13
Apr
16

1MDB board outrage as US$700m goes to Good Star

1MDB board outrage as US$700m goes to Good Star

Slightly over half a year since its conception as Terengganu Investment Authority, the now Finance Ministry-owned 1MDB made its first deal – and blunder.

On Sep 30, 2009, it parted with a massive US$1 billion after less than two weeks of due diligence – a whopping US$700 million of which went to an unrelated firm, Jho Low-linked Good Star Limited.

On social media that day, Li Lin Seet, an associate of Low whom Sarawak Report linked to the deal, mentioned feeling “the earth moving”. Eleven days later Li was in Las Vegas, guzzling world’s expensive champagne, Cristal.

Over in Kuala Lumpur, however, the 1MDB board was in a less celebratory mood.

“Visibly upset” was how then Felda Holdings managing director and 1MDB board member Bakke Mohd Salleh described the 1MDB board when it found out US$700 million went to Good Star.

It also had other reasons to be “shocked and angry” – it had okayed a deal with PetroSaudi only if terms like independent valuation of assets were complied to. They were not.

“Flabbergasted”, Bakke decided he wanted nothing to do with 1MDB anymore. He resigned.

But the US$700 million – which then 1MDB CEO Shahrol Azral Halmi said actually went to PetroSaudi through its subsidiary Good Star – was not the end of 1MDB’s generosity to the little known Saudi firm.

Oct 3, 2009 – 1MDB board is “shocked and angry” over the Good Star transfer and issues a stern warning to management for flouting their advice.

Among others, it wants the US$700 million returned and banked into the proper accounts, a written confirmation of the value of the asset, a presentation by Edward L Morse and for another independent valuation.

“Flabbergasted” and “annoyed” with management’s non-compliance, Bakke informs the board he does not want to be associated with 1MDB anymore.

…more
1MDB board outrage as US$700m goes to Good Star
10 April 2016 – malaysiakini

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All that is necessary
for the triumph of evil
is for good men
to do nothing.

- Edmund Burke
When the people
fears their government,
there is TYRANNY;
when the government
fears the people,
there is LIBERTY.

- Thomas Jefferson
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