Friday, October 30, 2015

In response to Arul Kanda's talkshow conditions

1. Is Arul Kanda’s motive to remove me from the Public Accounts Committee (PAC) to have an easier time as he is confident that the 8 BN MPs will be easy to dupe?

I had invited 1Malaysia Development Bhd (1MDB) President, Arul Kanda to a “live” talkshow where I will, as host, ask him questions with regards to 1MDB which has captured the imagination of not only Malaysians, but the international media as well.

My motive was very simple, he has had a easy time getting away with recycled answers which either never answered the core questions, or he was more than economical with the truth.

If all the allegations by various parties against 1MDB are indeed lies and concoctions as he claims, when I question him, he'll be able to turn the tables against me on live television.

Instead of jumping at such an opportunity to shame 1MDB’s most persistent critic, Arul Kanda pretended to agree to the challenge but attached the ridiculous condition that I resign from the PAC.

This is not the first time that Arul Kanda or Barisan Nasional (BN) Ministers and leaders have called for my resignation from the PAC.   It appears to be their priority to ensure that the PAC will not benefit from the knowledge and understanding I have on the shenanigans in 1MDB.

Arul Kanda must believe that if I’m removed from the PAC, the rest of the committee, particularly the 8 BN representatives will be easy to dupe, resulting in a watered down report against 1MDB.

At the same time, Arul Kanda is just running away from my invitation for a civil talkshow by attaching a condition which he knows I cannot and will never accept.  My official duties and responsibilities as a PAC member to the Malaysian public is far more important than entertaining Arul Kanda’s frivolous games.

Instead, Arul’s refusal to answer questions openly, truthfully and unconditionally to the public in itself goes to prove that the 1MDB President has plenty to hide.

Thursday, October 29, 2015

Can I do a talkshow with Arul Kanda, where I ask the questions?

1Malaysia Development Bhd (1MDB) President, Arul Kanda took part in another live interview with Bernama TV in a special programme entitled “Bernama TV with Arul Kanda”.

During the show, Arul Kanda boasted that there is “absolutely no cover up in relation to 1MDB”. Other than that, he essentially recycled answers which have been previously discredited.

Monday, October 26, 2015

Arul Kanda has time to "brief" UMNO and MCA members on 1MDB, but not Malaysians or MPs?

1MDB President Arul Kanda was asked whether the leaked minutes via The Sarawak Report was true, and according to Malaysiakini, he responded that "in terms of the board minutes, we confirm that it appears to be authentic.”.

What type of answer is that?  What does Arul Kanda mean when he said “it appears to be authentic”?  Did he intend to say that it looks authentic, it sounds authentic but it still might not be authentic?

His confirmation is crucial because if the leaked minutes were indeed authentic, then clearly, the Board of Directors of 1MDB were furious with the 1MDB top executives for disobeying board decisions and instructions, contradicting 1MDB’s persistent denials.

Friday, October 23, 2015

Why should 1MDB enjoy tax-exempt status from the Ministry of Finance?

In Dato’ Seri Najib Razak’s response to the Member of Parliament for Kampar, Dr Ko Chung Sen yesterday, he disclosed that 1Malaysia Development Bhd (1MDB) enjoys full income tax-exempt status from the Ministry of Finance.  He said
1MDB dan anak syarikat milikan penuhnya telah mendapat pengecualian cukai pendapatan termasuk dividen bagi tempoh 10 tahun selaras dengan Seksyen 127(3A) Akta Cukai Pendapatan 1967.  Walau bagaimanapun, bagi anak syarikat lain yang diperoleh oleh 1MDB, tidak mendapat pengecualian tersebut.

The question we would like to ask the Finance and Prime Minister is, what is so special about 1MDB that it deserves to be exempted from income tax payments to the Government?

Budget 2016 burdens the rakyat further; meanwhile, Najib ignores the biggest elephant in the room

As the Malaysian economy gets hit by a slowing global economic environment, declining commodity prices, rising inflation and a plunging ringgit, the Budget for 2016 just announced by the Prime Minister is long on grandiloquence and short on substance.

While the Prime Minister praises his Government for its far-sightedness to introduce the Goods & Services Tax (GST) as the income from the new tax will make up for the loss of revenue from the oil and gas sector.

