Tun Mahathir is appearing at the Dewan Tunku Syed Putra, Universiti Sains Malaysia Penang this morning to deliver a talk entitled "Youth and Nation Building". Glad that Dato Najib didn't play rough to block or get someone to sabotage his event.
Tun M's presence is welcomed by the "PASMA" faction and Information Chief of PAS, Dato Mahfudz Omar. In Harakah Daily here, he hoped Tun M would use the occasion to explain on his position on GST and 1MDB.
His intention is not so much as for nation building and the oftenly described by the cliche "future leader of tomorrow." Mahfuz is more keen to see the issues help PKR in Permatang Pauh.
Datin Seri Dr Wan Azizah will win but her campaign is struggling. She is banking on GST and 1MDB to lift her out of the doldrum [read MMO here]. PKR and DAP managed to get the Anwarinas to force on Penang PAS Youth to give a statement of support. [Read The Unspinners' latest here and here]
Concerned Tun M supporters are worried that it will only attract the criticism that he is helping the opposition and invite continued personal attack against him. It is disheartening to see him treated this way late in his age.
There are already rational and unemotional views (not the cybertrooper level of tirades type) that have openly expressed lost of respect for him [read this blog here]. This was once a Tun M supporter and defender [read here].
Quite a few orang UMNO - be it pro Najib or not - had no issue with the differences of view on policies and even 1MDB or GST. They turned sceptic when Tun M took personal swipe at Dato Najib's family and insinuate involvement in the death of Altantunya. They thought Tun M had gone personal.
But who is to tell Tun M that? None of his concerned supporters dare tell him to stick to the real policy issue.
As Joceline Tan wrote in her weekend column here, there are among supporter-bloggers that attended the close door session were not convinced. For one, the missing RM27 billon of 1MDB fund seemed bizarre and could typically be Outsyed The Box style of spinning numbers.
More forthcoming
The Unspinners published latest balance sheet summary here.
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| 2011-2013 |
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| 2013-2014 |
A quick look shows all the asset item are accounted for. Off course, more need to be examined.
Furthermore, the current auditor had certified and signed for the 2013 and 2014 accounts. On the SSM online, it was revealed that 1MDB have been regularly submitting their audited accounts. This is in contrary to claims by a Kelab Che Det (KCD) officials.
KCD can be a fanatic lots but they lack substance in defending Tun M. In the exchanges with pro-Najib cybertroopers for or against Tun M, they could only argue that Tun M does not say or do anything unless he is sure.
True but it requires more than that. It requires facts, non-debatable facts. To say it is only questions is shallow answer. Critics will still see the questions as making allegations.
Thus far, Dr Puad Zarkashi has a basis to say no proofs of the allegations have been presented. That is along this blog's issue that most allegations (including questions) are based on anonymous sources.
Soros funded through Global Witness, Sarawak report kept claiming they have documents, correspondances, and evidences, but not it is published. At one time, they would even publish unrelated documents.
In a chance meeting with an insider from a certain high office, he repeated the same argument. Tun M would not do things without knowing the full details. He said there is something wrong and it is giving Najib headache.
If that is anything to go by, then Tun M will only have more to reveal.
Auditor statement
With this posting, hopefully Tun M will provide more to clarity certain issues.
Maybe reply and teach this hard-hitting posting here by dentistry-trained Tun Faisal that have gone viral on the social media. His first observation was Tun M had earlier said or wrote that RM42 billion disappeared but now say it is RM27 billion.
An email response to The Unspinners got us the full accounts of 1MDB. The first shock that we got was the front page had a chop saying accounts as unqualified.
In both the Auditor's comments, it seemed pretty standard and include the following clause (b):
Mentioned are "obtaining sufficient appropriate audit evidence" and"do not contain misstatements".
Unless there are evidences and the Auditor General should point it out, then Deloitte could be in for Enron II scandal. Otherwise, the "unqualified" audited accounts should be taken as good.
Changing Auditor
The change in auditor from KPMG to Delotte for the 2013 accounts triggered suspicions. This is quite usual in the stock market. Whenever anyone change auditors, there will be analyst finding out why?
Is there hanky panky going and accounting treatment looks suspicious that resulted in the accounts not signed by the auditors thus they had to redo the auditing by another auditor?
On the other side, some auditors can be, to borrow Outsyed The Box term, dunggu.
They could be stubborn as to not sign the accounts just because they do not understand certain accounting treatment.
The auditors entering office premises and going through company's private books are junior ones but company financial controllers and CFO are senior people, probably ex-auditors.
