machitam’s Blog

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Hadith on Tamim ad Daari’s story on Dajjal

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Praise be to Allaah.

The story that you mention was narrated in a well known hadeeth which is known as the hadeeth of al-Jassaasah. It is an important hadeeth which was one of the signs of his Prophethood, so we will give you the opportunity to benefit from it and enjoy reading it.

It was narrated that Faatimah bint Qays (may Allaah be pleased with her) said:

I heard the voice of the caller, the caller of the Messenger of Allaah (peace and blessings of Allaah be upon him), saying: Al-salaatu jaami’ah (prayer is about to begin), so I went out to the mosque and I prayed with the Messenger of Allaah (peace and blessings of Allaah be upon him). I was in the women’s row that was closest to the people. When the Messenger of Allaah (peace and blessings of Allaah be upon him) had finished his prayer, he sat on the minbar and he was smiling. He said: “Let each person stay in the place where he just prayed.” Then he said: “Do you know why I called you together?”

They said: Allaah and His Messenger know best. He said:

He said: “By Allah, I did not call you together for an exhortation or for a warning. I have called you together because Tameem al-Daari was a Christian and he came and swore allegiance and became Muslim, and told me something which agrees with what I was telling you about the Dajjaal (false messiah). He told me that he sailed in a ship with thirty men of Lakhm and Judhaam and they were tossed by the waves of the sea for a month. Then they came to an island at sunset. They sat in a small rowing-boat and landed on that island. They were met by a beast with a great deal of hair and they could not distinguish his face from his back because he was so hairy. They said: ‘Woe to you, what are you?’ It said: ‘I am al-Jassaasah.’ They said: ‘What is al-Jassaasah?’ It said: ‘O people, go to this man in the monastery for he keen to know about you.’ He (the narrator) said: When it named a man for us we were afraid of it lest it be a devil. Then we set off, rushing, until we came to that monastery, where we found the hugest man we had ever seen, bound strongly in chains with his hands tied to his neck and his legs bound from the knees to the ankles with iron shackles. We said: ‘Woe to you, who are you?’ He said: ‘You will soon find out about me; tell me who you are.’ They said: ‘We are people from Arabia who embarked on a ship, but the sea became wild and the waves tossed us about for one month, then they brought us to this island of yours. We took to the rowing-boats and landed on this island. We were met by a beast with a great deal of hair and we could not tell his front from his back because he was so hairy. We said: Woe to you, what are you? It said: I am al-Jassaasah. We said: What is al-Jassaasah? It said: Go to this man in the monastery for he is keen to know about you. So we came rushing to you and we fled from it because we could not be sure that it was not a devil.’ He (that chained person) said: ‘Tell me about the date-palm trees of Baysaan.’ We said: ‘What do you want to know about them?’ He said: ‘I am asking you whether these trees bear fruit.’ We said: ‘Yes.’ He said: ‘Soon they will not bear fruit.’ He said: ‘Tell me about the lake of Tabariyyah’ We said: ‘What do you want to know about it?’ He said: ‘Is there water in it?’ They said: ‘There is a great deal of water in it.’ He said: ‘Soon it will dry up.’ Then he said: ‘Tell me about the spring of Zughar (which is in the south of Syria).’ They said: ‘What do you want to know about it?’ He said: ‘Is there water in the spring and do the people grow crops with the water of the spring?’ We said to him: ‘Yes, there is plenty of water in it and the people grow crops with its water.’ He said: ‘Tell me about the Prophet if the unlettered; what has he done?’ We said: ‘He has left Makkah and has settled in Yathrib (Madeenah).’ He said: ‘Do the Arabs fight against him?’ We said: ‘Yes.’ He said: ‘How did he deal with them?’ We told him that he had prevailed over the Arabs in his vicinity and they had shown obedience to him. He said to us: ‘Has it really happened?’ We said: ‘Yes.’ He said: ‘If it is so that is better for them that they show obedience to him. Now I will tell you about myself. I am the Dajjaal and soon I will be given permission to emerge. So I will come out and travel in the land, and will not spare any town but I will stay for forty nights, except Makkah and Taybah (Madeenah). They are both forbidden to me; every time I try to enter one of them, I will be met by an angel with a sword in his hand, who will bar my way, and on every route there will be angels guarding it.’ She said: Then the Messenger of Allaah (peace and blessings of Allaah be upon him) struck the minbar with his staff and said: “This is Taybah, this is Taybah, this is Taybah,” meaning Madeenah. “Did I net tell you this before?” The people said: Yes. [The Prophet (peace and blessings of Allaah be upon him) said:] “I liked the story of Tameem because it agrees with what I used to tell you about him and about Makkah and Madeenah. But he is in the Syrian Sea (Mediterranean) or the Yemeni Sea (Arabian Sea). No, rather he is in the east, he in the east, he is in the east,” and he pointed towards the east with his hand. She said: I memorized this from the Messenger of Allaah (peace and blessings of Allaah be upon him).

