US Attorney-General Jeff Sessions called the Malaysian 1MDB scandal “kleptocracy at its worst” at the Global Forum on Asset Recovery hosted by the World Bank and the United Nations Office on Drugs and Crime. He informed the international audience that half of the US$3.5 billion in assets seized by the Department of Justice’s Kleptocracy Asset Recovery Initiative was related to its suits on 1MDB.
He said that allegedly corrupt officials and their associates had reportedly used the 1MDB funds for a “lavish spending spree” such as US$200 million for real estate in South California and New York, US$130 million in artwork, US$100 million in an American music label and a US$265 million yacht.
1MDB officials allegedly laundered more than US$4.5 billion in total, he said, through a complex web of opaque transactions and shell companies with bank accounts in various countries such as Switzerland, Singapore, Luxembourg and the US.
These allegations, while not new, have taken a more serious turn as the United States Attorney-General has now made these allegations at the World Bank international conference.
The question now is whether our Prime Minister Dato’ Seri Najib Razak will just let a foreign country disparage and destroy Malaysia’s international reputation and credibility? Is he not going to speak out to defend Malaysian’s honour? Does he think that the US Attorney-General’s speech will have no impact Malaysia’s attractiveness as a destination for tourism and investment?
We call upon the Prime Minister, Dato’ Seri Najib Razak to summon the United States Ambassador to express in the harshest possible terms our protest towards all the allegations made by the US Attorney-General. In fact, he should immediately file an official complaint with his golf-buddy, President Donald Trump and demand an apology from the United States government.
This week Dato’ Seri Najib is scheduled to address the UMNO General. There could not be a better opportunity for the Prime Minister to boast to his faithful that he has taken the firmest possible action against foreign powers bent on sabotaging Malaysia’s economy and progress.
Hence why is Dato’ Seri Najib Razak remaining quiet as a mouse? Is it because Jeff Sessions has merely stated what is the inconvenient truth for him and his administration?
In fact, the Government’s continued silence to the disparaging of Malaysia’s reputation and credibility by top Government leader overseas only serves to confirm that Dato’ Seri Najib Razak and his Government is guilty as charged – billions of dollars have been laundered by “corrupt officials and their associates”.
In that case, Dato’ Seri Najib Razak must answer to every Malaysian as to why not a single person relating to the 1MDB scandal has been investigated and charged for these heinous crimes in Malaysia.
Showing posts with label International Affairs. Show all posts
Showing posts with label International Affairs. Show all posts
Wednesday, December 06, 2017
Monday, October 30, 2017
Minister of Finance confirms that EPF has not confirmed or approved any specific investments amounting to USD3 to 4 bil. in the US, contradicting the Prime Minister's boast to President Trump
The Prime Minister, Dato’ Seri Najib Razak went to the United States (US) last month and wasted no time impressing on President Donald Trump that he is out to boost the US economy. He said “Number one, we want to help you in terms of strengthening the US economy.”
Among the most controversial and very specific promise by Dato’ Seri Najib was for the Malaysian Employees Provident Fund (EPF) to investment an additional “three to four billion dollars” to “support... infrastructure redevelopment in the United States.”
I had asked in my parliamentary question to the Minister of Finance whether the EPF has already specific projects amounting to “three to four billion dollars” to “support infrastructure redevelopment in the United States”. I further asked, if yes, how much have been approved.
In a relatively lengthy reply received from the Minister of Finance dated 25 October (attached), he effectively confirmed that EPF has made no such specific decision to invest “three to four billion dollars” to “support infrastructure redevelopment in the United States”.
The reply stated that every EPF investment is evaluated on a case by case basis on strict, disciplined and diligent criteria.
The reply did try to play down the Prime Minister’s promises to the American President by claiming that what he said was “consistent with the long term strategy of the EPF to increase its overseas investment, particularly in property and infrastructure”. The Minister of Finance also tried to justify property and infratructure projects are relatively low-risk investment providing a relatively good rate of return.
However, my question has absolutely nothing to do with what forms of investment provides better or safer returns. My question is specifically on whether EPF has already decided to make the specific US$3 billion, possibly up to US$4 billion of investment to “support… infrastructure redevelopment in the United States.”
Malaysians are relieved that the EPF will not be making any rash investments in the United States, more so inexplicably to “support… infrastructure redevelopment in the United States”. It is not our job to “make America great again”.
We have no objections to EPF investment a proportion of its funds overseas, as long as the risks involved are properly mitigated and the investments are evaluated on strict and diligent criteria.
However, the above proved that our Prime Minister boasted empty promises to the American President. The question then is, why did Dato’ Seri Najib Razak have to go out of his way to impress the Trump administration?
The answer appears to be obvious, from his stay the the Trump Hotel to his boasts at the White House, the Prime Minister pulled out all stops to curry favour the American President in order to hope that the United States government will go easy on the single largest anti-kleptocracy money laundering seizure in the country.
Among the most controversial and very specific promise by Dato’ Seri Najib was for the Malaysian Employees Provident Fund (EPF) to investment an additional “three to four billion dollars” to “support... infrastructure redevelopment in the United States.”
I had asked in my parliamentary question to the Minister of Finance whether the EPF has already specific projects amounting to “three to four billion dollars” to “support infrastructure redevelopment in the United States”. I further asked, if yes, how much have been approved.
Tony Pua meminta Menteri Kewangan menyatakan sama ada jawatankuasa Kumpulan Wang Simpanan Pekerja (KWSP) telah meluluskan pelaburan sebanyak US$3 sehingga US$4 bilion bagi tujuan menyokong pembangunan semula infrastruktur di Amerika Syarikat. Jika ada, apakah nilai pelaburan-pelaburan spesifik ini yang telah diluluskan.
In a relatively lengthy reply received from the Minister of Finance dated 25 October (attached), he effectively confirmed that EPF has made no such specific decision to invest “three to four billion dollars” to “support infrastructure redevelopment in the United States”.
The reply stated that every EPF investment is evaluated on a case by case basis on strict, disciplined and diligent criteria.
The reply did try to play down the Prime Minister’s promises to the American President by claiming that what he said was “consistent with the long term strategy of the EPF to increase its overseas investment, particularly in property and infrastructure”. The Minister of Finance also tried to justify property and infratructure projects are relatively low-risk investment providing a relatively good rate of return.
However, my question has absolutely nothing to do with what forms of investment provides better or safer returns. My question is specifically on whether EPF has already decided to make the specific US$3 billion, possibly up to US$4 billion of investment to “support… infrastructure redevelopment in the United States.”
Malaysians are relieved that the EPF will not be making any rash investments in the United States, more so inexplicably to “support… infrastructure redevelopment in the United States”. It is not our job to “make America great again”.
We have no objections to EPF investment a proportion of its funds overseas, as long as the risks involved are properly mitigated and the investments are evaluated on strict and diligent criteria.
However, the above proved that our Prime Minister boasted empty promises to the American President. The question then is, why did Dato’ Seri Najib Razak have to go out of his way to impress the Trump administration?
The answer appears to be obvious, from his stay the the Trump Hotel to his boasts at the White House, the Prime Minister pulled out all stops to curry favour the American President in order to hope that the United States government will go easy on the single largest anti-kleptocracy money laundering seizure in the country.
Monday, September 18, 2017
Did Dato’ Seri Najib Razak make empty and meaningless promises to the President of the United States just to curry favour and show off?
In the viral 6-minute meeting between Dato’ Seri Najib Razak and President Trump, accompanied by their respective delegations, the Malaysian Prime Minister pulled out all stops to impress the American President.
Dato’ Seri Najib did not waste time with pleasantries and started his speech with how much Malaysian firms and funds will purchase from, and invest with US companies. He said “Number one, we want to help you in terms of strengthening the US economy.”
Among the most controversial promise by Dato’ Seri Najib was for the Malaysian Employees Provident Fund (EPF) to investment an additional “three to four billion dollars” to “support... infrastructure redevelopment in the United States.”
Ordinary Malaysians, and in particular, contributors to the EPF are up in arms over the Prime Minister’s callous promise to the American president. How is it that we are now spending billions of our saving to support “infrastructure redevelopment in the United States” when we are in desperate need for the same in Malaysia?
The irony cannot be greater when only recently Dato’ Seri Najib Razak secured a RM55 billion loan from China’s Export-Import Bank in order to award a contract to China Communications and Construction Company (CCCC) to build the controversially priced East Coast Rail Link. We don’t have money to build our own infrastructure and our Prime Minister wants to help make America great again?