Definitely, should these accounts be untrue, then it is trouble for 1MDB.
Financial notes
The important material in any analysis of the account is to know the accounting policies and notes to the accounts. That could help to understand the items, its policies and by any luck, uncover where the so-called RM27 billion had disappeared but appeared in the books as some bogus items.
That will be too lengthy so we keep it strictly to the asset side of the financial notes and the big ticket items. The smaller items won't add up to RM27 billion. That is best left to some NGO accountants to nitpick and split hair over.
Read on:
Note 12: Property, plant and equipments
Note 13: Investment properties
Note 14: Investment in subsidiaries
Note 17: Service concession receivables
Note 18: Available-for-sale investments
Note 23: Other receivables, deposits and pre-payments
Note 24: Intangible assets
Those wanting more details should just pay a visit to SSM. The cost for company search is RM20 per company. Non CTC print is RM1 per copy and CTC is RM5 per copy.
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Quite sure Tun M has all the facts and details to explain how the RM23 billion that was accounted could have disappeared.
The accounting tricks and play of definition done along the law is both a science and art that resembles the card tricks of gamblers in Las Vegas and Monaco. Mere mortals like us non-KCD will not be able to see.
Usually after his first round of appearances, where Tun M would stick to a set of scrip and repeat a set of lines, he would add more materials. More sordid happenings will be revealed as he goes along. The nation, especially Najib's office will be waiting with bated breath.
Even if Najib is not ousted and all these is a kepong trick to safeguard BN, Najib should realise how terrible are the highly paid and so-called brilliant (but lack experience and dedication) young executives in 1MDB are.
He has difficulty with firing incompetents but think of this. They are out smarted by an almost 90 year old doctor.
pls clarify :
ReplyDeletedifference between unqualified and qualified audit report
1. Unqualified Report
In an unqualified report, the auditors conclude that the financial statements of your business present fairly its affairs in all material aspects. The opinion embodies the assumptions that your business observed compliance with generally accepted accounting principles and statutory requirements. Also known as a clean report, such a report implies that any changes in the accounting policies, their application and effects, are adequately determined and divulged. This opinion does not tell that your business is in good economic health. It merely states that your financial report is transparent and thorough and has not hidden important facts.
2. Qualified Report
A qualified report is one in which the auditor concludes that most matters have been dealt with adequately, except for a few issues. An auditor’s report is qualified when there is either a limitation of scope in the auditor’s work, or when there is a disagreement with management regarding application, acceptability or adequacy of accounting policies. For auditors an issue must be material or financially worth consideration to qualify a report. The issue should not be pervasive, that is, the issue should not misrepresent the factual financial position. If issues are material and pervasive, the auditor issues a disclaimer or adverse opinion. A qualified audit report does not mean that your business is suffering, and it doesn't mean that your financial statement isn't transparent. It merely reflects the auditor’s inability to give a clean report.
Thank you. Lets have more positive and beneficial inputs like this. Rather hear others opinion and comment on this.
ReplyDeleteHmmm how would they kapor RM27 billion
Ahjibgor has sworn on the Quran that he did not know altantuya. We believe him.
ReplyDeleteHow about that hippo wife of his? When is she going to swear by the Quran that she did not give the murder instruction.
Ahjib and hippo married in a kahwin darurat???
This comment has been removed by a blog administrator.
DeleteDaughter's wedding of the century occurred 4 times with flowers costing 30 million???
ReplyDeletePublished on Dec 13, 2012
ReplyDeleteControversial businessperson Deepak Jaikishan is going to write a 26-page tell-all booklet in which he plans to link the wife of the prime minister, Rosmah Mansor, with the saga of murdered Mongolian woman Altantuya Shaariibuu.
https://www.youtube.com/watch?v=_11XCFNzBJk
Simple math
ReplyDeleteAmount of loan (42 bil cash but now all spent. we know coz they did not have money to repay 2 bil loan) - known asset purchase = the missing RMs
Current asset stated in account books included asset revaluation hence the claim "asset is more than liability". But this is all on paper profit and did not explain where the shortfall between debt less asset purchase.
Up till now such a simple question by Tun has not been responded to by the people involved. It should not have taken them more than one day to list down what has been bought with the money
If you hear TunM clearly, you will time and again, be reminded that the regulators (MACC/AG/PAC) need to start doing"forensic accounting' not mere rubber stamping on the already reported financial audit. There is a lot of different in both audit.
