1MDB: Imprudent or Fraudulent?

For foreign investors, the Wall Street Journal (WSJ) and The Economist are among the most trusted sources of information to guide their decision makings. Their thought process in evaluating their direct or indirect investments in Malaysia, vis-à-vis 1MDB and its impact to Malaysia’s economy, and their perceptions, might be as follows:

1. Was 1MDB imprudent? Yes - There made consistent irrational business decisions to buy high and sell low (sources: WSJ – Fund Controversy Threatens Malaysia’s Leader, The Economist – Gathering Steam).
2. Was 1MDB fraudulent? Was it used illegally to enrich certain individuals? Quasi-Yes/Quasi-No - There are money trails to the Malaysian PM’s personal account, but there is no evidence that the transferred fund was used for personal use (source: WSJ – Investigators Believe Money Flowed to Malaysian Leader Najib’s Accounts Amid 1MDB Probe). For what it is worth, the PM may invest it politically to stay in power so that 1MDB could still be in life support until its full turnaround.
3. Was 1MDB and the PM, for that matter, unethical? Hell Yes – WSJ presented proofs of the money trails from 1MDB-affiliates to the PM, and at this stage, there is no proof or denial that the PM did not receive the money. The only denial was the PM emphasized he’s not using it for personal use.
4. Verdict: 1MDB will not survive, but the PM and Malaysia’s economy may. As such, reduce, but not eliminate all investments for potential up swing.

My verdict: Imprudent? Yes. Fraudulent? Maybe. Unethical? Who am I to judge? Maybe politicians skimming or raiding money from government-linked companies is as acceptable in Malaysia as my buddies accepting invitations from suppliers to “berbuka puasa” (break the Ramadan fast) at lavish hotels.

The problem with people of faith like us, we perceive that we could commit any sin today because we could always repent tomorrow or the day after or the day after the day after etc. The rule of ethics is simple – what is wrong is wrong, no matter how you spin it.

p/s: I haven’t been blogging for a while, but have been tweeting to share my quick thoughts or things I read via @ilmuialahkuasa. Regardless, here are some things that crossed my mind that I may never further tweet or blog about:

• Suing WSJ is playing with fire for Najib. He may get counter-sued or worse indicted by Attorney General in New York ala FIFA scandal because in both cases financial transactions passed through banks in New York. Plenty of people need a trophy before the next election season in the States. Be careful the next time in attending UN meetings in Manhattan Mr. Najib!
• PKR, DAP and other oppositions, you have much better chance to capture Putrajaya if Najib in power. Shut-up and get your ducks in a row instead. Life in Selangor and Penang is not bad at all right, besides the occasional water shortage problems?
• PAS, stay put in Pakatan. You could be the Trojan horse to protect the Malays/Muslims when (not if) Barisan lost the general election.
• UMNO, oh UMNO. It’s the party not a person! And don’t be ungrateful SOBs towards Tun!
• Malays/Muslims, rest-assured, the kings are there to protect our rights post-UMNO demise. Daulat Tuanku!
• Ahmad Maslan….don’t even get me started!