Archive for the 'Financial' Category


RM3.5 million cash taken from Najib’s office on night of election

PMO heist: RM3.5m taken from Najib’s office on night of election

EXCLUSIVE | The security personnel at the Prime Minister’s Department remanded by the MACC today had allegedly taken cash totalling RM3.5 million from the office of former premier Najib Abdul Razak on the night of the 14th general election.

Sources told Malaysiakini that the 17 security personnel had taken away the money – which the MACC said was part of Umno’s election war chest – upon learning that “BN was losing the election.”

“The security personnel were part of a team on duty that night to provide security at the department.

“Those arrested were the ones who at that time were tasked to guard its main building where the Prime Minister’s Office is.

“It is believed that when they learned that BN was going to lose the election, they decided to take something for themselves and went into an office that belongs to former prime minister,” a source said.

The cash, added the source, was not kept in a safe.

Authorities suspect that the group had cleared up all the cash they could find in the office.

Another source said authorities began to become suspicious at the suspects’ involvement when they were seen flashing their sudden wealth, including with purchases of new motorcycles.

When contacted by Malaysiakini, MACC deputy chief commissioner of operations Azam Baki confirmed that the security personnel are being investigated, but declined to elaborate further.

PMO heist: RM3.5m taken from Najib’s office on night of election
Hariz Mohd
8 Aug 2018 – Malaysiakini


Najib has also been charged with money laundering – total of seven charges

‘Money laundering’ adds to Najib’s legal woes – total seven charges

Najib Abul Razak has been slapped with three charges under the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001, with four earlier charges being amended.

The former premier arrived at the Jalan Duta court complex in Kuala Lumpur this morning in a blue-grey blazer and tie.

He was led straight to the Sessions Court before Judge Azura Alwi, where the new charges were read out.

It was during this time that the court interpreter stumbled in mentioning the monetary figures in the charge sheet, and Najib corrected the figures twice.

This led to slight giggles in the public gallery.

Najib was charged with three counts of money laundering, with regard to three deposits into his AmIslamic Bank account between Dec 26, 2014 and Feb 10, 2015.

The sum of each deposit was RM27 million, RM5 million and RM 10 million respectively.

The former premier was charged under Section 4(1)(b) of the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001.

Under the Act, Najib stands to face a jail term of 15 years, and a fine amounting to five times the money laundered if convicted.

Although the new charges did not mention where the money originated from, sources disclosed yesterday that they were related to SRC International Sdn Bhd, a former subsidiary of 1MDB.

Najib was then led to the High Court, where the charge was read again and the former premier claimed trial.

High Court judge Azman Abdullah presided over the case.

The judge allowed DPP Mohd Hanafiah Zakaria’s request to transfer the case involving the three new charges to Justice Mohd Nazlan Mohd Ghazali’s court.

DPP Manoj Kurup then took over and requested the court to amend the four charges proffered against Najib on July 4.

‘Money laundering’ adds to Najib’s legal woes – total seven charges
Hafiz Yatim
8 Aug 2018 – Malaysiakini


Here is how 1MDB money was used to buy Equanimity

Dear ex-PM, here is how 1MDB money was used to buy Equanimity

KUALA LUMPUR: Super yacht Equanimity of fugitive financier Low Taek Jho (Jho Low) fame, was bought using four tranches of funds totalling US$262.4 million misappropriated from 1Malaysia Development Bhd (1MDB) between January and June 2014, according to lawyers representing the Malaysian government who “arrested” the billion-ringgit vessel in Port Klang yesterday.

