OutSyed The Box

OutSyed The Box

No Money No Religion - Kelantan's Dinar Mas Fiasco

Posted: 18 Jun 2012 01:18 AM PDT


I have said this before - bank interest is not riba.  

Riba means profiteering, making profits many times over (berkali ganda).  This can include excessive profits made from very expensive medicines and drugs sold way above their cost of production, any product or service that is sold at very exhorbitant prices, way above its intrinsic value.  And including of course  Ah Long type interest rates.  Excessive interest rates are also profiteering.  

Well another scandalous revelation has come out of Kelantan. Again the Bloggers are showing the way. Kelantan Blogger Sheikh Kick Defella has written a two part series about the Dinar Emas which has been promoted by the PAS guys in Kelantan.  You can read Sheikh's two parts here :





ii. Skandal Dinar Emas Kelantan – Mempromosikan Riba Bukan Mencari Keredhaan?


Well not all is well with the Dinar Mas Kelantan.  Here is an excerpt from heikh Kick Defella:

Intrisic Value Dinar Dirham Kelantan dan Harga Yang Dipaksakan

Nilai melekat pada 1 Dirham Kelantan ialah bersamaan harga semasa perak seberat 2.97 gram dicampur dengan harga minting antara 10% ke 15%. Bagaimanapun WIM (the sole supplier of Dinar Mas Kelantan, which is owned by one Umar Ibrahim Vadillo) meletakan nilai yang dipaksakan kepada 1 Dirham Kelantan pada harga RM25.00 se Dirham. Ini menunjukkan peningkatan sehingga mencecah 120% dari harga melekat.
Harga yang dipaksakan kepada 1 Dinar Kelantan pula mencecah hampir 25% lebih tinggi daripada nilai melekat atau nilai sebenarnya.
Jika ini adalah benar, persoalan yang perlu kita tanya ialah apakah bezanya rejim yang dianjurkan oleh Kelantan Gold Trade dan World Islamic Mint dengan matawang keluaran US Federal Reserve?"
The answer to this question is very simple : to be conned by all this the first requirement is that you must be an ahli PAS. You must believe that you are going to heaven if you vote for PAS.  You must belieeeeeve.  You must see the truth. Hallelujah !!


Coming back to earth, if the Kelantan Dirham is 25% over valued and the Dinar Emas is 12% over valued, then people are actually getting less in exchange. They are not getting pound for pound.  
Sheikh Kick Defella has also asked some sharp questions in his Blog. This pertains to Husam Musa who was the moving force behind the Dinar Emas and this character by the name of Umar Ibrahim Vadillo. Here is a very chummy picture of Husam Musa and Umar Ibrahim Vadillo.
Pic from Kick De Fella
They look so gay (as in happy).  Who do you think is the cleverer of the two in the picture? Who looks like the Thief of Baghdad?
Folks, akhir kalam remember kata-kata hikmah OutSyed The Box : No money no religion.

PKR Buys "Lost" F5E Engines

Posted: 18 Jun 2012 12:15 AM PDT

Folks do you all recall the lost F5E jet engines caper? I think some Indian fellows went to jail for that.


Anyway please visit The Unspinners Blog here .  It seems that PKR has "discovered" the lost F5E jet engines.  Now PKR wants to fly off to the sky.


But I suggest you read this first, its from an ineteresting Blog called Askar Setia.



After that  you can read this  as well.


In the past all the UMNO rejects joined the PKR. All those UMNO guys who missed their 'pot of gold'  joined PKR.  Its like a 'Reject Shop'.

Liwatted By Arabs Again ?

Posted: 17 Jun 2012 11:18 PM PDT

I just got this in the email.  



"In early June, word leaked from the regional financial press about a US$1.7 billion 10-year private placement for Malaysian government-linked 1MDB Berhad.  The private placement, as opposed to a public issue, was led by Goldman Sachs and was meant to provide funds to part-finance 1MDB's purchase of the power assets of Tanjung Berhad, owned by tycoon Ananda Krishnan.  


The bond issue was guaranteed by IPIC, a unit of the Abu Dhabi government, to enable the issue to have a aa3 rating from Moodys, the US rating agency.  

In contrast, Malaysia's sovereign rating is a notch below the Abu Dhabi government, so if the issue had a Malaysian sovereign guarantee, it would theoretically require a higher yield.

The private placement, so called because publicity would be at a minimum, and time would be of the essence in the issuance, was priced at 425 basis points (4.25%) above the equivalent yield of 10 year US Treasury bonds. {One basis point is one-hundredth of one percent.]  At a yield of around 1.74 pct p.a. for equivalent US Treasury bonds in late May, the 1MDB issue would have been priced at almost 6 pct p.a.

What caused the buzz in the regional market was that the bond yields of equivalent aa3 risks were trading at around 220 basis points (2.2%) over US Treasuries. 

And Petronas bonds, rated a notch below this aa3 rating, were trading at around 300 basis points over US Treasuries.  

Hence questions were raised as to why 1MDB elected to pay 425 basis points (4.25%%) over Treasuries.  

The cost to 1MDB did not even factor in a guarantee fee from IPIC, which observers say could range from 75 to 100 basis points (0.75% - 1.0%), which would make this private placement of 1MDB a very expensive exercise.  


Why wasn't a public issue launched instead, which would presumably give the issue the lowest market terms ?  Was there any market worry about the health of the Malaysian economy ?  Were the Ministry of Finance and Bank Negara notified in advance of this private placement and, if so, were their advice sought ?  

Essentially, 1MDB  grew from the Trengganu state oil royalties, but this should not detract from the fact that government-linked corporations should be more careful with public funds and should be more open about their dealings when it comes to such huge market borrowings.