The reality is Malaysians, particular the middle and lower income population are now burdened with coughing up RM39 billion of GST relative to the loss of RM17.5 billion from the Petroleum Income Tax.

In comparison, the Sales and Services Tax collected in 2014 amounted to only RM17 billion.  This means that Malaysians have to suffer an increase in taxes by a whopping RM22 billion.

While the taxes paid by the man-on-the-street have been increased drastically, the Federal Government has failed to increase its prudence on expenditure.  As an example, the budgeted expenditure for ‘Supplies and Services’ has been maintained at RM36.3 billion for 2016 when it was only RM20.8 billion in 2010.  Why has this provision increased by 75.4% in just 5-6 years?

Thursday, October 22, 2015

Who is running SRC International today?

Malaysians read with interest, the first ever media statement by SRC International Sdn Bhd, a mysterious former subsidiary of 1Malaysia Development Bhd (1MDB) which has been taken over directly by the Ministry of Finance.

SRC International which is funded by a RM4 billion loan from Kumpulan Wang Amanah Persaraan (KWAP), dismissed outright all allegations of misappropriation of funds.

The Wall Street Journal has previously exposed the fact that SRC International has transferred a total of RM42 million to the Prime Minister’s personal bank account.  The transfers were carried out between December 2014 and March 2015, via its subsidiary Gandingan Mentari Sdn Bhd and Ihsan Perdana Sdn Bhd.  The latter company carries out corporate social responsibility work of 1MDB.

The above transactions clearly pointed to criminal breach of trust as substantial funds from a Ministry of Finance subsidiary were transferred to the personal accounts of the Minister of Finance.  It has also been exposed by the Sarawak Report that the former Attorney-General, Tan Sri Abdul Gani Patail was moments charging Dato’ Seri Najib Razak for corruption or criminal breach of trust over the above transactions before being unceremoniously retired and replaced by the Prime Minister.

However, for the first time, SRC International released a media statement which said, “none of it was misappropriated as claimed by those with malicious intent.”

SRC further added, “We strongly reject these allegations. Having conducted an internal investigation, we believe these claims were based on documents that were fabricated, therefore representing a deliberate attempt to mislead the public.”

It appears that SRC International has taken a leaf off its former parent, 1MDB in making sweeping denials without specifics.

The questions are very simple.  Did SRC International transfer a total RM50 million to its subsidiary, Gandingan Mentari?  Did Gandingan Mentari then transfer a total of RM50 million to Ihsan Perdana?  Further to that did Ihsan Perdana which acts on behalf of 1MDB, transfer RM42 million of that amount to the Prime Minister?  Those are very simple “yes” or “no” questions which doesn’t take a rocket scientist to answer.

Instead, SRC chose to be hyperbolic, calling “on those quarters who are engaged in efforts to overthrow the government to desist from involving SRC in their political campaign and to avoid making false and unsubstantiated allegations”.

We would like to ask the Ministry of Finance to inform us, who exactly is running SRC International today.  Who actually carried out the “internal investigations” and more interestingly, who wrote and approved the media statement?

As far as we are aware, the top executive of SRC, Nik Faisal Ariff Kamil, a close associate of Low Taek Jho, has been on the run for the past 6 months.  Similarly, another key director of SRC International, Datuk Suboh bin Mohd Yassin has also disappeared.  Both individuals are wanted by the Malaysian Anti-Corruption Commission (MACC) to assist with investigations.

Is there already a new management team put in place to run SRC International?  Are the identities of this new team top secret as well?

In addition, the Ministry of Finance Secretary-General, Tan Sri Irwan Serigar must let us know why no directors representing the Ministry has been appointed to SRC International to monitor its activities.  Such an appointment is never more important given that the questions of the governance of its subsidiary has been in the spotlight.

Wednesday, October 21, 2015

Image of fake racist tweet purportedly made by me is the work of amateurs

The attached image was circulating widely via Whatsapp yesterday, particularly among the Indian community.

Based on the image, I had allegedly tweeted that “The Indians really behave like thugs and act like Pariah! i will not be threathen by them!”

The above tweet is clearly a fake image and I have never written anything remotely close to what was written above.  It is clearly fake because you would notice that the time stamp next to every tweet has been removed.

