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What if Pak Lah is too attach to the good life of Prime Ministership and is willing to do anything for continuing the good life as the PM of Malaysia?

We are in some serious deep shit.

Looks like it already been "questioned" last year. Check this out at : http://www.terrorfinance.org/the_terror_finance_blog/2006/10/index.html

And IF they squandered with the money... the rakyat will be burdened with more taxes to repay the loan?

Pak Lah should revisit Tun Mahathir's 'BCA' - Bersih, Cekap dan Amanah and discard the Cemerlang, Gemilang and Terbilang because what I can foresee is that we are going to BERHUTANG SAMPAI TELANJANG.

i can't think straight now..i'm shocked!! What is happening now? what will happen next?

The last time I checked, the Malaysian government still has a reasonably good sovereign debt rating in the international market.
Why on earth do we need to go through a front company ?
Nothing shameful about borrowing money for development, as long as it is within your means to repay. If you can't repay, don't borrow.

Borrowing through shell companies is one of the oldest tricks in the book for hiding a liability. And it also has a dangerous history. The individuals involved are usually shady characters, Some or ALL of the cash may "disappear", and the government will still be liable for the full amount of the loan. Ah, there's usually "coffee money" payable to the front people. Given the principal amount is USD $ 50 Billion, can you imagine the quantum of the coffee money involved.

Is this another reason why Tun M is so mad with our PM?

Jeff, maybe we can have more info here
http://din.huluselangor.net/modules.php?name=News&file=article&sid=401

i think Jefferey's comment in Kit's blog should be considered before anymore knee-jerk reactions. the power(s)-that-be has the capacity for much deception, and the devil hath the ability to assume a pleasing shape.

What about BNM? It is supposed to be independent of MOF and the government and exercise its own judgment on the merits of a loan like this anyway. At least that is what it always professes, when it comes to dealing with banks back in the 90's. So why is it behaving like a jelly-back rubber stamping wielding loser now? It should do its job and tell the MOF it is a crappy proposal, or has the BNM, like so many other public institutions in Malaysia, become the ineffectual, unthinking, useless pieces of machineries good only to serve self serving individuals?

all these are sounding really suspicious.. don't know how these things got into my brain..

but.. perhaps TDM is mad with Pak Lah because Pak Lah is pro singapore.with the cancelled johor bridge as a good example. bowing to the singaporeans...

and to all malays..beware..because pak lah is just about to do the ultimate betrayal... once this USD50 billion loan is signed...

good luck to you all.. malaysia is going to be taken over by Singapore, and it will be wiped off from the map completely..we'll all be Singaporeans then!! hooray!

jsut an assumption la... dunno how the hell these thing got into my head..

besides, Singapore is just a red dot.. too small for them to grow...their economic prowess is not in tandem with the size of their physical... so in this modern era.. no more wars... they come and get you thru economic plan.. like this one...

hmm...

I believe our beloved PM and others in MOF and BNM is not so 'stupid' to go ahead with this without first consulting the Cabinet.

It could be a ploy to divert our attention away from the immiment increase in Toll charges as they will already know the public sentiments if they increase it.

With this news out, it will overshadow the Toll increase 100 folds and we will all forget about the Toll increase in no time.

In the end, the PM will say all this money borrowing is not true and the cabinet will acknowledge so.

Then? Well, all's well. Toll issue forgotten and our PM and SV can be laughing and saying, 'I TOLD YOU SO THEY WILL FORGET'.

As Tun M said, neither he nor the rest of the cabinet had any real understanding on the issue of toll concessions and what were the important points to look out for. So smart companies like Litrak will simply supply their drafts to the government knowing there will be no real challenges to it. On the side-lines there will be private details to be worked out (otherwise, I simply cannot fathom how so many ministers can afford to live in their big houses on their government salaries).

Do expect others to come calling and hope to take the government and ultimately the rakyat for a ride. For example, we'll build the bridge your government wants, but here's what we'll do
and here are the $$$$.

The 'ifs' do not help. Think how can we prevent the next betrayal on the Rakyat.

