1MDB, a case of mismanagement … or worse?

by Shelton on February 27th, 2015

filed under House Loan

YOURSAY lsquo;Wheres the money in Caymans? Maybe it does not exist anymore.

1MDB seeks another one-month loan extension

Sali Tambap: 1Malaysia Development Berhads (1MDB) future looks really bleak. If, as according to this report, that it has to sell its stake in order to pay its debt every month, then eventually it will have nothing left when all its properties are sold.

Secondly, it seems like a desperate measure of a person who is about to go bankrupt, when it (1MDB) sells its property (Edra Global Energy Bhd) back to the same person, T Ananda Krishnan, who sold the property to them two years ago.

If the company is viable and making profit, why the need to delay payment of debt? From a laypersons perspective, it is as if one is unable to pay the monthly installment of a car that one has purchased.

Only that this involved huge amount of money, RM2 billion, thus the gravity of it.

Wg321: I thought it is a simple exercise. The new CEO of 1MDB will bring back to Malaysia the money (RM7 billion) from the Cayman Islands; and pay its debt of RM2 billion to Maybank, RHB and other lenders before the end of January.

If the money has been brought back to Malaysia, why is 1MDB not paying its debts to the lenders and asked for extension instead? Something is wrong somewhere. Where is the money in Caymans? Maybe it does not exist anymore.

Chinese businessmen will never want to do business with such a company. They will say got money, dont want to pay.

To the Chinese, trust is very important in doing business. But how to trust 1MDB? It has very bad business practices. It never wants to build up trust and confidence with its customers and lenders.

Deputy Finance Minister Ahmad Maslan is very proud of the new CEO of 1MDB, claiming that he is a Muslim. What is the use? He cannot perform such a simple job.

Mosquitobrain: Indeed, Ahmad Maslan has announced on national TV that the offshore investments has brought in some returns. So why 1MDB still requires extension for another month?

Umnosyaitan: The issue now is that 1MDB is seeking yet another loan extension as it is unable to repay RM2 billion loan that has already been extended three times.

Under Bank Negaras own rules, 1MDBs consistent failure to repay the RM2 billion syndicated short-term bridging loan means that the lending banks should classify the loan as a non-performing loans (NPLs) because the company has been unable to repay its contractual loan commitments.

However, Bank Negara has time and time again bent the rules in 1MDBs favour by allowing the banks to grant extension after extension in a valiant effort to prevent the loan from sinking to the classified loans category.

Kit P: A corporation, just as with a person, is very likely facing financial trouble if it has to urgently sell assets to settle a scheduled debt repayment. Do you ever find that you have to sell your assets to meet scheduled house loan or car loan repayment?

Of course, 1MDB deals in billions of ringgit, but the principles of financial stability are not that different.

Princess_Bee: Dont worry, 1MDB would be able to meet its financial commitments and that it would continue to add and unlock values of its assets, and generate a respectable return.

Be patient because there may be some constraints that cannot be avoided by 1MDB. The most important thing is 1MDBs repayment is being made.

Anonymous #19098644: One issue stands above all. Under Malaysias banking laws and guidelines issued by Bank Negara Malaysia (BNM), it is compulsory for a corporate entity to get the written approval of the central bank before it can proceed to raise and accept a foreign loan of such magnitude.

Did or did not 1MDB get approval and did or did not BNM give written approval? If so, have the conditions of the approval been met?

If the answer is lsquo;no to any of this three obvious questions then, who is accountable and why has no action been taken for breach of Malaysian laws and banking regulations?

What does BNM governor Zeti Akhtar Aziz mean when she says that she doesnt comment on individual entities? Has BNM been negligent in allowing the laws of the country to be flouted? If so, shouldnt Zeti and BNM clarify and take the appropriate action?

Truth: Najib, what a shame. Is this how a government sovereign fund operates? No money to pay loan, and keep applying for extension?

Should the banks give other local businesses extension to pay their loans too since our government-funded entity is also doing so?

What happened to the money repatriated from Caymans? Why revalue land and post profits, but yet no money to pay loan? Is this how Najib run the countrys finances?

Now they are relying on tycoon Ananda Krishnan to save 1MDB.

Anonymous_1404357714: Find out who the bank lenders are for the 1MDB. Apply for credit card (or a personal loan) from these banks.

Default the monthly repayment for three consecutive months by asking for extension each time. See if there is any mercy from them.

If not, ask why 1MDB can (with billions of ringgit involved) do so, while they go after those owing them peanuts.

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