By KINIBIZ
The 1Malaysia Development Bhd (1MDB) saga rolls on with no clear resolution in sight. This week, KINIBIZ published its year-end bumper issue containing an exclusive seven-part series on 1MDB.
We examine the various questionable dealings of the controversial strategic development company and the colourful characters associated with it.
1MDB quickly responded to our stories by claiming that they were “baseless” and “malicious”, without identifying any specific fact or detail of our stories.
Shortly after, another bombshell hit 1MDB.
The Wall Street Journal published a story that 1MDB had transferred US$850 million (RM3.7 billion at current exchange rates) to an offshore company that is a virtual lookalike of a subsidiary of its business partner International Petroleum Investment Co (IPIC).
The Wall Street Journal alleged that the US$850 million went via three transactions to a British Virgin Islands-registered company called “Aabar Investments PJS Ltd”, which bears close resemblance to an IPIC subsidiary called Aabar Investments PJS.
1MDB also swiftly responded to The Wall Street Journal, saying that the story is “simply a regurgitation of old claims carried by The Wall Street Journal in September, which it has rewritten and republished without offering any new information or evidence”.
Again, 1MDB did not address any particular detail of The Wall Street Journal’s story.
You can decide for yourselves by reading the KINIBIZ’ year-end special series on 1MDB:
Anatomy of a money spinner: The very setting up of 1MDB and its operations was aimed at spinning billions out of this self-styled strategic development company owned by the government for the benefit of various others. The eventual cost of this to the country might be as high as RM42 billion. We explain further here.
The colourful family and friends of 1MDB:From its inception to the present-day state of disarray, 1MDB counts an interesting – and colourful – group of people who are either directly involved in its operations or who are linked to the company in some manner. Read why here.
How 1MDB lost RM6 billion through bond mispricing: 1MDB has already lost some RM6 billion by mispricing its bonds. So was this deliberately done, and whose pockets ended up bursting at the seams? Read on here.
Another questionable use of loans – the Goldman bonds: In just one year, 2013, 1MDB had a huge US$6.5 billion (some RM27 billion at current exchange rates) of borrowings from bonds arranged by Goldman Sachs, nearly 65% of total borrowings. The problem is that it is not possible to ascertain how the funds were used, as we explain here.
How 1MDB overpaid Goldman Sachs:With a number of questionable dealings over its seven years or so of existence, a considerable part of 1MDB’s shenanigans have involved Goldman Sachs who were handsomely, and extremely generously, rewarded. But why is the US firm so close to 1MDB? Find out why here.
The remaining parts of the special 1MDB series will be published online today, tomorrow and next Monday. Don’t miss them!
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— by Khairul Khalid, Asst News Editor
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