However, perhaps after realising the political damage which his ‘promises’ to President Trump have caused, the Prime Minister is now telling Malaysians something different.
In his Malaysia Day speech given in Kota Kinabalu, he said “when I said that the EPF wanted to invest in the US, they (opposition) said it was no use and it was better to invest in our own country.”
The prime minister explained that the EPF had funds totalling RM760 billion which could be invested not only in the US, but in 39 other countries. “The decision was not made by politicians, it was made by its investment committee,” he added.
Dato’ Seri Najib Razak even taunted the critics as “shallow, not that smart”.
The Prime Minister is obviously trying to be disingenuous here, promising President Trump one thing, but justifying something completely different to Malaysians.
Since Dato’ Seri Najib claimed that “the decision was not made by politicians”, we would like to ask him if the EPF investment committee has already made the decision to invest “three to four billion dollars” to “support infrastructure redevelopment in the United States”?
We are not questioning the right for EPF to invest overseas. It is EPF’s prerogative to invest a certain amount of funds overseas after the necessary analysis and due diligence have been carried out by the investment committee. However, as far as Malaysians are aware, there has been no such definitive resolution or commitment by the EPF to make the “three to four billion dollars” to “support infrastructure redevelopment in the United States”.
Hence, if indeed investment decisions at the EPF are “not made by politicians” as justified by Dato’ Seri Najib Razak, and that EPF has also not made any decision to invest “three to four billion dollars” to “support infrastructure redevelopment in the United States”, then we can only conclude that our Prime Minister boasted empty promises to the American President.
The question then is, why did Dato’ Seri Najib Razak have to go out of his way to impress the Trump administration? The answer appears to be obvious, from his stay the the Trump Hotel to his boasts at the White House, the Prime Minister pulled out all stops to curry favour the American President in order to hope that the United States government will go easy on the single largest anti-kleptocracy money laundering seizure in the country.
We call upon the EPF and Khazanah Nasional to maintain independent financial discipline, free from political pressures and interference, in carrying out their investment mandates. This is to ensure that the life-savings of Malaysian workers and the assets of the Malaysian people will remain safe and secure, protected for generations to come.
Dato’ Seri Najib did not waste time with pleasantries and started his speech with how much Malaysian firms and funds will purchase from, and invest with US companies. He said “Number one, we want to help you in terms of strengthening the US economy.”
Among the most controversial promise by Dato’ Seri Najib was for the Malaysian Employees Provident Fund (EPF) to investment an additional “three to four billion dollars” to “support... infrastructure redevelopment in the United States.”
Ordinary Malaysians, and in particular, contributors to the EPF are up in arms over the Prime Minister’s callous promise to the American president. How is it that we are now spending billions of our saving to support “infrastructure redevelopment in the United States” when we are in desperate need for the same in Malaysia?
The irony cannot be greater when only recently Dato’ Seri Najib Razak secured a RM55 billion loan from China’s Export-Import Bank in order to award a contract to China Communications and Construction Company (CCCC) to build the controversially priced East Coast Rail Link. We don’t have money to build our own infrastructure and our Prime Minister wants to help make America great again?
However, perhaps after realising the political damage which his ‘promises’ to President Trump have caused, the Prime Minister is now telling Malaysians something different.
In his Malaysia Day speech given in Kota Kinabalu, he said “when I said that the EPF wanted to invest in the US, they (opposition) said it was no use and it was better to invest in our own country.”
The prime minister explained that the EPF had funds totalling RM760 billion which could be invested not only in the US, but in 39 other countries. “The decision was not made by politicians, it was made by its investment committee,” he added.
Dato’ Seri Najib Razak even taunted the critics as “shallow, not that smart”.
The Prime Minister is obviously trying to be disingenuous here, promising President Trump one thing, but justifying something completely different to Malaysians.
Since Dato’ Seri Najib claimed that “the decision was not made by politicians”, we would like to ask him if the EPF investment committee has already made the decision to invest “three to four billion dollars” to “support infrastructure redevelopment in the United States”?
We are not questioning the right for EPF to invest overseas. It is EPF’s prerogative to invest a certain amount of funds overseas after the necessary analysis and due diligence have been carried out by the investment committee. However, as far as Malaysians are aware, there has been no such definitive resolution or commitment by the EPF to make the “three to four billion dollars” to “support infrastructure redevelopment in the United States”.
Hence, if indeed investment decisions at the EPF are “not made by politicians” as justified by Dato’ Seri Najib Razak, and that EPF has also not made any decision to invest “three to four billion dollars” to “support infrastructure redevelopment in the United States”, then we can only conclude that our Prime Minister boasted empty promises to the American President.
The question then is, why did Dato’ Seri Najib Razak have to go out of his way to impress the Trump administration? The answer appears to be obvious, from his stay the the Trump Hotel to his boasts at the White House, the Prime Minister pulled out all stops to curry favour the American President in order to hope that the United States government will go easy on the single largest anti-kleptocracy money laundering seizure in the country.
We call upon the EPF and Khazanah Nasional to maintain independent financial discipline, free from political pressures and interference, in carrying out their investment mandates. This is to ensure that the life-savings of Malaysian workers and the assets of the Malaysian people will remain safe and secure, protected for generations to come.
Friday, September 15, 2017
Dato’ Seri Najib Razak must sue Newsweek and CNN for calling him a “crook” to redeem not only his reputation, but also the pride and honour of Malaysians
Internationally renowned journal, Newsweek published an article by former World Bank President, Paul Wolfowitz with the headline “Trump meeting with Malaysian crook Najib reeks of the swamp” on 13 September 2017.
At the same time, internationally renowned broadcaster, CNN reported the meeting between President Trump and Dato’ Seri Najib Razak in its “Conflict of Interest Watch” story. They reported “Najib’s alleged role in what the United States Justice Department called an international conspiracy to launder funds misappropriated from a Malaysian fund, money that the Justice Department says should have been used to help the Malaysian people but instead was used by a small number of individual to fuel their, quote: "astonishing greed".
There is absolutely no question that the reputation of Dato’ Seri Najib Razak has been torn to shreds by the international media. The Prime Minister’s vain attempts at lifting his profile as an adored international leader invited to the White House by President Trump have not only failed to achieve his goals, but destroyed whatever semblance of credibility he might have had left.
Worse, he isn’t the sole or biggest victim of being labelled an international “crook”. The utlimate victim is Malaysia and its citizens as we have no where to hide our faces as we have been shamed almost beyond redemption. We have lost our honour and pride when the leader of our country becomes an infamous “crook” while Malaysia earns the kleptocracy badge.
What ‘face’ do we have left when our Prime Minister goes to the United States to help make America great again by offering their economy our crown jewels worth some RM60 billion, but all we get from the US media is mud thrown at our faces?
We call upon the Prime Minister to put together the best team of international lawyers to sue Newsweek and CNN for defamation and publication of “fake news” to redeem not only his reputation, but our honour and pride.
After all, Dato’ Seri Najib Razak is well-known for going to the Court to protect his so-called reputation. I have been at the receiving end of two such defamation – one in 2014 and one in 2017 with regards to 1MDB, both of which are still undergoing the legal process.
At the very least, the Prime Minister’s lawyer, Datuk Hafarizam Harun should inform both Newsweek and CNN that Dato’ Seri Najib Razak is open to an apology. He has offered me the same option just two days ago, claiming that the Prime Minister “is open-minded and would accept an 'I am sorry Mr Prime Minister'” in order for a legal settlement to be reached.
However, if Dato’ Seri Najib Razak doesn’t even have the courage to salvage his reputation and credibility internationally by suing Newsweek and CNN, then the entire world would only be convinced that he is guilty as charged. In which case, there would of course be absolutely no reason for me to offer Dato’ Seri Najib Razak any apology for pretty much saying the same things.
At the same time, internationally renowned broadcaster, CNN reported the meeting between President Trump and Dato’ Seri Najib Razak in its “Conflict of Interest Watch” story. They reported “Najib’s alleged role in what the United States Justice Department called an international conspiracy to launder funds misappropriated from a Malaysian fund, money that the Justice Department says should have been used to help the Malaysian people but instead was used by a small number of individual to fuel their, quote: "astonishing greed".
There is absolutely no question that the reputation of Dato’ Seri Najib Razak has been torn to shreds by the international media. The Prime Minister’s vain attempts at lifting his profile as an adored international leader invited to the White House by President Trump have not only failed to achieve his goals, but destroyed whatever semblance of credibility he might have had left.
