Since the problems in 1Malaysia Development Berhad (1MDB) surfaced, many questions were raised but very few satisfactory answers were forthcoming. Instead, we are now asked to wait for the auditor-general’s report which has an open timeframe to complete the study. In the meantime, some quarters are also asking for an independent inquiry into the same issues in 1MDB.  

First thing first, why must everybody, including the police, Malaysian Anti-Corruption Commission (MACC) and Bank Negara Malaysia (BNM) wait for the auditor-general’s report?

Since when are the police, MACC and BNM investigations on potential abuse of power, money laundering, violation of other laws as well as alleged corruption incumbent upon the findings of the auditor-general’s report? Does the Audit Department have the same credentials, expertise and authority as the police, MACC and Bank Negara to investigate complex issues in 1MDB?  

So why wait? Why can’t all these important agencies carry out their own independent investigations now? I hope this is not an attempt to buy more time or worse still, to give opportunity to wrongdoers to cover their tracks.  

While agreeing that some of the problems in 1MDB have become complex and intricate, that does not mean that some of the fundamental questions raised by the public cannot be answered immediately. Let me quote you one piece of information that has been floating around for a long time now. The prime minister in his TV3 interview has also alluded to it. It is regarding 1MDB’s assets and liabilities.  

According to the information provided, 1MDB has total assets amounting to RM50 billion, more than its total liabilities. So the company is “viable” and “solvent”.  

I have few questions on this which I believe any junior executive in 1MDB should be able to answer without having to wait for the auditor-general’s report.  

First, how many times have the major assets in 1MDB, particularly those given by the government for the song, been re-valued? Yes, how many times and what was the total amount of revaluation? Simple enough?

Second, how much percent of the assets in 1MDB’s books now were acquired using hard cash/loans and how much was due to revaluation?

Third, if the bulk of the asset value has come from revaluation, can 1MBD please explain how did the company accumulate so much liability? Where did the money from loans and bonds go to?

Fourth, we were informed that 1MDB has acquired many “about to expire” energy assets at inflated prices. Is this true? If so, how much more 1MBD has paid for those assets when compared with what other investors would have paid.  I know this is a little difficult to answer.  

What return on investment is 1MDB expecting?

But how about if I ask 1MDB this way: what return on investment (ROI) is 1MDB expecting from its investments in energy assets? Please don’t talk about potential IPO of these investments because these are birds in the bushes. Just give us the ROI of these investments.  

Fifth, we were also told that 1MDB has issued lots of bonds (IOUs) - some at discount and some with exorbitant fees and interest rates. This is perplexing. We issue bonds at discount only when the coupon rates are lower than the market rates of equivalent risk. So why did 1MDB issue the bonds at discount when the coupon was in fact higher (as alleged) than the market rates of equivalent risk?  

Sixth, after taking into consideration bonds issued at discount, fees and commission to investment bankers and the coupon rates, what exactly is the effective rate of 1MDB’s bonds/loans?  

I believe all these questions can be answered without having to wait for the auditor-general’s report. If 1MDB does not know how to do it, just provide the information, and I am sure many would be able to help out.