Malaysians are still up in arms over the 1MDB-IPIC “settlement” which was announced less than two weeks ago where the Ministry of Finance has agreed to assume US$3.5 billion of 1MDB bond liabilities which were previously bourne by the International Petroleum Investment Corporation (IPIC) of Abu Dhabi.
The Malaysian Government had agreed to do so despite the fact that both 1MDB and the Cabinet Ministers had in the past insisted that 1MDB had already paid to IPIC’s subsidiary, British Virgin Island-registered Aabar Investment PJS Limited (“Aabar(BVI)”) a total of RM3.51 billion between 2012 and 2014.
The Second Finance Minister, Dato’ Seri Johari Abdul Ghani had previously said he was “very confident” of 1MDB winning the arbitration fight against IPIC. Despite the bravado displayed, it was 1MDB which capitulated before the arbitration proceedings commenced in full, with the Malaysian parties conceding pretty much to all substantive demands from IPIC.
However, the Second Finance Minister denied any responsibility for the outrageous settlement terms. Instead, he shifted the blame to Dato’ Seri Najib Razak by pointing out that “the Prime Minister has made the decision for the country. That’s it,” and that the matter is now “beyond [him]”.
Dato’ Seri Johari Abdul Ghani even defended himself by revealing that there was a letter from the BVI Registrar of Companies clearly stating that Aabar(BVI) was indeed a subsidiary of IPIC.
While the existence of such a presumably legitimate letter still does not in itself prove that Aabar(BVI) isn’t a fraudulent set up, it does highlight the fact that the Government’s decision defies all logic. After all, why would the Government then under all rational circumstances, concede to the demands of IPIC if there was nothing incriminating on the part of 1MDB? As the Malay proverb goes, there must be “udang di sebalik batu”.
This was the reason for my call for the newly-appointed Auditor-General and the Public Accounts Committee (PAC) to re-look into the 1MDB scandal in the light of the latest developments.
I certainly wasn’t the only one asking for a review. Even Barisan Nasional Members of Parliament in the PAC, Marcus Mojigoh of Putatan who asked for the above letter to be presented and Aziz Sheikh Fadzir of Kulim Bandar Baru who asked where the payments to Aabar(BVI) went, are keen to obtain answers.
However, instead of responding to requests by multiple parties to re-open the inquiry, the Public Accounts Committee Chairman, Datuk Hasan Arifin has remained as quite as a mouse. In fact, not only has he not released any statement on an issue of such import, involving more than RM15 billion of tax-payers’ funds, he has been avoiding media enquiries like plague!
I have been informed that he has refused to pick up phone calls, text message or emails from journalists with regards to the above.
Datuk Hasan Arifin’s lack of action is certainly consistent with his track record of covering up for the Najib administration – when he refused to summon the Prime Minister to the PAC as a witness, saying that he has to “cari makan”, and when he secretly and unilaterally amended the finalised PAC Report which was tabled in Parliament.
However, the fact that the loss of US$3.51 billion is staring at Malaysian faces today deserves at the very least, an acknowledgement from the Chairman of the PAC, the very institution conceived to check and scrutinise Government-related expenditures.
If Datuk Hasan Arifin cannot bring himself to, or can’t be bothered to perform his parliamentary and constitutionally entrusted role, he should have the moral decency to resign from his position. He should give way to someone who is at least somewhat serious about integrity, accountability and being answerable to Malaysians.
Showing posts with label Aabar Investment. Show all posts
Showing posts with label Aabar Investment. Show all posts
Tuesday, May 02, 2017
Thursday, April 27, 2017
Did Dato’ Seri Johari Abdul Ghani just blame the Prime Minister for sacrificing US$3.5 billion in 1MDB’s “settlement” with IPIC for “the bigger picture”?
In an exclusive response to Malaysiakini yesterday, Dato’ Seri Johari Abdul Ghani insisted that he has proof that Aabar Investment PJS Limited (“Aabar(BVI)”), an entity incorporated in the British Virgin Islands which 1MDB has already paid US$3.51 billion was a genuine subsidiary of International Petroleum Investment Corporation (IPIC) of Abu Dhabi.
"As far as I am concerned, based on records provided by 1MDB to the Public Accounts Committee (PAC) prior to the settlement agreement, Aabar Investments PJS Ltd (BVI) is a subsidiary of IPIC. A fact which was confirmed by the Registrar of Corporate Affairs of the British Virgin Islands by its letter dated Aug 11, 2016," he told Malaysiakini.
The question is, if the so-called “proof” is so incontrovertible, then it makes absolutely no sense to concede on a whopping US$3.5 billion or more than RM15 billion based on today’s exchange rates!
Instead of being all gung-ho in being able to win the IPIC-initiated arbitration, the Second Finance Minister said “the matter is beyond [him]” in a subsequent press conference yesterday. He now made a complete U-turn claiming that the government decided to look after the “bigger picture”.