Worse, he isn’t the sole or biggest victim of being labelled an international “crook”. The utlimate victim is Malaysia and its citizens as we have no where to hide our faces as we have been shamed almost beyond redemption. We have lost our honour and pride when the leader of our country becomes an infamous “crook” while Malaysia earns the kleptocracy badge.
What ‘face’ do we have left when our Prime Minister goes to the United States to help make America great again by offering their economy our crown jewels worth some RM60 billion, but all we get from the US media is mud thrown at our faces?
We call upon the Prime Minister to put together the best team of international lawyers to sue Newsweek and CNN for defamation and publication of “fake news” to redeem not only his reputation, but our honour and pride.
After all, Dato’ Seri Najib Razak is well-known for going to the Court to protect his so-called reputation. I have been at the receiving end of two such defamation – one in 2014 and one in 2017 with regards to 1MDB, both of which are still undergoing the legal process.
At the very least, the Prime Minister’s lawyer, Datuk Hafarizam Harun should inform both Newsweek and CNN that Dato’ Seri Najib Razak is open to an apology. He has offered me the same option just two days ago, claiming that the Prime Minister “is open-minded and would accept an 'I am sorry Mr Prime Minister'” in order for a legal settlement to be reached.
However, if Dato’ Seri Najib Razak doesn’t even have the courage to salvage his reputation and credibility internationally by suing Newsweek and CNN, then the entire world would only be convinced that he is guilty as charged. In which case, there would of course be absolutely no reason for me to offer Dato’ Seri Najib Razak any apology for pretty much saying the same things.
Thursday, September 14, 2017
Dato’ Seri Najib Razak offered President Trump our crown jewels worth billions of dollars and got nothing in return
The Prime Minister, Dato’ Seri Najib Razak’s 6-minute meeting in the Oval Office has become the laughing stock for tens, perhaps hundreds of millions of people around the world.
The historic meeting with President Trump should have been a triumph for Dato’ Seri Najib, a testimony that Malaysia has arrived under his leadership to be treated as an equal partner to the United States.
Instead, the video of the meeting which has gone viral around the world showcased a desperate Prime Minister paying tribute to his imperial masters.
Dato’ Seri Najib Razak boasted of a US$10 billion (RM42 billion) deal by Malaysia Airlines to acquire Boeing jetliners and even publicly offered to “persuade” AirAsia to purchase GE engines. That’s like giving not only your daughter’s hand in marriage to the emperor, but trying to offer the cousin’s as well!
As a matter of fact, Malaysians have no idea how the deeply loss-making Malaysia Airlines which needed a RM6 billion bailout from Khazanah in 2014 can afford potential US$10 billion acquisition of aircrafts from Boeing.
The Prime Minister then further offered another “three to four billion dollars” from Malaysians’ Employee Provident Fund (EPF) to “support... infrastructure redevelopment in the United States.”
The icing on the cake was that Khazanah, our sovereign wealth fund, would also invest more money in United States companies, having already invested more than US$400 million to date.
And all we got in return was a “Thank you very much. Appreciate it.” You could almost imagine Trump quietly saying “You can go now” in his head.
Malaysians have never felt more shocked and shamed at the international stage. The Prime Minister offered our crown jewels worth some RM60 billion in a vain attempt to please President Trump’s “Make America Great Again” campaign, and we got absolutely nothing in return.
President Trump didn’t even try to pretend that Malaysia got anything in return – for example, the promise of ‘potential’ investments or increased imports of made-in-Malaysia products or visa-free travel for Malaysians to the United States.
We are outraged at Dato’ Seri Najib Razak pawning our assets “to strengthen the United States economy” for his own personal agenda, when the precious funds could be used to rescue our own floundering economy.
We call upon the Prime Minister to call for a special 2-day Parliamentary sitting upon his return from the United States to discuss and debate his 6-minute debacle with President Trump. Dato’ Seri Najib Razak must justify to the 30 million Malaysians why he behaved like the leader of a vassal state to the US ‘imperialists’ within days after we celebrated 60 years of independence.
Issued by,
Pakatan Harapan 1MDB Action Committee
Tony Pua, DAP MP Petaling Jaya Utara
Sim Tze Tsin, PKR MP Bayan Baru
Dr Dzulkefly Ahmad, Amanah Strategic Director
Dr Rais Hussin, PPBM Strategic Director
The historic meeting with President Trump should have been a triumph for Dato’ Seri Najib, a testimony that Malaysia has arrived under his leadership to be treated as an equal partner to the United States.
Instead, the video of the meeting which has gone viral around the world showcased a desperate Prime Minister paying tribute to his imperial masters.
Dato’ Seri Najib Razak boasted of a US$10 billion (RM42 billion) deal by Malaysia Airlines to acquire Boeing jetliners and even publicly offered to “persuade” AirAsia to purchase GE engines. That’s like giving not only your daughter’s hand in marriage to the emperor, but trying to offer the cousin’s as well!
As a matter of fact, Malaysians have no idea how the deeply loss-making Malaysia Airlines which needed a RM6 billion bailout from Khazanah in 2014 can afford potential US$10 billion acquisition of aircrafts from Boeing.
The Prime Minister then further offered another “three to four billion dollars” from Malaysians’ Employee Provident Fund (EPF) to “support... infrastructure redevelopment in the United States.”
The icing on the cake was that Khazanah, our sovereign wealth fund, would also invest more money in United States companies, having already invested more than US$400 million to date.
And all we got in return was a “Thank you very much. Appreciate it.” You could almost imagine Trump quietly saying “You can go now” in his head.
Malaysians have never felt more shocked and shamed at the international stage. The Prime Minister offered our crown jewels worth some RM60 billion in a vain attempt to please President Trump’s “Make America Great Again” campaign, and we got absolutely nothing in return.
President Trump didn’t even try to pretend that Malaysia got anything in return – for example, the promise of ‘potential’ investments or increased imports of made-in-Malaysia products or visa-free travel for Malaysians to the United States.
We are outraged at Dato’ Seri Najib Razak pawning our assets “to strengthen the United States economy” for his own personal agenda, when the precious funds could be used to rescue our own floundering economy.
We call upon the Prime Minister to call for a special 2-day Parliamentary sitting upon his return from the United States to discuss and debate his 6-minute debacle with President Trump. Dato’ Seri Najib Razak must justify to the 30 million Malaysians why he behaved like the leader of a vassal state to the US ‘imperialists’ within days after we celebrated 60 years of independence.
Issued by,
Pakatan Harapan 1MDB Action Committee
Tony Pua, DAP MP Petaling Jaya Utara
Sim Tze Tsin, PKR MP Bayan Baru
Dr Dzulkefly Ahmad, Amanah Strategic Director
Dr Rais Hussin, PPBM Strategic Director
Monday, May 15, 2017
Malaysia has some of the top property development companies in the world – why is Dato’ Seri Najib Razak practically begging for Chinese developers to develop Bandar Malaysia?
The failure by Dato’ Seri Najib Razak to secure even any form of non-binding commitment from Dalian Wanda to acquire Bandar Malaysia brings the Ministry of Finance plans for the 495 acres of prime land back to square one.
The Prime Minister needs perhaps a lesson in sales strategy. An evidently desperate salesman trying to sell his family heirlooms is never going to succeed in closing a deal at inflated prices. While these Chinese developers may be cash rich, they are not stupid.
They know that the previous buyer – the Iskandar Waterfront Holdings (IWH) Consortium who had put it the purportedly best bid in December 2015 could not pay up the full RM7.41 billion it agreed to pay for a 60% stake in Bandar Malaysia.
And if Wanda knew that, why would they be so silly as to offer more than what was previously already the best bid Bandar Malaysia could solicit? What can Bandar Malaysia offer – other than being a sizeable piece of prime land in the middle of Kuala Lumpur, that would make it such an ‘irresistable buy’ for a foreign Chinese developer?
The answer which isn’t music to Dato’ Seri Najib Razak’s ears, is really “not much”. Hence the only reason why these Chinese developers would acquire Bandar Malaysia is if, they got a bargain price or if they are able to extract all sorts of financial incentives and tax exemptions from the Malaysian government to make their venture worth the while.
This then begs the question – what makes these Chinese developers so special that we should bend over backwards to grant them exclusive financial incentives and generous tax exemptions?
We are not talking about Huawei setting up a reseach and design centre in Malaysia. Or for that matter setting up a manufacturing plant to produce world-class electronic gadgets. We would bend over backwards for Huawei in this case because we have no expertise in the sector.