In addition, I would like to think that I would not misspell “threaten”, nor would I be grammatically wrong when it should be “threatened”.

Regardless, I have never used the word “pariah” to describe anyone and I most certainly do not believe that Indians “behave like thugs”.  However there are those among us – Chinese, Indians, Malays, who do behave like thugs.  The person or persons who made the above image is certainly a shameless “thug”, regardless of his race.

Perhaps the above malicious fake tweet, was a vicious response to me when I described those who had prevented licensed Indian traders from setting up their stalls, and those who disrupted my press conference at the Deepavali Bazaar in Sungai Way, Petaling Jaya last week as “thugs”.  They had come to intimidate those who were present by heckling, shoving and spewing unprintable expletives.

The fake image is clearly designed to inflame racial sentiments against me.  I have no idea who designed and spread the above image to defame me.  However, it will not in any way stop me from carrying out my duties to serve my constituents and all Malaysians, regardless of race, religion or creed without fear or favour.

Finally, I would also like to give thanks to all concerned parties who had forwarded me the image last night expressing their continued support and trust in me, knowing without having to ask, that the image is a fake.

Tuesday, October 20, 2015

Is 1MDB denying the authenticity of the Board Minutes exposed by Sarawak Report?

1MDB wrote on 18th October 2015 to once again accused me of “recycled wrong statements” when I had claimed that the 1MDB Directors were livid that the 1MDB top executives did not comply to the directives of the Board. The statement read
YB Tony Pua continues his disservice to all Malaysians by relying on findings of a discredited foreign blog to make his allegations, when 1MDB has submitted authentic company documents, including its Board of Directors (BoD) minutes, to lawful authorities such as PDRM and the Auditor- General.

1MDB further denied that the Board was unhappy and that “clarifications were provided to their satisfaction”, further adding that the agreements with Petrosaudi International Limited “have never been cancelled”.

This is the reason why 1MDB is very clever with words.  I never alleged that the Petrosaudi agreements were cancelled.  I had said that the Directors were livid and furious with the top executives for failing to comply with the directives of the Board, and the subsequent follow up actions the Board demanded were never carried out as well.

The Sarawak Report had published the minutes of the 3rd October 2009 Board Meeting five days ago which irrefutably stated that “the BOD was not consulted on the change of plans to remit US$700 million to PSI.  The BOD’s understanding was for the full US$1 billion to be wired to the joint bank account under the name of the JVCo…”

In contrast, the Board of Directors were so livid that they demanded for the US$700 million to be returned “so that the funds could be remitted through the originally agreed channel”.

The Directors also openly reprimanded the top management for their intransigence.  They minuted that
The substantial investment of US$1 billion should have merited a more thorough thought and due diligence process.   The BOD viewed that the formalisation of the entire joint venture exercise was completed in a very short time which raises the question as to whether adequate control measures, checks and balances were put in place to protect the Company’s interests.  The BOD also raised their surprise over the speed in which the valuation report was prepared as the BOD was previously informed that such valuation report would only be ready by March 2010.

They specifically instructed Datuk Shahrol Halmi and his top management “not to deviate from the BOD’s instructions”.  They further “advised En Shahrol to seek clarification from the BOD if the CEO and management have doubts on any particular matter”.

I had indeed “recycled” my old allegations, but this time backed by the additional evidence of 1MDB’s own Board of Directors’ minutes.  However, 1MDB had “recycled” their denial without providing a shred of evidence to the contrary.

Monday, October 19, 2015

YB Sivarasa Rasiah should understand the issues first before sticking his neck blindly into the matter

I am surprised by the Member of Parliament (MP) for Subang, Sivarasa Rasiah’s media statement yesterday entitled “Some friendly advice for my friend YB Tony Pua”.

Together with Selangor State Executive Councillor (Exco), V Ganabathirao and state assemblyman (ADUN) for Kg Tunku, we visited the Sungai Way village Deepavali Bazaar at the proposed new site along Jalan SS9A/12 on Thursday evening.  Unfortunately, when I arrived, I discovered that the traders who have obtained licenses from the local city council, MBPJ were threatened and not allowed to set up their stalls for business by a rowdy mob led by Mr Saminathan and Mr Murali.