In fact, US$140.6 million or just over half the yacht’s price tag was paid in early June 2014 using proceeds of a US$239.9 million Deutsche Bank bridging loan taken by 1MDB’s then 100%-owned unit 1MDB Energy Holdings Ltd (1MEHL) on May 26, 2014, according to information from Sitpah Selvaratnam, from the firm Tommy Thomas Advocates & Solicitors and lauded as one of Malaysia’s best maritime lawyers. [See Chart 4]

Two days after getting the loan, 1MEHL transferred most of the cash to Aabar BVI (British Virgin Islands), also known as the fake Aabar. The money then went through Affinity Equity and Alpha Synergy before reaching Jho Low, who on June 3, 2014 transferred US$140.6 million to WorldView for the fourth and final payment of the yacht. The earlier three tranches originating from 1MDB also went to WorldView.

“WorldView Ltd is a family trust of which only the Low family are beneficial owners of,” according to Low’s email in June 2015 to a lawyer at Hill Dickinson LLP and a senior BSI banker cited in the 251-page filing by the US Department of Justice (DoJ) in June 2017 to seize 1MDB assets, including the Equanimity.

The same filing said Jho Low and his parents Low Hock Peng (LHP) and Evelyn Goh Gaik Ewe on Sept 9, 2013 flew from Barcelona to Rotterdam — near where the Equanimity was being built — to view the shipyard and the yacht the following day.

The DoJ filing also said Jho Low laundered over US$200 million in misappropriated funds traceable to 1MDB’s 2013 bond sale into a US account belonging to US-based law firm DLA Piper.

The US$29.1 million second payment for Equanimity made on Feb 5 and 18 as well as April 2, 2014 was part of the US$56.5 million that went from DLA Piper’s account to LHP — who with Jho Low participated in the Condor joint venture (JV) through Strategic Resources (Global) Ltd (SRG) to acquire Houston-based Coastal Energy with International Petroleum Investment Co (Ipic) and Ipic’s Spanish unit Compañía Española de Petróleos SA.

The first and third tranches of payments for Equanimity made on Jan 7, 2014 and April 11, 2014 originated from US$2.72 billion bond proceeds raised in March 2013 by 1MDB Global Investment Ltd, which found their way to another Jho Low-linked offshore entity, Tanore Finance Corp.

The bond proceeds were intended for a JV with Ipic’s unit Aabar Investments PJS called Abu Dhabi Malaysia Investment Co. But instead of funding the Tun Razak Exchange development, the cash ended at Tanore instead. The money in the Tanore account was also used to buy artworks and the Park Lane hotel in New York, according to the DoJ filing.

Dear ex-PM, here is how 1MDB money was used to buy Equanimity
The Edge Financial Daily
August 08, 2018 –


Why pay Arul Kanda RM5 million and immediately place him on ‘garden leave’?

Tell us why Arul Kanda deserved RM5m payout, Pua asks Najib

KUALA LUMPUR, Aug 2 — Former prime minister Datuk Seri Najib Razak must explain why his administration awarded Arul Kanda Kandasamy a RM5 million contract to remain 1MDB president, DAP’s Tony Pua said today.

The Damansara MP also demanded Najib explain how Arul “successfully” managed to reduce 1MDB’s RM50 billion debt to RM30 billion, which the latter asserted yesterday.

“The question which begs to be asked is, why pay the purportedly brilliant Arul Kanda a whopping RM5 million contract and then place him immediately on ‘garden leave’?” Pua said in a statement.

The DAP national publicity secretary pointed out that Najib’s explanation yesterday was the first time he admitted that 1MDB had accumulated RM50 billion of debt as a result of the company’s excesses since its inception in 2009.

Pua also disputed the “success” of Arul’s efforts in trimming the state investment firm’s debt burden, noting that assets were sold for less than what the firm paid.

“The first thing Arul Kanda did was to dispose of 1MDB’s only profit-making asset, its power plants for RM9.83 billion, ‘successfully’ paring down 1MDB’s debt by an equivalent amount.

“However, as highlighted many times — 1MDB’s energy business was originally acquired for RM12.1 billion, which meant that the sale crystalised a loss of RM2.27 billion for 1MDB,” Pua said.

He added that Arul had also transferred the ownership of 1MDB’s real estate assets to the Finance Ministry and had justified the move as based on “advice” from Parliament’s Public Accounts Committee.