On the other hand, our experience with Chinese developers have left a bad taste in the mouth. They have not only single-handedly placed the Johor property development industry on life-support, they have brought with them their entire supply chain of contractors and sub-contractors from China.
Worse, investigations by Malaysiakini recently have proven the Chinese construction projects to have engaged thousands of illegal workers from China. They have demonstrated utter contempt for our laws.
Therefore, as the Ministry of Finance re-think the entire Bandar Malaysia development – the most important question to ask is, “why can’t Malaysian developers do the job?”
For example, a consortium comprising of SP Setia, Sime Darby and EPF stunned the global property markets with a winning bid for the London icon, Battersea Power Station in 2012. It is now a project with gross development value in excess of GBP8 billion and have won the prestigious London “Developer of the Year Award” in 2015. Last year, the development also won the London “Deal of the Year Award” after successfully snagging Apple as the largest office tenant which will take up 5,000 sq ft of space.
Malaysian developers are also regular winners at the International Real Estate Federation (FIABCI) World Prix D’Excellence Awards. They have included Sunway, IJM, YTL, UEM-Sunrise and many more. These developers are now expanding their portfolios not only in the regional countries such as Vietnam, China and Indonesia, but also to developed cities such London and Melbourne.
Why are our own developers not given a chance? Even if in the event that there is no one developer who is able to digest the entire 495 acres of land in Bandar Malaysia – the Ministry of Finance could always parcel out the development into multiple parts and phases. This will provide the perfect opportunity for the local players to compete to create the best value and designs for the respective carved segments.
The projects will be a massive boost to our local property development industry, stimulate demand for local construction and related-services and most importantly provide thousands of new job opportunities for ordinary Malaysians.
Sometimes we think too hard, travel far and wide in the pursuit for solutions, when really, the
answer is right in front of our very eyes.
The Prime Minister needs perhaps a lesson in sales strategy. An evidently desperate salesman trying to sell his family heirlooms is never going to succeed in closing a deal at inflated prices. While these Chinese developers may be cash rich, they are not stupid.
They know that the previous buyer – the Iskandar Waterfront Holdings (IWH) Consortium who had put it the purportedly best bid in December 2015 could not pay up the full RM7.41 billion it agreed to pay for a 60% stake in Bandar Malaysia.
And if Wanda knew that, why would they be so silly as to offer more than what was previously already the best bid Bandar Malaysia could solicit? What can Bandar Malaysia offer – other than being a sizeable piece of prime land in the middle of Kuala Lumpur, that would make it such an ‘irresistable buy’ for a foreign Chinese developer?
The answer which isn’t music to Dato’ Seri Najib Razak’s ears, is really “not much”. Hence the only reason why these Chinese developers would acquire Bandar Malaysia is if, they got a bargain price or if they are able to extract all sorts of financial incentives and tax exemptions from the Malaysian government to make their venture worth the while.
This then begs the question – what makes these Chinese developers so special that we should bend over backwards to grant them exclusive financial incentives and generous tax exemptions?
We are not talking about Huawei setting up a reseach and design centre in Malaysia. Or for that matter setting up a manufacturing plant to produce world-class electronic gadgets. We would bend over backwards for Huawei in this case because we have no expertise in the sector.
On the other hand, our experience with Chinese developers have left a bad taste in the mouth. They have not only single-handedly placed the Johor property development industry on life-support, they have brought with them their entire supply chain of contractors and sub-contractors from China.
Worse, investigations by Malaysiakini recently have proven the Chinese construction projects to have engaged thousands of illegal workers from China. They have demonstrated utter contempt for our laws.
Therefore, as the Ministry of Finance re-think the entire Bandar Malaysia development – the most important question to ask is, “why can’t Malaysian developers do the job?”
For example, a consortium comprising of SP Setia, Sime Darby and EPF stunned the global property markets with a winning bid for the London icon, Battersea Power Station in 2012. It is now a project with gross development value in excess of GBP8 billion and have won the prestigious London “Developer of the Year Award” in 2015. Last year, the development also won the London “Deal of the Year Award” after successfully snagging Apple as the largest office tenant which will take up 5,000 sq ft of space.
Malaysian developers are also regular winners at the International Real Estate Federation (FIABCI) World Prix D’Excellence Awards. They have included Sunway, IJM, YTL, UEM-Sunrise and many more. These developers are now expanding their portfolios not only in the regional countries such as Vietnam, China and Indonesia, but also to developed cities such London and Melbourne.
Why are our own developers not given a chance? Even if in the event that there is no one developer who is able to digest the entire 495 acres of land in Bandar Malaysia – the Ministry of Finance could always parcel out the development into multiple parts and phases. This will provide the perfect opportunity for the local players to compete to create the best value and designs for the respective carved segments.
The projects will be a massive boost to our local property development industry, stimulate demand for local construction and related-services and most importantly provide thousands of new job opportunities for ordinary Malaysians.
Sometimes we think too hard, travel far and wide in the pursuit for solutions, when really, the
answer is right in front of our very eyes.
Thursday, March 30, 2017
Is our national interest now subjected to foreign terms and conditions?
Last week, I had asked the Finance Minister to justify the award of the RM55 billion East Coast Rail Link project to China Communications and Construction Company (CCCC) and why Malaysian companies were not given the opportunity to tender for the project.
In the Finance Ministry’s reply, it said "to qualify for this financing offered by China Exim Bank, the project had to be executed by CCCC".
The Minister said that the Export Import Bank of China (China Exim Bank) offered a soft loan to Malaysia for the project at low interest rates. He added that the loan, for a period of 20 years, also allows for a grace period of seven years where the government does not need to repay the principal.
In addition, "the government has, in principle, agreed at least 30 percent of the infrastructure work will involve local companies and contractors".
If studied carefully, the reply carried very sinister undertones.
Malaysia now appears so desperate for foreign financing for its so-called national interest projects that it is willing to subject itself to terms and conditions of foreign powers.
Just because somebody is willing to lend you the money at seemingly favourable terms does not mean that you should accept the condition to select the product that will cost nearly double the estimated price.
This is no different from unscrupulous retailers to duped Malaysian shoppers into “zero-interest” financing schemes on products costing significantly higher than if you have paid for it in cash. Any financial consultant will educate you that the real cost of financing is already built into the jacked-up price of the product.
Worse, the real cost of funds for the project is now opaque because we do not know the real cost of the project as it was awarded without any open and competitive tender. We do know however, that the Government’s own appointed consultants, HSS Integrated has estimated that the cost of the 600km railway project will cost less than RM30 billion.
Therefore, to pay for the project at RM55 billion just because China Exim Bank offered an “attractive financing package” is absolutely scandalous!
Worse, only 30% of the project will involve local companies and contractors, despite an abundance of experience and expertise which are already widely available in Malaysia. We have now got many companies who have built double tracking railway projects, dug award-winning tunnels systems and constructed the MRT. And yet, the Government is awarding a standard rail link project at substantially higher cost to a foreign company with minimal local participation.
The irony is, the Finance Ministry has advised or even instructed our Government-Link Companies to halt their investments abroad and repartriate its foreign funds from overseas to check the drastic decline of the ringgit. Bank Negara even put in harsh measures to force private companies to convert their foreign currency receipts into ringgit. However, the Government clearly doesn’t practise what it preaches because the overwhelming bulk of the inflated RM55 billion cost will be paid to China despite available local options.
There can be no better example of the English saying, “penny wise but pound foolish”. What boggles the mind is, the Finance Ministry doesn’t comprise of idiots – they should know that we are paying well above what is a fair price for the project. What is the ‘real’ reason why the project has been awarded to CCCC – is the real ‘quid pro quo’ the fact that CCCC will help launder part of the astronomical profits to pay off 1MDB debts as widely speculated?
Friday, November 18, 2016
New exposés during Singapore trial revealed how SRC International had similarly misappropriated funds using the same dubious investment funds as 1MDB
Malaysians are now thoroughly familiar with how 1MDB has misappropriated some US$7 billion of investment funds, of which approximately US$731 million has ended up in the Prime Minister’s personal bank account at Ambank, as exposed by the US Department of Justice (DOJ).
One of the key modus operandi which was used by 1MDB to launder the funds was to first move the money into seemingly legitimate investment funds. Subsequently, these funds will then pass through the money to special purpose vehicles created by Jho Low and his associates to be utilised or further disbursed to third parties.
For example, the 2013 and 2014 financial statements of 1MDB which were previously audited by Deloitte Malaysia, showed that nearly US$1.6 billion were invested in overseas funds without the provision of any details.
