billion Ringgit still unaccounted for. Our PM’s statement said RM42 billion is now part of the TRX and Bandar Malaysia.

Are we supposed to accept that the balance of RM27 billion is now invested in these two pieces of land? We know that TRX and Bandar Malaysia lands were given to 1MDB for a song.

We also know that revaluation of assets requires no financial outlay. What improvements or enhancements have been made to the lands to account for the balance of RM27 billion?

Are there office towers or residential condominium buildings being constructed?

If so, at what stage is the construction? Surely we need more convincing and credible explanations on the whereabouts of the remaining RM27 billion than just “the money was now part of the Tun Razak Exchange (TRX) and Bandar Malaysia land bank”.

I think these are very straight forward questions which need no auditor reports to provide the answers.

Posted & copy by RAKYAT MARHAEN