Every 100 basis points (1%) "overpayment" on the deal size of US$1.7 billion cost the taxpayers US$17,000,000 or RM 54 million PER ANNUM."





My comments :  Well some one is making big money. I think it is that Fei Chye char koay teow fellow again.  

According to this article 1MDB wanted to borrow USD1.7 Billion to buy Ananda Krishnan's power plants - which by the way are now quite  old. One power plant Boss told me that 1MDB are paying too much (RM8.5 billion) for Ananda Krishnan's  IPPs (Tanjong Energy). Almost at the end of their PPAs too.  And according to OSK Research, 44% of Tanjong's power generation capacity is located in Egypt. For your info folks, new riots should be breaking out in Egypt about . . . . . . . now.

So overnite, 1MDB went from not knowing a damn thing about property development to not knowing a damn thing about power plants. 

Anyway, they want to borrow RM5.4 Billion. They are issuing Bonds. To get a lower interest rate, 1MDB got IPIC - an Abi Dooby company - to counter guarantee their Bonds.  Of course Abi Dooby wont do this for free.  Abi Dooby may charge 1MDB 0.75% to 1% guarantee fee, per annum.

This article says that even with the Abi Dooby guarantee, the interest plus guarantee costs all add up to over 6% per annum. 

My question is : why not use the Abi Dooby guarantee and then raise Ringgit bonds in Malaysia and get the local market to fund the Ringgit Bonds?  The Ringgit market is flush with funds.

Plus you dont suffer Forex risk. 

TNB already got burned very, very badly for the exact same reason - they borrowed US Dollars, went to the money changer, got the US Dollars changed into Ringgits, then used the Ringgits to build their power plants.

Then after the plants were completed, TNB collected the electricity bills from Malaysians, gathered all the Ringgits, went to the money changer again, changed the Ringgits back to US Dollars and then paid back their US Dollar hutang. 

In the meantime, the Ringgit had depreciated against the US Dollar. So TNB had to collect even more Ringgit to pay back the US Dollar hutang. Rugi besar.

When your earnings are in Ringgit it is more prudent to borrow Ringgit.  

I have one more question. Why would the Abi Dooby guys agree to guarantee USD1.7 Billion (RM5.4 b) for 1MDB who has no experience doing anything? Just for 0.75% or 1.0% guarantee fess?  I doubt it.

Here is the soalan cepu mas : Is there any kind of Gomen Guarantee that has been given to the Abi Dooby guys?

(I am saying this because the other Arab liwatters in Iskandar not only got their money back but also guaranted minimum profits - remember?)

So do the Abi Dooby guys have any type of Gomen Guarantee, indirect Gomen Guarantee, Gomen undertaking etc in order for them to provide this Guarantee for 1MDB?

Of course a Gomen guarantee is again the "nenek tua" business model.  Give me a Gomen guarantee for RM5.4 billion and I can raise a Ringgit Bond in no time - and maybe at 100 - 200 basis less.  (Its a 10 year paper lah, so pricing against Malaysian Government Treasuries should not be a problem mah)

No Arab is going to provide a guarantee for US1.7 Billion (RM5.4 billion) for a measly 0.75% or 1.0% guarantee fee and then carry the RM5.4 Billion debt burden on his camel.  

Plus they are overpaying for the power plants. Plus a huge chunk of the assets are in strange countries like Egypt, Pakistan, Bangladesh and Sri Lanka.

So what is the catch? What is Abi Dooby getting for this RM5.4 Billion guarantee? And who is the 'orang tengah' in all this? There must be at least half a dozen con-sultans involved here.  Harar  char koay teow anyone?

Liberal Progressive Indonesia

Posted: 17 Jun 2012 08:55 PM PDT




You can read it here :  Indonesian man sentenced to 30 months in prison for making athiest comments on Facebook

Alexander Aan was charged with "inciting religious hatred" that led to his own beating

".. there are few supporting an Indonesian court's latest act: A 30-year-old man was sentenced to 30 months of prison and a $10,600 fine for posting pro-atheist and anti-Islam comments on Facebook.

Alexander Aan was charged .. for making statements including, "If God exists, then why do bad things happen?" The comments Aan made wound up inciting an angry mob to seek him out and severely beat him. Aan was arrested by police for his own protection.

..Amnesty International is calling for Aan's release, branding his conviction "a serious setback for freedom of expression in Indonesia, and [a violation of] Indonesia's obligations under international law."  

My comments : Indonesia is a member of the Club of Doom.  In the Club of Doom you cannot think, cannot talk, cannot say anything that may make the Club of Doom angry.   It is very simple to live in the Club of Doom : just follow, dont ask questions. 

Ex McKinsey Boss Faces 25 Years In Prison

Posted: 17 Jun 2012 03:39 PM PDT


Here is the news : 
NEW YORK: Rajat Gupta, a consummate business insider was convicted on Friday of leaking secrets about the investment bank at the height of the financial crisis, a major victory for prosecutors seeking to root out illicit trading on Wall Street.
In its case against Gupta, who headed elite business consultancy McKinsey & Co for nine years and is the most prominent person charged in the insider-trading crackdown,
A Manhattan federal court jury delivered the verdict on its second day of deliberations, finding Gupta fed stock tips to his hedge fund manager friend Raj Rajaratnam gleaned from confidential Goldman board meetings. He was found guilty of four of six criminal counts and could face a prison term of up to 25 years.
Folks, crooks like these are inside our country as well - advising the nincompoops in Khazanah Nasional and other unthinking branches of our Government.  
Remember Enron? Their auditors Arthur Andersen were also implicated in the Enron fraud. Resulting in Arthur Andersen going kaput. Guess what happened to all the crooks who used to work in Arthur Andersen? They have all been reincarnated.  Now they are increasingly believing in karma.  25 years is a long time.
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