Pua said the truth was that the Tun Razak Exchange and Bandar Malaysia land came attached with a RM2.4 billion sukuk bond and a RM800 million loan from the Social Security Organisation (Socso).

“Very cleverly, Arul Kanda successfully reduced 1MDB’s debt by another RM3.2 billion.

“Then the masterstroke from Arul Kanda must have been the ability to disingenuously announce that 1MDB has been successfully servicing and repaying approximately RM7 billion of its debts over the course of the past year, when in reality, it was MoF which was forced to secretly finance these payments,” Pua said.

Tell us why Arul Kanda deserved RM5m payout, Pua asks Najib
By Shazwan Mustafa Kamal
02 August 2018 – MMO


Swiss criminal probe seeks two 1MDB officials

Swiss criminal probe seeks two 1MDB officials

Swiss investigators in their 1MDB criminal probe are seeking two Malaysians in connection with an alleged illicit US$700 million transfer.

According to Bloomberg, the duo is described as “T and L” and could only be identified as such under Swiss law.

It is understood that the two alphabets stand for Casey Tang Keng Chee and Jasmine Loo Ai Swan who is also wanted by Malaysian authorities.

The report said the duo were being investigated for bribery, misconduct in public office, money laundering and criminal mismanagement.

Swiss authorities have been on the hunt for the duo since July 10, following Swiss attorney-general Michael Lauber’s meeting with his Malaysian counterpart in Putrajaya.

Bloomberg reported that neither Tang nor Loo were listed in public phone records and the news organisation was unable to locate any of their representatives.

Loo was described as the “main point of contact” between 1MDB with Goldman Sachs, which was now being probed by US authorities over its role in helping 1MDB raise US$6.5 billion between 2012 and 2013.

“We had no visibility into whether some of those funds may have been subsequently diverted to other purposes by the issuer, members of the Malaysian government or others,” Edward Naylor, a Hong Kong-based spokesman for the bank, told Bloomberg.

Goldman Sachs made US$600 million in commissions from that deal.

As for Tang, the US Department of Justice (DOJ) had alleged that he misled banks and concealed certain facts from 1MDB’s board of directors in order to transfer US$700 million to Good Star Ltd, which in turn is supposedly owned by fugitive businessperson Low Taek Jho (above).

The DOJ had alleged that Tang and Loo were paid US$5 million and US$5.9 million respectively with funds that allegedly originated from 1MDB.

Both Tang and Loo have been sought by Bank Negara investigators since 2015.

Swiss criminal probe seeks two 1MDB officials
31 July 2018 – Malaysiakini


1MDB land surreptitiously sold to Cayman Islands firm

1MDB land surreptitiously sold to Cayman Islands firm

This article first appeared in The Edge Financial Daily, on July 30, 2018.

KUALA LUMPUR: Despite a freeze imposed by the Penang state government on transactions involving 1Malaysia Development Bhd’s (1MDB) Air Itam land in Penang, all 234 acres (94.7ha) have been surreptitiously sold to Cayman Islands-based Silk Road Southeast Asia Real Estate Ltd, according to Finance Minister Lim Guan Eng.

Guan Eng said the land was sold for 4.25 billion yuan (RM2.7 billion) on Aug 24, 2017, netting a profit of RM1.32 billion based on the original RM1.38 billion purchase price.

The sale was carried out through the disposal of the land’s owner, 1MDB unit My City Ventures Sdn Bhd, to Silk Road via a share sale agreement, Guan Eng said in a written parliamentary reply.

“Although the full proceeds from the disposal of My City Ventures have been received by Minister of Finance Inc’s wholly-owned subsidiary Sentuhan Budiman Sdn Bhd (SBSB), the transfer of shares to Silk Road has yet to be completed.