I personally think it is more of Khairy and his Cowbridge boys' idea instead of the PM. The PM is always blurred and sleepy, doubt he understand what is 50 basis point. But then again, Khairy and his "pretenders" boys are neither experienced nor that smart enough to understand world finance. Guess it will be another one of those Razak Baginda's submarine deal. Can you imagine how much the 10% commission will be?? Malaysia do need more of LKS in the Parliament and I believed we should deny BN the 2/3 in the next election.

The mother of all pork barrels...

I think this is the MOTHER OF ALL SCAM. I can smell laundering in process....

Just do not underestimate this PM Pak Lah. From beginning he has acted as a [ deleted ] guy with a heart to change all false in the country. He has fooled the whole country! Keep your eyes and ears wide open!

maggieq,

deny 2/3 majority only? and still let them lead our country? dont you guys get enough from this pirate?

with this mentality, your great,great,granson will piss on your grave for giving this pirate license to rob

we need to give opps 2/3 majority in order for them to reverse all loopside/lost-lost situation bn created. you think you can easily change nep policy by giving opps slim majority or by giving bn simple majority?

WAKE UPPPPP PEOPLE!!!!!!

they robbed you using tollroad, car tax, nep, etc, etc... then you still give them 2/3 majority. and now the want to rob you another 50bil and you still want them to lead you?.....@#$@#$@!#$@#$ @#$@!#$#$@

in the meantime, we also need to stop the FTA US-M'sia discussion...

http://www.umno-reform.com/

http://www.umno-reform.com/urnews1/fta_march.htm

and now i also wonder what happened to this..

http://www.jeffooi.com/2006/10/equity_par_value_vs_market_val.php

par value vs market value arguments. didn't the government says they are gonna release information on how they calculate??? has the information been released??? OR IT HAS BEEN FORGOTTEN???

tidur sampai lupa

Folks

A good analysis by a "Jeffry" on malaysiakini... someone trying to mislead internet bloggers ???? or a scam that almost hooked Putrajaya 4th Floor.,, ALMOST.

see here .... http://malaysianunplug.blogspot.com/2007/01/usd-50-billion-for-rmk9-scandal-bank.html

The amounts are larger and larger. The 'looters' are bolder and bolder. Never mind about the debts this country already in. Just the new and upcoming 'lootings' make me shiver.

So much natural resources, oil even. Yet, going by the national liabilities, every single Msian is technically bankrupt!

rosman says

"deny 2/3 majority only? and still let them lead our country? dont you guys get enough from this pirate? with this mentality, your great,great,granson will piss on your grave for giving this pirate license to rob."

I agree and your words strikes me.

The PM said that for the past 3 years, we have had to put a restraint on spending and now the time is ripe to put the the savings to good use with the launching of 9MP. If we have to borrow USD50b to kickstart the plan, what has happened to the past 3 years savings?

So, there is a Private Financial Initiative after all...

If this is really a scam, nothing is going to come out of this. BNM is going to stop it in its tracks (see Answer 2 below). IF so, the only probable outcome is a red-faced Finance Minister I.

Here's some IF answers to your IF questions:

( 1 ) WHAT IF Malaysia's No. 1 -- the PM cum Finance Minister -- has authorised the issuance of Government Guarantees to a "company about to wind up" and a foreign shelf-company to raise US$50 billion allegedly to fund infrastructural projects in the 9th Malaysia Plan?

IF this is true, the guarantees COULD be the guarantee confirming payment by government for projects under the private finance initiative (PFI). IF no money is disbursed by PESG or UFS, what's the loss?

( 2 ) WHAT IF Bank Negara has been officially notified that the Government has no objection to the wheel-dealing of these two private companies, and has to comply?

IF so, didn't you read the letter from PESG to BNM? In the letter BNM asked PESG for Proof of Funds, History of Funds and transferring of Funds for due diligence clearance. No objections from Finance Minister I does not mean no due diligence. Give BNM some credit, esp Ms Lee Guat Keow - they're not dumb-la.

