Archive for August, 2017

30
Aug
17

How the 1MDB scandal started and RM5 billion Islamic bond issued

1MDB’s ‘original sin’ and Jho Low

The story of 1MDB begins in 2009, in the oil rich east coast state of Terengganu. Flushed with this black gold, the state decides to start a sovereign wealth fund so its riches could last for generations and more.

But what transpired between the formation of Terengganu Investment Authority (TIA) on Feb 27, 2009 and the day it was rebranded 1MDB on July 31, 2009 is not the stuff of fairy tales.

Instead it was a tale of boardroom tussles, menteri besar intervention, royal outrage and a special advisor named Jho Low.

Below is the chronology of events, according to the Public Accounts Committee’s (PAC) report on 1MDB tabled at the Dewan Rakyat yesterday.

Feb 27, 2009 – TIA set up

April 1, 2009 – Cabinet approves government guarantee for TIA to raise RM5 billion through a 30-year Islamic Medium Term Notes.

May 13, 2009 – Menteri Besar Incorporated Terengganu (MBI Terengganu) sends a letter to the Finance Ministry supporting the issuance of the notes according to several terms.

May 15, 2009 – TIA signs agreement with AmInvestment Bank Bhd to raise RM5 billion, but MBI Terengganu opposes, claiming the agreement did not adhere to MBI’s terms. The menteri besar is Ahmad Said.

(TIA chief executive Shahrol Azral Mohd Halmi told PAC later that it was a “bought deal”, where Ambank had a secondary market for the notes.)

May 22, 2009 – TIA board decides to suspend the bond issuance on an urgent basis and revoke all authority given to Shahrol or any director on the Islamic notes issuance.

(Board members are Terengganu princess and sultan’s sister, Tengku Rahimah Puteri, Tabung Haji managing director Ismee Ismail and Shahrol.)

However, the marketing process for the Islamic notes commences on this very day.

May 25, 2009 – Shahrol signs deal with Ambank to issue the Islamic notes.

May 27, 2009 – Shahrol dropped as chief executive through TIA shareholders resolution and Tengku Rahimah resigns from the board.

Shahrol and Ismee use their powers as remaining board members to reinstate Shahrol as chief executive.

The Terengganu government sends a letter instructing a halt on the Islamic notes issuance.

(Shahrol later tells PAC he adhered to TIA Memorandum of Articles of Association, but PAC disagrees. He tells PAC “the train had left the station” and there was no way to stop the Islamic notes issuance.)

May 29, 2009 – Menteri Besar Incorporated Terengganu (MBI Terengganu) sends a letter to Finance Ministry supporting Shahrol’s sacking as chief executive.

It also sends a warning letter to Ambank alleging the bank’s culpability in wrongdoing.

TIA Islamic Medium Term Notes subscription period expires and RM4.835 billion is raised. Ambank pockets RM11.25 million as arranger fee plus RM7.14 million in trustee and agency fee, payable at RM238,000 a year for 30 years.

June 3, 2009 – Cabinet is told that the Terengganu sultan wants a report on “unauthorised issuance of Islamic Medium Term Notes by TIA”.

June 30, 2009 – Shahrol tells a meeting chaired by the Treasury secretary the letter by MBI Terengganu to halt the bond issuance arrived after marketing for the notes started. He says the process went on despite the letter to protect TIA’s credibility.

July 25, 2009 – TIA is rebranded 1Malaysia Development Bhd, with RM1,000,002 paid up capital and allowable capital of RM1 billion. It is fully-owned by the Ministry of Finance Incorporated.

Aug 8, 2009 – Prime Minister Najib Abdul Razak, who is also finance minister and chairperson of 1MDB advisory board, receives a letter from one “Prince Turki”. Along with the letter is an introduction to PetroSaudi International by its chief executive Tarek Obaid.

…more
1MDB’s ‘original sin’ and Jho Low
8 April 2016 – malaysiakini

Advertisements
29
Aug
17

Tun Razak would be ‘heartbroken’ by current state of nation

Tun Razak would be ‘heartbroken’ by current state of nation


He said the National Education Policy in the Razak Report clearly stated that unity should be fostered through education.

“Today, we see that the education policy has slowly failed to unite the people.

The new generation of various races who attend different streams of schooling do not have the opportunity to interact with one another, Instead, they grow up within the confines of their respective communities.”

The sultan lamented the implementation of the New Economic Policy, of which Tun Razak was the architect, that had veered from its original intention.

“There has been abuse in dividing the economic pie that has resulted in leakages in Malay equities, which not only caused non-Bumiputeras to regard the policy as discriminatory, but even Malays, too, have voiced their outrage. ”

Sultan Nazrin said Tun Razak would be heartbroken to see the many exposes and arrests due to corruption.

“Many high-ranking and educated individuals are implicated, and huge amounts are involved. It puts a dent in our country’s reputation ,” he said, adding that Tun Razak was remembered for his honesty and trustworthiness.