From the US DOJ filings, we now know that 1MDB, via its subsidiary, 1MDB Global Investment Limited, had in 2013 invested the funds with Devonshire Growth Fund (US$646 mil), Enterprise Emerging Markets Fund (US$415 mil) and Cistenique Investment Fund (US$531 mil). From these funds, a total of US$1.265 mil was transferred to two British Virgin Islands incorporated companies, Tanore Finance Corporation and Granton Property Holdings, owned by Eric Tan Kim Loong, an associate of Jho Low. From Tanore, US$681 million was transferred to Dato’ Seri Najib Razak.
For SRC International which was funded with RM4 billion from Kumpulan Wang Amanah Persaraan (KWAP), the March 2014 financial statements audited by Deloitte Malaysia had disclosed a whopping sum of RM3.81 billion categorised as “investment portfolio outside Malaysia”.
Other than a US$60 million failed investment in Mongolia’s Gobi Coal and Energy Ltd which we have discovered via past parliamentary replies, Malaysians have been left in the dark as to where and what exactly these funds have been invested in.
Malaysians’ worst fears were realised when the Switzerland Attorney-General issued a public statement on 5 October 2016 that “the sum of US$800 million appears to have been misappropriated from investments in natural resources made by the SRC sovereign fund.”
“Secondly, it is suspected that a ‘Ponzi’ scheme fraud (i.e. paying the returns on initial investments from funds obtained from subsequent investors rather than from legitimate revenue from the investments) was committed to conceal the misappropriations from both the SRC fund and from 1MDB,” he further disclosed.
Last week, we have received confirmation from the Singapore courts where the trial of former BSI banker, Yeo Jiawei was being held, the money from SRC International have been launder throught the same vehicles used to mask the transfer of the 1MDB investment funds above.
Testifying at his own trial, Yeo said the scheme devised was for SRC International, to invest in a fiduciary fund called Enterprise Emerging Market Fund (EEMF) in 2011. This is the same exact fund which was used by 1MDB to misappropriate US$415 million as mentioned above.
He explained that a fiduciary fund was one where the client, in this case SRC, will direct the manager of the fund on what to do with the money invested.
He also informed the court that SRC asked that EEMF extend a loan of US$100 million to a company called Blackstone Asia Real Estate Partners whose beneficiary owner is Eric Tan Kim Loong, like Tanore and Granton. He further disclosed SRC then gave an indemnity that shielded BSI from responsibility should all the money be lost.
The revelations at the Singapore courts are explosive. They not only lend credence to the suspicions and allegations that the RM3.81 billion “investments in overseas portfolios” in SRC International have effectively all been siphoned away, just like what has happened in 1MDB; they exposed the fact that these “investment funds” like EEMF received direct instructions from SRC as to how the funds are used and provided an indemnity to the relevant parties.
It above has proven firstly that EEMF, Devonshire and Cistenique investment funds are sham investments which 1MDB and SRC has participated in, secondly and more damagingly, that SRC directly given instructions for the funds to be siphoned to vehicles such as Blackstone.
We call on the Minister of Finance to come clean with the transactions which have taken place in SRC International. We also call upon the authorities – the Police, the MACC and Bank Negara Malaysia to carry out full investigations, particularly on the Directors an Management of the company for the crimes of theft, criminal breach of trust and money-laundering.
Thursday, November 03, 2016
Has Malaysia become the new rogue nation of this world?
Malaysia has always prided itself to be a progressive nation which built its foundations the principles of justice and moderation. Even before our own independence, we have always been on the on the right side of history, fighting the Axis powers during the World War II and was part of the coalition to halt the rise of communism in Southeast Asia.
Even during the worst of times during the Mahathir’s era of an authoritarian regime, we have never been regarded as a basket case like Cambodia, Burma, Iraq or God-forbid, North Korea.
Our leaders have been reasonably well-educated and speak with the right tones to ingratiate ourselves well in a world led by the United States, Europe and Japan. Even our current Prime Minister, Dato’ Seri Najib Razak had tried extremely hard to be part of international elite fraternity with his constant, albeit rhetorical preaching of the “global movement of moderates”.
Who can forget, how hard our Prime Minister tried to be buddies with President Obama and how proud he was when he had the rare opportunity to have a round of golf with the American President in Hawaii not too long ago in December 2014?
How quickly things have changed in less than 2 years.
In July this year, the United States Department of Justice (DOJ) has labelled Malaysia a kleptocracy, with the single largest seizure of assets purchased with funds laundered in the United States which were misappropriated from 1MDB. While Dato’ Seri Najib Razak was not an owner of the assets to be seized, the DOJ explicitly disclosed that he received US$731 million of these misappropriated funds in his personal bank account in Malaysia.
Despite the severity of the accusation by the US Attorney-General, Dato' Seri Najib has refused to deny the allegations and has chosen to remain silent.
Instead today, Dato’ Seri Najib Razak has decided that it is now in his best interest to pucker up to mighty China. After all, China doesn’t pass judgement on who they deal with, regardless of whether it’s a rogue nation like North Korea or a Western counterpart like United States. China’s investments for influence policy reaches out far and wide to third world countries all around the world, especially in Africa like, Nigeria, Sudan and Angola.
After the much-hyped promise of Middle-Eastern petrodollars-led investment boom in Malaysia failed to materialise, the Prime Minister is turning to Beijing to not only jumpstart our economy, but also to help him clean up his multi-billion dollar 1MDB mess.
It is one thing eschewing open tenders for mega-projects in the past to local Malaysian cronies of the ruling parties. Now, the Prime Minister has decided that we should eschew open tenders and award mega-projects at inflated prices like the RM55 billion East Coast Rail Link to Chinese state-owned companies without any tender, or even the pretence of one.
Dato’ Seri Najib has decided to award of the above project to China Communications Construction Company Limited at a price more than double the price per kilometer of rail ever awarded in Malaysia with borrowings from China’s Export-Import Bank. It is a clear attempt to siphon cash to payoff 1MDB’s outstanding debts, especially those embroiled with Abu Dhabi’s International Petroleum Investment Corporation.
In exchange, Dato’ Seri Najib yields to Chinese geo-political and economic supremacy. When the United Nations Arbitral Tribunal ruled that “there was no legal basis for China to claim historic rights to resources within the sea areas falling within the ‘nine-dash line” in South China Sea, Malaysia has strangely refused to endorse the ruling despite the fact that we are ourselves laying claims on parts of the Spratlys archipelago in the area.
Worse, Malaysia together with Cambodia, has frustrated the attempts by ASEAN nations to recognise the ruling which had resulted in a meaningless water-down statement with regards to the disputes in South China Sea.
Yesterday, as if to hammer the nail into the coffin, the Prime Minister wrote in his special column in China Daily chastising the West including the “former colonial powers”, that “it is not for them to lecture countries they once exploited on how to conduct their own internal affairs today.”
It is a not so subtle statement to tell these Western powers that how Malaysia is a kleptocracy today isn’t any of their business. If they are not happy with him, he is more than happy to embrace China, who couldn’t care less about how the Malaysian government leaders plunder the nation.
Dato’ Seri Najib Razak’s stand has much bigger implications to Malaysia than merely an attempt to play off one Superpower against another. The Prime Minister’s brazen foreign policy switch will lead Malaysia, intentionally or inadvertently, down the road of becoming a rogue nation, globally snubbed and internationally derided.
As basket cases like Burma, Vietnam or even Iran redeems themselves with greater rapprochement with the international communities, it is frightening that a Prime Minister, consumed with the need to save himself is taking actions which will lead us down the slippery slope.
Even during the worst of times during the Mahathir’s era of an authoritarian regime, we have never been regarded as a basket case like Cambodia, Burma, Iraq or God-forbid, North Korea.
Our leaders have been reasonably well-educated and speak with the right tones to ingratiate ourselves well in a world led by the United States, Europe and Japan. Even our current Prime Minister, Dato’ Seri Najib Razak had tried extremely hard to be part of international elite fraternity with his constant, albeit rhetorical preaching of the “global movement of moderates”.
Who can forget, how hard our Prime Minister tried to be buddies with President Obama and how proud he was when he had the rare opportunity to have a round of golf with the American President in Hawaii not too long ago in December 2014?
How quickly things have changed in less than 2 years.
In July this year, the United States Department of Justice (DOJ) has labelled Malaysia a kleptocracy, with the single largest seizure of assets purchased with funds laundered in the United States which were misappropriated from 1MDB. While Dato’ Seri Najib Razak was not an owner of the assets to be seized, the DOJ explicitly disclosed that he received US$731 million of these misappropriated funds in his personal bank account in Malaysia.
