Wednesday, December 09, 2015

Destroy UMNO to save it?

Wakakaka, surely the latest 'asset' to Pakatan Harapan must be the man who has just said that UMNO's 'fixed deposit', namely Sabah, might no longer be in support of the BN coalition (effectively UMNO), a piece of news most ominous for the ruling party vis-a-vis GE-14.

Image result for shafie apdal

And bizarrely or on second thoughts, perhaps not, wakakaka, the man who said the above has been none other than an UMNO Vice President, Mohd Shafie Apdal, wakakaka again.

I wonder whether, on hearing this news, there have been much wanking and solo groaning in the Pakatan toilets last night, wakakaka once again.

Shafie has in not so many words identified 1MDB's debts of RM42 billion as the underlying factor for the fading Sabahan support for the UMNO-led coalition.

Now, the bloke might well be right because politics is all about public 'perception', but then, technically or more clinically, what would be considered as 1MDB's 'debts'?

Depending on your political allegiance and/or preference, you can choose to believe in RPK's explanation or the Mahathir-faction's interpretation of 1MDB's 'debts'.

To the latter, to wit the Mahathir-faction, 1MDB's 'debts' initially was about the RM42 billion 'disappearing into thin air', but now it seems it has been revised ambiguously to just 'debts'.

However, this is what RPK wrote:

Dr Mahathir and Muhyiddin keep repeating the RM42 billion debts incurred by 1MDB. To them this is all they need to know. They cannot even read a Balance Sheet. If not then they would know that a Balance Sheet has two columns. On one side is the assets and the other side is the liabilities. And you minus one side from the other to come to the Net Tangible Asset or NTA to see whether it is positive or negative NTA.

The issue is not how much the debts are. It is what the NTA is and whether it is negative or positive. It does not matter whether the company has RM1 billion or RM100 billion in liabilities. It is how much its assets are and whether at the bottom line the NTA is negative or positive. This is what Dr Mahathir and Muhyiddin do not understand.

Syed told Dr Mahathir and Muhyiddin that 1MDB is in trouble. And it is in trouble because it borrowed RM42 billion. What Syed did not tell Dr Mahathir and Muhyiddin, maybe because he himself does not know, is that these RM42 billion liabilities is backed by RM51 billion worth of assets. That means the NTA of 1MBD is positive and not negative, which is what counts in business.

They keep calling 1MDB a debt-laden company. 1MDB may have debts but it is not debt-laden because its assets exceed its liabilities. Dr Mahathir’s son’s company was debt-laden. That was why they needed Petronas to bail it out or else the company would have gone bankrupt. 1MDB Is not on the verge of bankruptcy when its assets exceed its liabilities.

Of course most Pakatan supporters today do not believe in what RPK writes, chiefly because his articles have been more in favour of Najib and against Anwar and Pakatan, unlike earlier years. That's your prerogative to like and then dislike him. Afterall, the only permanent thing in this world is 'change'.

As for me, sometimes I believe in RPK's words, sometimes I do not, sometimes half-half depending on the specifics of the content, and sometimes I'm neutral about what he has written, but regardless, I remain in civilised cordiality with and respect for him, just as I remain in civilised cordiality with and respect for my other blogging/Facebook mateys like Ong Kian Ming (DAP), Ti Lian Ker (MCA). Haji Zainol Abideen (Mahaguru58) (PAS), and a host of others who do not share my political position (namely, 'conditional' and not absolute support for DAP).

Today (I stress on this, 'today' that is, wakakaka) I'm less inclined to believe in Mahathir, principally because I reckon his invincible anti-Najib diatribes (which might or might not have been true, or a mixture of the two) have a lot more to do with his (Mahathir's) PERSONAL obsession to CONTROL the governing of Malaysia and government policies rather than for the good of Malaysians and the nation. So forgive me if I'm now very sceptical of what he says or writes.

Thus, I do not believe in Mahathir far far more than I believe in RPK, wakakaka.

But back to post's thread, in my opinion Shafie Apdal has in his statement taken a strong, staunch and solid Mahathir-like stand vis-a-vis Najib which would be the same as being against UMNO the party, but of course which is his right/privilege and also politically natural as he's considered one of Mahathir's men (not unlike former minister of info Zam, former NST group editor & journalist Pak Kadir Jasin, Khairuddin Hassan, Matthias Chang, Muhyiddin, etc).

