By KINIBIZ
The delayed, much-awaited accounts of state investment fund 1Malaysia Development Holdings Berhad (1MDB) is finally available and KiniBiz pored over the numbers. Not only is the fund’s RM7-billion investment in the Cayman islands out of its control, but its RM877-million pre-tax profit for FY13 was merely paper gains as RM2.73 billion in property revaluation offset RM1.8 billion in actual losses. Impairment of goodwill is another cause for concern as far as 1MDB’s estimations are concerned, said new auditors Deloitte. And not only did 1MDB overpay by RM1.2 billion for its power assets, but it was revealed that Abu Dhabi entity Aabar Investments and Ananda Krishnan-linked Tanjong have an option to take up a substantial part of 1MDB’s power assets. These on top of 1MDB’s strangely huge RM23-billion cash pile against debts of RM36 billion. Is 1MDB a disaster unfolding before our very eyes?
Issues
#1
The directors of 1Malaysia Development Bhd (1MDB) have admitted the state-owned strategic investment fund has little to no control over some RM7.18 billion in offshore investments.
#2
Taking away its paper profit of RM2.73 billion, state investment fund 1Malaysia Development Berhad (1MDB) booked RM1.8 billion in actual losses for FY13.
#3
1Malaysia Development Bhd’s (1MDB) auditors Deloitte have identified key sources of estimation uncertainties that have been made by the company’s directors that might cause a material adjustment ...
#4
1Malaysia Development Bhd (1MDB) has posted RM1.2 billion in losses over acquisition of power assets, according to the notes to the company accounts for the year ended March 31, 2013.
#5
Middle eastern interests under Aabar Investment PJS and Ananda Krishnan-linked Tanjong Public Limited Company (Tanjong) have the option to take significant stakes in Powertek Investment Holdings ...
#6
Huge cash-pile and even larger borrowings of RM36.2 bil show just how large the state-owned fund has grown in the space of a year --- and its lack of proper liquidity management
#7
Many a talk has this and other Tigers had about that so-called strategic fund of ours, yes, 1Malaysia Development Berhad (1MDB). But the snowball just gets larger and larger as it barrels down ...
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