“To date, SBSB has yet to receive any application from Silk Road to have the shares transferred,” Guan Eng said in reply to a question on July 19 from Bukit Bendera member of parliament Wong Hon Wai on the status of the land.

A source familiar with the issue said the transaction reeks of money laundering, as the buyer did not subsequently seek the transfer of the shares.

“Why do you throw so much money and don’t ask for the transfer of titles? The obvious answer is money laundering,” the source told The Edge Financial Daily.

It is believed that the money might have travelled from the ministry of finance’s (MoF) wholly-owned unit Suria Strategic Energy Resources Sdn Bhd’s RM9.4 billion gas pipeline project that was awarded to China Petroleum Pipeline Bureau on Nov 1, 2016.

The project is being scrutinised by the federal government along with the East Coast Rail Link built by China Communications Construction Co Ltd, with both companies being issued with stopwork orders on the grounds of national interest, among others.

The money is suspected to have originated from the project’s financing via China Exim Bank before travelling to Silk Road, with an Arab shareholder, and returning to Malaysia where it was transacted in renminbi for the land, and later used to service the US$3.5 billion International Petroleum Investment Co (IPIC) loan.

“The company (Silk Road) did not care about the (Air Itam) land because it was not their money anyway. There is no money trail evidence but it is quite obvious (that it is money laundering),” the source said.

However, the MoF is not able to do anything, the source said, adding that Silk Road did ask for the transfer of the land titles sometime back but there has been no follow-up since.

A company search showed that My City Ventures is a RM2 company set up on March 21, 2013 with RM145,503 paid-up and issued capital. Former 1MDB chief financial officer Azmi Tahir and Chen Kai Hong were named as directors. The company posted a net profit of RM18,478 with zero revenue for the financial year ended March 31, 2017 (FY17). Its total assets dropped to RM137,882 from RM1.07 billion in FY15.

My City Ventures’ subsidiary 1MDB RE (Ayer Itam) Sdn Bhd bought the Air Itam land from Farlim Properties Sdn Bhd and Gerak Indera Sdn Bhd on April 29, 2013, along with another 1.1 acres from Farlim Group Bhd on Sept 23, 2013, for a total of RM1.38 billion.

1MDB land surreptitiously sold to Cayman Islands firm
Sangeetha Amarthalingam
The Edge Financial Daily
July 30, 2018


Rothschild bank sanctioned for role in 1MDB scandal

Rothschild bank sanctioned for role in 1MDB scandal

The Swiss financial regulator has concluded its investigations into the Malaysian 1MDB scandal by finding Rothschild Bank AG and one of its subsidiaries in serious breach of anti-money laundering regulations.

The Swiss Financial Market Supervisory Authority (FINMA) said on Friday that it has appointed an auditor to make sure the bank and its Rothschild Trust vehicle properly implement an internal overhaul of its practices.

Rothschild Bank AG is the third Swiss bank to be directly implicated in the 1MDB fraud that saw billions of dollars syphoned off from the sovereign wealth fund into the pockets of corrupt officials.

BSI and Falcon banks have also been subject to FINMA enforcements. In addition, the Swiss Attorney General is conducting criminal probes into those two banks plus six unnamed individuals. The long-running scandal has also seen criminal actions in Malaysia, Singapore and the United States.

Concerning Rothschild, FINMA statedexternal link that the two entities were found to be “in breach of due diligence, reporting and documentation requirements”.

“Although there were early indications that this client could be involved in money laundering activities, the institutions decided nevertheless to enter into the relationship and at a later stage considerably expand it,” the statement read.

The entities also failed to document suspicious transactions or report them in a timely manner, FINMA ruled.

The regulator also said on Friday that it has officially closed its 1MDB related investigations following seven enforcement actions.

Rothschild bank sanctioned for role in 1MDB scandal
July 20, 2018 –

The dawn of A Better Malaysia!
Rafidah Aziz, Hannah Yeoh, Ambiga at TTDI ceramah


Mahathir in Putrajaya ceramah


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?