But nonetheless I've to admit what Shafie Apdal, an UMNO VP, has just commented has flabbergasted me, in that this UMNO man is willing to say such unfavourable things (even if true) which will adversely influence readers' views about his own party's political standing.

Now, would Nurul Izzah ever say anything bad that will adversely affect PKR? Or, would Lim Guan Eng do likewise for DAP? What about Pak Haji Hadi Awang vis-a-vis PAS?

Shafie Apdal's statement about the UMNO president losing support in Sabah could be considered as not unlike the nature of an often-quoted statement (perhaps mythically) attributed to a USAF spokesman giving a post-operations briefing to the press during the height of the Vietnam War, namely, "We have to destroy the village to save it." Wakakaka.

Surely today, with that, Shafie Apdal must and ought to be considered a 'national treasure' by Pakatan, as Mahathir was too (by PAS, I think?) in the lead up to the 2008 general election when he whacked AAB (and consequently UMNO as well) kau kau, wakakaka, and if my recollection is correct, in one of those pre-election Pakatan campaign talkshow-forums organized by none other than RPK, a BIG wakakaka on this.

Syabas Shafie Apdal, you've 'arrived' on the yang side of politics, and signing off this post with a final wakakaka.

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  1. bruno, sorry I can't publish your comment - too libellous towards Shafie Apdal, wakakaka

    1. Bet u he was writing about anal sex again.

  2. Well Shafie Apdal could be right but he Shafie Apdal (so is Kadir Jasin, Syed Outside,Muhyiddin,TDM, and many others) is dead wrong on 1MDB. So, he is completely wrong. Serve him right lah... wakakaka

    Hamlet: I do repent; but heaven hath pleas'd it so
    To punish me with this, and this with me,
    That I must be their scourge and minister.
    I will bestow him, and will answer well
    The death I gave him. So again good night.
    I must be cruel only to be kind.
    Thus bad begins and worse remains behind.

    Hamlet Act 1, Scene 4, 173-179

    1. kawan, pray tell yr living right on 1mdb, we r all ears.

  3. i think mahathir n many ask a valid question. only a dumb dun understand the core of the question. the one that r dumber is one that take rpk word as more believable than mahathir.

    liability is mostly genuine, unless a chinaman firm that concern abt some privileged type would rob his 30%, who would inflate the liability to protect his sweat n blood. but this is not always the case with asset disclose in a balance sheet.

    another pertinent question is y n how 1mdb come to the current state, y a restructuring is needed?

    1. everyone (except HY's hero and family and party and himself wakakaka) is dumb. His hero is so brilliant that he now sits behind bars

    2. I specifically mention who is dumb n who is dumber, y u drag everyone else into the mud? yr utusan approach can only mislead the dumb n dumber la wakaka.

    3. HY... kalau the political dungus from PKR tidak memulakan satu rencana khianat terhadap 1MDB i.e. bull-shitting the 1MDB Balance Sheet, sudah lama IPO-IPO yang disusunrapi oleh 1MDB telah dapat dilaksanakan and there will be no restructuring needed at all. Take it from me HY... 1MDB is okay.. not perfect (yes - high gearing).. but it is financially legal. It is not like ENRON. Didalam isu 1MDB ini PKR memang sah buat taik.. ok?

    4. HY, your Utusan or Tian Chua's Chronicle (wakakaka) same same lah

  4. IPPs; ini kerja bapak penswastaan & kenapa bapak transformasi teruskan (ambil alih) syarikat2 ini?

  5. Kaytee,apa ini,but it was all over the social media.The mistress's driver said it all out for anybody who wants to hear,and even the boys in blue came knocking down the poor driver's door.

    Anyway,Malaysia is what it is today because of Mahathir and Anwar.But,like Mahathir always like to say,Malays (meaning the opposition)have very poor memories.

    Mahathir is the master of corruption and cronism.Anwar is the master of racial disunity.Not forgetting that he flushed Malaysia's once highly respected education system down the sewage.

    But,all sins and crimes are forgiven when one joined the opposition.I might be wrong,but the possibility of the opposition getting thrashed by Najib and his band of merry men in GE14 is real,very very surreal.Even the DAP will be on their knees on election night,wailing out loud for their mamas.

    This time around,the voters will already have had enough of the opposition's wailing,screaming and all barks with no bite.It is time they let the opposition smell the dusts of Najib and Fat Mama's boots.The big dancing chicken Liow,will squeeze ever drop of juice out of the DAP's balls.You guys better believe it.

