The spiraling bogeyman story

As it has been the past month or so, 1MDB and Group Executive Director Arul Kanda Kandasamy quite quickly respond to the unsubstantiated allegations and issues brought forth in the sinister connotation to confuse and riddicule the general public.

Media statement issued by 1Malaysia Development Berhad on 23 June 2015

For immediate publication

Asset acquisitions driven by long-term view

1MDB notes a recent Wall Street Journal article suggesting that 1MDB had overpaid for the acquisition of its energy assets. As we have previously stated, we only acquire assets when we are convinced that they represent long-term value, and to suggest that any of our acquisitions were driven by political considerations is simply false.

The fact of the matter is that these claims are a repetition of old allegations that have been driven by political opponents of the Government, including the former Prime Minister Tun Dr Mahathir Mohamad. They have never been substantiated nor supported by evidence, just as Tun Mahathir has never produced any evidence for his claim that RM42 billion was missing from 1MDB, because the reality is that this RM42 billion is debt backed by RM51 billion of assets.

1MDB takes a long-term view of value when entering into transactions; not just for the company, but for the country, as befits our 100% ultimate ownership by the government of Malaysia. The acquisition price we paid was based on this long-term view, as well as advice received from independent valuation advisers, and the prevailing market conditions at the time. On this basis, we believe that the value paid upon asset acquisition – which may have involved a premium in certain instances, as is common when acquiring another business – is commensurate with the existing and future potential of the assets.

It is important to note that since acquiring the first energy asset in 2012, 1MDB has built a leading international independent power producer in Southeast Asia. The portfolio currently comprises 13 power plants in five countries, along with the rights to construct further gas and solar-powered plants. Today, Edra Energy is the second largest independent power producer in Malaysia, and the largest in Egypt and Bangladesh, with additional operations in Pakistan and the United Arab Emirates. In total, it has gross installed capacity under management of 6,619 MW with an effective capacity of approximately 5,594 MW.

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The onslaught will still go on simply because many parties want to see Prime Minister Dato’ Sri Mohd. Najib Tun Razak resign or be toppled through the sinking of the strategic investment company 1MDB.

This is the more sophisticated ‘Malay Spring’, which was funded and planned by organisations all the way up to personalities like George Soros.

After all, almost twelve years ago a statesman proclaimed “The Jews rule the world by proxy”.

Published in: on June 23, 2015 at 14:00  Comments (13)