Cabinet Ministers must individually and collectively explain when and why they had approved a further US$4.71 billion (RM17.8 billion) government guarantee for IPIC loans as latest bailout for 1MDB


1Malaysia Development Bhd (1MDB) has lost out in the public argument with DAP MP for PJ Utara, Tony Pua over whether there is a government guarantee amounting to US$4.71 billion (RM17.8 billion) to Abu Dhabi’s International Petroleum Investment Corporation (IPIC) with regard to IPIC loans in the latest bailout of IMDB.

This is also the judgment of the founding editor of KiniBiz, P. Gunasegaram who, in his article “A new RM17.8 bil twist in 1MDB ‘guarantee’” on Monday, concluded:

“On all accounts, Pua is right and 1MDB is wrong – it is 1MDB which is misleading the people, not Pua.”

Gunasegaram fully agreed with Pua that IPIC’s statement to London Stock Exchange on 10th June meant that the Ministry of Finance now also assumes the obligation together with 1MDB to transfer assets totalling US$4.71 billion, which means “the MOF is effectively undertaking to fulfil the obligation, not just 1MDB”.

Even Gunasegaram asked: “Why was such an important point not disclosed?”

It is most reprehensible that the 1MDB is denying the undeniable – that the MOF or the government of Malaysia have provided guarantees that 1MDB and/or MOF will transfer to IPIC US$4.71 billion (RM17.8 billion) in assets for the IPIC loans in the latest bailout of 1MDB.

But such reprehensible corporate misconduct pales into insignificance when compared to the deafening silence by the Malaysian Government, whether the Ministry of Finance (with Second Finance Minister Datuk Seri Ahmad Husni Hanadzlah now appointed as the Cabinet spokesman for 1MDB woes) or the Prime Minister, Datuk Seri Najib Razak himself, as one who is in law and fact the final approving authority for 1MDB deals.

In fact, why should there be a public ding-dong argument between 1MDB and Pua over whether the government had given an additional guarantee of US$4.71 billion (RM17.8 billion) to IPIC over the 1MDB’s latest bail-out loans as a statement by the Najib Government would have ended the public debate.

Why is the Najib Government, after committing Malaysians funds to further guarantee of US$4.71 billion (RM17.8 billion) guarantee for IPIC’s latest bailout loans to 1MDB, shy of admitting it publicly despite IPIC public statement to the London Stock Exchange some three weeks ago?

Was the additional US$4.71 billion (RM17.8 billion) of government guarantee for 1MDB the Save 1MDB Roadmap which Cabinet approved on May 29, where Najib asked Ministers to quit if they don’t support him on 1MDB issue?

Are all the Cabinet Ministers aware that they had individually and collectively approved US$4.71 billion (RM17.8 billion) as further government guarantee for IPIC’s latest bailout for 1MDB, or they had given their approval without knowing what they had done?

Every one of the Cabinet Ministers must be questioned by the Malaysian taxpayers why they have continued to be so irresponsible and indisciplined with public funds as to approve another US$4.71 billion (RM17.8 billion) government guarantee to bailout 1MDB?

Or are the Cabinet Ministers denying that they had approved another US$4.71 billion (RM17.8 billion) guarantee of IPIC loans to bailout 1MDB and that this was solely the decision of Najib and Husni which was never referred to the Cabinet?

Whatever the true position, the option of government silence of the further guarantee of US$4.71 billion (RM17.8 billion) for 1MDB for IPIC loans to bail out 1MDB is no more sustainable.
Malaysian taxpayers are entitled to a statement and full explanation by the government of whether and why the Government had given another guarantee of US$4.71 billion (RM17.8 billion) to what appears to be 1MDB bottomless pit.

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  1. #1 by Godfather on Thursday, 2 July 2015 - 2:51 pm

    I am certain the MOF solicitors understand what is an indemnity, and what a reciprocal indemnity means between a borrower and a lender. Knowing the low IQ of the cabinet, I am also certain most, if not all, won’t understand what they have gotten the country into.

  2. #2 by Mist on Thursday, 2 July 2015 - 4:41 pm

    The rakyat feels helpless. One expose after another and the government just continue, unashamed , to drive the country and her people deeper and deeper into the quagmire of a failed state that will take many generations to recover from.

  3. #3 by Godfather on Thursday, 2 July 2015 - 7:51 pm

    No money to repay syndicate of banks in Singapore, so borrow from IPIC, but not call it a loan. No money to pay interest for the next 12 months, ask IPIC to pay but don’t call it a loan. Ask IPIC to guarantee billions in principal in exchange for assets or cash PLUS indemnity from gomen, but don’t call this a loan guaranteed by the gomen.

    Must be some lawyers having too much to drink.

  4. #4 by TLoChin on Thursday, 2 July 2015 - 8:52 pm

    Again you see the quality of Cabinet Ministers we have! We suffer from a herd mentality. No one dare question anything put forward by the PM or the PM dept.

  5. #5 by drngsc on Friday, 3 July 2015 - 12:36 am

    The trust deficit with this Najib government is so great now, and increasing by the day, that we do not even believe that Fitch gave us a stable reading on their own. The talk in town is that Najib and team met Fitch some time in May and promise them a generous reward in return for a nicely worded rating. The talk is also that somehow, this Najib government influence the Thai Police to do them a favor, to nab Justo so that they can spin. Whoever believe this Najib government now should see a psychiatrist and get their brains examined. These fellas have been lying so often that every statement by them is lie until proven otherwise.

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