“At the end of the day, the government felt that they are looking at the bigger picture on this, in terms of the relationship between Malaysian and Abu Dhabi and so on… So I think that’s beyond me. I’m going for the facts, but this is a bigger thing.”
In fact, the Second Finance Minister shifted the blame to the Prime Minister. “The Prime Minister has made the decision for the country. That’s it,” he retorted.
But that’s exactly what Malaysians are worried about – that it’s the tainted Prime Minister who is making the decisions because he is conflicted!
Based on documents revealed by the United States Department of Justice (US DOJ), which were corroborated by the evidence produced by the Singapore prosecution against its rogue bankers, from the funds transferred to Aabar(BVI), Dato’ Seri Najib Razak personally received a sum of US$30 million in his personal bank account in Ambank in 2012.
Worse, his stepson, Riza Aziz received US$238 million via his Red Granite group of companies. Some US$100 million of the sum was used to produce the Hollywood movie, The Wolf of Wall Street starring Leonardo Dicaprio.
In addition, isn’t Dato’ Seri Johari interested to find out if, despite the incontrovertible “proof” in his possession, that Aabar(BVI) had been fraudulently set up by the officers of IPIC – Khadem Al-Qubaishi and Mohamed Badawy Al-Husseiny, both of whom have been sacked by IPIC – in collusion with 1MDB officers to defraud both the Abu Dhabi and Malaysian governments?
Hence the question must be asked as to whether Dato’ Seri Najib Razak decided to ‘settle’ the IPIC dispute which resulted in US$3.5 billion of additional liability for Malaysians because it is really in the interest of the country or, to prevent IPIC from further exposing and confirming his complicity in the entire 1MDB misappropriation scandal.
Therefore, it is utterly irresponsible of Dato’ Seri Johari to wash his hands off the Ministry of Finance taking on the RM15 billion mega-liability. Instead of acting ignorant, shouldn’t the Second Finance Minister satisfy himself that the Prime Minister has not made the decision out of self-interest? In reality, was the “bigger picture” a blatant attempt to save Najib and Barisan Nasional from losing in the next General Election?
If the matter is indeed “beyond” him as he pleads, then he might as well resign as the Second Finance Minister.
"As far as I am concerned, based on records provided by 1MDB to the Public Accounts Committee (PAC) prior to the settlement agreement, Aabar Investments PJS Ltd (BVI) is a subsidiary of IPIC. A fact which was confirmed by the Registrar of Corporate Affairs of the British Virgin Islands by its letter dated Aug 11, 2016," he told Malaysiakini.
The question is, if the so-called “proof” is so incontrovertible, then it makes absolutely no sense to concede on a whopping US$3.5 billion or more than RM15 billion based on today’s exchange rates!
Instead of being all gung-ho in being able to win the IPIC-initiated arbitration, the Second Finance Minister said “the matter is beyond [him]” in a subsequent press conference yesterday. He now made a complete U-turn claiming that the government decided to look after the “bigger picture”.
“At the end of the day, the government felt that they are looking at the bigger picture on this, in terms of the relationship between Malaysian and Abu Dhabi and so on… So I think that’s beyond me. I’m going for the facts, but this is a bigger thing.”
In fact, the Second Finance Minister shifted the blame to the Prime Minister. “The Prime Minister has made the decision for the country. That’s it,” he retorted.
But that’s exactly what Malaysians are worried about – that it’s the tainted Prime Minister who is making the decisions because he is conflicted!
Based on documents revealed by the United States Department of Justice (US DOJ), which were corroborated by the evidence produced by the Singapore prosecution against its rogue bankers, from the funds transferred to Aabar(BVI), Dato’ Seri Najib Razak personally received a sum of US$30 million in his personal bank account in Ambank in 2012.
Worse, his stepson, Riza Aziz received US$238 million via his Red Granite group of companies. Some US$100 million of the sum was used to produce the Hollywood movie, The Wolf of Wall Street starring Leonardo Dicaprio.
In addition, isn’t Dato’ Seri Johari interested to find out if, despite the incontrovertible “proof” in his possession, that Aabar(BVI) had been fraudulently set up by the officers of IPIC – Khadem Al-Qubaishi and Mohamed Badawy Al-Husseiny, both of whom have been sacked by IPIC – in collusion with 1MDB officers to defraud both the Abu Dhabi and Malaysian governments?
Hence the question must be asked as to whether Dato’ Seri Najib Razak decided to ‘settle’ the IPIC dispute which resulted in US$3.5 billion of additional liability for Malaysians because it is really in the interest of the country or, to prevent IPIC from further exposing and confirming his complicity in the entire 1MDB misappropriation scandal.
Therefore, it is utterly irresponsible of Dato’ Seri Johari to wash his hands off the Ministry of Finance taking on the RM15 billion mega-liability. Instead of acting ignorant, shouldn’t the Second Finance Minister satisfy himself that the Prime Minister has not made the decision out of self-interest? In reality, was the “bigger picture” a blatant attempt to save Najib and Barisan Nasional from losing in the next General Election?