I had proceeded to speak to the reporters to explain the City Council’s unanimous decision to shift the market from the adjacent SS9A/13 to the new location. The key reasons for the shift will be clear to anyone who visited the two sites.  The old site is along a narrow lane which served as the main access road for a dense low-medium cost flat.  The new site is spacious, has plenty of carparks and is near the very popular Sri Sakthi Easwari Temple.  Better still, it can accommodate even more traders, allowing more to make a living during these tough times.

However, I was not even able to finish speaking to the reporters as Murali and his lot heckled, shouted and shoved us, as was recorded on video.

Why then, was there a protest?  As the local councillor in-charge Sungai Way, Sean Oon can attest to, during the past years, the bazaar was effectively controlled and monopolised by certain parties who charged unauthorized middleman rentals to the traders.  The shift to the new site denied such profiteering opportunities as licenses were issued directly by individual applications to MBPJ.  The new location and system ensured that there was no corruption, no crony middleman and no room for abuse.

Sunday, October 18, 2015

Why did Shahrol Halmi allow US$700 million to be misappropriated to Good Star Ltd, and why shouldn't he be charged with criminal breach of trust?

The Sarawak Report exposed the minutes of the 1Malaysia Development Bhd (1MDB) Board meeting on 3rd October 2009 which recorded that the Directors (BOD) were furious with the top management team led by Datuk Shahrol Halmi.

According to the minutes, 1MDB went ahead with the signing of the joint venture with Petrosaudi (PSI) without specific knowledge and approvals from the Board.  More specifically, the top executives of 1MDB transferred US$700 million of the proposed invest to an account unrelated to the joint venture company (JVco).

The minutes clearly stated that “the BOD was not consulted on the change of plans to remit US$700 million to PSI.  The BOD’s understanding was for the full US$1 billion to be wired to the joint bank account under the name of the JVCo…”

The minutes of the meeting proved beyond reasonable doubt that the US$700 million of the proposed US$1 billion have been misappropriated by Datuk Shahrol Halmi.  It beggars belief that despite the clear case for criminal breach of trust, Datuk Shahrol remains today a Director of 1MDB.  Perhaps Datuk Shahrol’s performance is so impressive that Dato’ Seri Najib Razak has also made him a Director in Performance Management Delivery Unit (PEMANDU) of the Prime Minister’s Department.

Saturday, October 17, 2015

1MDB Board of Directors minutes prove documents leaked to SR were not doctored; therefore IGP must withdraw arrest warrant against Clare Rewcastle

The Sarawak Report continued its exposé  on the minutes of the 1Malaysia Development Bhd (1MDB) Board meetings with the disclosure yesterday indicating that the Directors (BOD) were furious with the top management team led by Datuk Shahrol Halmi.

The minutes dated 3rd October, soon after the signing of the 1MDB-Petrosaudi joint venture agreement, provided a damning confirmation that all the earlier documents leaked by the Sarawak Report were completely authentic.

Instead, the minutes proved that the Prime Minister Dato’ Seri Najib Razak and his cohort of Ministers, as well as the current 1MDB President, Arul Kanda’s repeated attempts to taint the leaked information and documents by the whistle-blower website are clear cut lies.  They have obviously alleged that the exposed documents were “doctored” or “tampered” to cover up the multi-billion ringgit scandal.

The minutes revealed that the Board of Directors were furious with the top executives of 1MDB for

  • signing the joint venture agreement in reckless haste, and without any substantive due diligence;
  • the highly suspicious speed of preparation of the valuation report which was prepared by Edward Morse; and
  • most damningly, misappropriating US$700 million to an account unauthorised and unrelated to the joint venture.

Friday, October 16, 2015

Did 1MDB's top executives mislead the Board of Directors in its investment with Petrosaudi International Limited?

The latest set of 1MDB minutes exposed by The Sarawak Report dated 18 September 2009 revealed the fact that the top executives of the company clearly misleading the Board of Directors with regards to the US$1 billion investment with Petrosaudi International Limited.

According to the document, Mr Casey Tang, 1MDB’s Executive Director of Business Development briefed the Board that “Petrosaudi is ultimately owned by King Abdullah and the Kingdom of Saudi Arabia”.