Narrated by Muslim in his Saheeh (2942), so it is a saheeh hadeeth. It was also narrated by the scholars in their books, with their isnaads from Faatimah bint Qays (may Allaah be pleased with her). Al-Tirmidhi (may Allaah have mercy on him) said in al-Jaami’ al-Saheeh (2253): This is a saheeh ghareeb hadeeth. End quote. Ibn ‘Abd al-Barr said in al-Istidhkaar (7/338): It is saheeh in its isnaad and transmission.

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Written by machitam

December 30, 2017 at 4:55 pm

Posted in Uncategorized

“Evolution in the Concept of Sunnah During the First Four Generations of Muslims”

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read here

Written by machitam

December 6, 2017 at 12:02 pm

Posted in Uncategorized

RUU355 (amendment to increase penalty and additional sharia law)

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..claimed to “Perkasakan Islam” ie to make Islam great.

RUU355 is a private members bill to be table in Parliment by an MP, PAS President Datuk Seri Abdul Hadi Awang.  If the bill is passed, there will be a significant change in the existing penalty limitation of  RM5000 fines and a jail term not exceeded3 years to fines up to RM100000 and a maximum jail term of 30 years. Also, 3 additional criminal laws such as adultery, accusing a woman of committing adultery, drinking intoxicating drinks and apostasy.

Unfortunately, issues raise and voice of dissents against RUU355 received a backlash as infidels, anti Islam etc. One mufti of a state even decreed that it is obligatory for every muslim MP to vote an “aye” on the bill.

The Article in the constitution,

” Dual justice system
The dual system of law is provided in Article 121(1A) of the Constitution of Malaysia. Article 3 also provides that Islamic law is a state law matter with the exception for the Wilayah Persekutuan ie Federal Territories of Malaysia. Islamic law refers to sharia law, and in Malaysia it is known and spelled as syariah. The court is known as the Syariah Court. Looking at the Malaysian legal system as a whole, sharia law plays a relatively small role in defining the laws on the country. It only applies to Muslims. With regards to civil law, the Syariah courts has jurisdiction in personal law matters, for example marriage, inheritance, and apostacy(murtad). In some states there are sharia criminal laws, for example there is the Kelantan Syariah Criminal Code Enactment 1993. Their jurisdiction is however limited to imposing fines for an amount not more than RM5000, and imprisonment to not more than 3 years. In August 2007, the then Chief Justice of Malaysia proposed to replace the current common law application in Malaysia with sharia law. 

Here is an extract from an article by Shaikh Asseem Al Hakeem, a Saudi contemporary ulamak view point of Islamic Sharia Law and the rational of the eeds to impose Huddud penalty in Islamic criminal Law ie God’s Law as prescribe in the quran.

Penalties in Comtemporary Fiqh

Sheikh Yusuf Al-Qaradawi calls for applying Shariah while taking into consideration the changes in time, place, and humanity, as there are past jurisprudential rulings that are not applicable in this modern world. Shariah is valid for all times and places; however, the application of Shariah needs ijtihad (use of reasoning and educated judgment to deduce an opinion or ruling) by qualified scholars who take into account the prevailing conditions in today’s world while having extensive knowledge of the tenets of Shariah.