ReplyDeleteIf you can still remember the public listed Transmile case where the audit was done and their financial statements are in place year after year, so much so that Robert Kuok was interested in that company.But eventually the shit hit the fan, cause eventhough the business seems to be growing but there was not enough cash to run the operation. The company go under after forensic audit were done and discovered that a lot of invoices in the receivables are fake.
When there is big issue of unsustainable cash to maintain the business than two things might happened:
1. The Shareholders/Management really screw up in drawing the business plan and its execution; and/or
2. There are a lot of hanky pangky albeit is mismanaged and some con job.
In both cases above, Najib as the Chairman of the Investment Committe and the person who initiated 1MDB is responsible. BIG TIME.
I agree with TunM, he is not fit to be our PM. And we save RM7billion of consultant money.
Hi. The picture shown is in KAjang area. Not in USM or northen area.
ReplyDeleteif we want to use simple/cincai math n less the revaluation of asset don't forget to add back the depreciation of asset n don't forget the interest on the 42 loan therefore,
ReplyDelete(51.4b asset + 4.5b deprn - 8.5b intangible asset) - (42b loan - 10b interest)= net asset of 15.4 billion
the asset still exceed the liability/the 27 billion is still there, somewhere in the balance sheet, :-)
Where are the income statements and cash flows statements? We need these statements to see all through the makeup and creavity of the account preparers.
ReplyDeletey is it hard to understand....
ReplyDeleteeven gobind singh deo understand mahathir y not umno member whom being mahathir follower since between 1-23 years....
najib will cause UMNO defeated in GE 14...ok fine...mahathir doing is the cause too....
but if najib resign and muhyidin take over...there is a chance we can win ge 14...
be honest bro...do we really think we can win ge 14????ge 13 also we confidence in winning then what we get????????
nothing personal...strictly counting promise....CAN U COUNT HOW MANY PROMISE NAJIB MAKE BEFORE GE 13 that nothing happen at all?????CAN U???????
i think 1MDB bumiputrea bank scandal everything is the same...money losses...woman killed....accountant businessman crash everything not an isseu BUT.....loosing election is an issue...
if mahathir did not oust najib at his best....najib will stay...and imagine all the altantuya..lavish lifestyle.....riza condo....1mdb miissing money come out...u still think UMNO WILL WIN.....
please la understand...UMNO die...MALAY die...Sultan die..this is republic country...u sure hoping i pas and pkr to defend our king?????? r u suer?????
And dont forget the cost of building a brand new airbase at Sendayan to replace TUDM Sungai Besi.
ReplyDeleteTwo comments not related to the subject but merely bitching on others and swearing was not released.
ReplyDeleteOne complain of our use of Unspinners as a source. If that is the ccase, why do they believe crap portals like Sarawak report, Mkini, Edge, etc?
We took the full accounts of ROS from Unspinners. Is that a problem or that does not compute?
We are not gonna pay RM370 for two years of accounts. Can take a our big family for steak dinner
By right, 1MDB should provide us as an act of openness and transparency.
1. Simple arithmetic (while ignoring ‘revaluation surpluses' in the Account as at 31.3.2015): If you deducted total liabilities from total assets, it would give you a balance of RM2.4b. However, if 1MDB pays its deferred tax liabilities of RM2.3b in 2015, its net assets would be RM0.1b.
ReplyDelete2. Carry that balance (RM0.1b) forward after 1.4.2014 to date, after adding ‘known current liabilities like ‘Ananda Krishnan’s RM2.0b and MOF Standby Credit’s RM1.0b, barring any other ‘current liabilities’ that would give you net assets of RM2.9b.
3. Assuming 1MDB does not reevaluate their ‘current assets’ further, it is INSOLVENT.
4. Assuming too that 1MDB begins to develop its ‘current assets’, it would need more monies, in this instance, more capital injections to do so. Assuming again, it manages to sell-out all its developed properties, it still needs more monies to finance and service ‘current liabilities.’
5. Simple question: Where would 1MDB gets to raise these new working capitals?
6. Pls correct me if I was wrong, for I am not an accountant. However, suffice for me to say from a non-professional’s point of view, 1MDB is a liability, and not an asset to the Rakyat; just like what TDM had stated.
AoB
ReplyDeleteFor your reading pleasure :
<a href="1MDB gave false bank statements> http://www.todayonline.com/world/asia/1mdb-gave-false-bank-statements-subsidiarys-accounts</a>
Thanks for highlighting about some bad word used.
ReplyDeleteHowever can't release your comment. Believe our anonymity is not the subject of this or probably any future posting.
It is our prerogative and not the right of anyone to question.
If you do not like anonymous blogs, do not visit and read. That you have the prerogative.