Casey, who is currently on Bank Negara’s wanted list to assist with its investigations on 1MDB, said so to convince the Board on the merits of investing nearly all of the RM4.3 billion proceeds from its first fund-raising exercise to acquire 40% of the joint venture company with Petrosaudi.

After the joint venture agreement was signed, 1MDB further deceived the Malaysian public in its press statement on the 30 September 2009 that claimed that
Malaysia and Saudi Arabia today entered a new era of economic cooperation with the setting up of a US$2.5 billion joint venture company, which will spearhead the flow of foreign direct investments from the Middle East as well as make strategic investments in high impact projects here [in Malaysia].

The language of the entire press release was to give the impression that 1MDB was really forming a joint venture with the Saudi Arabian government, when in reality, they were merely entering into a transaction with an insignificant company registered in Saudi.

Toll hikes due to outrageously stupid agreements Federal Government made with the concessionaires

The Minister in Prime Minister’s Department, Dato’ Seri Abdul Wahid Omar explained that “the government feels it should not continue to pay very high compensation to highway concession companies to keep toll rates from rising”.

He said the government had to pay RM510 million in compensation for the January to October period this year following the decision to postpone toll rate increase which should have been implemented in January.

“As such the Federal Government allowed concession companies to raise toll rates," he said.

The Minister himself admitted that the toll compensation paid by the Government is “very high”. Hence Dato’ Seri Wahid believes that this “very high” compensation should instead be shouldered by the man on the street.  It does not matter that they are now already suffering from the compounded effects of the Goods & Services Tax (GST), the staggering ringgit depreciation and the significantly slowing economy.

Therefore the “very high compensation” argument is an extremely poor but oft-used excuse to subject ordinary Malaysians to higher toll rates.

And yet, Dato’ Seri Wahid had the cheek to say that the increase only covered highways in the urban areas with a maximum rate increase of RM1.  And increase of “just” RM1 on the Damansara Sprint Highway meant a 100% increase in toll rate from RM1 to RM2!  That effective means a doubling of revenue for the toll concessionaires!

Thursday, October 15, 2015

Criminal evidence implicating 1MDB clear not only to Arul Kanda, but to all Malaysians

Arul Kanda is one joker of a Chief Executive.  First, the Sarawak Report, New York Times, The Wall Street Journal and the Edge Publications have all published documents exposing billions of ringgit in misappropriations, embezzlement and criminal breach of trust relating to the debt laden 1MDB.

The tonnes of leaked information and documents were continually published since January until today, including 1MDB’s US$1.83 billion investment with Petrosaudi, 1MDB’s US$2.318 billion investment in Cayman Islands, 1MDB’s dodgy option agreements with Abu Dhabi’s investment arm and even documents from agencies investigating the 1MDB shenanigans.

1MDB and its President, Arul Kanda and the Barisan Nasional Ministers cheerleading team made all sorts of allegations and insinuations that the documents published were doctored or falsified.

Many parties, including myself have pleaded with 1MDB to point out the specific instances where the documentary evidence leaked have been allegedly tampered with.  However, they did not and obviously could not reproduce even a single authentic document, which purportedly falsified.

1MDB then changed strategy by shifting to the hysterical witch hunt gear.  Every time a new incriminating document is exposed, 1MDB’s Arul Kanda screamed “catch the culprit who leaked it!” At the same time, he refused to entertain the wrong doings which took place in 1MDB exposed by these documents.

Wednesday, October 14, 2015

Which is more important to Arul Kanda -- uncovering multi-billion ringgit misappropriation, or a leak proving such misappropriation?

1Malaysia Development Bhd (1MDB) issued a statement yesterday, once again attempting to divert the focus of the attention on the scandal-ridden company to the question of “where did the leak come from?”

1MDB decided that instead of answering questions of major public interest posed by a Member of Parliament (MP), it is proper to tell the MP to stick his nose somewhere else.

1MDB accused me of having a “tidak apa” attitude on the sources where the Sarawak Report, The Wall Street Journal and other media agencies secure their information.  1MDB even suggested that I should “commence an enquiry as to how confidential Bank Negara investigation documents ended up in the possession of the foreign internet portal, the Sarawak Report”.

Let me make it very clear here that between figuring out who leaked information and uncovering the truth behind the multi-billion ringgit 1MDB scandal stinking of misappropriation, embezzlement and criminal breach of trust, my priority is categorically with the latter.

