1MDB swimming in sea of debt, rakyat staring at bailout

1MDB in default after failure to make US$50m payment

Dont Just Talk: Let the fun begin for the 1MDB board of directors and we hold the deputy minister of finance to his word that the Finance Ministry will not bail out 1MDB by paying the overdue US$50 million in interest.

When the cross-default clauses apply, 1MDB will be swimming in a sea of debt. Let us see how 1MDB chief Arul Kanda Kandasamy worms his way out of this scandalous mess without seeking a lifeline from the Finance Ministry.

Vijay47: All this bond issues, sovereign wealth, cross default, and other fancy financial terms is double-Dutch gobbledygook to most of us. But once again, I must come to the nation’s rescue and set the record straight in simple layman’s language.

I must agree with the glowing tributes that some commentators here have heaped on 1MDB. In essence, there is no looming financial disaster to the country or any of us, though I am not sure about Malaysia Airlines and Mara’s Low Yat 2.

1MDB is alive and well, sturdy and solvent in its debt obligations – “it has the funds to make the interest payment, only that it declines to make such payment as a matter of principle, since it is IPIC’s obligation to do so”.

The Langat notes and no doubt the ones from Kinta, are solidly in favour of 1MDB, any Malaysian court will come to that inevitable conclusion.

You don’t believe me? Just ask Arul Kanda. Please, please, boys, I’m just doing my patriotic thing, don’t nominate me for any title from Terengganu.

Cogito Ergo Sum: There are so many holes in this story, I wish I had saved the ‘1MDB for Dummies’ guide by P Gunasegaram. The question that is in every dummy’s mind now is “what does it mean?”

How does it affect my bread and butter? It can’t be good when someone refuses to pay one’s financial obligations. It will have a domino effect on other financial obligations, methinks?

Boeyks: Taxpayers will have to pick up the tab of the loans taken and consequently there will be an increase in GST (Goods and Services Tax).

But since it is already difficult to make ends meet, a better solution is to have a fire sale of all the remaining Tun Razak Exchange and Bandar Malaysia land.

If these sales are not enough, then parcel out huge tracts of virgin land starting from the biggest state down.

SusahKes: Mr Arul Kanda – this was most certainly what you did not sign up for. Well, if it wasn’t for the BN-Sarawak election show, dare I presume that GST rate would have moved up a point or two?

Anonymous_1421806811: Yes, it looks like the rakyat will have to pay for this alleged grand theft. What a shame. And still not a single word from PM Najib Razak.

Triple A: For me, these noises or rather criticisms, are from the opposition. The cash flow mismatch faced by 1MDB has been overcome.

Once the mismatch is addressed, it means the company has the ability to meet the requirements needed to pay the interest and principal debts upon maturity.

So, from that aspect, there should not be any more criticisms.

Anonymous 2362021442199789: Some commentators are so thick. Up to now, they are still blaming the ‘opposition’ and the ‘foreign’ media for bad-mouthing 1MDB and Putrajaya despite the impending implosion of this debt-ridden entity.

Are they so blind, daft and dumb that they cannot see the massive bailout that is coming? The one that all Malaysians will be bearing?

Amateur: Wake up BN supporters in Sarawak. Don’t you dare insist that the 1MDB scam/scandal has nothing to do at the state level.

The federal government will have to pay US$6.481 billion to UAE eventually. This is taxpayers’ money not BN’s. Please don’t mislead and cheat the less educated East Malaysians.

How Siow: Don’t put the blame on others. What corporation or sane honest businessmen would transfer millions without checking on the recipient. Even a schoolboy knows this. Unless it was intentional.

1MsiaMyAss: Money sent to wrong account? Even when I transfer RM10 to someone, I check and double-check the name and account number of the recipient.

So here we have people in charge of the country pleading ignorance. They are either idiots or crooks. Either way, they have no business running our country.

Anonymous 2413291460568020: No worries. Our premier will receive more free donations which he can use as he wishes from Saudi Arabia, and he will not touch taxpayers’ money.

Swipenter: I don’t think the Saudis would donate again after all the publicity. What about the Kazakh in-laws of the Najib family? After all, it’s not uncommon for family members to help one another.

Tok Jangut: There is a legal obligation on 1MDB to mitigate damages. It should make payment under protest if it has the funds.

Rick Teo: The US$3.5 billion was paid to a dummy company registered in the Virgin Islands. So the International Petroleum Investment Company (IPIC) has every right to cancel its obligation towards 1MDB.

Anon1: Charge IPIC under the Sedition Act and Sosma. Send a letter of demand but don’t file proceedings. Gather the red shirts and make some noise in front of the UAE Embassy.

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