If the matter is indeed “beyond” him as he pleads, then he might as well resign as the Second Finance Minister.
Wednesday, April 26, 2017
Dato’ Seri Johari Abdul Ghani must explain what happened to the US$3.51 billion he had previously insisted had already been paid to IPIC
Last August, Second Finance Minister Dato’ Seri Johari Abdul Ghani said he was very confident that 1Malaysia Development Bhd (1MDB) will win the arbitration in dispute with Abu Dhabi's International Petroleum Investment Company (IPIC), given the documents provided by 1MDB to the minister.
"As far as I'm concerned, I am very confident that we will win (the case), based on the documents that I have, supplied by 1MDB to me," he told reporters after a 2017 Budget focus group meeting.
IPIC had claimed up to US$6.5 billion from 1MDB, including 2 bonds amounting to US$3.5 billion issued by the latter and guaranteed by the former.
Dato’ Seri Johari had insisted that 1MDB has already paid US$3.51 billion to IPIC or its purported subsidiary, Aabar Investment PJS Limited (“Aabar(BVI)”), a company registered in the British Virgin Islands. IPIC on the other hand, has publicly refuted that Aabar(BVI) is not its subsidiary even though it carries the same name as its own subsidiary, Aabar Investment PJS, a company registered in Abu Dhabi.
1MDB claimed it has already paid Aabar(BVI) the amounts of
"It's too bad for them not to acknowledge that (Aabar BVI), because as far as the record is concerned, the company belongs to them (IPIC). Now they suddenly say that the company does not belong to them. So we want to see them in court and let the arbitration look at our document," the Second Finance Minister had insisted then.
Even in his open letter to me as recently as last month, Dato’ Seri Johari declared that “as for the dispute regarding the US$3.5 billion, which was paid to the IPIC group of companies by 1MDB, IPIC cannot continually deny that they have received the monies when 1MDB has already paid the same to them. I don't think Malaysians in their right mind will want to just give up on that issue of the payment.”
So the question is, Dato’ Seri Johari Abdul Ghani must now explain why the Malaysian negotiators have “given up” their case against IPIC in their “settlement” announced 2 days ago.
Under the terms of the settlement, despite 1MDB having purportedly paid the US$3.51 billion above to IPIC or its subsidiary, the Ministry of Finance Incorporated (MoF, Inc) has agreed to assume all liabilities arising from the US$3.5 billion of bonds which were previously guaranteed by IPIC.
Given that 1MDB is clearly in no position to pay the debts, Malaysian taxpayers will now have to fork out another US$3.5 billion to bailout 1MDB as part of the above settlement. This means that we will ultimately pay a whopping total of US$7.01 billion, or more than double the US$3.5 billion of bond borrowings by 1MDB!
What has happened to Dato’ Seri Johari’s gung-ho statement that “we must fight and win this case”? Why did we capitulate to IPIC’s demands before the fight even began? Is it because 1MDB has finally conceded that Aabar(BVI) was clearly a fraudulent company to begin with and the US$3.51 billion originally paid has been clearly misappropriated and lost?
More interestingly, just two days before the settlement was announced, he suddenly washes his hands and said he wasn’t “involved in the negotiations. It (is) being done by (the) management and board of 1MDB with PMO’s (Prime Minister’s Office) officers.”
The Second Finance Minister had heroically claimed in his open letter to me that “it would be wholly irresponsible for [him] to shirk off this responsibility and opportunity to serve the nation.” So may I ask, is agreeing to pay US$7.01 billion for a US$3.5 billion loan the “responsible” thing to do in “serving the nation”?
"As far as I'm concerned, I am very confident that we will win (the case), based on the documents that I have, supplied by 1MDB to me," he told reporters after a 2017 Budget focus group meeting.
IPIC had claimed up to US$6.5 billion from 1MDB, including 2 bonds amounting to US$3.5 billion issued by the latter and guaranteed by the former.
Dato’ Seri Johari had insisted that 1MDB has already paid US$3.51 billion to IPIC or its purported subsidiary, Aabar Investment PJS Limited (“Aabar(BVI)”), a company registered in the British Virgin Islands. IPIC on the other hand, has publicly refuted that Aabar(BVI) is not its subsidiary even though it carries the same name as its own subsidiary, Aabar Investment PJS, a company registered in Abu Dhabi.
1MDB claimed it has already paid Aabar(BVI) the amounts of
(i) US$1.367 billion as a “security deposit” for the US$3.5 billion of bonds in 2012
(ii) US$993 billion for the termination of options granted to IPIC or Aabar in November 2014; and
(iii) Additional sums of US$855 million and US$295 million as “top-up security deposit” in September and December 2014 respectively.
"It's too bad for them not to acknowledge that (Aabar BVI), because as far as the record is concerned, the company belongs to them (IPIC). Now they suddenly say that the company does not belong to them. So we want to see them in court and let the arbitration look at our document," the Second Finance Minister had insisted then.