Despite the severity of the accusation by the US Attorney-General, Dato' Seri Najib has refused to deny the allegations and has chosen to remain silent.
Instead today, Dato’ Seri Najib Razak has decided that it is now in his best interest to pucker up to mighty China. After all, China doesn’t pass judgement on who they deal with, regardless of whether it’s a rogue nation like North Korea or a Western counterpart like United States. China’s investments for influence policy reaches out far and wide to third world countries all around the world, especially in Africa like, Nigeria, Sudan and Angola.
After the much-hyped promise of Middle-Eastern petrodollars-led investment boom in Malaysia failed to materialise, the Prime Minister is turning to Beijing to not only jumpstart our economy, but also to help him clean up his multi-billion dollar 1MDB mess.
It is one thing eschewing open tenders for mega-projects in the past to local Malaysian cronies of the ruling parties. Now, the Prime Minister has decided that we should eschew open tenders and award mega-projects at inflated prices like the RM55 billion East Coast Rail Link to Chinese state-owned companies without any tender, or even the pretence of one.
Dato’ Seri Najib has decided to award of the above project to China Communications Construction Company Limited at a price more than double the price per kilometer of rail ever awarded in Malaysia with borrowings from China’s Export-Import Bank. It is a clear attempt to siphon cash to payoff 1MDB’s outstanding debts, especially those embroiled with Abu Dhabi’s International Petroleum Investment Corporation.
In exchange, Dato’ Seri Najib yields to Chinese geo-political and economic supremacy. When the United Nations Arbitral Tribunal ruled that “there was no legal basis for China to claim historic rights to resources within the sea areas falling within the ‘nine-dash line” in South China Sea, Malaysia has strangely refused to endorse the ruling despite the fact that we are ourselves laying claims on parts of the Spratlys archipelago in the area.
Worse, Malaysia together with Cambodia, has frustrated the attempts by ASEAN nations to recognise the ruling which had resulted in a meaningless water-down statement with regards to the disputes in South China Sea.
Yesterday, as if to hammer the nail into the coffin, the Prime Minister wrote in his special column in China Daily chastising the West including the “former colonial powers”, that “it is not for them to lecture countries they once exploited on how to conduct their own internal affairs today.”
It is a not so subtle statement to tell these Western powers that how Malaysia is a kleptocracy today isn’t any of their business. If they are not happy with him, he is more than happy to embrace China, who couldn’t care less about how the Malaysian government leaders plunder the nation.
Dato’ Seri Najib Razak’s stand has much bigger implications to Malaysia than merely an attempt to play off one Superpower against another. The Prime Minister’s brazen foreign policy switch will lead Malaysia, intentionally or inadvertently, down the road of becoming a rogue nation, globally snubbed and internationally derided.
As basket cases like Burma, Vietnam or even Iran redeems themselves with greater rapprochement with the international communities, it is frightening that a Prime Minister, consumed with the need to save himself is taking actions which will lead us down the slippery slope.
Tuesday, August 09, 2016
Datuk Hasan Arifin clearly a “cari makan” PAC Chairman when he refused to reopen 1MDB investigations and initiate new investigations into SRC International
The UK Guardian has labelled the 1MDB imbroglio as the “world’s largest financial scandal”. This was after the US Attorney-General filed a suit to seize US$1 billion of assets laundered from 1MDB, the single largest action under the Kleptocracy Asset Recovery Initiative. The US Department of Justice (DOJ) laid out the charges in full, which showed more than US$3.5 billion have been misappropriated from Malaysia’s sovereign wealth fund, 1MDB.
Most importantly, the US DOJ detailed the exact transactions showing how US$731 million of the misappropriated funds ended up in the personal bank account of a “Malaysian Official 1” (MO1). As the Minister in Prime Minister’s Department, Datuk Seri Rahman Dahlan rightly pointed out, only an idiot would not know that MO1 refers specifically to Dato’ Seri Najib Razak.
I have at the Parliamentary Public Accounts Committee (PAC) meeting yesterday demanded that the PAC re-open investigations into 1MDB. I said that the Malaysian Parliament will be failing to fulfil the grave responsibilities the people have entrusted us with if we fail to react and follow up with the single biggest scandal which has possibly irreparably damaged the nation’s reputation.
Datuk Hasan Arifin refused to allow the PAC to allow the investigations to be re-opened and confirmed his decision with a statement after the meeting. The Chairman insisted that the PAC has already completed its report tabled to the Parliament in April 2016 and there was no necessity to re-visit the scandal. He was supported by the Gerakan Member of Parliament for Simpang Renggam, Liang Teck Meng who dismissed the DOJ suit as mere “speculation”.
Datuk Hasan Arifin’s excuse is completely unacceptable.
Previously, the PAC never had the opportunity to call upon the Prime Minister to testify before the Committee because evidence relating to the embezzlement by Dato’ Seri Najib Razak was withheld by 1MDB. Despite repeated requests by the Auditor-General for nearly a year, 1MDB had refused to supply documents, particularly bank statements of its overseas subsidiaries and accounts.
Datuk Hasan Arifin and the Najib administration had even twisted the PAC Report as “clearing Najib” despite the fact that Najib was never investigated as a result of the withheld evidence.
Hence with the DOJ suit, I told the PAC meeting that there is now concrete evidence to demand that the Prime Minister testify before the PAC. It is the perfect opportunity for Dato’ Seri Najib Razak to confirm or deny the allegations. I even said that if Najib was able to demonstrate concrete evidence which showed that he has been maligned by the DOJ, and that the monies obtained were indeed from Arab “donors”, I will be the first to stand up to defend and redeem his honour.
Datuk Hasan Arifin has also refused, without even providing any reason for my additional request to initiate investigations against another related Ministry of Finance subsidiary, SRC International Sdn Bhd. This is despite the fact that the Attorney-General Tan Sri Apandi Ali himself has provided evidence of RM27 million being transferred from the company to Dato’ Seri Najib Razak’s accounts via intermediaries in 2014, as well as the fact that SRC International has failed to table its financial audit since March 2014.
The PAC Chairman's obstinate refusal to accede to the all-important requests led me to believe that he sole purpose is to be a “macai” to obstruct and cover up all allegations on Dato’ Seri Najib Razak. He has confirmed that he is indeed a “cari makan” Chairman and disgraced the honour and integrity of Malaysia’s supreme legislative body.
I had walked out of the meeting yesterday and will not be attending the meetings scheduled for this week as a mark of protest against the total farce the PAC has become.
Most importantly, the US DOJ detailed the exact transactions showing how US$731 million of the misappropriated funds ended up in the personal bank account of a “Malaysian Official 1” (MO1). As the Minister in Prime Minister’s Department, Datuk Seri Rahman Dahlan rightly pointed out, only an idiot would not know that MO1 refers specifically to Dato’ Seri Najib Razak.
I have at the Parliamentary Public Accounts Committee (PAC) meeting yesterday demanded that the PAC re-open investigations into 1MDB. I said that the Malaysian Parliament will be failing to fulfil the grave responsibilities the people have entrusted us with if we fail to react and follow up with the single biggest scandal which has possibly irreparably damaged the nation’s reputation.
Datuk Hasan Arifin refused to allow the PAC to allow the investigations to be re-opened and confirmed his decision with a statement after the meeting. The Chairman insisted that the PAC has already completed its report tabled to the Parliament in April 2016 and there was no necessity to re-visit the scandal. He was supported by the Gerakan Member of Parliament for Simpang Renggam, Liang Teck Meng who dismissed the DOJ suit as mere “speculation”.
Datuk Hasan Arifin’s excuse is completely unacceptable.
Previously, the PAC never had the opportunity to call upon the Prime Minister to testify before the Committee because evidence relating to the embezzlement by Dato’ Seri Najib Razak was withheld by 1MDB. Despite repeated requests by the Auditor-General for nearly a year, 1MDB had refused to supply documents, particularly bank statements of its overseas subsidiaries and accounts.
Datuk Hasan Arifin and the Najib administration had even twisted the PAC Report as “clearing Najib” despite the fact that Najib was never investigated as a result of the withheld evidence.
Hence with the DOJ suit, I told the PAC meeting that there is now concrete evidence to demand that the Prime Minister testify before the PAC. It is the perfect opportunity for Dato’ Seri Najib Razak to confirm or deny the allegations. I even said that if Najib was able to demonstrate concrete evidence which showed that he has been maligned by the DOJ, and that the monies obtained were indeed from Arab “donors”, I will be the first to stand up to defend and redeem his honour.
