Thursday, January 7, 2016

The Illogical Kandasamy Strikes Again: The Non Machai Guide for Bandar Malaysia

WARNING THIS POST IS NOT SAFE FOR MACHAIS

After a few clarification...Malaysia's No 1 Value Extractor still could not get it right.

Further Clarification on Bandar Malaysia Equity Sale1MDB notes that certain questions, queries and concerns have been raised by various parties over the recently announced sale of 60% equity in the Bandar Malaysia project, to the consortium comprising Iskandar Waterfront Holdings (IWH) and China Railway Engineering Corporation (CREC) ("Consortium").
We provide below a detailed explanation, which we trust will conclusively dispel the half-truths and misleading statements made by various irresponsible parties. 
1. Bandar Malaysia Sale - Current Proposed Deal StructureThe Sg Besi land is currently owned by TRX City Sdn Bhd (formerly 1MDB Real Estate Sdn Bhd) and Bandar Malaysia Sdn Bhd. TRX City Sdn Bhd owns 4 (four) plots and Bandar Malaysia Sdn Bhd owns 12 (twelve) plots which collectively make up the acreage of the project.  Both companies are ultimately owned 100% by 1MDB. The current proposed deal structure, is for a New SPV 1 to be formed, that will directly purchase the land (or indirectly purchase, for example through a New SPV 2 or through purchase of equity in Bandar Malaysia Sdn Bhd). New SPV 1 will ultimately own all 16 plots of the Sg Besi land and develop the Bandar Malaysia project.
New SPV 1 will be owned 40% by 1MDB or Minister of Finance Incorporated (MoF Inc) and 60% by the IWH-CREC Consortium.
The Consortium shareholding is 40% CREC and and 60% IWH.
IWH shareholding is 40% Kumpulan Prasarana Rakyat Johor (KPRJ – Johor State Govt) and 60% Credence Resources (Tan Sri Dato’ Lim Kang Hoo).
So, given the above shareholdings of the various parties the ultimate New SPV1 ownership can be described in the following ways:
A. 40% 1MDB or MOF Inc (should the shares be transferred), 36% IWH and 24% CREC. The ultimate project ownership therefore is 76% Malaysian and 24% Chinese.
OR, in the alternative:
B. 40% 1MDB or MOF Inc (should the shares be transferred), 22% Credence Resources, 14% KPRJ and 24% CREC. The ultimate project ownership is therefore 54% Government and 46% private sector (Government: Federal 40% via 1MDB/MOF Inc and State 14% via KPRJ. Private sector: 22% Credence Resources and 24% CREC).
2. Difference in announced values RM7.41 billion (1MDB) vs RM5.3 billion (CREC)In essence, 1MDB are selling land, which is what we own. However, there are two liabilities indirectly linked to the land i.e.:
A. Remainder costs to complete relocation of Pangkalan Udara KL (PUKL Relocation)
  • The main relocation contract and development agreement was executed between 1MDB and the Government of Malaysia for a contract value of approximately RM2.7 billion. This cost includes, amongst others, new land acquisition costs, construction costs, fit out/equipment costs and relocation costs.
  • 1MDB in turn, contracted to what was then named 1MDB Real Estate Sdn Bhd (now renamed TRX City Sdn Bhd) for certain construction aspects of the PUKL Relocation. TRX City Sdn Bhd in turn, then contracted Perbadanan Perwira Hartanah Malaysia (PPHM, which is a 100% subsidiary of Lembaga Tabung Angkatan Tentera) as a Turn Key contractor to deliver the construction aspects of the PUKL Relocation.
  • PPHM has, in turn, appointed over 50 qualified Bumiputra contractors as sub-contractors to deliver various aspects of the construction. The remaining construction costs plus variation orders plus other costs of the PUKL Relocation are currently estimated at up to RM1.9 billion.
  • It is important to highlight that PPHM as the Turn Key contractor and the over 50 Bumiputra subcontractors will continue to remain as the designated contractors and will continue to perform their roles exclusively, regardless of the final deal structure.
  • These contractors have been approved by the relevant authorities and construction is supervised by relevant officials from the Ministry of Defence and Ministry of Home Affairs. As the construction will continue to be carried out by the current approved contractors, there is therefore no question of any impact on national security through the sale by 1MDB of its 60% interest in the Bandar Malaysia project.
B. The Bandar Malaysia Sukuk (Sukuk) – this debt is at Bandar Malaysia Sdn. Bhd. (Nominal Value RM2.4 billion at maturity, accrued value approximately RM1.63 billion at 31 December 2015)
3. Final Purchase Consideration DeterminationTo determine the final purchase consideration to be received by 1MDB, the starting point, as agreed in the Share Sale and Purchase Agreement (SSA) executed between 1MDB and the Consortium, is 100% of the land value = RM12.35 billion.
  • For its 60% share, the Consortium has agreed to pay RM7.41 billion (Purchase Consideration), of which a 10% deposit of RM741 million is payable upon execution of the SSA.
  • Whilst it is the intention of 1MDB and the Consortium to transfer the remainder PUKL Relocation construction costs and the Sukuk debt to the New SPV 1 (which will be owned 40% by 1MDB/MOF Inc and 60% by Consortium), the transfer will require:
  1. determination and agreement between the parties of the final costs for the PUKL Relocation and the Sukuk and;
  1. all relevant consents, including but not limited to, from the Government of Malaysia, the contractor (PPHM) and sukuk investors.
  • Should 1MDB and the Consortium agree on the costs and manage to procure the consents, then the Consortium will pay its 60% share of the costs and the Purchase Consideration will be adjusted accordingly, i.e. RM12.35 billion Land Value less RM1.9 billion PUKL Relocation Costs less RM1.63 billion Sukuk Costs = RM8.8 billion of which 60% Consortium share is RM5.3 billion.
  • However, if the costs cannot be agreed or the consents cannot be procured, then the Purchase Consideration of RM7.41 billion will be paid in full to 1MDB, who will still be responsible for the costs.
  • In either scenario above, the Purchase Consideration of RM7.41 billion to 1MDB does not change, the only difference is whether 1MDB receives the amount in full, then pays for the costs OR whether the Consortium pays for its share of the costs and remits the balance of RM5.3 billion to 1MDB.