Even in his open letter to me as recently as last month, Dato’ Seri Johari declared that “as for the dispute regarding the US$3.5 billion, which was paid to the IPIC group of companies by 1MDB, IPIC cannot continually deny that they have received the monies when 1MDB has already paid the same to them. I don't think Malaysians in their right mind will want to just give up on that issue of the payment.”
So the question is, Dato’ Seri Johari Abdul Ghani must now explain why the Malaysian negotiators have “given up” their case against IPIC in their “settlement” announced 2 days ago.
Under the terms of the settlement, despite 1MDB having purportedly paid the US$3.51 billion above to IPIC or its subsidiary, the Ministry of Finance Incorporated (MoF, Inc) has agreed to assume all liabilities arising from the US$3.5 billion of bonds which were previously guaranteed by IPIC.
Given that 1MDB is clearly in no position to pay the debts, Malaysian taxpayers will now have to fork out another US$3.5 billion to bailout 1MDB as part of the above settlement. This means that we will ultimately pay a whopping total of US$7.01 billion, or more than double the US$3.5 billion of bond borrowings by 1MDB!
What has happened to Dato’ Seri Johari’s gung-ho statement that “we must fight and win this case”? Why did we capitulate to IPIC’s demands before the fight even began? Is it because 1MDB has finally conceded that Aabar(BVI) was clearly a fraudulent company to begin with and the US$3.51 billion originally paid has been clearly misappropriated and lost?
More interestingly, just two days before the settlement was announced, he suddenly washes his hands and said he wasn’t “involved in the negotiations. It (is) being done by (the) management and board of 1MDB with PMO’s (Prime Minister’s Office) officers.”
The Second Finance Minister had heroically claimed in his open letter to me that “it would be wholly irresponsible for [him] to shirk off this responsibility and opportunity to serve the nation.” So may I ask, is agreeing to pay US$7.01 billion for a US$3.5 billion loan the “responsible” thing to do in “serving the nation”?
Saturday, October 29, 2016
The Second Minister of Finance is living in a different planet for claiming 1MDB is not related in anyway to the Federal Government Budget
It is amazing how an UMNO MPs speaks when he is in or out of the Cabinet.
Dato’ Seri Johari Abdul Ghani, before he was appointed to the Cabinet in July last year, was one of the more vocal UMNO members of parliament who asked probing questions with regards to the unravelling RM50 billion 1MDB scandal.
Today, after being promoted to become the Second Finance Minister recently, he would tell Malaysians that 1MDB has nothing to do with the Federal Government budget.
In his explanation to Malaysiakini, he said the government's budget had nothing to do with 1MDB, which was managed by its board.
“A budget is a budget, 1MDB is 1MDB, they are two separate matters. Budget is something that we present to the public to explain what the government is going to do - how to spend the money with the revenue. The budget has nothing to do with 1MDB. Please tell me which part is related,” he rationalised.
Instead, today we have former Cabinet Ministers, including the former Second Finance Minister, Datuk Ahmad Husni Hanadzlah asking probing questions about 1MDB and its very existence during his budget speech.
1MDB has everything to do with the Federal Government Budget not only because the global scandal has made Malaysia a renown kleptocracy and puts into question on why a tainted Dato’ Seri Najib Razak, who was found to have siphoned US$731 million into his personal bank account, is still the Finance and Prime Minister of Malaysia.
1MDB has everything to do directly with the Budget because Federal Government funds are being utilised to bail out 1MDB.
Most crucially, the Federal Government has given direct and indirect guarantees on RM5 billion and nearly US$8 billion, or an estimated combined RM32 billion worth of 1MDB’s borrowings and liabilities. If 1MDB fails to repay its loans and obligations, then the Finance Ministry will have to foot the bill. RM32 billion will raise our targeted deficit of 3% of the GDP to 5.4%!
Any responsible Finance Minister will have the obligation to explain to the Malaysian tax-payers as to how the financial scandal will be resolved, especially since the much-hyped rationalisation exercsise which was supposed to by completed by June this year has collapsed.
The collapse was a result of the discovery that 1MDB has made as much as US$3.51 billion payment, according to information submitted by the 1MDB CEO, Arul Kanda to the Auditor-General, to a fraudulent Aabar Investment PJS Limited which was incorporated in the British Virgin Islands.
As a result, the parent of the “real” Aabar Investment PJS of Abu Dhabi, International Petroleum Investment Corporation (IPIC) has brought a suit against 1MDB and the Malaysian Government to the Arbitration Court in London. Of interest is the fact that the Ministry of Finance Incorporated has indemnified IPIC of up to US$4.8 billion of 1MDB’s obligations.
The failure of Dato’ Seri Najib Razak in addressing the 1MDB issue, especially in the Budget, is a clear attempt to hide the scandal and cover up for the guilty parties, including himself, who had misappropriated billions of dollars from the state-owned investment firm.
It might be useful to remind Dato Seri Johari Abdul Ghani that in the Budgets prior to 2013, Dato’ Seri Najib was happily gloating about 1MDB projects and achievements in his Budget speeches and including the proposed 1MDB investments in Bandar Malaysia and Tun Razak Exchange in the data compiled for the Non-Financial Public Corporations (NFPCs). If it was relevant for the Budget then, why is it suddenly not relevant today?
