Saturday, April 22, 2017

1MDB new auditor’s biggest challenge now is to audit and verify the purported sale of 1MDB’s Brazen Sky or its assets to a “undisclosed third party”

The Singapore Straits Times reported that 1MDB is expected to ink an agreement with Abu Dhabi's International Petroleum Investment Co (IPIC) to settle a dispute involving billions of dollars very soon.

In its report, the Singapore daily cited sources as saying the agreement would see 1MDB pay IPIC US$1.2 billion by year end, to settle a loan and accumulated interest from a bailout the IPIC gave 1MDB in July 2015.

It said most of the money would come from the sale of "fund units" from 1MDB subsidiary Brazen Sky to an undisclosed buyer.  Brazen Sky is of particular interest to 1MDB watchers because its account in Singapore's BSI Bank was supposed to be the account used to receive funds from 1MDB's Cayman Islands account.

If the Singapore Straits Times report is to be believed, then 1MDB’s newly appointed auditor, Parker Randall will now be faced with their biggest test to date.  Parker Randall, represented locally by the Malaysian audit firm, “Afrizan Tarmili Khairul Azhar” (aftaas) must carry out the necessary due diligence and audit to ensure that the transactions taking place are bona fide and above board.

Of interest is the fact that until today, 1MDB has failed to provide any form of clarity of these “fund units” worth US$940 million purported redeemed from a Cayman Island investment fund.

1MDB has refused, despite repeated demands from the Public Accounts Committee and the Auditor-General to provide financial statements and documents of 1MDB’s overseas bank accounts and assets, including that of Brazen Sky Limited.

Worse, these assets were purportedly parked in BSI Bank, Singapore which have already had its merchant banking license withdrawn by Monetary Authority of Singapore.  When questioned in Parliament, the Minister of Finance responded that these units were not managed by any fund manager or investment bank, while also refusing to where the “units” have been moved to.

Hence it is critical for Parker Randall or aftaas to confirm the existence and authenticity of the US$940 million worth of “units”.  Most interestingly, despite the fluctuating value of investment assets over time, these fund units appeared to have a frozen value of US$940 million since its redemption in January 2015.

In addition, should Brazen Sky or its assets be sold, Parker Randall must verify that the sale and purchase transaction is a genuine transaction and not another case of paper shuffling which have taken place earlier in 1MDB’s US$1.8 billion investment in Petrosaudi.

It is also important for Parker Randall to confirm and satisfy itself on the identity of the mysterious “undisclosed buyer” of these mysterious Brazen Sky assets as part of its audit verification. The auditors must also trace the money trail of the fund transfers from the mysterious undisclosed buyer into 1MDB before being transferred to IPIC.

The audit is all the more important given the spotlight 1MDB has, which has caused some half a dozen of banks around the world to be shutdown or penalised for facilitating money laundering transactions.

Surely, after Deloitte Malaysia disgracefully resigned from 1MDB for failing to detect any of the above illicit and money laundering activities, Parker Randall do not want to follow the same footsteps and sully its international reputation.

Tuesday, April 11, 2017

I stand by the video comments I have made which have purportedly defamed the honourable Prime Minister

I have received a letter of demand from the Prime Minister, Dato’ Seri Najib Razak, served by his lawyers from Hafarizam Wan & Aisha Mubarak who brought along TV3 to my office in Petaling Jaya yesterday evening.

The letter demanded that I retract the statement, remove the video, publicly apologise to the Prime Minister and pay an amount of compensation to be agreed upon within 7 days.

I have reviewed the 5-minute video published on 6 April 2017 and I hereby state that I will standby the comments I have made.  Hence I will neither retract the statement, remove the video, publicly apologise to the Prime Minister nor offer to pay any amount of compensation to Dato’ Seri Najib Razak.

This is simply because the statements which I have made are grounded on established facts which have not been disputed.

The Sarawak Report and the Wall Street Journal first made the allegation that US$681 million originating from 1MDB, a wholly-owned subsidiary of the Ministry of Finance found its way into Dato’ Seri Najib Razak’s personal bank account with Ambank Malaysia.  This was subsequently confirmed in evidential documents produced by the United States Department of Justice (US DOJ).  In fact, the US DOJ pointed out in their legal filings that the total amount originating from 1MDB and surfaced in the Prime Minister’s bank account was US$731 million.

It should be noted that Dato’ Seri Najib Razak has never publicly disputed or denied the facts presented by the US DOJ since July 2016.

In addition, the US DOJ has labelled Malaysia as a kleptocracy.  The Dictionary.com definition of “kleptocracy” is “a government or state in which those in power exploit national resources and steal; rule by a thief or thieves”.

Despite the reputational damage inflicted on Malaysia as a result of US DOJ’s suit to seize assets worth approximately US$1 billion acquired with laundered funds originating from 1MDB, the Prime Minister and his Government has refused respond to the highly detrimental allegations.

In fact, the Prime Minister has steadfastly refused to clarify and respond to the matter in Parliament, despite repeated request by Members of Parliament to do so.

What’s more, I have also outlined all the facts and evidence of the above misconduct and more, in my civil suit against the Prime Minister for public misfeasance filed in January this year.  Dato’ Seri Najib Razak doesn’t even have to sue me a second time, he just needs to answer to the charges I have made in my suit to debunk any “fake news” which have purportedly damaged his reputation.  Instead, he has chosen to try to strike out my suit with a mind-boggling defense that he “is not a public officer” and hence cannot be subjected to a public misfeasance suit.

Hence, I can only interpret the Prime Minister’s latest letter of demand, the second I have received from him, is an attempt not to right a wrong, but to silence the truth.