I am absolutely certain that not only my voters in Petaling Jaya Utara, millions of Malaysians fully support my priorities here.  Therefore, it is not for 1MDB to tell me what I should or should not do for I am only ultimately answerable to the rakyat.

My key concern therefore is to determine as far as possible the authenticity of these leaked documents.  Hence yesterday, I had asked the 1MDB President, Arul Kanda to confirm if the Bank Negara Malaysia Letter of Authorisation published on the Sarawak Report is genuine.

Tuesday, October 13, 2015

Arul Kanda must come clean if 1MDB breached BNM conditions for the transfer of funds overseas

Yesterday, the Sarawak Report published Bank Negara Malaysia’s Letter of Authorisation dated 29 September 2009 to 1Malaysia Development Bhd (1MDB) to transfer and invest US$1 billion in a joint venture with PetroSaudi International Limited.

The letter granted permission for 1MDB to acquire 40% of 1MDB PetroSaudi Limited on the basis of particular information provided by 1MDB in its application.  The key information provided included

that the joint venture will have combined equity funds of US$2.5 billion to be used for investment in various sectors;

that the US$2.5 billion of funds will be deposited with Banca della Svizzera Italiana SA, Geneva while waiting for the prospective investments to be identified;

that the funds will be transferred in tranches to ensure an orderly foreign exchange market

Based on publicly available information today, the state-owned firm has clearly misled Bank Negara in its application to transfer the US$1 billion in funds overseas.

The rakyat pays for the massive toll hikes as a result of BN's failed privatisation policies and broken promises

As if the rakyat isn’t sufficiently burdened by the newly introduced Goods and Services Tax (GST), the massive depreciation of the Ringgit which resulted in a corresponding increase in the cost of basic imported goods and a stuttering economy resulting from a confidence crisis triggered by the monstrous 1MDB scandal, the Government has approved toll rate hikes for 15 highways across the country.

The new rates will involve the Kajang Ring Road (SILK), SMART Highway, Highway Maju Expressway (MEX), Duta-Ulu Kelang Expressway (DUKE), KL-Kuala Selangor Expressway (LATAR), New Pantai Expressway (NPE), Sungai Besi Expressway (BESRAYA), Ampang Kuala Lumpur Elevated Highway (AKLEH), Guthrie Corridor Expressway (GCE), Kemuning-Shah Alam Expressway (LKSA) and Kuala Lumpur-Karak Highway (KLK), Damansara-Puchong Highway (LDP), Kajang–Seremban Highway (LEKAS), Senai–Desaru Expressway, SPRINT Highway and the Grand Saga Highway.

The rate increases are exorbitant and will cause a massive dent to the Malaysian road users.  The users of Sprint Damansara Highway is faced with a 100% increase from RM1.00 to RM2.00.  The Kajang commuters using the SILK highway will be confronted with a 80% hike from RM1.00 to RM1.80.  The Maju Expressway which connects the Sg Besi Highway with Putrajaya will see a 75% hike from RM2.00 to RM3.50.  Both the Ampang Elevated Highway and Kerinchi Link will also see 66.7% increase in toll rates.

Come Thursday, 15 October, Malaysian motorist will feel like they been run over by a speeding monster truck.  The toll rates have been approved despite the fact that nearly all of these highways have been recording lucrative profits over the past few years.  The increase in toll rates merely allow the crony toll concessionaires to reap astronomical profits at the expense of the man-on-the-street, with the consent of the Government.

Monday, October 12, 2015

Why did the Board of Directors allow the 1MDB executives to conduct major transactions without prior board knowledge or approval?

The latest exposé by Sarawak report was the minutes of the 1MDB Board of Director Meeting held on 12 January 2015.  1MDB President Arul Kanda has confirmed the minutes as genuine although he denied that he has lied to the Board of Directors, he merely “miscommunicated”.

I have written yesterday that Arul Kanda clearly lied, and not just merely “miscommunicated” the issue of 1MDB’s redemption of the US$2.318 billion investment from Cayman Islands.

However, what was more revealing was the fact that the Board of Directors have completely failed to perform their fiduciary duties.