The Second Finance Minister should be ashamed of himself for failing the people of Malaysia after he has been appointed to the Cabinet to get to the bottom of the single largest scandal ever suffered by Malaysia, and instead turned into a stooge to defend the kleptocrats of this nation.
Dato’ Seri Johari Abdul Ghani, before he was appointed to the Cabinet in July last year, was one of the more vocal UMNO members of parliament who asked probing questions with regards to the unravelling RM50 billion 1MDB scandal.
Today, after being promoted to become the Second Finance Minister recently, he would tell Malaysians that 1MDB has nothing to do with the Federal Government budget.
In his explanation to Malaysiakini, he said the government's budget had nothing to do with 1MDB, which was managed by its board.
“A budget is a budget, 1MDB is 1MDB, they are two separate matters. Budget is something that we present to the public to explain what the government is going to do - how to spend the money with the revenue. The budget has nothing to do with 1MDB. Please tell me which part is related,” he rationalised.
Instead, today we have former Cabinet Ministers, including the former Second Finance Minister, Datuk Ahmad Husni Hanadzlah asking probing questions about 1MDB and its very existence during his budget speech.
1MDB has everything to do with the Federal Government Budget not only because the global scandal has made Malaysia a renown kleptocracy and puts into question on why a tainted Dato’ Seri Najib Razak, who was found to have siphoned US$731 million into his personal bank account, is still the Finance and Prime Minister of Malaysia.
1MDB has everything to do directly with the Budget because Federal Government funds are being utilised to bail out 1MDB.
Most crucially, the Federal Government has given direct and indirect guarantees on RM5 billion and nearly US$8 billion, or an estimated combined RM32 billion worth of 1MDB’s borrowings and liabilities. If 1MDB fails to repay its loans and obligations, then the Finance Ministry will have to foot the bill. RM32 billion will raise our targeted deficit of 3% of the GDP to 5.4%!
Any responsible Finance Minister will have the obligation to explain to the Malaysian tax-payers as to how the financial scandal will be resolved, especially since the much-hyped rationalisation exercsise which was supposed to by completed by June this year has collapsed.
The collapse was a result of the discovery that 1MDB has made as much as US$3.51 billion payment, according to information submitted by the 1MDB CEO, Arul Kanda to the Auditor-General, to a fraudulent Aabar Investment PJS Limited which was incorporated in the British Virgin Islands.
As a result, the parent of the “real” Aabar Investment PJS of Abu Dhabi, International Petroleum Investment Corporation (IPIC) has brought a suit against 1MDB and the Malaysian Government to the Arbitration Court in London. Of interest is the fact that the Ministry of Finance Incorporated has indemnified IPIC of up to US$4.8 billion of 1MDB’s obligations.
The failure of Dato’ Seri Najib Razak in addressing the 1MDB issue, especially in the Budget, is a clear attempt to hide the scandal and cover up for the guilty parties, including himself, who had misappropriated billions of dollars from the state-owned investment firm.
It might be useful to remind Dato Seri Johari Abdul Ghani that in the Budgets prior to 2013, Dato’ Seri Najib was happily gloating about 1MDB projects and achievements in his Budget speeches and including the proposed 1MDB investments in Bandar Malaysia and Tun Razak Exchange in the data compiled for the Non-Financial Public Corporations (NFPCs). If it was relevant for the Budget then, why is it suddenly not relevant today?
The Second Finance Minister should be ashamed of himself for failing the people of Malaysia after he has been appointed to the Cabinet to get to the bottom of the single largest scandal ever suffered by Malaysia, and instead turned into a stooge to defend the kleptocrats of this nation.
Wednesday, August 03, 2016
How can a Finance Minister with any sense of integrity and accountability claim that 1MDB’s disowned financial statements for the years ending March 2013 and 2014 “doesn’t affect 1MDB”?
Deloitte Malaysia who signed off 1MDB’s controversial accounts for the financial years ending March 2013 and 2014 has publicly disowned the veracity of the audited reports. This has forced the Board of Directors of 1MDB to announce that “its 2013 and 2014 audited financial statements should no longer be relied on until allegations made by the United States (US) Department of Justice (DOJ) are determined in court”.
However, instead of setting off more alarm bells, the newly appointed Second Finance Minister, Datuk Johari Abdul Ghani brushes of the significance and importance of the above development by claiming that it “doesn’t affect 1MDB”.
He said that it is because 1MDB no longer has bank loans and doesn’t plan to borrow money.
Firstly, the irresponsible statement by Datuk Johari Abdul Ghani is misleading because 1MDB is still laden with multi-billion dollar debts which have yet to be repaid. They include the US$6.5 billion worth of bonds raised by Goldman Sachs, RM5 billion sukuk guaranteed by the Federal Government, RM2.4 billion sukuk via its subsidiary Bandar Malaysia Sdn Bhd and another RM800 million of borrowings from SOCSO.
