1MDB's audited assets worth RM51.4b

Publish date: Wed, 27 May 2015, 03:21 AM

KUALA LUMPUR: - The total worth of 1Malaysia Development Bhd (1MDB) audited assets for the financial year ended March 31, 2014 was RM51.4 billion, the Dewan Rakyat was told today.

The assets comprised current assets worth RM19.5 billion and non-current assets valued at RM31.9 billion, according to a written reply from the Finance Minister to a question from Wong Chen (PKR-Kelana Jaya).

It said 1MDB has solid assets, including two sites earmarked for the Tun Razak Exchange and Bandar Malaysia in the capital.

Other assets include a 94.69-hectare (234 acres) land in Penang, 13 power plants, and desalination (facilities) in five countries.

"The value of the 1MDB assets is supported by its valuation or book value, which was confirmed by an independent auditor (Deloitte)," according to the reply.

To a written question from Tony Pua Kiam Wee (DAP-Petaling Jaya), the Finance Minister said that the arrangement between 1MDB and International Petroleum Investment Corporation (IPIC) was made at 'arm's length' with the commercial terms concluded in accordance with market standards.

This is based on information submitted by 1MDB management to the Ministry of Finance.

"An appropriate announcement will be made when the final redemption option value is completed and reported in the next audited financial statements," the reply said.

Pua asked why 1MDB obtained guarantees from IPIC in the issuance of bonds totaling US$3.5 billion that set unfair conditions.

He also wanted to know the amount paid by 1MDB to redeem the options granted to a subsidiary of IPIC, Aabar Investments PJS. -- BERNAMA

Discussions
Be the first to like this. Showing 8 of 8 comments

xyxy8

if 1mdb has so much assets, then all critics must apologise to pm najib, isn't it? But i do not expect them to do so. lol

2015-05-27 17:23

Icon8888

Even if the critics are wrong, why should they apologize to PM, which is a servant to the rakyat ? (without us voting him into office, he is nobody).

Does your boss need to apologize to you after he question you on your work ?

2015-05-27 17:27

speakup

Icon u are wrong. In a real democracy the PM is servant to rakyat. But in malaysia..... rakyat is servant to the PM.

2015-05-27 17:31

Icon8888

Ha ha I got your point. It is people like xyxy8 that spoils the market

2015-05-27 17:32

xyxy8

Icon, the criticism has gone overboard. u assume the worst in najib's actions and asked him to resign in disgrace. But then fortunebullz may be right in the end, we have to wait and see that there is really so much assets in 1mdb.

2015-05-27 17:39

MrNobody

TOLD U PPLS,

2015-05-27 17:55

MrNobody

CHRISSYCONN
May 27, 2015 02:22 PM | Report Abuse

duit. 1mdb small matter la.

PM is using this opportunity to see who is the traitors. this is a god gift strategy and timing.

when all the traitors exposed themselves.

1mdb crisi will miraculously solved.

you keep long eyes to see la.

2015-05-27 17:56

ramsyll

Don't be fooled by this so called assets valued at RM51.4 billion.

From what i gathered, these lands were bought form the government cheap eg. RM60 psf. Lets assume the land size is 1,000,000 sq ft, which means cost would have been RM60million.

Hence, if 1MDB classified these as Investment Properties, then the accounting standards allows the company to fair value them annually and recognise the profits into P&L. This is what 1MDB did... it would seem fair value of these land is much higher, eg. @ RM2500 psf, they would create a HUGE profit and the assets would valued at RM2.5billion, creating a revaluation profit of RM2.44billion !

Don't forget that the original borrowings of 1MDB id still RM42billion, and they actually used the funds (using the above example, land for only RM60million), and spend the rest of the rest of the borrowings elsewhere on other similar assets & expenses! The revaluation amounts just covers up the expenditure which has yet to be identified and explained by 1MDB !!

Let me put the above into another perspective...

Assume I am very influential and well connected to the government and I borrowed RM1,000,000 from the bank and i spend it as follows:

Bought 50,000 shares in ABC @ RM5.00 = RM250,000.00**
Bought 30,000 shares in XYZ @ RM7.00 = RM210,000.00
Paid wife a hefty bonus to buy diamond ring = RM500,000.00
Cash held in bank = RM 40,000.00
------------
RM1,000,000.00
------------
** MV is RM25.00 per share, but I managed to buy it @ RM5.00 becoz of connection with government.
XYZ went bust becoz JhoLow siphoned it out and shared with me to party!

Now, BANK and public is asking me to show how the hell where the hell is the RM1,000,000.00 that I borrowed...


Well... this is how I tell them:

50,000 shares in ABC @ RM25.00 = RM 1,250,000.00
Cash held in bank = RM 40,000.00
---------------
RM 1,290,000.00
---------------

I got assets worth RM1.29million !

GET THE PICTURE?????

THIS IS 1MDB !!!!

2015-05-27 18:45

Post a Comment