Shariah and Hudud

Shariah cannot be taken in one part while another part or part are disregarded; it must be administered as a whole. It is worth noting, therefore, that out of 6,236 Quranic verses, only 10 directly address the topic of hudud (the limits of lawful behavior and the fixed punishments for transgressing those boundaries). These verses were revealed late during the mission of Prophet Muhammad (peace and blessings be upon him). The hudud laws mentioned in the Quran are four, or five if the one of qisaas (retaliation) is added. These five hudud address qisaas, adultery, qadhf (false accusation), hirabah (highway robbery), and theft. The phrase “hududu Allahi” mentioned in some verses of the Quran relates to issues like divorce and marriage. In those verses, the term “hudud” refers to the features and boundaries that distinguish what is permissible from what is forbidden .

We realize that the subject of hudud (prescribed punishments) is an integral but limited aspect of Islam when we consider that many scholars divide Islam into creed, acts of worship, morals, manners, and laws. The laws are then divided into civil, economic, family, commercial, criminal, constitutional, international relations, and so on. Yet some people focus only on one part “the criminal law” and ignore the rest of Shariah. Non-Muslims and even some Muslims see the hudud as the distinguishing element of Islam. Perhaps it is because the hudud laws are essentially different from man-made and, therefore, changeable laws. Moreover, people see the hudud as the conspicuous part of Shariah; however, hudud alone are a core but very limited part of Shariah and its application. People are so primarily focused on the hudud that if the laws related to banning usury or collecting zakah (prescribed alms) are applied, many will think that the ruler is not applying Shariah so long as hudud are not applied.

Hudud in the Quran and Sunnah

There are clear-cut hudud established by the Quran as mentioned above, with regard to retaliation, adultery, false accusation, highway robbery, and theft. There are also the dhanni (deduced) hudud, which are derived from the Sunnah, such as the penalty for drinking wine. Some scholars said it is 40 lashes; others said it should be 80 lashes, while some others, like Al-Bukhari and At-Tabari said there is no specified penalty for drinking wine but should receive a lesser tazeer punishment (discretionary punishment). Sheikh Qaradawi agrees with the application of a discretionary punishment, which could be whipping, imprisoning, or imposing fines.

Another dhanni (deduced) hudud is the one for apostasy, derived from the Sunnah. There are many hadiths, as well as some references in the Quran, about putting apostates to death. However, Umar ibn Al-Khattab asked an apostate to repent. Also, Imam An-Nakhiy and Imam Ath-Thawry are of the opinion that apostates should repeatedly be given opportunity to repent. Another example of a dhanni hudud is the stoning penalty for a married adulterer, a penalty derived from the Sunnah and not the Quran.

Application of Hudud

The problem with hudud is not their application in society but their misapplication ie applying them without meeting the necessary conditions. The Prophet (peace and blessings be upon him) prepared his contemporary society before applying hudud. He established the pillars of Islam including the prayer and the collection of zakah from those who could afford it, and distributed it among the poor. He created all the necessary conditions for social stability and solidarity. He established Islam as the way of life so that the needy were provided for and no one was left destitute, without food or shelter or other necessities for survival. In that case, for example, the theft penalty could be applied. But how can hudud be applied when people are unemployed, hungry, sick, orphaned, or homeless? Islam must be established in all aspects first, and then if someone steals, such an act of theft is a result of corruption of the soul rather than out of necessity.

Umar ibn Al-Khattab suspended the theft penalty during the Starvation Year, as people were stealing because of need and hunger. When a rich man came to Umar complaining that his slaves were stealing, after pondering and investigating the matter and knowing that this master had not met the needs of his slaves, Umar told him, “Go meet their needs first, or “I’ll cut your hands off” So social justice should be applied and people’s needs should be met, and proper conditions should be established in order to apply hudud. Otherwise, hudud may be used as a pretext by rulers to oppress people. Most egregious is the reality in some countries that the hudud are not applied to those who are politically connected or wealthy, even though they may defraud the people or embezzle millions of dollars. Yet the hudud are applied to the weak and the poor.