Where should we start folks?

How about this

"We provide below a detailed explanation, which we trust will conclusively dispel the half-truths and misleading statements made by various irresponsible parties. "

Holy Shiite!!

Half Truths and Misleading Statements...

Dey Kandasamy

Lu punya Press Statement yg Teramat Misleading doe

Anyway as usual with my Public Interest Posting...we shall DEAL ONLY with VALIDATED DATA

Not some opinion from Half Baked "Experts" on Facebook.

Lets go back to the very start of this mess.

Drum roll please..........

A long long time ago ...

In a Galaxy not to far away...

Chapter 1: The Iron River Mystery : 12 Vs 16 Plot of Land

What 1MDB said:

"The Sg Besi land is currently owned by TRX City Sdn Bhd (formerly 1MDB Real Estate Sdn Bhd) and Bandar Malaysia Sdn Bhd. TRX City Sdn Bhd owns 4 (four) plots and Bandar Malaysia Sdn Bhd owns 12 (twelve) plots which collectively make up the acreage of the project."

Data in 1MDB Annual Report







Recall the Magic Table



0.4 Billion Cost for Bandar Malaysia

So what happened to the 12 Plots after being transferred to 1MDBRE


The 12 Plots of Land went from 363Million (1MDB) to 650Million (1MDBRE) to 4.2Billion (BMSB)

Excellent Value Creation there mate!!!!!

Anyway I have not found any reference at all about the remaining 4 Plots held by 1MDBRE

Please let me know which page of the annual report says that there is actually 16 Plots of Sg Besi Land.

UPDATE 12/01 Found 3 1 still unaccounted for


CHAPTER 2: WHO's LIABILITY IS IT? 


We now need to study what they meant when they said "The Acquisition is not complete pending the execution certain other related agreements" above

What agreement are these?



