An excerpt of the above
Among other shortcomings, according to the Bank Negara report, was a RM13 million (US$4.13 million at today’s exchange rate) loan to companies related to BTM Resources Group Bhd ‑ Besut Tsuda Wood Products Sdn Bhd, Besut Tsuda Industries Sdn Bhd and Gimzan Plywood Sdn Bhd. The name of Besut Tsuda Wood was earlier changed from Mizan Timber Industries Sdn Bhd to BTM Timber Industries Sdn Bhd. Mizan Zainal Abidin is the name of the current Malaysian king. Sources within the Exim Bank and other Malaysian financial industry sources say the group is headed by Mizan, who is also the Sultan of Terengganu.
Besut Tsuda Wood Products, according to the Bank Negara audit report, “suffered repeated losses, tight liquidity and was technically insolvent" and "appeared less efficient than the market because its competitors were making profit despite lower sales." The report described the firm as a "loss making company, (that) resulted to declining shareholders funds."
The loans were classified as "high risk lending that may expose Exim Bank to unnecessary losses" and "potential NPLs." Additionally, as valuation reports were not addressed to the bank, the auditors indicated, it might not be possible to claim assets pledged as collateral should the loans turn bad, which they apparently did.
Malaysia Today is seeing it from this angle here.
Mathias Chang has throw down the gauntlet here.
Round & round we go... the wheel keep on rolling and spinning.