Secondly, the Second Finance Minister appears completely uninterested in the reasons or basis why Deloitte has withdrawn its endorsement for 1MDB’s accounts for 2013 and 2014.
The DOJ suit has shown that Deloitte has failed to discover that 1MDB had made more than US$3.5 billion of payments over the course of 2012 t0 2014 to a fraudulent Aabar Investment PJS Limited, incorporated in the British Virgin Islands (BVI).
Deloitte found nothing suspicious in 1MDB Global Investment Limited’s US$1.56 billion investment in several dodgy and obscure investment funds, including the Devonshire Growth, Enterprise Emerging Markets and Cistenique investment funds. The US DOJ had determined that these funds had acted as conduits in the money laundering scam, including US$681 million which had ended up in the Prime Minister, Dato’ Seri Najib Razak’s personal bank account.
Deloitte was also led to believe that US$1.22 billion was successfully redeemed from 1MDB’s fake investment in the Cayman Islands, when in reality 1MDB was making round-tripping transactions with money from its subsidiary, 1MDB Global Investment Limited. This was revealed separately by documents exposed by the Sarawak Report.
Why is Datuk Johari Abdul Ghani completely disinterested in the missing and embezzled funds? Why is there no demand from the Minister for the accounts to be re-audited?
Is his promotion from Deputy Finance Minister precisely because he will stand by the Prime Minister through thick and thin to cover up the multi-billion-dollar misappropriation which has taken place in the wholly-owned subsidiary of the Ministry of Finance?
Malaysians are disgusted that the Cabinet has failed to take any concrete actions to ensure accountability in 1MDB. No action has been taken against any of the officials involved despite the damning Public Accounts Committee (PAC) and still-classified Auditor-General’s Report, as well as the latest expose by the US DOJ.
Datuk Johari Abdul Ghani further asserted that Putrajaya is “very confident” that 1MDB will win the US$6.5 billion arbitration case filed by IPIC. His sheer confidence is surprising given the DOJ developments which has clearly shown 1MDB’s various key official playing an integral role in conspiring to defraud 1MDB.
Under such circumstances, how is 1MDB going to be able to prove to the London Arbitration Court that 1MDB is an innocent party to the massive fraud? Will Datuk Johari resign if the decision is found to be not in 1MDB’s favour?
Friday, July 15, 2016
Are the new 1MDB Board of Directors led by Treasury-General Tan Sri Irwan Serigar going to turn a blind eye after the Sarawak Report exposed an outrageous round-tripping fraud involving US$1.22 billion?
The Sarawak Report first exposed the banking documents on 11 July which showed that 1MDB Global Investment Limited (1MDB GIL) transferred US$1.28 billion between September to November 2014 to the fraudulent Aabar Investment PJS Limited which was incorporated in the British Virgin Islands (“Aabar(BVI)”).
Yesterday, the Sarawak Report leaked more explosive sections from the Auditor-General’s Report relating to transactions between Brazen Sky Limited, another 1MDB subsidiary which held 1MDB’s controversial investments with a little-known Cayman Islands investment fund and 1MDB GIL.
The Sarawak Report concluded based on the additional information from the classified report, 1MDB clearly concocted a round-tripping exercise to give the impression that it has successfully redeemed cash from the Cayman Islands investment. The fraudulent transactions were apparently so convincing that 1MDB’s auditors, Deloitte Malaysia happily signed off the company’s audited accounts.
Assuming the leaked copy of the AG’s Report is genuine, this is a massive allegation because for the first time hard evidence is shown to incriminate 1MDB officials as parties colluding with the owners of the fake Aabar (BVI) - Mohamed Al Husseiny and Khadem al Qubaisi.
Those incriminated include Datuk Shahrol Halmi, the former 1MDB CEO who was instrumental in 1MDB’s investment in the Cayman Islands fund; Mohd Hazem Abdul Rahman, who was the CEO when the above round-tripping transactions took place and Arul Kanda Kandasamy, the current 1MDB President who is covering up the above shenanigans.
The exposé by Sarawak Report would hugely complicate 1MDB’s case in the arbitration proceedings brought by International Petroleum Investment Corporation (IPIC) against 1MDB involving US$6.5 billion. IPIC is the parent company of Abu Dhabi’s Aabar Investment PJS, both of whom have officially denied that Aabar (BVI) is ever related to their group. 1MDB’s knowing participation with Aabar (BVI) to defraud both IPIC and the Malaysian government would certainly compromise 1MDB’s claims that it was an innocent victim to IPIC’s then employees Al Husseiny and Al Qubaisi.
What is more immediately important however, is what is the new 1MDB Board of Directors going to do about this new information, now that it has been made public?
The previous Board of Directors led by Chairman Tan Sri Lodin Wok Kamaruddin were forced to resign in shame after the Public Accounts Committee (PAC) condemned them in its report on 1MDB to the Parliament. These Directors failed miserably to carry out their fiduciary duties and responsibilities with any degree of diligence.
