Najib Razak’s Secret Deal With China


July 26, 2016

COMMENT: I just can’t believe the extent to which our Prime Minister will go to cover his tracks over the mess he and his cohorts created in 1MDB, the so-called sovereign fund. Doesn’t his Cabinet colleagues realise what they are putting themselves into, given that they are equally culpable and responsible  as they apparently approved this deal.  Prime Minister Najib is unstoppable. He is Law unto himself. –Din Merican

Najib Razak’s Secret Deal With China To Pay Off 1MDB (And Jho Low’s) Debts

by Sarawak Report

http://www.sarawakreport.org/2016/07/outrage-najibs-secret-deal-with-china-to-pay-off-1mdb-and-jho-lows-debts-shock-exclusive/

 OUTRAGE! - Najib's Secret Deal With China To Pay Off 1MDB (And Jho Low's) Debts! - SHOCK EXCLUSIVEOUTRAGE! - Najib's Secret Deal With China To Pay Off 1MDB (And Jho Low's) Debts! - SHOCK EXCLUSIVE

OUTRAGE! - Najib's Secret Deal With China To Pay Off 1MDB (And Jho Low's) Debts! - SHOCK EXCLUSIVE

Marked “For Internal Use Only” an Appendix to a Term Sheet due to be approved by the Malaysian Cabinet tomorrow (27th July) lays out in detailed figures how  Najib plans for over US$7 billion in accumulated 1MDB/Jho Low company debts to be wiped out by taxpayers in a secret deal between his Ministry of Finance and the Chinese state company CCCC (China Communications Construction Company).

The PM’s ‘cunning plan’ is to get the Malaysian Government to agree to inflate the actual cost of the East Coast Rail Project from only RM30 billion to RM60 billion, all to be borrowed from the Chinese Government, in order to disguise the payment of 1MDB’s (and Jho Low’s company) debts.

A whistleblower, who has supplied full details of the project, described the plan to Sarawak Report:

“The Malaysian Government is planning to award an overvalued project to launder money in order to fill the loophole of 1MDB. The plan is to award the East Coast Rail Project to a Chinese Company, China Communication Construction Company Limited (CCCC). The initial budget for the project is MYR 30b, but they have overvalued the project by another MYR 30b, making it MYR 60b. The extra MYR 30b will be used to launder out cash to 1MDB related companies.

The project has been proposed to the cabinet on 25/7/2016 and will be approved by the cabinet on 27/7/2016 with total value of MYR 60b.

The Chinese company, which is backed by the China Government, will help pay off the 1MDB dept in advance and progressively. In return, this Chinese company will be rewarded with high profits and land, and of course extra influence with the Malaysian government”.

Doubling the cost of mega-project

The outrageous plan is blatantly laid out in the term sheet and internal report, which have been leaked to Sarawak Report.

The report says baldly that the actual cost of building the railway, has only been estimated by CCCC at RM27 billion. However, there is to be a so-called “Additional Differential” cost of RM29.85 billion, which will more than double the cost to make a total bill of RM60 billion, including a fat percentage of profit for the company (handily based on the total and not just the construction costs):

Najib plans to double the cost of the Railway to RM60 billion to hide his 1MDB missing money

The company makes no bones about the incentives provided by the Malaysian Government in this “Direct Contract”, meaning that there was no open tender to get the best deal for the project.

CCCC says it has been given land on generous terms, including a chunk of land which was given cheap by Najib to 1MDB, then inflated in value at Ayer Item – the land which is valued at US$1.3 billion will be offered to CCCC for US$850 million.

CCCC will also gets tax breaks including from GST for the next ten years. And then, as a Chinese State-owned company CCCC notes the benefit of the extended influence over Malaysia the project and the massive loan of the cash (at a generous 2% interest rate) will provide.

So much for Najib Razak’s much vaunted ‘inward investment’ plans from fellow Islamic countries and his stirring of hatred against the so-called ‘Chinese Tsunami’!

What is in this deceitful deal for the Chinese?  Just take a look!

Sneaking 1MDB’s debts into the project

The quid pro quo for the Chinese partners in this lucrative deal is to assist in Najib’s corrupted exit strategy for getting shot of his multi-billion dollar debts at 1MDB at a total cost of US$5.63 billion!