These agreements later became Collaterals for the 2.4Billion Sukuk issued by BMSB



Let us now go back to what they said
"2. Difference in announced values RM7.41 billion (1MDB) vs RM5.3 billion (CREC)In essence, 1MDB are selling land, which is what we own. However, there are two liabilities indirectly linked to the land i.e.:A. Remainder costs to complete relocation of Pangkalan Udara KL (PUKL Relocation)
  • The main relocation contract and development agreement was executed between 1MDB and the Government of Malaysia for a contract value of approximately RM2.7 billion. This cost includes, amongst others, new land acquisition costs, construction costs, fit out/equipment costs and relocation costs.
  • 1MDB in turn, contracted to what was then named 1MDB Real Estate Sdn Bhd (now renamed TRX City Sdn Bhd) for certain construction aspects of the PUKL Relocation. TRX City Sdn Bhd in turn, then contracted Perbadanan Perwira Hartanah Malaysia (PPHM, which is a 100% subsidiary of Lembaga Tabung Angkatan Tentera) as a Turn Key contractor to deliver the construction aspects of the PUKL Relocation.
2 Liabilities indirectly linked to the Land????

Only problem is that these are not BMSB Liabilities

These are 1MDB's and 1MDBRE's

And following their standard Ali Baba SOP they contracted Perbadanan Perwira Hartanah to undertake the Construction Cost




We now need to look back at CREC Announcement



ANY MENTION OF SPV 1 or SPV 2 ?

THE ONLY THING MENTIONED IS BMSB

It even said the they have ENTERED INTO A SHARE SALE AGREEMENT WITH 1MDBRE TO PURCHASE BMSB

Machais2 still following me here ...ke dah garu kepala kata gua tengah kencing lu semua

Anyway we now go to the other part where 1MDB said that it require "all relevant consents, including but not limited to, from the Government of Malaysia, the contractor (PPHM) and sukuk investors."

Why is that?

Recall the Bandar Malaysia 2.4Billion Sukuk


Nak Jual BMSB must get BondHolders Approval

Jual Tanah Sg Besi duit musti buat bayar hutang dulu...

The above is from their annual report.....look at (e) it says 5 Development Agreements.

I have another data from the Principal Terms and Condition of the Sukuk which says 8 Development Agreements as per the picture above on the Relocation Agreements.....wallahwualam sapa yg betul

But there's one particular positive covenant to the Sukuk Issuance which 1MDB will /or has breached with the sale of BMSB

















SUMMARY

  1. CREC entered into S&P to purchase BMSB from 1MDB RE
  2. 1MDB says CREC will buy either SPV 1 or SPV 2 or whatever shit they will cook up in the next 24hours
  3. 1MDB talks about Relocation Cost Liabilities attached to the Land but CREC is buying the Equity in BMSB and all liabilities is NOT with BMSB but is with 1MDBRE or 1MDB
  4. SUKUK Holders can BLOCK this TRANSACTION using all the terms embedded in the Sukuk Agreement.
  5. What is this 4 Additional Plot of land that 1MDB is talking about? All References in the Annua Report points to 12 Plot of Land. Is 1MDB trying to inject TRX land into the Deal? Or Did 1MDB break up the original plots being transfered by GOM to 1MDB? (refer update above, 3 additional lots was identified, 1 is still an unknown)
UPDATE 2034 HRS : BMSB Summary Accounts on Liabilities Values attached to BMSB


Saturday, October 17, 2015

The Idiot Guide to the Illogical Kandasamies of 1MDB

Ladies and Gentlemen

A word of caution before you read this post.

We the Public can only refer to data in the Public Domain. 1MDB on the other hand knows what data they have and what data was compromised by Petro Saudi. On the other side we have Claire Brown of Sarawak Report who has a set of document and will release them after she pancing 1MDB. While all of these is happening 1MDB also shares confidential information to parties who are not part of the investigation but is working for them to improve their so called "communication strategy".

And the output can be seen from how "professional" their recent responses to all queries regarding the company.

GLC bawah telunjuk BooGees beb....carpet merah..

Tapi sayang bunyi dah jadi macam AhBeng naik EVO.

Anyway let us examine the introduction of a new set of data into the Public Domain.

