12
Jun
15

Why is 1MDB so stupid, asks Mahathir

In a blog posting, Mahathir Mohamad gives a blow by blow account of the “stupid” deals 1MDB has made and says the PM must resign because of it.

PETALING JAYA: Going for the jugular, former prime minister Dr Mahathir Mohamad furnished his supporters with a blow by blow account of all the “stupid” deals 1Malaysia Development Berhad has indulged in and said Prime Minister Najib Razak must resign because those deals cost the country billions in losses.

Mahathir began with how the Terengganu Investment Authority (TIA) was made use of by the prime minister when businessman Jho Low persuaded him to make it a sovereign investment fund, adding that both the palace and state government drew the line only when Najib decided to raise RM5 billion through bonds using Terengganu oil wells as collateral.

“Jho Low then advised Najib that the Federal Government should guarantee the loan,” Mahathir wrote in his blog, saying that the PM however did not seek the Cabinet’s go ahead as should have been the case but proceeded to work with Goldman Sachs who charged a whopping 10% commission and a high fixed 5.9% interest rate on the loan.

“Who approved such terrible terms for a loan to a government owned company? We would like to know who.

“There must be some documents with the signature of the approving authority. If not somebody needs to answer for this stupidity. Or is it abuse of authority?”

Mahathir said the borrowings did not stop there and more loans were raised, adding, “In all RM42 billion was borrowed.”

Loans aside, he also detailed 1MDB’s many dodgy investments i.e. power plants purchased at “well above market price” and asked, “Why is 1MDB so stupid?”

He also touched on the government land 1MDB bought for a song that resulted in huge losses for the government. “The question is why did the Government sell at such a low price. One cannot help thinking it is because the PM ordered the sale.

“If so it is wrong and it constitutes abuse of authority. The full value should be paid to the Government now,” he said.

He was also unhappy that Lembaga Tabung Haji, a pilgrim’s fund, had been dragged into the 1MDB scandal, and made to purchase land from the latter at an inflated price using money that belonged to pilgrims intending to perform their umrah or haj.

…more
Why is 1MDB so stupid, asks Mahathir
June 12, 2015 – FMT

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