Who Owned Good Star Limited?

The Simple Question That Exposes 1MDB – Who Owned Good Star Limited?

What to make of the fact that the ‘cari makan’ chairman of the Public Accounts Committee secretly removed just two sentences from their agreed report on 1MDB just before publication?

Two sentences from some 150 pages of the report, illegally altered. Why?

The stupid manoeuvre has backfired, of course, which is why every effort by 1MDB and their boss Najib to put this particular genie back in the bottle has failed since Sarawak Report first unleashed the PetroSaudi papers back in February of last year.

Now everyone has focused on what small portion of that report was so crucial and dangerous that the powers behind this political place-man made him remove it? And the answer is that it was the evidence that the company Good Star Limited belonged to a person unrelated to the joint venture between PetroSaudi and 1MDB.

This deadly confirmation, given by Bank Negara, proved to the PAC that the US$700 million, which went straight from 1MDB’s Deustche Bank account in KL to the Good Star Limited account at RBS Coutts in Zurich on 30th September 2009, was deliberately siphoned out of the joint venture, which had of course been the greedy intention all along.

Later, in 2011, a second direct payment was picked up by Bank Negara of US$330 million, again direct from 1MDB to the same Good Star Limited account. Thanks to the PetroSaudi papers we have a complete copy of the original bank transfer and all the emails surrounding the dramatic theft of nearly a billion dollars:

No secret – Jho Low was the beneficial owner

This simple central issue to the whole 1MDB story was presented by Sarawak Report on day one of our coverage of this scandal. The PetroSaudi papers made clear way back on February 28th 2015 that Jho Low owned this company and we made that point in our very first expose.

We also showed how Jho Low orchestrated every single move of the deal, willingly assisted by his accomplices at PetroSaudi, in order to obtain that outcome.

For the entire ensuing period of over one year the fugitive Low, 1MDB and all the deniers of wrong-doing have avoided addressing this simple point, as to whom did the money go?

Disguised as a loan

In order to find an excuse to get the money out of 1MDB the managers of the fund (led by CEO Shahrol Halmi, who was working to the orders of Najib and Jho Low) together with their willing co-conspirators at PetroSaudi, fabricated a ‘loan’, supposedly owed by the PetroSaudi subsidiary, 1MDB PetroSaudi (BVI), which entered the joint venture, to its parent company, PetroSaudi International Holdings Cayman Limited (Caymans) – this Cayman company was itself a subsidiary of the main company PetroSaudi International.

The idea was that 1MDB would agree to repay this ‘loan’ at the outset of the joint venture. PetroSaudi’s London lawyers came up with a nice diagram to explain the plan as late as 21st September, just days before the money was paid out.

As PAC members noted in their report on all this shenanigans, the loan was nonsense.

Both the company which supposedly issued the loan, PetroSaudi International Holdings Cayman Limited (Caymans) and the subsidiary company which supposedly received it, 1MDB PetroSaudi Limited (BVI), were created on the self same day of September 18th 2009.

The loan was then hastily issued by PetroSaudi’s lawyers between their brand new holding company and brand new subsidiary on 25th September less than a week before it was due to be ‘paid back’. There is no evidence that any money actually transferred… in fact, the paper companies of PetroSaudi Director Mr Obaid had no such assets in the first place with which to issue such a monster ‘loan’.

By 29th of September, the day after the joint venture was signed, Tarek Obaid and PetroSaudi were issuing letters to 1MDB demanding the repayment of this ‘loan’ to be made to a mysterious bank account number at RBS Coutts, which cited no details of the name on the account.

However, a mass of email evidence at the time makes clear that everyone from Jho Low to Shahrol Halmi was aware that the account belonged to a Seychelles based company called Good Star Limited. Anxious emails flashed between Zurich and KL as the bankers at Coutts strived to learn who was the beneficial owner of this company for which they were receiving such an enormous sum of money.

The Simple Question That Exposes 1MDB – Who Owned Good Star Limited?
21 April 2016 – SR


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