1MDB scandal: Complete silence from Securities Commission and the tax authorities

More than 5 weeks ago, we wrote about the silence of Securities Commission on the misused of cash by 1MDB back in 2009. The cash, totalling RM5 billion was derived from the bonds 1MDB acquired under the Islamic Medium Term Notes which was guaranteed by the government.

We said:

This IMTN bond which was fully guaranteed by the government can be categorised as taxpayers money. Because in the event of a default, it is the taxpayers who had to pay for it. Since BNM had revoked the permissions, this should trigger red flag from other regulators.

One such regulator is the Securities Commission (SC).

The SC is the controller of bond issuance process. And they also ensure compliance to documents when the bond was offered. Below is the term sheet for the IMTN and the purpose stated when it was issued:

Clearly shown the principal terms and condition of the loan is to be utilised in compliance to Shariah principles

Clearly shown the principal terms and condition of the loan is to be utilised in compliance to Shariah principles

Is sending money to Good Star Ltd in compliance to Shariah principles? What does Good Star do? Selling hijabs to Hollywood celebrities during lavish birthday parties?

Plus, is putting the USD1.83 billion in Cayman Islands in compliance with Shariah principles? Are the units endorsed by a Shariah Adviser? Is the Hong Kong based Bridge Partners which ultimately managed those worthless units a Shariah compliant company? The bond is called the ISLAMIC medium term notes guaranteed by the Government, not It’s My Daddy’s Money So I Can Do Whatever I Want With It.

Many rules, act and terms were broken here yet there weren’t any noise coming out from Securities Commission. The data and goalpost have been changed unilaterally by 1MDB’s management yet the supervisory body like Securities Commission did not even make a squeak.

But up to this date, the SC has been quiet.

Perhaps they are no longer following their own mission statement and the reason for their existence. They proudly state in their website that their ultimate responsibility is to protect investors of the bonds. But alas, there seems to be a breakdown in this regulatory body.

We have had enough absurdity coming from the AG Chambers and the PAC. Now it seems SC is also following suit.

Tan Sri Zeti of Bank Negara made a valiant effort in upholding the principles of corporate governance by castigating and reprimanding 1MDB. The top management of this debt laden and near bankrupt company will have to pay the price soon. Even now they are stripping their asset and selling them just to pay off their massive debts.

A colossal chunk of their asset totaling around RM18 billion will be taken off their books due to the sale of Edra Energy Berhad.

Now 1MDB whose assets are around RM52 billion as per their 2014 accounts will be reduced to approximately RM34 billion.

To put matters into perspective, the total cost of building Putrajaya from 1995 to 2008 was about RM12 billion. Imagine if the government had to sell the whole of Putrajaya to foreigners in order to pay off debts they had foolishly accumulated.

And all this stemmed from the misused of those RM5 billion bonds back in 2009.

Clearly, 1MDB did not use the bonds according to Shariah principles. Bank Negara Malaysia even went to the extent in exposing that 1MDB had given false information when they applied to remit the money overseas.

The evidence are for all to see. The Board minutes of 1MDB back in 2009 revealed that some USD700 million was asked by the board members to be repatriated back immediately as soon as it was known to be wrongfully credited into an unauthorised company called Good Star.

This led to the resignation of 1MDB’s two board members.

There were so many red flags yet Securities Commission buried its head in the sand. Is this the end Securities Commission’s reputation?

Will this Executive Chairman of SC wake up from his slumber?

The Executive Chairman of SC seemingly oblivious to SC’s own regulatory functions

Perhaps the boss of SC is waiting for a Tan Sri-ship first before he could do his job properly? Perhaps only then will he act with much bravery like the illustrious Tan Sri Zeti?

Bear in mind that Najib Razak won’t be the prime minister forever. He will have to step down eventually. Nobody is an immortal. And after he steps down for whatever reason, people will remember those who are in charge of corporate governance but are closing both eyes for the many wrongdoings in his administration.

In any case, it is already too late. We were hoping at least Securities Commission would have enough integrity to reclassify or proclaim that the IMTN bonds have failed to comply with the Shariah principles, just like how they periodically publish in their website on other securities. But even this simple act they have failed to live up to.

Speaking about Tan Sri-ship, there is another Tan Sri who are as quiet as the boss of Securities Commission.

This person is the CEO of Inland Revenue Board. He is YBhg Kolonel (K) Tan Sri Datuk Wira Dr. Hj. Mohd Shukor Bin Hj. Mahfar.

fjkhf vhik

The CEO of IRB, driven by vision and a firm believer of human governance

All sundry now know that Najib Razak had received enormous amount of money in his personal bank accounts. It is an amount many could not have imagined to be amassed in a short span of time. But he did receive RM2.6 billion through overseas banks and another RM42 million from SRC International.

This was not denied by Najib Razak himself. He did not even give any proof on what it was spent on.

His wife, Rosmah Mansor was also reported to receive RM2 million in her private accounts.

Therefore, the people would like to know how much tax have they paid for this sort of income?

We all know that IRB is very strict in its regulation. Any Tom, Dick and Harry will immediately be hunted down if they ever tried to evade taxation.

The little people on the streets will be slapped with penalties if they submitted their tax returns late.