  6. I find it difficult to understand why M’sians are so stupid over the 1MDB fiasco. The arithmetic (it’s not EVEN mathematics) is very simple.

    In the past 6 years of operation, 1MDB may have recorded some profits in their annual accounts but their operation figures have always been losses but made ‘good’ by re-valuation of their assets. For example, in 2013, 1MDB recorded a net profit of RM778.24mil, helped largely by property revaluation gains of RM2.7billion. – The Star. The problem is their operational losses are real losses (expenses, etc.) whereas their gain from re-valuation is only ‘book entries’. That is the reason they suffered so badly on cash-flow – expenses, interest incurred, commissions, etc. all needed to be paid with real money while their gain in re-valuation is only a book entry.

    Just to give you an eye watering case in point on assets re-valuation, the Tun Razak Exchange was bought from the Govt. for RM 191 million in 2010. In 2014, without much value-added work done on it, it was re-valued at RM 6.2 billion. This is how the Balance Sheet is made to balanced to show asset value higher than liability value.

    So even when 1MDB has settled all its liabilities and is left with RM10 billion, it has made a hell of a loss and M’sia called 1MDB a sovereign wealth fund!

    1. 1.assets (on paper saja la) is about 50b, kalau liquidate boleh ka dapat 50b?

      2. DEFINITION of 'Sovereign Wealth Fund - SWF'
      Pools of money derived from a country's reserves, which are set aside for investment purposes that will benefit the country's economy and citizens.

      1mdb buat bisnes bermodalkan hutang, SWF jugak ka?

  7. Like KT, I consider RPK a friend but I do not think he is, presently, writing honestly. We all know his business knowledge is good but the arguments he is putting forward are all warped.

  8. There is another dungu here. Tulis cerita macam dia bagus dan pandai, tetapi bodoh, memang bodoh.

    Go lah wikipedia - "London Docklands Development Corporation". How many jobs created? What about businesses and investments? Its success story being replicated in other areas! I have been there 30 years ago and I have been there just 2 years ago. I can't believe what I see.

    Ok lah... you can keep your RM191.0 million landed property forever.. until you die.. your cucu dies.. cicit dies.. piut dies.. oneng-oneng dies... apa-nama tu dies... wakakaka

    For me I will develop it and make/take the RM10.0 billion. Furthermore, I created new investments, new businesses and new jobs for many. Not to mention economic activities and vibrancy for the country yet lah...

    What asset revaluation? It is asset revaluation and asset realization.., stupid?

    1. bro, mana ada sama? on paper maybe, in reality, 1mdb do 2 thing. 1 buy cheap govt asset, then revalue n realise. 2 buy crony asset at exorbitant price, then wait for restructuring. no?where the money goes? n where is the similarity? if monkey noise can stop a biz from progress, i doubt the viability of tis biz in the long term.

    2. the crony asset that you said is specifically for IPO.. it is a commercial decision. but you throw the spanner and cannot wait to blow your trumpet...your action is a political decision. boleh faham?

    3. tak paham la kawan, if u really wanna talk commercial, can u enlighten us y the crony cannot ipo, y 1mdb have to buy the ipp n ipo, u mean the value chng when the shareholder chng? convince me with what value added is done, rather tell me ipo.

    4. which outfit do you honestly think will have a better pe ratio and many many times over subscribed and fully underwritten by local and foreign investors?

    5. not sure abt u, but if i as investor, i anytime pick ananda, not arul. unless u dun talk commercial, n prefer revert to politic instead.

    6. ha ha.. i ve done my homework, i dun listen to rumours, i dun speculate, i can justify the valuations.. i anytime pick not ur pick.

    7. did u do yr homework on fgv listing?

    8. o la la... setting up a straw man..kawan? tsk.. tsk.. tsk..

    9. i asked some pretty straight forward question, it seem not much answer from u yet except some lalahaha, n to self praise how great u r plus how no great i am. mana tu justification? i miss ellese la.

      my understanding of ipp, beside manipulate the tariff, the license of operation, which i guess is all under govt jurisdiction, the profitability is depend much on efficiency n how to operate in lower cost. otherwise the party involve, either govt, consumer ie rakyat, tnb n ipp have to bear whatever wastage or inefficient cost. economic of scale could be a good strategy but if that is the case, y we need ipp?

      my question to u again, what 1mdb did to add value to this ipp, dun give me the bs of ipo n govt extend the licence or revise the tariff, that is all con man job.