Over the years leading up to the full-blown 1MDB financial scandal, the Board of Directors who were composed of illustrious individuals allowed the 1MDB top executives to run circles around them.  The minutes revealed that key multi-billion ringgit decisions to be made without proper consultation with the Board of Directors.

Sunday, October 11, 2015

1MDB Board of Director Meeting minutes prove Arul Kanda repeatedly lied, not "miscommunicated" as claimed

The latest exposé by Sarawak report was the minutes of the 1MDB Board of Director Meeting held on 12 January 2015.  1MDB President Arul Kanda has confirmed the minutes as genuine although he denied that he has lied to the Board of Directors, he merely “miscommunicated”.  He said,
based on my understanding of events that occurred before my time, that the redemption of fund units happened in cash for an amount of US$940 million. However, upon further investigation and verification, it became clear that this was a misunderstanding, which I then clarified to the Board and our shareholder, the Ministry of Finance. This clarification is clearly recorded in subsequent Board minutes and can be verified.

On 13 January 2015, I confirmed via a press statement that the remaining amount of US$1.11 billion had been redeemed, in full. What was unfortunately not made clear, was that the redemptions happened partly in cash and partly through the sale of fund units, with cash payment being deferred. It is this important distinction which caused a misinterpretation of my statement, first during a Business Times interview on 9 February 2015 and subsequently by the Ministry of Finance, in a Parliamentary answer on 12 March 2015.

However, the above explanation smacks of a very patchy cover up to the lies which have been told to the public and the parliament.

Saturday, October 10, 2015

1MDB has the assets to repatriate US$1.83 billion and must do so immediately to comply with BNM directive

Bank Negara has found 1MDB guilty of submitting false information in its applications to transfer funds overseas and issued a directive yesterday under the Financial Services Act 2013 instructing 1MDB to “repatriate US$1.83 billion to Malaysia and submit a plan to the Bank for this purpose”.

In 1MDB’s response yesterday evening, the company thumbed its nose at Bank Negara, essentially citing the excuse that the funds are already used, and hence no money can be repatriated.

1MDB said,
The overseas investments of US$1.83 billion relates to historic equity and murabaha loan investments in a joint venture with PetroSaudi in 2009 – 2011, that was eventually converted in September 2012 into fund units valued at US$2.318 billion. As previously explained by 1MDB to BNM, this sum of US$2.318 billion has been redeemed in 2014 and 2015, with proceeds being substantially utilised. The remaining US$940 million of fund units, are guaranteed by Aabar and have been ear-marked for a "debt for asset swap" with its “AA” rated parent, IPIC, as part of the 1MDB rationalisation plan.

AG must explain why he refused to prosecute 1MDB officials when BNM clearly identified breaches in the Exchange Control Act 1953

Bank Negara issued a statement yesterday instructing 1MDB to repatriate US$18.3 billion of funds back to the country.  Bank Negara politely declared that the application to investment the funds abroad were “based on inaccurate or without complete disclosure of material information”.  Therefore, the application(s) were defective, rendering prior approvals null and void.

The above instructions came a day after the Attorney General’s Chambers (AGC) disclosed that it had twice rejected BNM’s recommendations for action against 1MDB after finding no wrongdoing committed by any of the state-owned firm’s officials.

Clearly, Bank Negara’s statement was a slap in the face for the Attorney-General’s “no further action” position.  The Attorney-General (AG), Tan Sri Mohamed Apandi Ali must now explain why and on what grounds did he dismiss the conclusions of Bank Negara.  Why is it that the AG chose not to proceed with prosecuting those deemed to have breached the laws of the country by not any particular agency, but by Bank Negara?

Thursday, October 08, 2015

Young Malaysians not “delusional”; have souls and aspirations

I refer to the lengthy 3,000-word opinion piece by Singapore’s Ambassador-at-large, Bilahari Kausikan entitled “Malaysia is undergoing a systemic change that has profound consequences for Singapore” dated 6 October 2015 published in The Singapore Straits Times.

Mr Bilahari wrote in his analytical piece, referring to the overwhelming anti-establishment sentiment of the Chinese community and the turnout at the recent Bersih4 rally, that
It is my impression that many young Malaysian Chinese have forgotten the lessons of May 13, 1969. They naively believe that the system built around the principle of Malay dominance can be changed. That may be why they abandoned MCA for the DAP. They are delusional. Malay dominance will be defended by any means.
In fact, he even warned that the likely outcome of the above will be “even less space for non-Muslims”.