The first priority being to get 1MDB off the hook over its outstanding payments to Abu Dhabi’s IPIC.  In the first instance this will be achieved through the payment of the $850 million to 1MDB for the Ayer Item land, but after that the company will assume the repayment of the remaining debts for the disastrous ‘power purchase’ and ‘strategic partnership loans’ which lost billions (mainly stolen).

The Malaysian taxpayer will of course have to pay the whole lot back with interest over the next 7 years in payments, all planned to be disguised by the inflated Rail Project!

Sneaking a write off of 1MDB's debts in an up-front payment

Laughably, this outlay is set to be disguised by a repayment in ‘assets’ valued to the same amount of US$5.63 billion.  The assets concerned are largely duds – vaunted ‘liquid and cash assets’ tucked away by 1MDB in dodgy bank accounts, including the 1MDB Brazen Sky account at BSI (alleged worth $940 milllion) and also the supposed assets of 1MDB Global at BSI, (alleged worth US$1.56 billion).

Significantly, we note that the 1MDB Global money, which was raised through a Goldman Sachs loan, is now also described as ‘Units’, raising the probability that these are in fact worthless pieces of paper representing bogus investments, similar to the ‘Units’ in Brazen Sky, which would imply, that like the PetroSaudi funds, the billions raised by 1MDB Global have all been stolen:

Worthless 'units' from Brazen Sky and 1MDB Global are being dumped into the deal as if they had been 'bought', whereas in fact all costs are being separately covered by the 'additional items' on the inflated projected

List of Payments totals US$7.5 billion/ RM29.8 billion

Just last week the United States DOJ explained in searing detail how all that missing 1MDB money, which is now being sneaked onto the East Coast Rail tab, was stolen by Najib and his family and associates, including Jho Low and IPIC’s Khadem Al Qubaisi, to be spent on gambling, drinking, jets, yachts, record-breaking fine art purchases (in many cases depicting under-dressed female forms).

The report sheet in our possession lays out in precise detail what CCCC/The Chinese Government has agreed to funnel through the project, in order to get Najib off the hook on all his problems.

The astonishing list contained in an Appendix to the agreement is clearly costed and totals over US$7,5 billion. It includes writing off 1MDB’s debts to the Abu Dhabi sovereign wealth fund IPIC, which is currently suing 1MDB to the tune of US$6.5 billion over unpaid guarantees.

RM30 billion 'Added Differential' ie bail out for 1MDB and Jho Low

Bailing out Jho Low’s companies also

Significantly, the list also includes an agreement to buy out two Jho Low related companies, which have long been suspiciously associated with Najib’s record of personal plunder from 1MDB.  These are Loh & Loh Corporation Berhad and Putrajaya Perdana Berhad, for which Jho Low and his partners will receive a healthy US$315 million:

Jho Low related companies which funnelled money to Najib are also in the secret bail out package!

Sarawak Report has long since exposed how Jho Low used 1MDB money, which was secretly channeled through a so-called Islamic loan agreement with the company PetroSaudi to ‘buy out’ the Sarawak UBG group in which he and Taib Mahmud held the major stakes.

The purported buyer was Javace Sdn Bhd, a supposed subsidiary of PetroSaudi International, Seychelles (a bogus subsidiary of PetroSaudi, whose Director was Tarek Obaid, also a director of PetroSaudi). However, secret transactions obtained by Sarawak Report showed that all the money in Javace was controlled by a company Panama Investment Manager, which was owned by Jho Low.

The two subsidiaries of UBG Putrajaya Perdana and Loh & Loh are still identified as crony companies controlled by Low and Putrajaya Perdana was identified by investigators as having played a key role in funnelling cash from 1MDB’s subsidiary SRC into Najib’s own personal accounts:

The diagram held up by Attorney General Apandi showing Putrajaya Perdana's role in passing public money to Najib

Plainly therefore, Najib hopes to use his over-reaching powers at the MOF/PM’s office to launder all his dirty linen through the same simple mega-project, courtesy of secret and politically motivated Chinese cooperation.

Public estimate leaves out the 1MDB costs and commitments?

A huge sum of RM85 million is also put aside in the contract for a ‘nominated company’ to be awarded a “publicity” and “communications” and “strategic consultation” role on the project – no guesses that this will go to a crony outfit.