Datuk Hasan Arifin has also refused, without even providing any reason for my additional request to initiate investigations against another related Ministry of Finance subsidiary, SRC International Sdn Bhd. This is despite the fact that the Attorney-General Tan Sri Apandi Ali himself has provided evidence of RM27 million being transferred from the company to Dato’ Seri Najib Razak’s accounts via intermediaries in 2014, as well as the fact that SRC International has failed to table its financial audit since March 2014.
The PAC Chairman's obstinate refusal to accede to the all-important requests led me to believe that he sole purpose is to be a “macai” to obstruct and cover up all allegations on Dato’ Seri Najib Razak. He has confirmed that he is indeed a “cari makan” Chairman and disgraced the honour and integrity of Malaysia’s supreme legislative body.
I had walked out of the meeting yesterday and will not be attending the meetings scheduled for this week as a mark of protest against the total farce the PAC has become.
Thursday, July 28, 2016
Has the PM’s Department decided to award the East Coast Rail Link to China Communications Construction Company (CCCC) for an inflated cost of RM60 billion without any tender?
The Sarawak Report has exposed new documents which alleged that the Malaysian Government is in the midst of finalising a new contract to award China Communications Construction Company (CCCC) for a whopping sum of RM60 billion. The East Coast Economic Region Development Council had previously expected the cost of the project to be ‘only’ RM30 billion.
Malaysians are taken aback by the speculated cost for the project and cannot be blamed for giving Sarawak Report the benefit of the doubt because the whistle-blower website has been proven right time and again, especially with regards to its reporting of the multi-billion dollar 1MDB scandal.
As a measure of comparison, the 329km Ipoh-Padang Besar double-tracking project was awarded to MMC-Gamuda consortium for RM14.5 billion in 2003. More recently in December 2015, the 179km Gemas-Johor Bahru link was awarded to China Railway Engineering Corporation for the sum of RM7.1 billion. On average, the railway projects cost RM44.0 million and RM39.8 million per kilometre respectively.
However, at the cost of RM60 billion, the 620km ECRL will cost a monstrous RM96.8 billion per kilometre to construct. That would mean that the ECRL will cost 120% and 143% more than northern and southern double-tracking projects respectively!
The massively inflated alleged cost of the ECRL without a tender exercise lends credence to the Sarawak Report documents which detailed how the “excess” was to bailout the debt-stricken 1MDB.
The documents reveal that CCCC, upon the award of the inflated contract, will via a nominated “credit-worthy” company pay 1MDB the sum of US$850 million (RM3.4bn) for the purposes of repayment for International Petroleum Investment Corporation (IPIC) advances, and assume the debt of 1MDB subsidiaries amounting to US$4.78 billion (RM19.4bn) inclusive of interest which had been guaranteed by IPIC.
These payments are clearly meant to go towards the settlement with IPIC which has taken 1MDB to the London arbitration court for the amount of US$6.5 billion.
More interestingly, part of the sum from the inflated cost will go towards acquiring substantial stakes in fugitive Low Taek Jho-linked companies, Putrajaya Perdana Bhd and Loh & Loh Corporation Bhd for US$244 million and US$71 million respectively.
In addition, there is a proposed payment by CCCC to a “consultancy/strategic/comms services” company and another “nominated company” for the amounts of US$65 million and US$200 million respectively. The payment for the unnamed mysterious “nominated company” was to be made upon the official signing of the ECRL contract expected in December this year. Hence, it appears that even in the exercise of a desperate bailout, generous commissions will be paid to certain parties, perhaps to continue their lifestyles of luxury and debauchery.
In effect, the Najib administration is merely ECRL as an excuse and an outrageous cover up to mask additional borrowings of RM30 billion in order to repay the billions embezzled from 1MDB. Most tragically, it means that ordinary Malaysians as the Government will finance the entire ECRL project with more crippling debt. We are merely covering up a gigantic hole by digging ourselves an even bigger hole.
We call upon Dato’ Seri Najib Razak to confirm or deny that the award of the contract to CCCC is in the works, and provide transparent and accountable justifications for the award in the absence of any competitive tender exercise.
Saturday, July 23, 2016
1MDB, a simple yes or no will do: have billions of dollars of 1MDB's money been “misappropriated” and “embezzled”?
1MDB must not evade the factual allegations laid out by the US Department of Justice but answer the simple question if billions of dollars of its money have been “misappropriated” and “embezzled”.
In the face of allegations by the United States (US) Department of Justice (DOJ) that US$3.5 billion or more have been misappropriated and embezzled from 1MDB, the state-owned investment fund provided the world with the most ludicrous response.
1MDB merely responded that “it is not a party to the civil suit, does not have any assets in the United States of America, nor has it benefited from the various transactions described in the civil suit”.
The outstanding management led by Arul Kanda at 1MDB must surely realise that the DOJ never made 1MDB “party to the civil suit”. Neither did they accuse 1MDB of having “assets in the United States of America”.
The US DOJ has laid out the entire scam claiming 1MDB was a victim of a multi-billion-dollar international fraud.
Hence the question 1MDB must respond to is whether it finally accept that it is a victim of a treasonous fraud in the light of the lorry-load of hard evidence presented.
Or is Arul Kanda and his team still oblivious to the entire scam where multi-billion dollars have been lost? How difficult is it for these super-clever to executives to figure out if the money is missing or otherwise?
For example, the BSI Bank Singapore has been shut down, but where is the US$940 million which was purportedly parked in the bank? Did it vanish into thin air as well?
Or the purported US$1.56 billion of “investments” in the dodgy investments funds identified by the US DOJ – Devonshire, Enterprise and Cistenique – are they still in existence?
Or the fact that the US DOJ, like Bank Negara Malaysia, has established clearly that Good Star Limited, which received US$1.03 billion directly from 1MDB, is indeed owned by Low Taek Jho, and not by Petrosaudi International Limited as claimed – is 1MDB still in denial?
Or, more plausibly, Arul Kanda and his team are conniving conspirators in the entire scam. Is he is doing his utmost to cover up the scam which involved the Malaysian Prime Minister himself embezzling more than US$700 million into his personal account?
We call upon the newly appointed Board of Directors of 1MDB, led by its new Chairman, the Treasury-General, Tan Sri Irwan Serigar to not repeat the disgraceful failures of the previous Board. He must, as the country’s top financial civil servant, act without fear or favour in the interest of the Malaysian tax-payers.
If the President of 1MDB, Arul Kanda is not acting in the interest of the shareholder, then fiduciary duty demands that Tan Sri Irwan Serigar sack the entire 1MDB top management with immediate effect. The Chairman must state openly, if 1MDB has indeed been a victim of fraud and seek the return of the pilfered proceeds back to the country.
In the light of the size and scale of the scandal, the Board of Directors must also place 1MDB under temporary management by the remaining Big Four audit firm which has not been tainted by the scandal, PriceWaterhouse Coopers.
If Tan Sri Irwan Serigar fails to act in the interest of Malaysian tax-payers, then he himself will be guilty of conspiring with the evil wrong-doers which committed the mult-billion dollar heist of the century. Pakatan Harapan leaders will then demand for the Treasury-General to be sacked in disgrace.
Thursday, July 21, 2016
Malaysia now global laughing stock as the US DOJ moves to seize some US$1 billion of assets stolen from 1MDB, while the Malaysian Government remain inexplicably oblivious to the grand theft
Yesterday, the Wall Street Journal (WSJ) reported that the US Federal prosecutors are poised to launch one of the largest asset seizures in U.S. history as they step up their investigation into billions of dollars siphoned away from 1Malaysia Development Bhd (1MDB).
The US Department of Justice are expected to seize more than $1 billion worth of assets, the single largest seizure in the history of the United States, which are expected to include properties and other assets purchased with money allegedly misappropriated from 1MDB.
Reuters have now confirmed the WSJ report. The U.S. Department of Justice filed lawsuits today saying that over $3.5 billion was misappropriated from 1MDB.
The lawsuits, filed in Los Angeles, seek to seize assets "involved in and traceable to an international conspiracy to launder money misappropriated from 1MDB". The lawsuits said the alleged offences were committed over a four-year period and involved multiple individuals, including Malaysian officials and their associates, who conspired to fraudulently divert billions of dollars from 1MDB.
Those named included Riza Aziz, Dato’ Seri Najib Razak’s step-son, Low Taek Jho, or Jho Low, and Abu Dhabi government officials Khadem al-Qubaisi and Mohamed Ahmed Badawy Al-Husseiny.
