Ganesh Sahathevan

by Ganesh Sahathevan The deluge of "tampered" documents seems never ending.These excerpts are from the 1 MDB, 1 MDB RE , Bandar Malaysia Sdn Bhd information memorandum filed with the Securities Commission. Given the default on the IPIC guaranteed loans, as well as the demand for early repayment of the Deutsche Bank syndicate loan, the consequences of the following provisions are obvious:  2. PRINCIPAL TERMS AND CONDITIONS - (c) Facility description :  An unrated sukuk issuance programme based on the Shariah principles of Murabahah (“Sukuk Murabahah”) of up to RM2,400.0 million in nominal value (“Sukuk Murabahah Programme”).  7. During the tenure of the Sukuk Murabahah, BMSB (as part of its obligation to pay the Deferred Sale Price) shall make periodic Profit Payments (as defined in item 2(j) below) to the Sukukholders. Upon maturity (unless earlier redeemed) or  upon the declaration of an event of default, BMSB shall pay all amounts outstanding  in respect of ...

NOTE No end to these tampered documents, this time from the LSE  and IPIC. In short,IPIC not only paid the Deutsche syndicate USD 1billion loan,it has also had to assume repayment of interest on the two USD 1.75 billion   1 MDB loans it guaranteed.In other words, 1 MDB has defaulted on those loans. 1 MDB is on the face of it insolvent. Regardless, the Malaysian Government  has until 4 June  2016 to repay IPIC approximately USD 4.5 billion.  IPIC has had to make these disclosures to the LSE for its bonds are listed on the LSE. http://www. londonstockexchange.com/ exchange/prices-and-markets/ debt-securities/company- summary/XS0558268891LUUSDCWNR. html?ds=0 1MDB Debt Settlement Arrangements   On 28 May 2015, International Petroleum Investment Company ( IPIC ), Aabar Investments PJS ( Aabar ), Minister of Finance, Inc., Malaysia ( MOF ) and 1Malaysia Development Berhad ( 1MDB ) entered into a binding term sheet that provides for the following principal matters...

Just published by 1 MDB today ,confirming what has been published on  Sahathevan Blog since March this year, based on an analysis of 1 MDB's 2013 financial statements:  "In September 2012, 1MDB sold its shares in PetroSaudi Oil Services Limited for USD2.318 billion and received fund units in a Cayman registered fund. "The Cayman registered fund is managed by Bridge Partners, a Hong Kong-based fund manager. "These fund units were owned by 1MDB via its 100 percent subsidiary, Brazen Sky, and held through BSI Bank Singapore as custodian," it said in a statement today. Wednesday, April 22, 2015 Confirmation : 1 MDB transaction generated no cash by Ganesh Sahathevan Sarawak Report has just reported    that 1 MDB  banker   " BSI Bank has dismissed documents supplied by 1MDB relating to its Brazen Sky Limited account in Singapore, saying they are false bank statements........  t here is no actual cash in the relevant Brazen Sky Limited account." This confirms...

Nude mountain climbers and angry spirits aside, East Malaysia has been for a very long time prone to tremors and earthquakes The gravity anomaly image above encompassing Sabah and Sarawak suggests that there is a significant area where a low gravity (blue) area collides with a high gravity (darker colour) region.Studies suggest that earthquakes are more likely in low gravity zones, and it should not  be assumed that the normal laws of geophysics do not apply to Malaysia. As the Borneo Post story copied below shows, there are a number of major fault lines that cut across Sarawak, and any  movement of the Earth's crust has the potential to activate those faults. KUCHING: A seismotectonic map showing earthquake fault lines in Sarawak drawn up in 2006 by Minerals and Geoscience Department in Sabah shows the site of the proposed Baram Dam is in the close vicinity of two fault lines. This was disclosed by Alexander Yan the former director of Minerals and Geoscience department to The...

by Ganesh Sahathevan At the Public Accounts    Committee hearings yesterday ,10 June 2015,  1 MDB auditor  Delloittes confirmed that  evidence was found for  only RM 13.4 Billion of 1 MDB's RM 15.4 Billion in investments held at BSI Bank in Singapore. As reported by The Star :  (PAC chairman) Datuk Nur Jazlan Mohamed described the probe into Deloitte’s role as auditors as “a blessing in disguise” as it had provided the bipartisan committee crucial information.On 1MDB's standing as of March 31, 2014, he said the committee had accepted Deloitte's explanation of its unqualified audit which was carried out in a “true and fair” manner.“They said 1MDB was a going concern and had sufficient assets to operate as a sovereign fund,” he said, adding that 1MDB had assets totalling RM13.4bil in Singapore’s BSI Bank. The above seems to be at odds with these figures released by Arul Iskandar Kandasamy: The RM 15.4 billion in " Total Investment Cost" includes ...

by Ganesh Sahathevan The 4th of June 2015 was the date by which the Government of Malaysia (GOM) said the UAE's   International Petroleum Investment Company   (IPIC) would settle its debt of approximately USD 1 billion  owed to a consortium led by Deutsche Bank. Recall however that this  debt deal was announced without it being deliberated by Parliament.Subsequently it does not look like it has been  gazzetted, as required by Malaysia's   External Loans Act 1963. Prima facie i t does appear as if the GOM is not allowed by its own laws to accept funding in any form from IPIC,or from anyone else for that  matter , unless duly authorized by Parliament. For IPIC this means that even if that USD 1 billion has been payed over,whatever the GOM has promised pursuant to the deal may be ruled  illegal, and IPIC may not get anything in return. The relevant legislation is provided below for reference,and readers are reminded that these rules are in place...

More than a week after Malaysia's Ministry of Finance decided that cash that it thought its wholly-owned subsidiary 1Malaysia Development Bhd (1MDB) was actually in the form of "units", 1 MDB has decided to "clarify" matters by producing the figures below, current as at 31 March 2014. The RM 15.4 billion in "Investment cost" includes  those "units" which even the Prime Minister (who is also Minister for Finance) though was in the form of cold .hard, cash. As stated on this blog previously, it is not likely to be cash,and a closer reading of 1 MDB's audited financial statements as at 31 March 2014 may well confirm this. As previously stated: a) In the Notes to the Accounts,in particular  Notes  18,19 and 30 ,the details of the  1   MDB  PetroSaudi loan are provided,and it is clear that the transactions were all executed and completed in the year ended 31 March 2013 Therefore, everything about that transaction ,or series of transactions, sh...