Finally, also attached to the papers is a totally conflicting set of calculations, which are not listed as being “only for internal consumption” and which appear to represent the public face of the planned deal.  These consist of a broad-brush, ‘back of the envelope’ set of figures, which provide a broad estimate for the project at the fuller figure of RM60 billion.

In this list there is no mention of any of the costs due to be carried for 1MDB!

Public figures?  How the same project is being costed  at RM60 billion, but with no mention of 1MDB

The agreement is due to be passed by Najib’s compliant cabinet….. about now!

26 thoughts on “Najib Razak’s Secret Deal With China

  1. Any chance this is a plant to trap and discreet critics? It’s a bit too obvious or Najib is completely our of control.

  2. Din you did not want to allow my earlier posting on the reflection of the massive heist on the UMNOMelayus. May be I used words that may have hit the nerve. Let me put it mildly, is it the loss of billions the Nation is concerned about or the total disgrace to the Malays as a ethnic group that is carrying out this despicable international theft. Loss of money could be recouped, a disgraced race will remain disgraced.

  3. Wah Liow Lorr!! (Finished-Kaput-Fried) Liow MOT becomes the accomplice.. Who says UMNOb doesn’t need Chinapek to kautim? Look at Feh Loh JL? Squeaking rabbit.

    With this preempted exposure from SR, the goons won’t dare mention it anymore – except in the post-Cab meetings. Press release totally nonexistent and will be absolutely OSA’ed until kingdom come..

    Even Octo didn’t have the cojones to demand for a 100% ‘top-up’. MO1 is showing him what ‘dedak’ actually means – and it ain’t chicken feed. Economic Treason is a more apt description..

    Does POCA (Prevention Of Criminal Act) apply to this Cabinet of Curiosities? Nah..

  4. The culture may be ongoing worldwide where rakyat ends up paying for greed of leaders and highly paid civil servants and consultants who tallk about integrity-ethics-honesty and had sworn to this and included in their professional statements
    all may have colluded with their masters.

  5. Wow!

    As a Chinese saying goes, “if it’s already wrong, why not wrong all the way?”

    The wonder of it all is that they are still people with guts and conscience within our kleptocratic government.

    Whoever you are, you have proven that Cash is not always King.

    You should be identified when all this is over and given a medal and made a Datuk, if you are not one already.

    Syabas!

  6. Where is that fat Chinaman? He continues to wreak havoc with Malaysia’s finances.
    IGP, are you still thinking?

  7. Official Creep No 1 must be pretty upset with Obama for letting Loretta prepare the lynch for him. Looks like black woman give dam finger to her felo black bossman.
    And i guess bolehland can say goodbye to them islands in the South China Sea since el creepo and his crooked cabinetmen are in Chinese back pockets. Now, ‘apa lagi China mau’ China boleh ambik.

  8. Layu-layu Melayu. I shared my thoughts on Mozi, on his suggestion on fate of a dying nation. Mozi would be sad that Tanah Melayu would be robbed by land of Mozi.

    https://en.wikipedia.org/wiki/Mohism
    Law and order was an important aspect of Mozi’s philosophy. He compared the carpenter, who uses standard tools to do his work, with the ruler, who might not have any standards by which to rule at all. The carpenter is always better off when depending on his standard tools, rather than on his emotions. Ironically, as his decisions affect the fate of an entire nation, it is even more important that a ruler maintains a set of standards, and yet he has none. These standards cannot originate from man, since no man is perfect; the only standards that a ruler uses have to originate from Heaven, since only Heaven is perfect. That law of Heaven is Love.

  9. My personal sorrow is for both Malaysia, and China. Chinese citizen is being robbed at the same time, for the glory of one individual’s (XiJinPing) dream.

  10. Should the ruler be unrighteous, seven disasters would result for that nation. These seven disasters are:

    Neglect of the country’s defense, yet there is much lavished on the palace.
    When pressured by foreigners, neighbouring countries are not willing to help.
    The people are engaged in unconstructive work while useless fools are rewarded.
    Law and regulations became too heavy such that there is repressive fear and people only look after their own good.
    The ruler lives in a mistaken illusion of his own ability and his country’s strength.
    Trusted people are not loyal while loyal people are not trusted.
    Lack of food. Ministers are not able to carry out their work. Punishment fails to bring fear and reward fails to bring happiness.

    https://en.wikipedia.org/wiki/Mohism

  11. Call out the Shirts and Ibrahim Al Kataki. Malaysia being sold lock, stock and barrel to the Pendatangs, true pendatangs. What are they going to do about it?