A recent exposé by Sarawak Report also showed that the previous board has blindly signed a retrospective approval of the US$1.2 billion payments by 1MDB GIL to Aabar (BVI) more than a year after these fraudulent transactions took place. These good-for-nothing “cari makan” directors included Tan Sri Ismee Ismail, Tan Sri Ong Gim Huat, Ashwin Valiram, Datuk Shahrol Halmi and Arul Kanda.
The question now is, will the new Board of Directors appointed on 31 May 2016, led by Treasury-General, Tan Sri Irwan Serigar do a better and proper job?
Together with the other 2 new Board Members, Datuk Kamal Mohd Ali and Dato’ Norazman Ayub, are they going to demand answers to these new explosive allegations and act on them – including but not limited to filing police reports? It is part of the directors’ roles and responsibilities to investigate cases of fraud and report them accordingly to ensure the interest of the Malaysian tax-payers are fully protected.
Or will they similarly turn a blind eye on indisputably, the single largest case of financial fraud in Malaysia’s history?
Yesterday, the Sarawak Report leaked more explosive sections from the Auditor-General’s Report relating to transactions between Brazen Sky Limited, another 1MDB subsidiary which held 1MDB’s controversial investments with a little-known Cayman Islands investment fund and 1MDB GIL.
The Sarawak Report concluded based on the additional information from the classified report, 1MDB clearly concocted a round-tripping exercise to give the impression that it has successfully redeemed cash from the Cayman Islands investment. The fraudulent transactions were apparently so convincing that 1MDB’s auditors, Deloitte Malaysia happily signed off the company’s audited accounts.
Assuming the leaked copy of the AG’s Report is genuine, this is a massive allegation because for the first time hard evidence is shown to incriminate 1MDB officials as parties colluding with the owners of the fake Aabar (BVI) - Mohamed Al Husseiny and Khadem al Qubaisi.
Those incriminated include Datuk Shahrol Halmi, the former 1MDB CEO who was instrumental in 1MDB’s investment in the Cayman Islands fund; Mohd Hazem Abdul Rahman, who was the CEO when the above round-tripping transactions took place and Arul Kanda Kandasamy, the current 1MDB President who is covering up the above shenanigans.
The exposé by Sarawak Report would hugely complicate 1MDB’s case in the arbitration proceedings brought by International Petroleum Investment Corporation (IPIC) against 1MDB involving US$6.5 billion. IPIC is the parent company of Abu Dhabi’s Aabar Investment PJS, both of whom have officially denied that Aabar (BVI) is ever related to their group. 1MDB’s knowing participation with Aabar (BVI) to defraud both IPIC and the Malaysian government would certainly compromise 1MDB’s claims that it was an innocent victim to IPIC’s then employees Al Husseiny and Al Qubaisi.
What is more immediately important however, is what is the new 1MDB Board of Directors going to do about this new information, now that it has been made public?
The previous Board of Directors led by Chairman Tan Sri Lodin Wok Kamaruddin were forced to resign in shame after the Public Accounts Committee (PAC) condemned them in its report on 1MDB to the Parliament. These Directors failed miserably to carry out their fiduciary duties and responsibilities with any degree of diligence.
A recent exposé by Sarawak Report also showed that the previous board has blindly signed a retrospective approval of the US$1.2 billion payments by 1MDB GIL to Aabar (BVI) more than a year after these fraudulent transactions took place. These good-for-nothing “cari makan” directors included Tan Sri Ismee Ismail, Tan Sri Ong Gim Huat, Ashwin Valiram, Datuk Shahrol Halmi and Arul Kanda.
The question now is, will the new Board of Directors appointed on 31 May 2016, led by Treasury-General, Tan Sri Irwan Serigar do a better and proper job?
Together with the other 2 new Board Members, Datuk Kamal Mohd Ali and Dato’ Norazman Ayub, are they going to demand answers to these new explosive allegations and act on them – including but not limited to filing police reports? It is part of the directors’ roles and responsibilities to investigate cases of fraud and report them accordingly to ensure the interest of the Malaysian tax-payers are fully protected.
Or will they similarly turn a blind eye on indisputably, the single largest case of financial fraud in Malaysia’s history?
Wednesday, July 13, 2016
Did 1MDB GIL pay US$1.283 billion to Aabar Investment PJS Limited to bluff Deloitte that the sums redeemed from 1MDB’s Cayman Island investments were “received”?
When Sarawak Report exposed banking records of 1MDB Global Investment Limited (1MDB GIL) which paid US$1.28 billion to the fraudulent Aabar Investment PJS Limited (“Aabar (BVI)”) between 12 September to 14 November 2014, many questions were raised.
Why did 1MDB GIL pay Aabar (BVI) the money even though there were no business transactions, agreements or dealings between the two entities? Why wasn’t these fund transfers disclosed and explained during Arul Kanda’s testimonies with the PAC?
Unfortunately, my questions in my statement issued yesterday did not elicit any response from the 1MDB President, Arul Kanda.
