(PFI Re-visited) Najib: EPF gave RM25b loan to Pembinaan PFI
Tun M fired at Najib again.
In addition to questioning the whereabouts of 1MDB 42 billion, this time he also mentioned that another has accumulated at least 27.9 billion, It is now as high as 47.4 billion debt, and 1MDB is even less than this GLC.
Whats worrying is…
All of the companys loans come from our EPF!
This GLC is called PFI, just like 1MDB, MoF Inc, also part of the Treasury Department, holds 99. 99 of GLC, while the rest is owned by the Federal Land Commission.
So PFI is short for Pembinaan Finance Incorporated.
Wang Jianmin of the DAP has mentioned the GLC several times, but has failed to attract public attention.
Lets start with how this company works.
Long story short…
It is the Government which rents the land it owns to the company and rents it from the company for a further 15 years up to 2027 at a total rent of 29.2 billion.
The government has to pay 2 billion a year to the PFI to rent the governments own land.
Before 2013, the Government had been using the land and had not had to pay any rent.
Isnt that weird?
Obviously is the governments land, why deliberately low-cost rent to this company, and then rent it back to it at a high price? Isnt this also a way to launder money? Who profited from it? Thats what everybody knows.
And the government to sell the land to 1MDB, which in turn sells the land to other GLCs high price has the same effect.
Or we could say…
PFI is the second version of 1MDB.
The thing is…
Since the company simply collects rent from the government, it should in theory have a lot of cash. But in fact it has 27.9 billion debts! Where the hell did the rent and the 27.9 billion debt come from? The Government uses the land all the way and does not have to pay any rent at all until 2013, But in 2012 rent to the PFI, and then from the PFI rent back for 17 years.
According to the 2013 General Inspector General report, PFI debt ranked third in all GLC, By 2012, it had reached 27.9 billion, second only to the national oil (152 billion) and the national treasury (69 billion).
The thing is…
CNOOC and the Treasury have operating income, while PFI does not have any operating income; It has no assets of its own other than land leased from the Government.
Since August of last year
The company borrows 19.5 billion yuan of debt again through EPF, total debt reaches 47.4 billion, here again, all loan of this company is financed by EPF!
By comparison, we should worry more about PFIs 47.4 billion debt, which is more than 1MDBs 42 billion.
It is also as mysterious as 1MDB, and its annual report is only 2012, worse than 1MDB!