( 3 ) WHAT IF with these guarantees, the two companies cited, and indeed anyone at all for that matter, can raise funds anywhere, given that no one else knows of this transaction?

IF these companies can raise USD50bil to bring into Malaysia to fund our 9MP, what's the problem Jeff? See above for what the guarantee COULD be for - ie guarantee payment for projects taken up by contractors for the government's PFI under 9MP.

( 4 ) WHAT IF funds can then be diverted to personal accounts?

IF so, what are you talking about here. See above for what the guarantees COULD be for. IF contractors divert funds borrowed from PESG for a Merc without pumping the money to the government project, they go bankrupt la. SO??

( 5 ) WHAT IF when it's time for repayment, the lenders can have the option of running to the BN government which "had no objection" to their deals in the first place?

IF this is true, was the money disbursed? What was the money used for? RUN to BN government on the basis of the guarantees or no objection letter? Don't get it lah, Jeff.

( 6 ) WHAT IF the Malaysian government will repay without any of this becoming public -- the caveat may be that the PM/Finance Minister and his political dependents remain in power?

IF so, where would the money come from in the first place? Hello, we do have a budget you know - the one we have every year. USD50 bil is very hard to hide. See below for how absurd your speculation is.

( 7 ) WHAT IF, with all the above, the recipients of the US$50 billion funds will be allowed to enjoy the monies unhindered, and reward some to those who make things happen?

IF so, why issue a formal letter to BNM on "no objection"? Talipon saja-lah Zeti. Why go through all the hassle? Disburse the USD50 bil straight away lah to kroni kroni, why raise money from the prime banks?

Jeff, your IFs are mere speculation without any basis.

Dear Rosman and 3rd Generation,

I am being realistic when I said we should deny BN 2/3 in the next election. The Opposition has not built up enough honest and talented people. Another thing is that if the Opposition's manifesto is to win 2/3 in the next election, BN will play racial cards to scare the Malays and Non-Malays. Why let or allow them to use that strategy? Furthermore, they may create another May 13 if they lost ( in 1969, DAP won so many seats in KL) and declare emergency and then impose 50% NEP.
I personally feel that by restricting BN to less than 2/3 with Opposition trying for 50% will be a better strategy. That way, it can check and balance and allow the rakyat to get used to the Opposition and the good changes it can bring. Then , the next election the Opposition can walloped BN and win without giving BN a chance to use the racial cards anymore as they already control 50%. Perhaps even an all Malaysian party then. Of course, the Net played an important tool to keep the rakyat informed of all the " cruel "things BN tried or has done. I personally feel the politicians in BN would rather let this country burn than giving up all the gravies, privileges, rasuah if they lose drastically in the next election. If they can "cheat" this country and the hard works of the rakyat, they must be inhumane and can do cruel things.
I dont know what others think .

Folks

The issue is whether the whole thing went through ie the USD 50 million had been sourced or not through this half-cooked company and whether this Australian finance compnay really got involved.

It could have been a scam to start with. If the scam was bought by Putrajaya using the PM's name to influence Bank Negara, then we have case here.

Otherwise, the whole thing has become a non issue.

If indeed those letters posted on the internet are real and that Bank Negara had been approached by Putrajaya, then I believe a full investigation has to be conducted as to why Khairy's boys (if true) got themselves involved.

The If and buts don't count if the whole thing did not eventuate.

There are too many holes in this whole fiasco to be true. Why would, and how can, the top financiers in the world loan such a sum to a company which is in the process of a winding-up?

I believe there are even laws in our country which prevent a company in winding-up from embarking on such a process, not to mention the various foreign legislation and regulations and shareholder interests which bar these financing corporations and banks from loaning the aforementioned company.

Though we would like this to be another pot with which to smash the government with, we must do so with rational and unprejudiced minds.

I feel that we must look carefully into this whole matter, lest we truly become what the establishment has been trying to label us to be: a bunch of rowdy, seditious, and no-good troublemakers.

USD 50 yard or billion is a large amount by any size especially for emerging market USD issues....

I bet people at MOF or BNM would just laugh at all of this...if they know what they r doing in the first place....