The ruler drew attention to how Tun Razak was very careful when dealing with money because of his belief that taxpayers’ funds should not be misused for himself and his family.

“Instead, he would pay back every sen that was spent, whether on a bottle of hair oil or a toothbrush, which was bought during official trips abroad.”

He said Tun Razak never clung to power, but believed in empowering the people and the next generation of leaders with responsibilities. – August 29, 2017.

…more
Tun Razak would be ‘heartbroken’ by current state of nation
29 Aug 2017 – TMI

28
Aug
17

A swing in Malay votes will give us HOPE for a better govt

…more
Stats show Umno split could result in swing in Malay votes
August 26, 2017 – FMT

26
Aug
17

REAL assets allegedly acquired using stolen 1MDB funds

…more
Yacht, diamonds and more in DOJ’s latest 1MDB filing
16 June 2017 – malaysiakini

25
Aug
17

Najib’s meeting with Trump will shine international spotlight on 1MDB once again

…more
Trump to meet scandal-hit Malaysian leader in September
August 23, 2017 – Reuters

24
Aug
17

The 1MDB scandal is an election issue for voters

1MDB matters to voters, Pakatan roadshows reveal

THE 1Malaysia Development Bhd (1MDB) scandal is an election issue for voters, especially now that they have been given a clearer picture of what has transpired and its impact on the country.

The continued traction the subject is having outside the Klang Valley suggests that Pakatan Harapan may be able to rally voters around the issue ahead of the 14th general election.

Residents of an Ipoh suburb told The Malaysian Insight that they understood the salient points of the issue after they were explained to them in plain language at a ceramah last night.

The “Save Malaysia, End Kleptocracy” ceramah in Klebang, just outside Ipoh, is the latest in a series of roadshows to explain the multi-billion ringgit scandal to Malaysians, especially those living in rural and remote areas.

The roadshow will culminate in a massive Pakatan rally in Petaling Jaya on October 14.

Housewife Habibah Khalid, 53, said former prime minister Dr Mahathir Mohamad’s account of 1MDB events last night was the best she had heard so far.

“His explanation on 1MDB we can understand. We didn’t really understand (Prime Minister) Najib’s role in it in the past.

“But when Tun M came down here and explained, then we can imagine it,” she said.

Dr Mahathir told the audience that Najib had created the state investment fund with financier Low Teck Jho to allegedly generate money to buy the loyalty of his Umno subordinates.

1MDB was used to apply for loans, which were siphoned and stolen, Dr Mahathir said. The RM42 billion debt that had been racked up was then left for the people to pay, he claimed.

Salesperson Beh Hooi Luan, 53, was at the ceramah because of Dr Mahathir.

“I came because a friend told me Tun M would be here.

“We want to change the government as BN has been in power long enough. Tun M spoke about 1MDB in his speech and the country is in a lot of debt,” she said.

Nasaruddin M Soid, 46, came to hear what Dr Mahathir had to say for himself after seeing the former premier vilified on mainstream media such as TV3 and Berita Harian.

“I wanted to compare what they were saying about Tun and what Tun himself had to say,” said the Kuala Kangsar resident.

“During Tun’s time, our country was famous all over the world. Now we have 1MDB; our ringgit is shrinking. The country is in bad shape.”

Ipoh resident, Jiwa Yogeswari, 27, hoped the roadshows would continue to offer more talks and explanations tailored for kampung folk.

“I think many village folk still don’t understand it. But when Tun explains it, I am able to understand.” – August 21, 2017.

…more
1MDB matters to voters, Pakatan roadshows reveal
21 Aug 2017 – TMI

23
Aug
17

DOE found no pollution at illegal factory in Penang

Phee reveals minutes, DOE found no pollution at illegal factory

Penang executive councillor Phee Boon Poh revealed that the Department of Environment (DOE) found no pollution at the unlicensed factory in Kampung Sungai Lembu, Bukit Mertajam, in 2015.

At a press conference in Komtar today, Phee distributed minutes of a meeting which took place on May 6, 2015, at the Seberang Perai Municipal Council to back his claim.

PKR Penanti assemblyperson Norlela Ariffin, who raised complaints from residents over environmental pollution, attended the May 6 meeting.

Chief Minister Lim Guan Eng, who was at the press conference with Phee, said the state executive council at its weekly meeting today approved that the minutes be declassified for the media.

“The DOE found no pollution as barriers were erected at the top of the factory to prevent the release of smoke and ash from the factory,” Phee said.

“The DOE said it can support the factory if there were safety devices and the burning was done in a closed environment,” he added.

Phee said the factory owner had to obtain a license from the MPSP while DOE would see to additional conditions including sustainability of the site.

Phee, and the owners of the factory were arrested by the MACC on Aug 10.

Phee had issued letters to the MPSP to halt action against the factory as the state was finding a solution to resolve cases of illegal premises, businesses and places of worship.

…more
Phee reveals minutes, DOE found no pollution at illegal factory
22 Aug 2017 – malaysiakini




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