Hudud Are Not the Ultimate Goal

Another point is that when someone commits a crime with a prescribed punishment, the authorities should not start with applying the hudud penalty, but rather should seek lesser punishment if any doubt about guilt or mitigating circumstance exist. An agreed-upon rule of Islamic jurisprudence is “Let doubt suspend hudud”. Many jurists widen the range of doubt based on the following hadith related by Al-Hakim and As-Suyuti: “Refrain from enforcing hudud on Muslims as much as you can. If you find a way out for a Muslim, let him (or her) go, as it is better for the imam (ruler) to wrongly forgive than to wrongly punish.” We can thus see that Islam is not keen on punishing people. Punishments are for wicked, corrupt, or sociopathic people, who constitute a small portion of society. However, if these people are not punished, corruption will prevail. There is a hadith that says, “A penalty applied on earth is better for people than rain falling upon them for 30 or 40 mornings” (Ahmad). This is in the case that guilt is “beyond doubt” and with no mitigating circumstance. Then, according to this hadeeth, there is no benefit in receiving rain and cultivating when all that hardwork becomes a stolen harvest by thieves prevailing in a society.

Restrictions of Applying Hudud

Allah has prescribed hudud to deter and purge the wrongdoers. Hudud deter those who commit crimes and prevent them from committing them again; they further discourage other people from committing crimes. Some people say that the hudud are harsh. In fact, harshness is sometimes required for reform. Moreover, what is the alternative for hudud? The alternative in a man-made system of justice is imprisonment, which does not deter criminals. And a large percentage of criminals repeat their evil acts with more severe and harmful results after being released from prison. They become more hardened in their criminal intent and, unfortunately for society, have gained in criminal know-how from the malevolent experiences of their fellow criminals while in jail.

Islam�s rational and jurisprudential basis for applying hudud with regard to adultery, for example, does not relate to the act of adultery itself � which is a forbidden act due to many reasons . Rather it is correlated to the adulterer committing his or her act publicly. Thus, the adultery penalty is applied only when four individuals witness the act of illicit sexual intercourse, or when the adulterer confesses four times before a judge that he or she has committed that act. In that case, the defendant should be informed of the penalty before he or she confesses. Moreover, the four witnesses must be competent to give testimony, and the judge must interrogate them to determine if they are lying or in any way untrustworthy in their testimony. If any of these conditions are not met, the penalty cannot be applied. In that case, the adulterer may have the chance to repent without receiving the penalty.

Even when guilt has been established beyond doubt or disupte and there exist no mitigating circumstance, there still remain conditions for hudud to be applied:

It must be established that the accused committed the crime by choice rather than under duress of some kind, and while knowing that the act is illegal and a punishable crime.

The defendant has publicly committed the crime or confessed to committing it.

Applying Hudud Today

When the elements of a crime categorized as punishable by hudud laws are established according to all requisite conditions, hudud should be applied. However, if these elements are not present, then tazeer (lesser, discretionary punishment) should be applied. Tazeer is to be applied under the authority of the imam or judge. But applying hudud is the exclusive domain of the state. Thus no group in any place has the right to apply hudud to a group of people away from the authority of the state.

Countries today that apply hudud such as Saudi Arabia, Iran, and Sudan must answer for themselves as to whether all conditions have been met and an Islamic way of life fully established so that hudud is applicable and Islamically warranted. And Allah SWT knows best.

Written by machitam

February 19, 2017 at 11:32 am

Posted in Uncategorized

Save the environment?

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i’d picked this interesting piece, conversation between a young cashier and an old lady!

credit to Pedro Barte, whoever he is..

Checking out at the store, the young cashier suggested to the much older lady that she should bring her own grocery bags, because plastic bags are not good for the environment.

The woman apologized to the young girl and explained, “We didn’t have this ‘green thing’ back in my earlier days.”The young clerk responded, “That’s our problem today.