1MDB's Reply to Sarawak Report Allegations1MDB has been made aware of an article, dated 10 October 2015, that has been published in the Sarawak Report, an online blog currently banned in Malaysia. This article has published selectively extracted materials and contains serious and unfounded allegations, in a clear attempt to manipulate readers with respect to events that have previously taken place at 1MDB.
1. 1MDB-Petrosaudi
The fund units, owned by 1MDB subsidiary Brazen Sky Limited, were originally valued at US$2.318 billion in September 2012, as the eventual outcome of various equity and murabaha loan investments totalling US$1.83 billion by 1MDB with PetroSaudi between 2009 and 2011. Over the investment horizon, 1MDB has received and reflected in its audited financial statements, cash returns, i.e. approximately US$81 million murabaha profit, and approximately US$263 million dividends from fund unit investments, i.e. a total cash return of approximately US$346 million and a total gain over time of US$488 million (US$2.318 billion less US$1.83 billion).
2. Fund Unit Redemptions
As of 31 March 2014, the fund units were valued at US$2.33 billion.  On 5 November 2014, at the time 1MDB's financial statements for the year ended 31 March 2014 were published,  an amount of approximately US$1.22 billion had been redeemed, in cash, with proceeds being substantially utilised for debt interest payment, working capital and payments to Aabar as refundable deposits for options termination.
A sum of approximately US$1.11 billion in fund units remained, which together with a dividend of approximately US$130 million, equates to the remainder sum of US$1.23 billion described in the notes to 1MDB's accounts.
On 14 and 24 November 2014, approximately US$170 million of the US$1.11 billion fund units were redeemed, in cash, leaving a balance of approximately US$940 million in fund units. On 2 January 2015, i.e. prior to Arul Kanda joining 1MDB, a final redemption of approximately US$940 million was undertaken through a sale of fund units to Aabar, with cash payment being deferred. (Note: Aabar was separately a guarantor of the fund in which the units were invested but by mutual agreement, the redemption was via sale of fund units instead of calling on the guarantee. This fund unit sale agreement was subsequently superceded via the Binding Term Sheet signed between 1MDB and IPIC, the "AA" rated parent of Aabar, on 27 May 2015, upon which a payment of US$1 billion was made by IPIC to 1MDB.)
3. 1MDB President and Group Executive Director Arul Kanda's comment
Whilst Sarawak Report has published a number of alleged 1MDB related documents in the past, which we now know to be stolen and possibly doctored goods, sourced from a convicted criminal, I can confirm that – in this particular case – it appears to have published an authentic 1MDB document, namely minutes of a 12 January 2015 Board meeting. This was the first 1MDB Board meeting I attended, i.e. a week after I joined the company on 5 January 2015.

At the meeting, I stated to the Board, based on my understanding of events that occurred before my time, that the redemption of fund units happened in cash for an amount of US$940 million. However, upon further investigation and verification, it became clear that this was a misunderstanding, which I then clarified to the Board and our shareholder, the Ministry of Finance. This clarification is clearly recorded in subsequent Board minutes and can be verified.
On 13 January 2015, I confirmed via a press statement that the remaining amount of US$1.11 billion had been redeemed, in full. What was unfortunately not made clear, was that the redemptions happened partly in cash and partly through the sale of fund units, with cash payment being deferred. It is this important distinction which caused a misinterpretation of my statement, first during a Business Times interview on 9 February 2015 and subsequently by the Ministry of Finance, in a Parliamentary answer on 12 March 2015.

I have explained in detail the sequence of events to the National Audit Department and to 1MDB's auditors, Deloitte, as part of their thorough and professional review of 1MDB's past transactions. In addition, I have openly and publicly taken full responsibility in June 2015 for the misunderstanding on this matter – i.e. the buck stops with me.
In my capacity as President, I answer to the Board and the shareholder of 1MDB. My strong track record speaks for itself and my only professional agenda is to fix the challenges in 1MDB. There is no need for me to lie or cover-up what has happened in the past, as has been alleged by those who make sensationalist claims to drive their own political agenda. Accordingly, I look forward to being questioned in detail on this matter at the upcoming Public Accounts Committee hearings and for my answers to be a part of the public record, to conclusively put this matter to rest. (here)

Yes Arul

We know that you only joined 1MDB after the "redemption" was done.

And yes we also know that your track record speaks for itself....

Wonder when the MOF was informed of your "further investigation and verification"

For 127 Days the whole world was mislead to think that it was actually CASH

Friday, August 14, 2015

Warkah buat Ahli UMNO: The One Step Guide on How to Remove PahlaWANG BooGees and HUsNit Ulam Jawa

As some of you may be aware...