Just as I never stopped exposing, highlighting and questioning the RM50 billion ringgit 1MDB scandal despite being sued for defamation the first time round in March 2015, I will not be intimidated or frightened from continuing to do the same.

It is my fervent believe that not only my voters who voted me into office, but an overwhelming majority of Malaysians cannot accept a kleptocratic administration or a Prime Minister who stole billions from the rakyat.  Therefore, I will doggedly persist and persevere in fighting the democratic cause to free Malaysia from such evils and disease.

Monday, April 10, 2017

There is no need for Senior State Executive Councillor, Teng Chang Khim to resign as to err is only human, and the errors upon discovery are rectified

The DAP Selangor State Committee met in an emergency meeting this afternoon to discuss the public concerns over the guidelines and planning restrictions over non-Muslim places of worship.

The DAP Selangor State Committee unanimously agreed that the recommendation that non-Muslim places of worship should not be built within 50m of a home owned by Muslims, as well as several other guidelines are not appropriate for a multi-racial, multi-religious society which encourages mutual respect and tolerance.

It should be noted that such guidelines are the status quo for other BN-led states like Johor and Negeri Sembilan.  

The State Committee heard the explanation provided by Selangor Vice-Chairman and Senior State Executive Councillor, Teng Chang Khim, that despite having requested state government officials to make the necessary changes, the changes were not incorporated into the final version of the guidelines. 

As reported during his press conference in the morning, Teng has apologised for the unintended error and even offered to resign from his position.

The State Committee found that the question of Teng resigning from his government office does not even arise as he has committed no crime.  He has neither stolen money from the state government coffers, nor abused his powers to benefit vested interest parties like developers.

Instead, DAP Selangor would like to commend Teng for stepping forward to take full responsibility over the unintended error and omission, despite the fact that the guidelines manual was approved by the Selangor State Planning Committee.

To err is certainly human, but what is most important is the fact that immediate steps are being taken to ensure that these errors are corrected upon discovery.  No one has yet suffered or been penalised by the guidelines for new non-Muslims places of worship.  

Hence, DAP Selangor state committee supports Teng’s decision to seek the State Executive Council’s (Exco) approval on Wednesday for immediate suspension of the guidelines implementation pending revision.

At the same time, in the light of the gravity and sensitivity of the matter, the Selangor State Committee also resolved to set up a special sub-committee to assist Teng.  This will ensure that no stones are left unturned in the revision process.  The sub-committee will be led by Vice-Chairperson, Hannah Yeoh and four other members, Rajiv Rishyakaran, Dr Abdul Aziz Bari, Yeo Bee Yin and Ng Sze Han.

DAP Selangor would like to reiterate that the constitutional provisions providing for Islam as the religion of the Federation and guaranteeing the freedom of religion would be defended at all cost.  We firmly believe that such provisions can only be achieved with tolerance, respect and acceptance of such freedoms by all Malaysians.

Monday, April 03, 2017

Dato’ Seri Nazri Aziz must prove that Malaysia is not a Police State

After great expectations were set for the Tun Dr Mahathir Mohamad and Datuk Seri Nazri Aziz debate on 1MDB, for the second time, the Police stepped in to stop the debate by refusing to grant a “permit”.

The original intent was for the debate to be held in a townhall in the Tourism Minister’s own constituency, Padang Rengas.  The Police put a stop to that, forcing a change in venue to the premises of Karangkraf Media Group, the publisher for local daily, Sinar Harian in Shah Alam.

Despite an earlier approval by the Selangor police with conditions which were accepted by the organisers, the Police has now rescinded the approval.

Apparently, “the Shah Alam district police headquarters had received objections from residents in the surrounding area”.  Hence, “after studying and considering the matter based on public order, the peaceful assembly permit reference 4/17 dated March 31 is cancelled,” the Police said.

The denial of a permit for a political debate or dialogue is ridiculous at so many levels.

For one, Karangkraf is located at an industrial area, a good distance from the nearest residential zones.

Secondly, it is the role of the Police to facilitate and ensure that the dialogue or debate takes place in a peaceful manner by providing the necessary support and security.  The constitutionally-guaranteed rights to freedom of assembly and speech should not be denied by those who are threatening those very freedoms.

However, most importantly, it is not at all within the powers of the Police to deny approval for the event to take place.  Based on the Peaceful Assembly Act (PAA) 2012, all the organisers are required to do under the law is to give a 10-day “notice”.  The Act does not provide for the police to say yay or nay to an assembly, what more an indoor function at private premises.  A police permit is no longer required.

The clear cut abuse of power by the Police in this case shows without a doubt, the fear by the Najib administration for the debate on 1MDB to take place. The debate will only serve to confirm in the minds of Malaysians – the fact that billions of ringgit of 1MDB funds surfaced in the personal bank accounts of the Prime Minister.

It would have been a debate so lopsided that even Dato’ Seri Nazri Aziz, arguably one of the sharpest debaters on the frontbench, could not possibly win.  However, with the Tourism Minister demonstrating unbounded bravado, the Police was called to step in to stop the debate to save Dato’ Seri Najib Razak the blushes.

Dato’ Seri Nazri has previously told reporters that “Malaysia is not a Police State”, after the original debate was denied by the Police, hence the subsequent alternative arrangement was made.

Hence, we call upon the Senior UMNO Minister to prove that Malaysia is indeed “not a Police State” by insisting and proceeding with the debate with Tun Dr Mahathir, regardless of the ruling made by the Police.

The Minister’s failure to do so will not only confirm, by his own benchmark, that Malaysia has indeed degenerated into a Police State. It will also confirm that he is not a man of his words and has conveniently found a face-saving way out of proceeding with the much anticipated debate.