More interestingly, the charge claimed that funds misappropriated from 1MDB were transferred to Petrosaudi, a company that had a joint venture with 1MDB, and thereafter to a high-ranking official in the Malaysian government it identified only as "Malaysian Official One".
The assets involved in the case include penthouses, mansions, artwork and even a private jet.
In the past, the Najib administration has consistently dismissed the WSJ allegations as “unsubstantiated malicious allegations” as part of a “global conspiracy” to “bring down a democratically elected government”. The Malaysian investigating agencies took the que and refused to conduct any genuine investigations into the monstrous heist despite mounting evidence and damning Auditor-General and Public Accounts Committee Reports.
However, the shit has hit the fan with the latest actions taken by the United States authorities. Surely, Dato’ Seri Najib Razak will not now turn around and accuse his golfing buddy, President Obama of being part of a global malicious conspiracy to bring down his Government?
As a result, we are now the butt of jokes to the world. The US authorities has moved to seize some US$1 billion of assets stolen and misappropriated from 1MDB, and yet the victim, the Malaysian Government insists that we weren’t robbed.
We call upon the Dato’ Seri Najib Razak to chastise our local regulatory authorities for their ineptitude in getting to the bottom the scandal which isn’t only the largest in the history of Malaysia, but also has set the ignominious record of being the largest seizure in the history of United States.
The Prime Minister must instruct the police and the MACC to follow the leads provided by the Department of Justice to charge all the relevant parties who have stolen billions from Malaysians, including but not limited to Riza Aziz and Jho Low.
Most importantly, they must obtain and discover, who is the “Malaysian Official One” who has been accused of siphoning billions of ringgit of 1MDB’s borrowed wealth.
Tuesday, July 12, 2016
Arul Kanda must explain why 1MDB Global Investment Limited paid US$1.279 billion to Aabar Investment PJS Limited when these entities had no business relationships
The Sarawak Report yesterday exposed another set of banking transaction documents separate from the classified Auditor-General’s Report on 1MDB which showed that 1MDB Global Investment Limited (GIL) paid a total of US$1,279,347,500 between 12 September and 4 November 2014 to the British Virgin Islands (BVI) incorporated Aabar Investment PJS Limited.
1MDB GIL is a wholly-owned foreign subsidiary of 1MDB while Aabar (BVI) has been exposed as a fraudulent entity pretending to be the subsidiary of Abu Dhabi’s International Petroleum Investment Corporation (IPIC).
The Sarawak Report rightly highlighted the failure of UBS Bank Singapore which received the money on behalf of Aabar (BVI) to properly ascertain the purpose, source and recipient of the funds. The Monetary Authority of Singapore has already shut down another Swiss Bank, BSI Singapore in May for serious breaches of anti-money laundering requirements, poor management oversight of the bank’s operations, and gross misconduct by some of the bank’s staff. The latest exposé hence raises the question as to whether UBS Singapore will be similarly investigated and have action taken against the Bank.
However, a bigger question mark arising from the above is why did 1MDB GIL make the US$1.279 billion payment to Aabar (BVI) in the first place?
1MDB GIL had borrowed US$3 billion in March 2013 purportedly to form a joint venture company with Abu Dhabi’s Aabar Invesmtent PJS to develop the Tun Razak Exchange in Kuala Lumpur. However, the joint venture did not materialise.
If the joint venture is as good as dead, as testified by Arul Kanda himself to the Public Accounts Committee in January 2016, why did 1MDB GIL make the US$1.279 billion payment to Aabar (BVI) in 2014 which he did not disclose to the Committee?
Furthermore, according to 1MDB’s financial statements, 1MDB GIL was left with only US$1.56 billion invested “in various investment portfolios under the custody of a licensed financial institution”. The rest of the funds have already been used up “for working capital and debt repayment purposes” by 31 March 2014.
Arul Kanda had also testified that the US$1.56 billion of 1MDB GIL investments were intact and will be possibly utilised as part of 1MDB’s rationalisation exercise. However, if US$1.56 billion was indeed intact, then how did 1MDB GIL make the US$1.279 billion of cash payments to Aabar (BVI)?
The exposé of the latest documents by Sarawak Report has caught Arul Kanda with his pants down and proved that he has lied and withheld crucial information from the PAC. This would be the real reason why Arul Kanda has refused to produce simple bank statements of 1MDB GIL to even the Auditor-General despite repeated requests to do so.
We call upon the local and international authorities to investigate all parties involved in the above transactions – Aabar Investment PJS Limited, 1MDB and UBS Bank for a international money laundering operation involving Malaysian tax-payers funds.
Action must be taken against all parties who approved and abetted the above illicit transactions to ensure the integrity of our local and international financial system.
Monday, May 31, 2010
DAP Condemns Israel
The Democratic Action Party condemns the violent attack by the Israeli army on the “Freedom Flotilla” which was carrying humanitarian aid for Palestinians in Gaza who are suffering from Israeli occupation which has resulted in a reported 16 deaths and scores injured. The Israeli navy has blockaded the Gaza Strip for the past 3 years.
The total and utter disregard for human lives especially those with only peaceful intent and bearing aid for the needy is not only abhorrent, but also evil to the very core. The attack on the flotilla is equal to any attack on Red Cross missions to aid injured civilians during the times of war. What is worst is that the attack by the Israeli navy was conducted in international waters.
The attack comes at a time when “proximity talks” which only started this month, are on-going between the United States, the Israeli government and the Palestinian authorities to resolve the decades old conflict in the Middleast. It appears that this pre-meditated attack is obviously meant to scuttle the attempts by the Palestinians to achieve independent self-rule, free from Israeli occupation.
The DAP calls on the Israeli government to ensure an immediate, sustained and unconditional opening of the crossing for the flow of humanitarian aid, commercial goods and persons to and from Gaza. We would also call upon those to ordered the unprovoked military attack on the peace mission to be charged in the International Criminal Court for war crimes and crimes against humanity.
The head of United Nation's Relief and Works Agency (UNRWA) mission in Gaza, John Ging has specifically expressed the need for the Flotilla to enter Gaza as due to the “medieval siege”, mass unemployment, extreme poverty, food insecurity and food price rises caused by shortages left four out of five Gazans dependent on humanitarian aid.
We call upon the government of United States, led by Barrack Obama to demonstrate its even-handedness by taking concrete actions against the Israeli government for the outright act of aggression and support a motion in the United Nations Security Council to condemn Israeli aggression. We also call upon the United States Government to end its US$3 billion military aid per annum to Israel.
Finally, the DAP would like to commend the courage of all the 750 people of conscience from 40 different countries including 35 Malaysian and international politicians intent on breaking the Israeli blockade. We offer our sincerest condolences to family and friends who have lost loved ones in the attack.
The total and utter disregard for human lives especially those with only peaceful intent and bearing aid for the needy is not only abhorrent, but also evil to the very core. The attack on the flotilla is equal to any attack on Red Cross missions to aid injured civilians during the times of war. What is worst is that the attack by the Israeli navy was conducted in international waters.
The attack comes at a time when “proximity talks” which only started this month, are on-going between the United States, the Israeli government and the Palestinian authorities to resolve the decades old conflict in the Middleast. It appears that this pre-meditated attack is obviously meant to scuttle the attempts by the Palestinians to achieve independent self-rule, free from Israeli occupation.
The DAP calls on the Israeli government to ensure an immediate, sustained and unconditional opening of the crossing for the flow of humanitarian aid, commercial goods and persons to and from Gaza. We would also call upon those to ordered the unprovoked military attack on the peace mission to be charged in the International Criminal Court for war crimes and crimes against humanity.
The head of United Nation's Relief and Works Agency (UNRWA) mission in Gaza, John Ging has specifically expressed the need for the Flotilla to enter Gaza as due to the “medieval siege”, mass unemployment, extreme poverty, food insecurity and food price rises caused by shortages left four out of five Gazans dependent on humanitarian aid.
We call upon the government of United States, led by Barrack Obama to demonstrate its even-handedness by taking concrete actions against the Israeli government for the outright act of aggression and support a motion in the United Nations Security Council to condemn Israeli aggression. We also call upon the United States Government to end its US$3 billion military aid per annum to Israel.
Finally, the DAP would like to commend the courage of all the 750 people of conscience from 40 different countries including 35 Malaysian and international politicians intent on breaking the Israeli blockade. We offer our sincerest condolences to family and friends who have lost loved ones in the attack.
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