Thursday, November 24, 2011

1MDB - Dubious Allegations

For those who are uninitiated with 1MDB as I was, read Blogger Spanking Da Monkey's The Spanker’s Guide To 1MDB For Idiots".

The monkey was spanked yesterday "Why people repeat lies" because 1MBD is another commendable and encouraging initiative by the Govt which will positively impact the economy by way of development and foreign investments, suffice it becomes a target by the usual suspects to discredit the Govt.

1MDB had been the target of who else, the sexual controversy plagued individual, way back in April this year and in June had "Anwar reveals more 'dubious dealings' involving 1MDB".

The PAC has been tasked to look into 1DMB affairs and has an initial report that there has been no loss incurred.

Anwar had previously claimed "accounting fraud" in April and watered down to become "dubious" in June. That in itself would impress upon anyone that it is nothing more than spin.

In the middle of all the innuendos is PetroSaudi International.

Let's start from the Saudi corporation's entrance into the Malaysian scene, the Star "Saudis to come in with RM6bil investment",

LONDON: PetroSaudi, a global private investment company owned by the Saudi royal family, is expected to invest billions of ringgit in Malaysia.

The international oil exploration and production company has indicated interest to invest over US$2bil (RM6.2bil) in the infrastructure and energy sectors.

The company already has an RM8.7bil joint venture with 1Malaysia Development Bhd, a wholly Government-owned firm, which acts as a vehicle for Middle East investments in Malaysia.

The joint venture is expected to focus on global strategic assets in petroleum-related industries, renewable energy and power, for the benefit of lowering the cost of energy in Malaysia.

“Ultimately, the bulk of the capital and returns will be reinvested in Malaysia,” said banking sources.

The sources said PetroSaudi is also eyeing significant direct investment in Malaysia’s Islamic banking sector.

Details are not immediately available but the sources said discussions were on-going which would feature Malaysia in the roadmap of Islamic banking.

“Over the next few months, exciting developments will take place to boost Malaysia’s position, especially participation from long-term Middle-Eastern investors,” said a government source.

Cash rich PetroSaudi, founded by the Saudi royal family with Tarek Essam Ahmad Obaid leading the charge, has been snapping up value investments.

Last week, it acquired Malaysian builder UBG Bhd for RM1.5bil by raising its stake to 89.8% after its three stakeholders agreed to sell the company and its two subsidiaries.

At the same time, PetroSaudi also leased a US$2.5bil (RM7.7bil) platform to Venezuela’s state oil company, Petroleos de Venezuela SA as announced by Venezuela’s Energy Minister.

The platform will be used to develop offshore natural gas resources in the country, which has the most natural gas reserves in South America.

Saudi sources said Tarek, a partner of Renault F1 team, had a positive impression of Malaysia with support from the Saudi royal family, whose relationship with Prime Minister Datuk Seri Najib Tun Razak is at an all-time high.

In January, Najib was awarded the King Abdul Aziz Order of Merit (Ist Class) by King Abdullah Abdulaziz Al Saud, the first Asian leader to be given the honour.

The highest Saudi civilian award was also given to US President Barack Obama when he visited the country last year.

“The relationship between King Abdullah and Najib is important.

“It has been crucial in the support showed by the Saudis, initially through PetroSaudi and more substantial foreign direct investiment is expected,” the Saudi sources added.

The sources said yesterday that key members of the Saudi royal family were expected to visit Malaysia over the next three months when several major announcements would be made.

In Kuala Lumpur, analysts say the US$2bil from PetroSaudi Inter­national Ltd is expected to provide a boost to the domestic economy.

A bank-backed analyst believed that the investment from the Arab country would pave the way for more capital inflow from the Gulf.

“It (investment from PetroSaudi) will bring a positive spill-over to other sectors of the economy.

“It will provide positive reverberations for Malaysia’s real economy,” another analyst said without elaborating.

A power analyst expects the oil exploration and production company to invest in the energy sector, given the opportunity in the green energy sector and that the Government was promoting green energy.
The Edge also reported 12 January 2010 the Saudi Royal family involvement and surely with it financial clout for any investment. "PetroSaudi to raise UBG stake",
PetroSaudi is a privately held firm incorporated in the Seychelles in 2000 by Tarek Essam Ahmad Obaid and other private investors. According to foreign news reports, PetroSaudi is chaired by Prince Turki bin Abdullah bin Abdulaziz Al Saud, the son of the current ruler of Saudi Arabia, who also co-founded PetroSaudi with Obaid
Any Tom, Dick and Harry can come to a simple and obvious conclusion that "money lending" to PetroSaudi would be akin to selling petrol to the Saudis, ludicrous.

The deal to sign a JV was on 30 September 2009, "PetroSaudi International Limited and 1Malaysia Development Berhad in US$2.5 billion joint-venture partnership, opens new door to FDIs". By January PetroSaudi had ventured into the Stock Market and for ownership of UBG, parent to 2 prominent construction and development companies, Putrajaya Perdana and Loh & Loh.

Surely one can see why these usual critics are desirous to tarnish the Govt with dubious allegations. These are Govt initiatives bearing fruit and would put the Govt in good stead come the next GE.

Next UBG, CMS and PetroSaudi.

1 comment:

lan said...

mere paper cutting only? Remains fishy indeed!