Drawing that kind of funds even over a 5 year period is not easy....go and ask any regional investment banker.....

Lets look at all of this in context....our total Malaysian Government Securities is about 201 Billion inclusive of treasury bills and thats not that far off from the USD 50 Billion we are talking about here.....

So just take a moment to think about ..... a sovereign government with a number of issues in USD and a "leader" in Islamic Gov issue......with Negara boys who understand not only the workings of fixed income, foreign exchange, derivatives etc, the corresponding laws, the Government Balance Sheet (they are issuing agent or the Debt Management Office)..

How? Just how could this be possible.....

If there was a letter from the MOF on no objection..was it for BNM to explore? or was it for BNM to investigate potential money laundering or scam ?

First if there was a letter or a proposal ... just how in the world could it get that high without a hidden hand pushing it....

if this is true...somewhere along the filteration of shitty proposal failed....

Wonder how many of this kinda "No Objection" letter is out there ? circulating among the "brokers" n the clients....

How many levels of these such letters exist ...n how much currency do they command?

by the way Jeff....its been a long while....looks like u've come a long way....keep up the good work!!!

The more I think about it, the more it looks like a scam.

(1) Was this front company Asassyu Technology involved in the scameor the scam originators illegally used their name to fraud the govt.

(2) Did this aussie firm Project Equity Services Group and/or Union Financial Services write to Bank Negara or Govt?

(3) Did the Political Secretarty, as alleged in the report, part of the scam or buy into the scam and wrote to Bank Negara.

(4) Did Bank Negara follow through from the Merican letter after that?

If it is not a scam, then Police should investigate who falsify those letters to defraud the Govt?

PS: I am no economist but i'm trying to think from all angles..

Here's another dimension to this problem. If Malaysia borrows 50 billion USD, 2 or 3 years down the road, US dollars comes crashing down because China and Japan decided to dump the US dollars. With the debt that US is currently having, they cannot absorb the money that is being dump, hence the USD becomes toilet paper..

I am just wondering.. why USD and not Euro? US is in a terrible shape. They have debts that it would take a whole generation to pay. China and Japan are holding them by the balls with their currency and besides the stock market, things in US looks soft.

Lets hope that in 2 or 3 years time.. this does not happen. If not we would have been borrowing 50 billion toilet paper.. :\

nUtZ,
USA is one the biggest consumer country, biggest debtor in the world and with the largest amount of notes circulation around the globe.
What make you think Chinese and Japan drop USD trade?

Remember, with huge volume, consumer are king. Remember, to the bank, when you borrow 100,000, you are nothing. But when you borrow hundred millions, you are king.

Folks

The chap who first wrote about the USD 50 billion and said he questioned Bank Negara without any response has come out firing on malaysiakini because his personal integrity was attacked.

http://malaysianunplug.blogspot.com/2007/01/usd-50-billion-for-rmk9-report-ganesh.html

Moo_t,

Just playing with what ifs.. China and Japan needs to pay their workers. What if they are out of yen and RMB because of excessive spending. Rather than printing more money they would slowly dumping the USD to buy more sukhois or new subs from Europe?

Have you seen the USD lately? it is weaker than majority of the major currencies.. Something is going on here. If USD is weaker.. means you'll get less for your money. So 50 billion USD now will never be equal to 50 billion USD in 2 or 3 years time.

So rather than just loosing money in interest alone.. we could still be loosing money from weakening USD too.

maggieq,

may 13 happened because people that time do not have access to broad-media like internet, then they are easily manipulated by umno. they have no alternative media to counter baseless provocation by umno.

to me most opps leader is honest, if they are corrupted bn will dig all their activity 'sampai lubang cacing'.

we need to put a fullstop to bn

Dear Maggieq,
I was from the May 13 era. I do not think May 13 will happen again in Malaysia because of geopolitical factors and I trust Malaysians deserve more credit than the politicians might think. A small scale rioting may happen and all races will be affected. Just trust Malaysians to effect the change if the goings get tough or intolerable. I would like a see a capable alternative political party instead of just an opposing party which so lame for this modern time.