    Time to rename Malayan Banking, Keretapi Tanah Melayu, Universiti Malaya. New ownership will want their names on it.

  12. Kudos Dato’ Din , all your previous ‘predictions’ in different, different guise are coming out True….yes, we salute you !

    At best, I can only put in a different form , at best allegorical , if not in symbolic terms !

    ALI BABA & THE FOURTY THIEVES…….Exclusively for themselves only , and seeking devious means to ‘ escape ‘ with their Loots , looks like planning it that way I suppose. perhaps in the aftermath if ( IF ) a revolt does not happen in a later stage….?

    Looting away is still OK for the 40 thieves , but knowing their Leader ALI who is cunning & sleek , hypocritical and frequently out-playing others by his guile or wry smiles…….WATCH OUT. YOU FOURTY THIEVES, HE’S ALREADY PLANNING HOW TO OUT WIT YOU ……

    That’s it ! ALADDIN AND THE MAGIC LAMP….. just solo for himself. When the Genie appears before him, ” Aladdin ” Commands the Genie to transport all the Treasures found inside (himself included ) – lock, stock & barrel – to the Palace of the Queen of Bethsheba ( not in Timbuktu , but ) to EUTHOPIA….. where they lived Happily everafter….. ( Minus the Forty Thieves who are believed in Hell ) ! ! !
    __________________

    Abnizar,

    It gives me no comfort to be proven right since it pains me to see our country going to the dogs under Najib. It hurts me even more when Malay elites are dumb not to see that the PM is dragging us into a huge and deep hole full of filth and dirt. Thanks for your comments and support.–Din Merican

  13. She has proven her credibility on reports of malaise of 1MDB (or also on daughter of IGB given licence to ssell guns). Whistle blowers trusting her.

  14. About trust. I’ve said it before. Between S. Korea, Japan n China, I choose the first n second.

  15. How come the Red Shirts and Perkasa are so quiet when the CHINESE are slowly and surely buying up their Tanah Melayu under the patronage of Malaysia Public Official No.1?

  16. Yup it’s ….” Chinese does the Job … Malay gets the Glory….Indian gets the Blame “

  17. ‘Is Malay (UMNOb) dignity dependent on Chinese largesse ?’ Conrad

    Not really. Not dignity but criminality. Also, it Depends on what ‘Chinese’ means, my friend. As for ‘Malay’, i’ll let the Constitutional definition ride.

    UMNOb relies on their local Chinapek Lapdogs as conduits to kautim their:
    1. rent seeking (aka ‘manifest destiny’, lubrication of sweaty palms);
    2. entitlement hubris (aka gangsterism, bullying, thuggish behavior) and
    3. sheer greed (aka fraud, embezzlement, money laundering, Ponzi schemes etc).

    Being unable to understand the rudiments of Chinese inscrutability and innate pragmatism (i.e ‘corruption makes the world go round’) – their political-commercial viability is absolutely beholden to Kautimers (enablers)..

    For legalistic ‘affairs’, they tend to go to their darker skinned Lapdogs, semi-Value like (aka It sounds like me, looks like me, smells like me, but it ain’t me!!).

    That’s why, even Octo’s proxies were mainly sepet entities, with the exception of an Astro genius – who’s now indicted in India for some nefarious commercial dealings.

    I apologize for such woozy labeling, but heck, i’m just responding to UMNOb’s taxonomic classification.

  18. I thought it was a plant to discredit critics until the Work Minister mouth off..Why get pissy if there is no truth to the report??? Najib is completely out of ocontrol..

  19. “Not dignity but criminality”

    Good one😀

    These days, in this country I can’t tell the difference between the two.

  20. A shocking revelations…
    Kudos to all for this expose … otherwise the country will be much in deeper debts..
    The main priority is to get this cunning trick finds its way to the law of justice and thus this plan is aborted..

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