Then it occurred to me that the 1MDB Financial Statements for the year ending 31 March 2014 was signed off by the auditors, Deloitte coincidentally on 4 November 2014, where 1MDB GIL also made a payment of US$222 million to Aabar (BVI).
At that point in time, there was increasing concern over 1MDB’s US$2.318 billion investment in an obscure investment fund based in Cayman Islands. The Board of Directors minutes have shown that the Management were repeatedly instructed to redeem the investment and repatriate the proceeds back to Malaysia throughout 2014. The company was under immense pressure because the authenticity of the investment was being publicly questioned.
Based on the testimony of Deloitte to the Public Accounts Committee (PAC), the auditors were particularly insistent that 1MDB was able to redeem most, if not all of the Caymans investment before signing off the much-delayed statements which were already past due.
The accounts were finally signed off by Deloitte when 1MDB was able to “show” the auditors that US$1.22 billion have been redeemed. The money was however, not repatriated to Malaysia.
The Mar 2014 Financial Statements wrote that “as at the date of this report (4 Nov 2014), the amounts received from the redemption of investments US$1.22 billion… have been substantially utilised for the purposes of debt interest payment, working capital and payments to Aabar as refundable deposits…”
Based on the 1MDB GIL transactions Sarawak Report exposed 2 days ago, coincidentally 1MDB GIL has paid US$1.22 billion to Aabar (BVI) by 4 November 2014! (See Table 1 below)
Hence we have now figured out the most likely reason why 1MDB GIL made these mysterious unexplained payments to Aabar (BVI). The transactions were meant to hoodwink Deloitte into accepting that all the funds purportedly “received” from the Cayman Islands amounting to US$1.22 billion have pretty much been immediately used to pay Aabar (BVI).
The catch is, the money used to pay Aabar (BVI) did not come from the controversial Caymans investment, but from 1MDB’s own funds in its wholly-owned subsidiary, 1MDB GIL! Unfortunately, Deloitte was sufficiently cheated and bluffed by the 1MDB crooks to sign off the accounts so readily.
We call upon Deloitte to review the documents shown to them for them to be so sufficiently satisfied as to sign off the 1MDB accounts so readily. Should these documents shown to them prove to be fraudulent or manipulated on hindsight, they must immediately file police reports to clear their name and ensure that the crooks are investigated.
Why did 1MDB GIL pay Aabar (BVI) the money even though there were no business transactions, agreements or dealings between the two entities? Why wasn’t these fund transfers disclosed and explained during Arul Kanda’s testimonies with the PAC?
Unfortunately, my questions in my statement issued yesterday did not elicit any response from the 1MDB President, Arul Kanda.
Then it occurred to me that the 1MDB Financial Statements for the year ending 31 March 2014 was signed off by the auditors, Deloitte coincidentally on 4 November 2014, where 1MDB GIL also made a payment of US$222 million to Aabar (BVI).
At that point in time, there was increasing concern over 1MDB’s US$2.318 billion investment in an obscure investment fund based in Cayman Islands. The Board of Directors minutes have shown that the Management were repeatedly instructed to redeem the investment and repatriate the proceeds back to Malaysia throughout 2014. The company was under immense pressure because the authenticity of the investment was being publicly questioned.
Based on the testimony of Deloitte to the Public Accounts Committee (PAC), the auditors were particularly insistent that 1MDB was able to redeem most, if not all of the Caymans investment before signing off the much-delayed statements which were already past due.
The accounts were finally signed off by Deloitte when 1MDB was able to “show” the auditors that US$1.22 billion have been redeemed. The money was however, not repatriated to Malaysia.
The Mar 2014 Financial Statements wrote that “as at the date of this report (4 Nov 2014), the amounts received from the redemption of investments US$1.22 billion… have been substantially utilised for the purposes of debt interest payment, working capital and payments to Aabar as refundable deposits…”
Based on the 1MDB GIL transactions Sarawak Report exposed 2 days ago, coincidentally 1MDB GIL has paid US$1.22 billion to Aabar (BVI) by 4 November 2014! (See Table 1 below)
Hence we have now figured out the most likely reason why 1MDB GIL made these mysterious unexplained payments to Aabar (BVI). The transactions were meant to hoodwink Deloitte into accepting that all the funds purportedly “received” from the Cayman Islands amounting to US$1.22 billion have pretty much been immediately used to pay Aabar (BVI).
The catch is, the money used to pay Aabar (BVI) did not come from the controversial Caymans investment, but from 1MDB’s own funds in its wholly-owned subsidiary, 1MDB GIL! Unfortunately, Deloitte was sufficiently cheated and bluffed by the 1MDB crooks to sign off the accounts so readily.
We call upon Deloitte to review the documents shown to them for them to be so sufficiently satisfied as to sign off the 1MDB accounts so readily. Should these documents shown to them prove to be fraudulent or manipulated on hindsight, they must immediately file police reports to clear their name and ensure that the crooks are investigated.
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