    10. kawan... remember the sweet heart deals that the ipp(s) got? remember that subsidized gas rate from petronas to the ipp(s)? is it not wonderful for 1mdb/government to get it back or enjoy it? is it not good for 1mdb/government to be the major producer of the growing electricity demand in south east asia? is it not good for 1mdb/government squeazing the other ipp(s).. you and ellese are intelligent people.. aren't you. not me...

  9. tokio rain,so you have finally decided to crawl out from the woodworks.It takes one from the same page with Manmanlai to know what he is talking about.Hehehe.

  10. Ktemoc has roasted Anwar and Nurul for far less severe infractions than this 1MDB scandal. Yet here is Ktemoc in cahoots with his beloved Najib and allies.

    We have a very serious scandal likely involving criminal acts by 1MDB as well as Najib.

    I doubt and question Ktemoc's objectivity, motives and integrity , as exposed by this issue

  11. It is unavoidable that 1MDB becomes a political matter.
    However, it would be a mistake to take a political stand on it first, or purely focus on the politics of it.
    1MDB is far too important a matter to be purely focused on politics.

    The RM 41 Billion of 1MDB's debts are REAL Money. 1MDB , or failing which the Malaysian taxpayer, will have to pay back every single sen of it.
    RPK's much vaunted 1MDB Rm 51 Billion in "Assets" is Funny Money. 2 previous auditors and past board members had serious doubts about how real it is. Its a moot point whether KPMG and Ernst and Young resigned as auditors or were fired. They were "Not reappointed". The latest Auditor Deloitte has still not signed off and submitted its accounts for year ended March 31 , 2015. It is now mid-December.

    RM 51 Billion includes
    - "Units" in the Falcon bank in Singapore. Its is NOT cash or convertible assets such as reputable Sovereign bonds. God only knows what is the true market value of these "Units'.

    - "Investments" registered in the Cayman Islands, a notoriously opaque international money-laundering centre.
    Again, God only knows what is the true market value of these "Investments'.

    - Revaluation of land provided by the Government at low cost in TRX and Sungai Besi. It doesn't help explain how the RM 41 Billion debt funds were distributed, and to whom.

    1MDB is primarily a Corporate governance and Corporate oversight scandal, first and foremost.
    Najib is deeply involved in it, because all major 1MDB decisions required his approval.
    If Najib knew about 1MDB's illegal transactions, that makes him a partner in crime.
    If Najib did not know of 1MDB's illegal transactions, he was sleeping on the job.

    Why is it important to ordinary people ?
    A large chunk of 1MDB debts are explicitly guaranteed by the Malaysian taxpayer.
    The rest of it is implicitly guaranteed by the taxpayer, because there is no way the Malaysian government can allow 1MDB to default on its gigantic debts.

    It is a current issue, happening right in front of our eyes, not something which happened 15 or 20 years ago.

    Active steps are even at this very moment being taken to "Cleanse" and "Purify" the guilty, right in front of our eyes.

    That is why it is a more important and urgent matter than what Mahathir did 15 or 20 years ago.

    1. You can't 'cleanse' and 'purify'- when there is 'it would be a mistake' and 'failing which' and 'god only knows' and 'or' and 'still not' and 'oversight' and 'urgent'.. in other words - when there is so much of speculation and suspicion. Relax la... as you have mentioned, there is no way the government can allow 1MDB to default (i.e. fail la).. and it is still a strong going concern today eh meh?

    2. No way I will relax about 1MDB.
      I have seen how crooks operate, during my long career, and 1MDB has "Crook" stamped all over it.

      Binatang apa "Units" di Falcon Bank itu ? RPK kira dalam jumlah RM 51B, nilai sebenar tak seorang yang tahu. Kosong.

      Tahu tak apa jenis manusia yang biasanya letakkan pelaburan di Cayman Island ?

      Diktator Afrika, Tauke Penyeledup Dadah, Tauke Judi, Ketua "Triad" - wang haram belaka.

      Sebabnya, selepas di laburkan di Cayman Island, urusan seterusnya paling senang dirahsiakan.....

      Mengapa syarikat kepunyaan Kerajaan Malaysia laburkan wang di pusat Wang Haram itu ?

    3. bukankah kita ada BNM dan juga anti-money laundering act - amla 2001 to monitor and control that. let the law takes its course. there is no need for you to hasten the law.