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Saturday, January 17, 2015

The Concept Of Taxpayers Funds Or Wang Rakyat



I received a comment in my previous post asking how 1MDB's money is also taxpayers' money, especially 1MDB's borrowed money. Here is the comment:

Anonymous said...     I do not understand. You say 1MDB money is taxpayers money.  1MDB says the money is raised through borrowing.   Saturday, January 17, 2015 9:36:00 AM 
Here is my reply :

Dont worry. You are not alone. Idris Jala once said the same thing directly to me. He also said that when the Govt borrows money it is NOT taxpayers money anymore. So it looks like you also have the skills to be a Minister in our Cabinet.

Before you go to Putrajaya though please let me set your thinking straight. 1MDB is owned by the GOM (Govt of Malaysia). That means it is owned by the rakyat aka the taxpayers. It is a publicly owned entity.

The govt runs by collecing taxes from the taxpayers. Even when the Got sets up companies like 1MDB, the capital to set them up comes from tax collections.

This means that everything that you can find in a govt dept or in a Govt owned corporation (like 1MDB) is therefore owned by the taxpayer. This includes its assets righ down to the toilet rolls. The taxpayer is the ultimate owner.

If the GOM or Govt owned companies borrowed money to buy those assets (buidings, vehicles, toilet rolls etc), the taxpayer is also ultimately responsible for the debts.

Every single sen which the Govt or govt owned companies borrow (thru bonds, foreign debt etc) accrue to the taxpayer.

Because if the govt or the govt owned company goes bust, who is obliged? The taxpayer of course.

If 1MDB goes bust, the GOM will use taxpayers funds to fork out cash for the guarantees they have given etc.

So when the GOM borrows money and has to pay the debt, where do they get the money? From Govt revenue which is tax collections. The Govt is NOT a company. It is a Govt that is answerable to the people, the taxpayer.

Petronas revenues also belong to the taxpayer. When Petronas was first set up, the Govt used taxpayers funds to invest in Petronas. When Petronas starts making profits they dont belong to Petronas. They belong to the taxpayer thru the Govt. Taxpayers funds created Petronas.

Lets say Petronas screws up their business and makes losses and the Govt has to bail them out (like so many other companies have been bailed out) it is taxpayers funds that will be used to bail them out.

So everything stops with the taxpayer. Just because Petronas is making profits or Petronas borrows from the banks, it does not mean that it does not involve the taxpayer. The taxpayer HAS paid for everything already.

Everything the Govt does is funded by taxpayers. Every screw up and bailout is also funded by the taxpayer.

I hope you will make a good Minister now.

Syed Akbar Ali

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There  are also some people who keep telling me that since there is no one else to replace Najib therefore we should not replace Najib. I think these people are either brain dead stupid or simply Najib hangers on.

Last week I met a Blogger friend who may have said the same thing up to a few months ago. Who is better than Najib.

Now my friend agrees 100% that Najib must go. He said 'You were right one year ago. He has to go now." 

If Naib stays the country will certainly go down the drain. Forget about UMNO or the BN (right now both UMNO and the BN are already in the dustbin). 

We are not talking about UMNO or BN. We are talking about the country - Malaysia.

If Najib stays as the PM, the country will be gone down the drain.

But I can imagine the pro Najib fools going into the PRU14 (due in 2018) holding on to Najib (and Rosmah) simply because 'who else can replace Najib'? 

Well come 2018  Azmin Ali, Lim Guan Eng, Nurul Izzah are all ready to kick Najib out.  89% of people in my poll said they will NOT vote for Najib. So there are plenty of people who will replace Najib - come 2018.

But it is a real question - who in UMNO can replace Najib. 

The party hierarchy has always been there. The deputy president replaces the president.  That will be Muhyiddin Yassin.

But the question has to be answered : who can replace Najib? 

Meaning who has the minimum skill sets and capability to replace Najib. 

Ok lets start with the barest minimum type of skill sets. I feel that at this point in time the following has an equal or better skill sets than Najib :


That is the level of comparison we are at now.  (Out of respect for the orang, it has been removed). 

I think anyone can do better than Najib. 

Most certainly and most definitely the UMNO second tier ie Muhyiddin Yassin, Hishamuddin Hussein etc have much superior skills and talents than a block of wood.  We definitely have much better  talent.

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