130402 Presentation on DAP PJ Dinner

Najibs BiGGEST Multi-Billion Ringgit Scam

Tony Pua

Member of Parliament (Petaling Jaya Utara) 2 April 2013

1MDB

1MDB Bonds

RM5 billion bond issued (30 year loan, 100% Government Guaranteed)

1. Loan RM100, get RM87.92

2. Coupon (interest) rate: 5.75%

Effective Interest Payout:

6.71%

1MDB Bonds

Malaysian Government Securities (MGS)

1MDB Bonds

How much lost?

Effective Interest Payout:

6.71% Assume Fair Interest Payout:

5.0%

Middleman Made: >RM1 billion

(>20% of loan taken)

1MDB Bonds

New York Post Nov 2009

The buyer of Time Warner Center pad previously rented by Jay-Z has been revealed as an entity linked to Malaysian party boy Taek Jho Low, according to the New York Post.

At $31 million, or more than $6,400 per square foot, Low paid more than anyone else has ever paid at the luxury site.

1MDB Bonds

Total Bonds to date?

May 2009: RM5.0 billion

May 2012: RM5.55 billion

Mar 2013: RM9.3 billion

________________

20% = ~RM4 billion

1MDB Petrosaudi

1MDB-Petrosaudi Joint Venture

1. 1MDB 40% =

US$1 billion

2. Petrosaudi 60% =

Caspian Sea Oil Field (worth US$1.5 billion)

1MDB Petrosaudi

6 months later

1MDB 40% =

US$1 billion

Asset revalued by 20% to

US$1.2 billion

1MDB Net Profit FY 3/10 =

RM424.6 million

1MDB Petrosaudi

1MDB 40% =

US$1.2 billion

Converted from Shares to Loan Murabaha Notes

US$1.2 billion

11-year loan to 1MDB-Petrosaudi

Guaranteed by Petrosaudi International Ltd

8.75% coupon rate (interest)

Bullet repayment at the end of loan period

1MDB Petrosaudi

Who is Petrosaudi International?

PetroSaudi International is a privately owned oil exploration

and production company Founded in 2005, we are paving a pathway into the future of the energy industry

PetroSaudi was founded in 2005 by Tarek Essam Ahmad Obaid

and private investors.

http://www.petrosaudi.com

1MDB Petrosaudi

Who is Petrosaudi International?

1. Sheikh Tarek Essam Ahmad Obaid founder

2. 1MDB claims Petrosaudis chairman is a Saudi prince

3. No existence on Google before 2009

1MDB Petrosaudi

The 1MDB Ponzi Scheme Mar 2010 KPMG made an emphasis of matter on concern if

Petrosaudi JV will be able to fulfill its debt obligations.

Dec 2010 Petrosaudi JV made its first coupon payment (US$87m)

Mar 2011 KPMG lifted the emphasis of matter

Jan 2012 Petrosaudi JV made its 2nd coupon payment (US$105m)

2010 1MDB extended US$500 million (5-year) in loans to Petrosaudi JV

May 2011 1MDB extended US$200 million in loans to Petrosaudi JV

1MDB Petrosaudi

How did 1MDB extend another US$700 million

(RM2.2 billion) loan?

By taking on 3-year short term loans:

RM1,407,182 + US$895,721

1MDB Profitability

Real Profits?

Mar 2010: RM424.6 million

(Petrosaudi asset revaluation of US$200m or RM625m)

Mar 2011: RM544.3 million

(Property revaluation of RM826.6m)

Mar 2012: RM44.3 million

(real profits?)

1MDB KLIFD

KL International Financial District (Tun Razak Exchange)

1MDB KLIFD

KL International Financial District

Nothing to do with International Financial District

a 10-year 100% tax exemption for qualified companies.

stamp duty exemption on loan and service agreements.

a 70% income tax exemption for 5 years for property developers.

1MDB Bandar Malaysia

495 acres Sg Besi Airbase

(Bandar Malaysia)

Sold for RM74.20 per square feet

Total cost: RM1.6 billion

Cost of Relocation?

RM2.7 billion

1MDB Power-Play

Power Shopping

1. Genting Sanyen RM2.3 billion

a. Only 3.5 years left in concession?

b. Genting made RM1.9 billion extraordinary gains

c. Coincidentally 1MDB awarded 10-year extension @35.3 sen/kWh (Tenaga offered 34.7sen/kWh)

2. Tanjong Power RM8.8 billion

a. Valued at 16.5x price earnings ratio

b. Estimated yield on investment 6%; Interest on loan to finance acquisition 6.1-6.7%

THANK YOU!

Tony Pua +6016 2220086

[email protected]

http://facebook.com/MPTonyPua

@tonypua