Your generation did not care enough to save our environment for future generations.”The older lady said that she was right — our generation didn’t have the “green thing” in its day. The older lady went on to explain:Back then, we returned milk bottles, soda bottles and beer bottles to the store.

The store sent them back to the plant to be washed and sterilized and refilled, so it could use the same bottles over and over. So they really were recycled. But we didn’t have the “green thing” back in our day.Grocery stores bagged our groceries in brown paper bags that we reused for numerous things.

Most memorable besides household garbage bags was the use of brown paper bags as book covers for our school books. This was to ensure that public property (the books provided for our use by the school) was not defaced by our scribblings. Then we were able to personalize our books on the brown paper bags. But, too bad we didn’t do the “green thing” back then.

We walked up stairs because we didn’t have an escalator in every store and office building. We walked to the grocery store and didn’t climb into a 300-horsepower machine every time we had to go two blocks.But she was right. We didn’t have the “green thing” in our day.Back then we washed the baby’s diapers because we didn’t have the throw away kind.

We dried clothes on a line, not in an energy-gobbling machine burning up 220 volts. Wind and solar power really did dry our clothes back in our early days. Kids got hand-me-down clothes from their brothers or sisters, not always brand-new clothing.But that young lady is right; we didn’t have the “green thing” back in our day. Back then we had one TV, or radio, in the house — not a TV in every room.

And the TV had a small screen the size of a handkerchief (remember them?), not a screen the size of the state of Montana. In the kitchen we blended and stirred by hand because we didn’t have electric machines to do everything for us. When we packaged a fragile item to send in the mail, we used wadded up old newspapers to cushion it, not Styrofoam or plastic bubble wrap. Back then, we didn’t fire up an engine and burn gasoline just to cut the lawn. We used a push mower that ran on human power.

We exercised by working so we didn’t need to go to a health club to run on treadmills that operate on electricity.But she’s right; we didn’t have the “green thing” back then.We drank from a fountain when we were thirsty instead of using a cup or a plastic bottle every time we had a drink of water. We refilled writing pens with ink instead of buying a new pen, and we replaced the razor blade in a r azor instead of throwing away the whole razor just because the blade got dull.

But we didn’t have the “green thing” back then.Back then, people took the streetcar or a bus and kids rode their bikes to school or walked instead of turning their moms into a 24-hour taxi service in the family’s $45,000 SUV or van, which cost what a whole house did before the”green thing.” We had one electrical outlet in a room, not an entire bank of sockets to power a dozen appliances.

And we didn’t need a computerized gadget to receive a signal beamed from satellites 23,000 miles out in space in order to find the nearest burger joint.But isn’t it sad the current generation laments how wasteful we old folks were just because we didn’t have the “green thing” back then?

Please forward this on to another selfish old person who needs a lesson in conservation from a smart ass young person.

We don’t like being old in the first place, so it doesn’t take much to piss us off… Especially from a tattooed, multiple pierced smartass who can’t make change without the cash register telling them how much.

Read more: http://957thejet.iheart.com/onair/marty-and-jodi-in-the-morning-55356/the-young-cashier-told-the-old-15574856/#ixzz4Z5n9bMfIkampungbandar

Written by machitam

February 19, 2017 at 10:22 am

Posted in Uncategorized

set the record straight..quoting news fr FB

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Written by machitam

January 1, 2016 at 12:26 pm

Posted in Uncategorized

1MDB sets the record straight? interesting…

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Head of 1MDB sets the record straight

BY: THE RAKYAT POST

1MDB Board of Directors believe that public scrutiny of 1MDB is a good thing, and will only serve to strengthen the company and its governance.

Statement by Tan Sri Datuk Seri Lodin Wok Kamaruddin

Chairman of the Board of Directors, 1MDB

AS the chairman of the Board of Directors of 1MDB, I have viewed with surprise recent statements, both in the media and by certain individuals, suggesting that the company has failed to respond to various questions that have been directed at it over the past months.