The top Singapore diplomat could not have gotten it more wrong.

Tuesday, October 06, 2015

1MDB's March 2015 Financial Statement would have revealed that US$2.318 billion of investment parked in Cayman Islands in 2012 was fraudulent and never "redeemed"

The recent exposés by The Wall Street Journal, particularly over the US$993 million of payments to Abu Dhabi’s International Petroleum Investment Corporation (IPIC), have allowed a few more pieces of jigsaw puzzles in the 1MDB mystery to be put in place.

Two weeks ago, I wrote that 1MDB executed a fraudulent round-tripping exercise to cover up part of the US$2.138 billion which was invested in a fund located in the Cayman Islands.

The March 2014 financial statements audited by Deloitte Malaysia have stated that US$1.22 billion was redeemed from this controversial investment in November 2014, and the proceeds have been “substantially utilised” to buy back the options granted IPIC or its subsidiary, Aabar Investment PJS.  The US$993 million was presumably derived from this sum received by 1MDB.

However, the auditors were never informed of another loan amounting to US$975 million which 1MDB obtained from a consortium of banks led by Deutsche Bank in October 2014.  This loan was used for the very same purpose to buy back the options from IPIC.

Hence unless 1MDB actually paid a ridiculous US$2 billion to IPIC to terminate the option, we now know that the payment to terminate the options came from Deutsche Bank and not from the partial redemption of the Cayman Islands fund.  The US$1.22 billion stated in the 2014 audited accounts was never redeemed, as the cash proceeds were never received or repatriated by 1MDB.

Sunday, October 04, 2015

Will the 6 month delay in 1MDB's Financial Statement result in another external auditor replacing Deloitte Malaysia?

It was reported yesterday that 1Malaysia Development Bhd (1MDB) had failed to lodge its financial statements with the Companies Commission on 30 September 2015, which is the deadline to submit its accounts for the year ending 31 March 2015.

This is the sixth consecutive year since 1MDB was incepted in 2009 where the company failed to submit its accounts on a timely basis.

Saturday, October 03, 2015

Delay in completion and submission of 1MDB's financial statements to the Companies Commission blatant attempt to prevent truth from being exposed to public

It has been reported yesterday that 1Malaysia Development Bhd (1MDB) has failed to lodge its financial statements with the Companies Commission on 30 September 2015, which is the deadline to submit its accounts for the year ending 31 March 2015.

The excuse provided by 1MDB is that the delay stems from the company not being in control of key documents in its financial accounts after raids and the seizing of documents in July by the police and the special task force comprising Bank Negara Malaysia, the Attorney-General, the Inspector General of Police and the Malaysian Anti-Corruption Commission (MACC).  1MDB President, Arul Kanda claimed that “it (the delay) can’t be helped”.

The excuse is so lame because, it has already been discovered by the Public Accounts Committee (PAC) during our meeting with 1MDB’s auditors, Deloitte Malaysia, that the latter was not requested nor was it allowed to commence its audit as at Jun 2015.

The then-Chairman of the PAC, Datuk Nur Jazlan Mohammad had told the press that Deloitte has yet to be directed by the Finance Ministry to do commence the audit more than 3 months after the financial year has ended.  He said that Deloitte “wanted to do so but the ministry has not given the go ahead yet. So Deloitte has not been given the instruction to start an audit yet."

Hence the claims that all the documents are with the relevant investigating agencies are but lame excuses to cover up the fact that 1MDB never intended for the accounts to be published by 30 September anyway.

Thursday, October 01, 2015

Why can't 1MDB answer the questions raised about the dodgy option payments to IPIC?

In recent months, 1MDB has been relatively quick to respond to various allegations and exposés made against the company, even if the replies provided mostly recycled non-answers.  More often than not, the company will question the source of the allegations, accuse the relevant parties of being malicious against 1MDB and regurgitate incomplete information from the Deloitte-audited financial statements.

However, 1MDB has chosen to be remain eerily silent on the questions which I raised with regards to the terms of the US$3.5 billion guarantee and and payments made (or not made) to International Petroleum Investment Corporation (IPIC) to buy back options granted to the latter.