P Gunasegaram contributed a damning article regarding 1MDB
to Malaysiakini today. The article entitled "Game over for 1MDB &
Najib?" gave an estimate of the losses suffered 1MDB: An incredible
amount of RM44 billion!! That's double the amount that I thought we had lost in
this horrendous affair.
To get a true sense of the magnitude of the loss, lets' take
a look at the issue of PTPTN student loans. This was an issue that made me very
unhappy with Anwar Ibrahim in 2012 when he proposed that the government should
absorb the entire PTPTN loans outstanding. The total
amount outstanding then was RM44 billion, owing by 1.99 million students.
That's exactly the amount of money that P. Gunasegaram estimated that 1MDB had
lost!!
Imagine the benefit that could have accrued to the nation,
had we not lost this money. We could have used the money to pay off the PTPTN
loans owing by 1.99 million young Malaysians. Freed from the burden of repaying
their student loans, these young Malaysians would have a better start in life;
they could consume more or invest in their first homes. If you were like me -
who object to this type of social experimentation - we can still put this
saving to good use, such as setting PTPTN2. Imagine another 1.99 million
students obtaining their study loan to finance their undergraduate degree which
will prepare them for the challenges of the 21st century. Either way, our
economy would have enjoyed a massive boost. Alas, that was not to be! Instead
we lost it all. But, that's not all! The loss is continuing due to lower growth
as a result of poor investors' sentiment and a higher cost of living due to our
weaker ringgit.
If this nation is to move on, the people responsible for
this debacle must be brought to justice. I have faith that there are still
enough good men in our cherished institutions who will come together to bring
this sorry episode to an end.
From Malaysiakini
http://nexttrade.blogspot.my/2016/05/1mdb-mother-of-all-losses.html