I'm no longer on FaceBook, I lost control over my account on the 12th of August 2015 while trying to teach some people on how to write with proper data....






When I wrote the short status saying that the fixing was done at levels closer to the peg, LSS as usual come over with to comment....this time around a Cinabeng I can't remember his name also tagged along with LSS...must be part of his groupie accusing me of "word play"



LSS edited his post to reflect my comment...even asked me if I was happy


Dude like I give a shit....it's your post do what ever you like with it.

Truth is the comment is Not about Word Play at all

Tun M is not as stupid as BooGees to expropriate 1.08 ringgit from all the holder of USD who wanted to covert to MYR. 

I was trying to respond to the tag along Cinabeng....then suddenly...I lost total control over my account. (Hope Cinabeng is reading this....the vely the difelen Engrish meaning mah..thiouuu)

Pendek cerita

My account has been reported for breach of FB Terms and Condition for being an Anonymous.

They no longer welcome Anons.....

Apalah salah saya..

Anyway folks frankly I don't really give a shit about being "Viral" on Social Media or having many frens and followers...

FYI I've created a new account purely for monitoring purposes. Pi la search sekarang saya sunyi sepi takde kawan doe....

Folks today is not about that actually

Today is where I'm in MY OWN DOMAIN

NO ONE CAN SHUT ME UP HERE TECHNICALLY

So here goes...

Saturday, July 4, 2015

Just Asking: Conversations with the UNVERIFIED UNOFFICIAL Spokesperson of #1MDB

As expected Lim Sian See has responded but in draft mode

Source (here)
 He provided a preview to the post after I posted link here (note link token expired)

UPDATE 1539HRS LSS has published the post here

As I mentioned in my previous post

Do let me know if I've missed anything or if you have supporting documents that could add more granularity to the transactions mentioned above.
Since LSS has responded in "draft mode" I'm unable to copy paste the contents of his post over, only way is to for screen print so bear with me folks 

Let us start with his explanation on the 700Million USD Loan provided by PSI to JV Co 


Let us go back into February, when I first send that tweet out, I drop by one of your post asking a rather similar question

Thursday, July 2, 2015

Just Units: Pre PAC Questions for Arul Kanda Kandasamy

Salam Ramadan to all my readers

Today is the 2nd of July 2015, exactly 2,248 days since I first stood up to oppose the setting up of Terengganu Investment Authority (here), it was merepek then to me......sekarang lagi la merepek in case your're wondering what I think of 1MDB.

I seldom write about them, ada la sekali dua kut over the years.....

There was this one time when 1MDB went against OFFICIAL GOVERNMENT policy on UEC (here) gua pun kasi la comment sket.....mana bole kasi Scholarship to students whom our Education Ministry tak recognise pun certipiket

Then there was this time when news came out about Qatar Investment Authority getting a SpeSial deal to become "Strategic Real Estate Development Partner" for the Sg Besi land (here)...always wondered why of all people 1MDB seems very smitten with the Arabs....fulus besau ke?

Apart from that I've stayed away......buang karan beb

Anyway folks...of late ni berlambak orang duk tanye kat gua privately what I think of 1MDB and whether I could write about them....

Some have sessions with me to extract about what I know....fardu kifayah

Gua sebenornye malas tahap gaban....tapi benda ni macam dah masuk tahap mengarut

I don't need to elaborate where the situation is right now... cause if you read my blog there's a very high chance that you are already "aware" of the situation unless of course your're the occasional zombie sesat

But bear in mind that your "awareness" is limited to the information and documents that are available in the Public Domain

And the Authenticity of these documents and the various information available to all of us...is what we kelantanese say......was-wah la weh

So folks why don't we do a deep dive on the mysterious chain of investment executed by 1MDB with its 1st Partner.....Petro Saudi International

This is gonna be fun as always........I guarantee one......gua Sovereign Risk kat cyberspace beb confirm tak default punya....worst case at the end of this post lu cerah sikit kepala hotak

Mana mau start gua pun garu kepala....

Minds are like parachutes; they work best when open. -Lord Thomas Dewer