Saudi Statement ‘Clearing’ Malaysian PM a Red Herring

Saudi Statement ‘Clearing’ Malaysian PM a Red Herring

Foreign minister’s statement that donation for Najib came from Saudis goes against the facts

Although Saudi Foreign Minister Adel al-Jubeir last week publicly stated that US$681 million transferred into the personal account of Malaysian Prime Minister Najib Razak in March of 2013 was a donation from the Saudi royal family, that statement raises more questions than it answers.

Voluminous records in the hands of investigators contradict that. The money almost certainly didn’t come from the Saudis. It appears to be the latest in a long series of twists and turns that Najib has engineered to deflect questions over where the money came from, and where it went after US$620 million was transferred out later in 2013.

Najib has been under enormous pressure to answer questions for months, but has fended off all charges, remaining invulnerable with the backing of United Malays National Organization district chiefs, firing investigators and using sedition laws against critics. Since the Saudi minister’s announcement, however, Najib and his deputy Prime Minister Ahmad Zahid Hamadi have used it as a triumphant cudgel to defend themselves against former Prime Minister Mahathir Mohamad, who has led the charge against Najib, both behind the scenes and in front, since the 2013 general election.

The statement, which has generated questions over its ambiguity and lack of definity, raises the distinct possibility that at some point it is going to come back to bite the Saudis, especially if, as seems likely, investigations into money-laundering in the United States, Singapore, Switzerland, Luxembourg and other countries prove the source of the money was actually the scandal-plagued 1Malaysia Development Bhd. fund, which is backed by the Malaysian Ministry of Finance.

1MDB is said to have more than US$12 billion in unfunded liabilities and could threaten Malaysia’s entire financial system. The fund has been the subject of a long series of spectacular investigations including one by the US Justice Department into the funding of the box office blockbuster Wolf of Wall Street as well as purchases of luxury properties in California and New York by people believed to be proxies of the Najib family.

Najib has made at least two trips to Saudi Arabia in the past year amid speculation that he was attempting to seek cover for what has since increased to a total of US$1 billion that flowed into his personal accounts.

Al-Jubeir called the money a “genuine donation” on April 14 in comments to reporters from the Malaysian state-owned media who just happened to be in Istanbul after a meeting with Najib. The next day, according to wire services, Malaysia’s foreign ministry provided a video clip of al-Jubeir’s comments, which Najib’s office immediately said prove the prime minister’s innocence.

The confirmation, however, is in fact a change from a previous statement by el-Jubeir, who said in February that the funds were not a “donation,” and that the money was from a private transaction by interests in Saudi Arabia as an investment. His statement last week changed that, saying it was a donation by the royal family.

According to Sarawak Report’s editor Clare Rewcastle Brown, records show that the money – US$681,999,976 (RM2.6 billion) by actual count was transferred by wire into Najib’s Ambank account from the Singapore branch of the Switzerland-based Falcon private bank, which is owned by the Abu Dhabi fund Aabar Investments PJS – not from Saudi Arabia. Both the Swiss and Singaporean governments have announced they are investigating Falcon and have frozen funds.

So the Saudis have to come up with a reason for why the money wasn’t transferred by the Saudis but by Aabar. Aabar in fact has nothing to do with the Saudi government or royal family, as nearly as can be determined, but in was 1MDB’s main business partner in the proposed development of the Tun Razak Exchange real estate project in Kuala Lumpur, which has failed to get off the ground.

Saudi Statement ‘Clearing’ Malaysian PM a Red Herring
April 18, 2016 – Asia Sentinel


0 Responses to “Saudi Statement ‘Clearing’ Malaysian PM a Red Herring”

  1. Leave a Comment

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

What happened to 1MDB’s money? – CNBC Video
Nuclear lessons for Malaysia (Part 1) (Part 2)
BN govt is directing attention to distant past and distant future, in order to distract people from present misdeeds and poor governance
Felda - A picture is worth a thousand words
How the 1MDB Scandal Spread Across the World (WSJ)
We cannot afford ridiculously expensive RM55 Billion ECRL!
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
Do you hear the people sing?



%d bloggers like this: