Archive for April, 2017

30
Apr
17

1MDB Prosecutors Said to Eye Ex-Goldman Banker’s Money Moves

1MDB Prosecutors Said to Eye Ex-Goldman Banker’s Money Moves

U.S. prosecutors investigating Goldman Sachs Group Inc.’s role in raising almost $6 billion for Malaysia’s 1MDB investment fund are asking questions about money flowing through accounts linked to Tim Leissner, the lead banker behind the transactions, according to people familiar with the matter.

Officials from the Federal Bureau of Investigation and Justice Department have been interviewing bankers familiar with 1Malaysia Development Bhd. about Leissner’s network of relationships with politically connected Malaysians, said the people, who asked not to be named because the queries aren’t public.

In interviews as recent as last month, the people said, the U.S. officials asked about the association between Leissner, who left Goldman Sachs in February 2016, and Low Taek Jho, who the Justice Department said in July was at the center of a scheme that siphoned more than $3 billion dollars from 1MDB. U.S. investigators are asking in particular whether money was sent from a Leissner-linked account to an entity controlled by someone tied to the Malaysian government, one of the people said. Leissner’s attorney, Marc Harris, declined to comment. An official who answered the phone at Low’s Hong Kong-based company Jynwel Capital said he wasn’t available.

It’s not the first time U.S. officials have scrutinized personal transactions of Goldman’s lead banker for troubled 1MDB. U.S. authorities said last year in court filings that several million dollars from 1MDB ended up in an account belonging to 1MDB’s top lawyer Jasmine Loo. She later transferred several thousand dollars to Leissner, people familiar with the matter have said. Attempts to reach Loo weren’t successful.

The U.S. look into 1MDB money flows is part of a globe-spanning effort. Switzerland, Singapore, Hong Kong, Luxembourg and other countries are also investigating the roles banks and individuals may have played in plowing cash from the fund into luxury real estate, art, lavish parties and even movie productions.

Goldman Sachs and the Justice Department also declined to comment.
No Official Role

Investigators also asked about Leissner’s interactions with Roger Ng, a former Goldman colleague who worked on the 1MDB funding, the person said. Ng, a Malaysian national, was head of Goldman’s Southeast Asian sales and trading business at the time of his resignation in April 2014. Ng, who has not been publicly charged with any crimes, declined to comment when contacted by phone.

At the heart of the 1MDB scheme, according to U.S. prosecutors, was Low. The Malaysian national was an adviser on 1MDB’s creation in 2009, the U.S. said. Bankers at Goldman Sachs understood him to be a liaison from the fund even though he didn’t have an official role there, the government said.

Two years ago, after 1MDB raised suspicions by failing to make a payment on its multibillion-dollar debt, the FBI began investigating Low’s multimillion-dollar acquisitions of trophy properties in Manhattan and Beverly Hills. Low and his associates diverted money raised for development projects into personal accounts and then pumped it into art, penthouses and the production company behind 2013’s “The Wolf of Wall Street,” the U.S. alleged in court documents seeking the seizure of more than $1 billion in assets.

…more
1MDB Prosecutors Said to Eye Ex-Goldman Banker’s Money Moves
by Greg Farrell, Andrea Tan and Keri Geiger
April 28, 2017 – Bloomberg

29
Apr
17

Heads must roll over 1MDB-IPIC fiasco

Heads must roll over 1MDB-IPIC fiasco, Amanah tells AG

Amanah says 1MDB-IPIC settlement shows crimes have been ‘undoubtedly committed’ but while foreign nations have acted against those involved in the 1MDB scandal, Malaysia has not.

KUALA LUMPUR: The settlement between Abu Dhabi’s International Petroleum lnvestment Company (lPIC) and 1MDB has revealed how rotten the situation really is, according to Parti Amanah Negara.

Its strategy director Dr Dzulkefly Ahmad said today it was “despicable” that Malaysians would have to fork out a total of US$7.01 billion for the faults of the 1Malaysia Development Berhad management.

He called on Attorney-General Apandi Ali to stop skirting the issue any more and to grab the bull by its horns.

Dzulkefly said: “So AG, if you still have the nation’s interest at heart, justice must be done and heads must undoubtedly roll.”

Following a dispute over payments involving two US dollar bonds amounting to US$3.51 billion, 1MDB and IPIC took the case to the London Court of International Arbitration. However, on April 25 a statement was issued saying they had reached an out-of-court settlement.
The Amanah leader said in a statement today that Malaysia had finally been forced to eat humble pie and admit, in settling the dispute between 1MDB and IPIC, that 1MDB had “wrongly paid” a bogus IPIC subsidiary.

He was referring to the insistence by government ministers and 1MDB officials earlier that 1MDB had in fact paid US$3.51 billion to an IPIC subsidiary, Aabar Investment PJS Limited or Aabar (BVI), a company registered in the British Virgin Islands.

IPIC, however, publicly declared that Aabar (BVI) was not its subsidiary even though it carried the same name as its own subsidiary, Aabar Investment PJS, a company registered in Abu Dhabi.

Following the dispute settlement, IPIC informed the London Stock Exchange that, under the agreement, it would receive US$1.205 billion (RM5.32 billion) from 1MDB by the end of this December.

IPIC has, at the same time, discharged itself entirely as a guarantor for 1MDB’s US$3.5 billion worth of bonds.

Dzulkefly said this meant that 1MDB now would assume responsibility for all future interest and principal payments for the two bonds issued by 1MDB due in 2022. The bonds were issued by 1MDB Energy (Langat) Ltd (for US$1.75 billion, fixed rate 5.75%) and 1MDB Energy Ltd (US$1.75 billion, fixed rate 5.99%).

“1MDB has said that these obligations will be mainly met by the monetisation of 1MDB investment fund units. That is really a double-whammy! Why? Now Malaysians have to fork out a total of US$7.01 billion – firstly paying the bogus IPIC US$3.5 billion and now another US$3.5 billion for the two bonds? Despicable!”

Noting that the 1MDB management had earlier informed the auditor-general and the Public Accounts Committee that they were correct in making such a payment, Dzulkefly said the settlement had exposed their “many lies and deceits”.

He said the United States Department of Justice (DoJ) had outrightly stated that Aabar (BVI) was a fraudulent impostor company but the 1MDB management had unashamedly insisted that it was a wholly-owned subsidiary of the IPIC group.

He said: “With the arbitration concluded, the winner and loser announced, the Malaysian attorney-general must now act to get to the real culprits. Heads must roll. There is no two ways about it anymore.

…more
Heads must roll over 1MDB-IPIC fiasco, Amanah tells AG
April 27, 2017 – FMT

28
Apr
17

1MDB settlement proof of fraud, says Muhyiddin

1MDB settlement proof of fraud, says Muhyiddin

FORMER deputy prime minister Muhyiddin Yassin has a problem with the settlement between International Petroleum Investment Company (IPIC) and 1Malaysia Development Bhd (1MDB) of a dispute involving billions of ringgit.

“The settlement reached between IPIC and 1MDB proves that there were elements of fraud where 1MDB had wrongly paid Aabar BVI instead of IPIC unit, Aabar Investments PJS,” said Muhyiddin on his Facebook page today.

Aabar BVI is a fake company with a name similar to the IPIC subsidiary’s, said the Parti Pribumi Bersatu Malaysia president.

Muhyiddin said the settlement in which 1MDB and Ministry of Finance Inc (MoF) agreed to repay everything proved that IPIC was right all along in insisting that it had never been paid.

IPIC and 1MDB announced on Monday that they had reached a settlement under the rules of arbitration. Under the terms of the settlement, IPIC will receive US$602,725,000 (RM2.6 billion) by July 31 and another US$602,725,000 by Dec 31.

1MDB and MoF also assumed responsibility for all future interest and principal payments under the two bonds issued by the 1MDB Group companies that were guaranteed by 1MDB and IPIC.

One bond is for US$1.75 billion at a fixed rate of 5.75% issued by 1MDB Energy (Langat) Limited, and the other is for US$1.75 billion at a fixed rate of 5.99% issued by 1MDB Energy Limited, according to the statement. Both bonds are due in 2022.

“Why did 1MDB pay such a huge sum to a fake company? And why has there been no action taken against anyone for making this wrongful payment?

“Or was the payment to a fake Aabar planned all along?” said Muhyiddin.

The real problem now, Muhyiddin said, was how 1MDB and MoF intended to pay IPIC. – April 26, 2017.

…more
1MDB settlement proof of fraud, says Muhyiddin
26 Apr 2017 – Malaysian Insight

28
Apr
17

1MDB-IPIC settlement in picture

27
Apr
17

Is MO1 paying 1MDB debt with our tax money?

Is MO1 paying 1MDB debt with our tax money?

YOURSAY | ‘In no time, M’sia will be left with nothing but debts for our future generations.’

Settlement shows Malaysians will pay double what 1MDB owes

Kim Quek: The US$1.367 billion, US$993 million, US$855 million and US$295 billion paid out by 1MDB relating to its US$3.51 billion bonds raised in 2012 were all fraudulent financial cocktails allegedly concocted by Jho Low in conspiracy with the ‘crooks’ in Abu Dhabi-based International Petroleum Investment Company (IPIC) to swindle cash from the Malaysian public while 1MDB was under the control of PM Najib Abdul Razak.

Najib has to answer now where the US$3.51 billion has gone to.

Ipohcrite: It is clear as daylight that 1MDB allegedly fraudulently paid the money – US$3.51 billion – to a complicit entity and not to IPIC. And now, 1MDB and the Finance Ministry will have to pay the same amount to IPIC, so that’s double payment.

And guess who will have to bear the financial burden in the end? The long-suffering rakyat of Malaysia. Again.

And all because we have 1MDB, the brainchild of Najib, cooked up allegedly to enrich a select few to the devastating detriment of the entire nation, and now entangled in a massive web of debt.

Pemerhati: “1MDB lost US$3.51 billion worth of payments that have purportedly been paid to IPIC and its subsidiary, Aabar Investments PJS (Aabar BVI)… It has already been widely known, and confirmed by the United States Department of Justice (US DOJ) that Aabar BVI is a fraudulent, impostor company.”

It is thus reasonable to conclude that MO1 (Malaysian Official 1) has allegedly siphoned off US$3.51 billion, which is about RM15 billion, through this fraudulent company. That means about RM500 from each of the 30 million or so people living in Malaysia.

The astonishing thing is that the inspector-general of police (IGP), Malaysian Anti-Corruption Commission (MACC), attorney-general (AG), the top ministers and leaders of BN and the top public servants are all supporting and protecting him.

Notice that in sharp contrast, when the South Korean president was found to have done something wrong, which was very minor to what MO1 has done, there were huge demonstrations and intensive investigations and the president had to step down.

Malaysia is almost certainly heading towards a bleak and dark future.

Vijay47: To reduce things to raw basics, what these latest announcements by 1MDB and IPIC confirm is that Petaling Jaya Utara MP Tony Pua and the DOJ have been right all along when alleging that the payment of US$3.51 billion supposedly made to Aabar Investments PJS by 1MDB was about as real as that Santa Claus from Saudi Arabia.

So can we now expect another SRO (standing room only) performance from our amusingly talented AG? I would imagine that this time, he would understandably dispense with his previous charts and diagrams.

Next, can we also expect the agile AG to institute proceedings against all 1MDB personnel involved including that smart-alecky 1MDB president Arul Kanda for seemingly submitting wrong or false information regarding the entire scandal?

This should not pose too much of a problem, going by the dazzling speed with which the intrepid AG acted against PKR’s Adam Rosly and his Disneyland house. And meanwhile, Jho Low continues to ride off into the sunset laughing our heads off.

Anonymous 2350931441161169: Instead of acting dumb or dumber, maybe the attorney-general (AG) should use the ‘details of the settlement with IPIC’ as new additional evidence to resume ‘action’ with his ‘no further action’ decision on the whole grand 1MDB alleged embezzlement scheme.

RM2.6 Billion Turkey Haram: Pua, Malaysians thank you a billion times for enlightening us the huge amount of money we have to pay for nothing.

Just imagine if the country does not have representatives like you and Pandan MP Rafizi Ramli, or worse still, if both of you join BN. The poor Malaysians would have been cheated without knowing anything and suffer in silence.

Meanwhile, those alleged thieves would be enjoying the spoils with impunity, partying with actresses and sipping the most expensive champagne.

Yes, after the success of producing a movie which even made the ulama scurry for cover, one of the ‘thieves’ might attempt producing another movie with a similar theme.

Dont Just Talk: It’s obvious who the winners in this 1MDB financial scandal are – Jho Low and Najib’s stepson Riza Aziz, with the help of the untouchables; MO1 who was mentioned 36 times by the US Justice Department (DOJ).

The others, as Pua rightly put it, are the alleged fraudulent imposter company Aabar BVI.

How can a small country like Malaysia stand the impact of losing billions of US dollars with nothing to show. Truly it is the largest scam of the century carried out by a bunch of brilliant rascals.

Amateur: US$3.5 billion, or RM15.3 billion at the prevailing exchange rate, is either too enormous to be comprehended by the general public or the majority of them couldn’t be bothered in view of their entrenched set of priorities – race, religion and country.

Can God save a country when its people don’t bother to take the initiative? Let’s see the ultimate result.

Tony Soprano: Phrases like ‘security deposit’ and ‘top-up security deposit’ in relation to the issuance of bonds are red flag tropes for embezzlement and money-laundering.

GMK: It’s very simple, the Malaysian taxpayers need to pay US$1.205 billion as current liability and a further US$3.5 billion that is coming, all the money is supposed to have been paid but is apparently nowhere to be seen, even after going all over the accounts.

FairMind: The longer MO1 stays in office, the more he will grind Malaysia into the ground. It is obvious he is allegedly using more and more of the good money to fill up the gaping holes which he had dug up earlier with his alleged co-conspirators.

In no time, Malaysia will be left with nothing but debts for our future generations.

8860: Malaysians are now tormented by powerlessness and helplessness. We are all waiting for the coming general election (GE). And hopefully we can change for the better.

We need a government which can uphold the rule of law and democracy. A ‘kleptocrat’ government will only bring misery to the rakyat.

Is MO1 paying 1MDB debt with our tax money?
27 Apr 2017 – malaysiakini

27
Apr
17

After BSI, mystery bank now custodian of Brazen Sky’s units (re-post)

After BSI, mystery bank now custodian of Brazen Sky’s ‘units’

The Finance Ministry has confirmed that a new bank has taken over BSI Bank’s functions as custodian bank for Brazen Sky Limited – a key component of the 1MDB controversy.

However, the ministry, in a parliamentary written reply, has refused to name the new bank.

“Brazen Sky Limited’s units are managed by a fund manager. The purpose of the fund manager is different from the function of a custodian bank, which among others, acts as an intermediary.

“The Brazen Sky Limited board has confirmed that a licensed international bank has been given the mandate to take over BSI Bank’s role as the custodian bank.

“The board also reports that there are no changes in the status of value of the investment,” said the ministry.

This was in response to a question by Petaling Jaya Utara MP Tony Pua, who asked the Finance Ministry to name the new custodian bank overseeing the Brazen Sky’s “units” which were valued at USD940 million.

In May, the Singapore Monetary Authority (MAS) had forced BSI Bank to shut down its operations in the country over “serious breaches of anti-money laundering requirements, poor management oversight of bank’s operations, and gross misconduct by some of the bank’s staff”.

Although MAS had not mentioned 1MDB for the withdrawal of BSI Bank’s merchant bank licence, some former BSI Bank staff, including Yeo Jiawei, had been charged in court for matters relating to his dealings with 1MDB.

The episode eventually led to the resignation of BSI Group’s CEO Stefano Coduri and other investigations in Zurich.

The “units” held by Brazen Sky Limited is of significance to the 1MDB saga because “units” supposedly represent money redeemed from 1MDB’s prematurely terminated joint venture with PetroSaudi International.

The JV project was signed in September 2009, but the deal was called off in just six months. 1MDB monies were then diverted to a Cayman Islands-registered fund before being transferred to Brazen Sky Limited in the form of “units”.

…more
After BSI, mystery bank now custodian of Brazen Sky’s ‘units’
24 Oct 2016 – malaysiakini

26
Apr
17

Explain how 1MDB will repay Abu Dhabi

Explain how 1MDB will repay Abu Dhabi, says Rafizi

PANDAN MP Rafizi Ramli has threatened to campaign in Titiwangsa to ensure its MP Johari Abdul Ghani, who is also Finance Minister II, loses in the general election if public funds are used to bail out 1MDB.

He said this following a report in The Straits Times last night that Malaysia and Abu Dhabi had reached a settlement on a dispute involving US$3.5 billion (RM16 billion) in debt obligations from 1MDB.

According to the report, part of the proposed settlement calls for Malaysia to repay Abu Dhabi US$1.2 billion (RM5.3 billion) before year-end.

The amount represents a loan and accumulated interest charges on a bailout financial package 1MDB received from Abu Dhabi’s International Petroleum Investment Company (IPIC) in July 2015.

The bulk of the payment on the outstanding loan amount will come from the sale of so-called “fund units” from Brazen Sky, a financial unit owned by 1MDB, to an undisclosed buyer, the Straits Times reported.

The settlement agreement also calls for both parties to enter into negotiations to resolve another dispute involving roughly US$3.5 billion in the form of cash advances and payments from 1MDB to IPIC.

The PKR vice-president said he was surprised by the news and worried that this might be another move to “misappropriate public funds to bail out 1MDB”.

“I urge Johari to answer which company is buying the investment unit that has not been verified of its value from Brazen Sky Limited or 1MDB,” Rafizi said in a statement today.

“Is the company that is injecting US$1.2 billion into 1MDB to pay IPIC a government subsidiary? Where, if the company is a government subsidiary, will get the funds to pay 1MDB?”

…more
Explain how 1MDB will repay Abu Dhabi, says Rafizi
21 Apr 2017 – Malaysian Insigt




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?

Archives