As a Board of Directors, we welcome debate, and as a company that is wholly owned by the Ministry of Finance — and by extension the people — we believe that public scrutiny of 1MDB is a good thing, and will only serve to strengthen the company and its governance.

In the interest of increasing the company’s transparency, I have held meetings with members of the media where I listened to and responded to their concerns.

 

Furthermore, the company has taken various other measures such as issuing multiple statements responding to allegations directed at the company, publishing a detailed document answering frequently asked questions, and releasing a public statement outlining key highlights from 1MDB’s last financial results – the first time 1MDB has done so since the company’s inception in 2009.

All of this information is freely available on 1MDB’s website, and we believe that these actions reflect our efforts to engage in a more open and constructive dialogue than has perhaps been the case in the past.

Despite this, issues that have previously been raised and subsequently addressed by the company continue to be regurgitated by certain individuals.

In the interests of providing clarity, we would once again like to respond to the various concerns.

1MDB’s funding and debt levels

Contrary to claims, 1MDB is not a sovereign wealth fund, but rather a strategic development company. In practice, this translates into a company that is independently run and funded, but one whose investment decisions are driven by the interests of the national economy.

Whilst a sovereign wealth fund and a strategic development company may not sound very different, there is an important distinction between the two: whereas a sovereign wealth fund is directly funded by the government and invests on its behalf, 1MDB raises and invest its own capital.

In fact, in terms of actual funding, the company has only ever received RM1 million in equity, which was provided by the Ministry of Finance at the time of its inception.

Given that 1MDB does not receiving any funding from the government, it is therefore simply not true to claim that the company is investing or worse, wasting, the state’s – or the people’s – money.

As 1MDB funds its own operations, it should not be surprising that, from time to time, the company raises capital on the international debt markets in order to finance some of its projects. However, all of this debt is backed by solid assets.

At present, this includes the 15 power and desalination plants in five countries that comprise our energy business, as well as our extensive property portfolio which includes 70 acres of prime real estate currently being developed as TRX —Kuala Lumpur’s first dedicated financial district, 495 acres of land on the site of the old airport in Sultan Besi earmarked for Bandar Malaysia — a mixed-use urban development, and 234 acres of land in the centre of Air Itam, Penang.

The total value of the company’s assets (RM51.4 billion as at the financial year end of March 2014) comfortably exceeds the value of its total debts (RM41.9 billion for the same period).

This means that the company has net assets of close to RM10 billion, representing the value it has created since its inception five years ago.

Furthermore, this does not take into account the expected benefit to be realised from the initial public offering of the group’s energy portfolio, which will help deleverage the group and contribute towards reducing its debt profile.

Finance costs & interest rates paid by 1MDB

Like any business, 1MDB attempts to secure the lowest rate of interest and finance costs when taking out a loan or conducting a bond issue. However, in certain instances, these interest rates and finance costs have been towards the higher end of the market rate.

It has to be understood that, when it comes to raising debt on the financial markets, there is no one size fits all solution.

A number of factors determine the finance costs and the interest rate applied to a loan or bond issuance. These include the length of maturity, whether the loans are underwritten or guaranteed, macro-economic factors, and many more.

To take one example, we are aware that concerns have been raised about the 5.75% interest rate assigned to a RM5.0 billion Islamic bond that was issued by 1MDB in 2009. As a comparison, it has been noted that another government-linked company, Petronas ,paid an interest rate of 3.60% on a bond at the same time.

This is an unfair comparison that does not take into account a number of important factors.

To highlight just one: when subscribing to a bond, lenders take on a certain degree of risk and the longer the tenure, the higher the risk for the bondholder. Therefore, bonds that have a longer maturity period typically have a higher interest rate.

To the best of our knowledge, the only Petronas-related bond issued in 2009 that carried a coupon rate of 3.6% was for a RM100 million bond with the tenure of only 3 years, whereas the 1MDB bond had a tenure of 30 years.

As such, given the significant difference between the maturity periods, it should not be surprising that the bond issued by 1MDB had a higher interest rate.

More broadly, it is important to note that the bond issued by 1MDB in 2009 was the first Malaysian bond with a 30-year tenure, and the first Islamic bond to be issued with a maturity period of that length.

Given the economic climate at the time, the fact that 1MDB successfully managed to raise this amount of capital reflects the support, goodwill and confidence placed in the company.

Funds regulated by the Cayman Monetary Authority

There has also been substantial debate about funds invested by the company regulated by the Cayman Monetary Authority.

However, anyone familiar with the financial world should be able to confirm that there is nothing unusual about companies of this size investing their funds in the Cayman Islands, which is one of the largest registered fund jurisdictions internationally, with the Cayman Monetary Authority recognised as one of the leading fund regulators in the world.

Thousands of international blue-chip companies have funds regulated by the Cayman Monetary Authority, including over 200 Malaysian companies, many of which are household names.

To provide some background with respect to 1MDB’s investment: In 2009, 1MDB and a Saudi Arabian company entered into a joint venture to facilitate long-term economic cooperation between Malaysia and Saudi Arabia.

As part of this, a joint-venture fund was set up to undertake investments on projects which would generate financial and strategic benefits to both countries.

However, due to various factors, both parties eventually decided not to proceed with these plans.

As a consequence, 1MDB’s investment in the company was converted into a fixed income instrument in the form of Murahaba notes, essentially a loan, with an annual interest rate of 8.75%.

This loan was paid back in full, for US$2.318 billion with a profit of US$488 million, in 2013.

Repatriating these funds to Malaysia would have exposed them to fluctuations on the foreign exchange market, as being witnessed at the moment.

In order to ensure that 1MDB maintained a strong liquidity position with a truly diversified global portfolio, these funds were invested in a 1MDB subsidiary that was registered in the Cayman Islands.

However, the company has already redeemed a significant portion, US$1.4 billion, of the fund and expects to redeem the remaining amount in the coming months.

Overpaying for power assets

In line with the government’s strategic aim of ensuring Malaysia’s energy security, 1MDB has acquired a number of energy assets since 2012.

These acquisitions have allowed the company to diversify its fuel mix and country risks, as well as benefit from healthy cash flows and the expertise of their excellent management teams.

The claims relating to the amounts 1MDB paid for its energy assets revolve around values that were attributed to the assets at the time they were acquired and on the basis of certain assumptions made by external parties.

However, the company takes a long-term view and consider broader synergies for the group, as well as the social and economic impact on the country, when we evaluate assets and forecast economic returns.

As such, it is the management team’s strong belief that the value paid for these assets, which may have involved a premium in certain instances — as is common when acquiring another business, is commensurate with their existing and future potential.

It is also important to note that since acquiring its first energy assets in 2012, 1MDB has built this into the second largest independent power producer in Malaysia, with a strong presence in international markets within three years.

In total, 1MDB’s energy business has consolidated 5594MW of net capacity, comprising both gas and coal fired plants.

This portfolio provides the business with healthy cash flows and enables 1MDB to participate in bids for coal and gas fired plants, the two primary fuel source for power generation assets in the markets that the company operates in, allowing it to create further value and drive future growth.

As such, the economic benefit gained from these assets means that the company has recuperated any excess value it may have paid at the time of the acquisitions.

Overpaying for land

Any decision the company makes to invest in real estate is reached following an extensive period of due diligence, which includes the appointment of independent appraisers to determine the value of the land at the time of the acquisition, whilst also taking into account the value the company can add to it.

All of 1MDB’s investments are undertaken in line with the best interests of the business, and with a view to stimulating economic growth and prosperity in Malaysia.

We understand that there has been some speculation about the value paid by 1MDB for a land parcel in Penang.

This land is located in the centre of the town of Air Itam, a much sought after area where property prices have seen a substantial increase in recent years.

This is reflected in the prices that other developers have paid to acquire land in neighbouring areas which, at over RM200 per sq ft, is substantially higher than what 1MDB paid.

In fact, in one instance dating back to 2013, approximately 9.8 hectares in Air Itam were purchased for RM267.4 million, about RM251 per sq ft, for a mixed-use development. In another, approximately RM251 per sq ft was paid for a mixed development project near the Kek Lok Si Temple.

Given the general difficulty companies face in finding sizeable plots of land in prime areas of Penang, that are suitable for carrying out large-tier development projects, the amount paid by 1MDB for this land was not only commensurate with its value but highly attractive.

Preferential treatment on power contracts

Any award takes a number of factors into consideration: the technical standards of the bid, the track record of the company, the bidding price, the urgency of the project and the whole systems cost of the bid to name a few. The projects that 1MDB have been awarded, in Malaysia and abroad, have been on this basis.

Earlier this year, a joint consortium consisting of 1MDB and Mitsui & Co, Japan’s second-largest general trading company, participated in an open and competitive tender exercise for a 2,000MW coal-fired power plant known as Project 3B.

Following due consideration of the various bids, the Energy Commission announced that the joint 1MDB-Mitsui consortium had been chosen as the preferred bidder.

Subsequently, there have been suggestions that 1MDB received preferential treatment, and the basis of these claims is that the company’s bid was not the lowest offered.

This rationale is flawed as it fails to take into account the fact that any award is based on a number of considerations, not just the tariff.

Whilst there was a bid that was slightly lower than the one presented by 1MDB, the fact is that 1MDB’s was the lowest compliant bid, with a proposed levelised tariff of 25.33 sen/kWh.

There was a bid that was fractionally lower, of 25.12 sen/kWh, but this proposal did not comply with a number of requirements set out by the Energy Commission, key amongst which was their lack of experience operating a coal plant.

As the Energy Commission announced in a public statement, the 1MDB-Mitsui Consortium won the bidding exercise “in a fair and square manner with a well-proven technology that would enhance security of supply expected of a 2000MW coal-fired power plant operating in a grid system of our size”.

It is also important to note that there are other tenders that 1MDB has participated in where the contract has been awarded to other parties.

For example; despite 1MDB offering the lowest bid for a gas-fired plant in Prai, another company was deemed as offering a better over-all package and awarded the contract on that basis.

Statement by Tan Sri Datuk Seri Lodin Wok Kamaruddin,

Chairman of the Board of Directors, 1MDB

Written by machitam

December 24, 2014 at 9:59 am

Posted in Economic and politics

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Listen to this man, top Cop Ramli..

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“Alhamdulillah, today justice has been delivered. Thanks to God for having vindicated me from all these false allegations against me. I have lost almost everything; my rank, career and my reputation. My deepest gratitude to my wife, Anita, who has stood by me throughout this darkest moment in my life,” he told reporters.

– Ramli-

“To all the men in blue, I say to you — do your job fearlessly and professionally. Uphold your oath of office to ‘sedia berkhidmat.’ Do not be afraid of the syndicate. Protect the innocent.

“To all who wield power in their hands, be mindful of God’s promise that on the day of judgment, you shall be held accountable for even an atom’s weight of evil,” he said without identifying the “syndicate” he referred to.

-Ramli-

Ramli described the period when he was charged for corruption as the “darkest moment in my life”. He felt that he was victimised by this “Syndicate”, ( those people with  power). Logically, it should be the hands of the law that caught up with him. But the court found that he should be acquited. Who are this Syndicate ? Surely they must be the powerful hands above him.

Ramli also took this opportunity to advise the “men in blue”. His advise for them is to act base on the law without fear or favour. Do not fall prey to this “syndicate”. …I think he can see that the “syndicate” cannot act against you if you are truthful, i.e on the same side with the Law.

My admiration  to him for his holistic comment to the syndicate. Maybe he had been looking back at his actions that brought him to the “darkest period”.  Man who is victimesed will always seek for God. 

Surely, man will be accountabled to every grain of his action on earth in the hereafter. Even to the smallest  i.e a grain of his deed will be rewarded and he must pay for even a grain of evil.

May Allah bless us all

Written by machitam

March 12, 2010 at 5:28 pm