Hence, if IRB still have their corporate soul and have the courage to stand up for good corporate governance, and upholding the law without fear or favour, many questions would have been answered expeditiously; rather than leaving everything hanging and unanswered.

We do hope these institutions would remain respected in the eyes of the world. There is no point strutting around meeting people and giving speeches about corporate governance when behind your backs, people are questioning why didn’t you do your job as expected?

Again, Najib Razak won’t be the prime minister forever. Once he is gone, the public will look back and scrutinise the institutions which had failed to uphold the tasks that they are trusted to do.

You might also want to read:

1) More “auta” from 1MDB press release

2) 1MDB exits power business

3) Apa Pulak Yang CheDet Sebut Pasal Penjualan Edra Ni?

4) Bring the real saboteurs before court

5) Najib sedang menghancurkan Umno

6) Calling Najib ‘national disgrace’, youth says many too scared to criticise PM, Umno

#1mdb, #malaysian-corporate-matters

Aset 1MDB susut dari RM52 billion kepada RM34 billion akibat jualan Edra Global Energy

… hanya kerana tidak mampu membayar hutang.

Semalam diumumkan bahawa sebuah syarikat dari China telah membeli anak syarikat 1MDB bernama Edra Global Energy pada harga RM9.83 billion.

A: Dulu masa sekolah menengah, saya juara debat B: Dulu masa di kolej, saya dapat CGPA 3.80

A: Dulu masa sekolah menengah, saya juara debat
B: Dulu masa di kolej, saya dapat CGPA 3.85

Edra Global Energy adalah syarikat yang memiliki stesen-stesen janakuasa (IPP) yang suatu ketika dulu dipunyai oleh syarikat Genting milik keluarga Lim Goh Tong, syarikat Tanjong Energy milik Ananda Krishnan dan syarikat Jimah Teknik milik kerabat Negeri Sembilan.

Kesemua syarikat-syarikat di atas di miliki oleh rakyat Malaysia.

1MDB membeli aset-aset di tersebut dengan harga lebih kurang RM18 billion di dalam tahun 2012/2013. Pembelian tersebut di biayai oleh hutang.

Oleh kerana 1MDB tidak diurus dengan baik oleh lembaga penasihat dan pengarah, dan Najib Razak sendiri akhirnya mengakui bahawa model perniagaan 1MDB telah gagal (walaupun berbulan-bulan sebelumnya beliau berkata 1MDB adalah syarikat yang terbaik di dalam alam semesta), aset aset tersebut terpaksa dijual untuk menampung pembayaran balik hutang.

Oleh kerana penyata kewangan 1MDB lewat dikeluarkan lagi pada tahun ini, kita tidak mengetahui berapakah sebenarnya nilai aset IPP tersebut. Bagi memudahkan pemahaman pembaca, kita anggaplah bahawa nilai aset tersebut adalah sama dengan harga pembelian, iaitu lebih kurang RM18 billion.

Jumlah aset 1MDB pada tahun kewangan 31 Mac 2014 adalah lebih kurang RM52 billion ringgit. Oleh kerana kita tidak mengetahui jumlah sebenar keseluruhan aset 1MDB pada tahun kewangan berakhir 31 Mac 2015, maka kita guna kan dahulu angka RM52 billion tersebut. Najib Razak sendiri suka menggunakan angka tersebut untuk membuktikan betapa berjayanya 1MDB mempunyai harta sebanyak itu.

Akan tetapi akibat penjualan Edra Global kepada syarikat asing, aset 1MDB telah menyusut sebanyak RM18 billion kepada RM34 billion!

Walaubagaimana pun, untuk menyedapkan hati rakyat, 1MDB dan kuncu kuncunya berkata bahawa hutang 1MDB akan berkurangan akibat penjualan tersebut. Mereka malu untuk mengatakan bahawa apabila menjual syarikat Edra Global Energy maka aset mereka juga akan berkurangan.

Najib Razak adalah Perdana Menteri pertama yang tidak malu untuk mengatakan bahawa kehilangan berbillion billion harta negara adalah bagus dan 1MDB sebenarnya berada di landasan yang betul untuk mengurangkan hutang-hutang mereka.

A: Oh ini kah dia berniaga cara glokal dan blue ocean strategy Dato Sri? B: Ya, ya.. baguskan? Hahahaha

A: Oh ini kah dia berniaga cara glokal dan blue ocean strategy Dato Sri?
B: Ya, ya.. baguskan? Hahahaha

Jurucakap beliau, Arul Kanda pernah berkata bahawa aset-aset 1MDB hanya akan tinggal sebanyak RM10 billion sahaja selepas selesai pelan jualan lelong harta mereka yang dikenali sebagai pelan rasionalisasi. Sangat hebat mereka ini.

Najib Razak juga adalah Perdana Menteri pertama Malaysia yang berjaya menukar peraturan pemilikan industri strategik tanahair di mana Suruhanjaya Tenaga telah memberi pengecualian kepada Edra Global untuk menjual 100% hakmilik sahamnya kepada syarikat asing.

Pelupusan syarat tersebut adalah semata-mata untuk 1MDB menyelesaikan hutang-hutang mereka.

Oleh itu dapatlah disimpulkan bahawa kesan penubuhan 1MDB adalah:

a) kesemua syarikat syarikat milik rakyat Malaysia akhirnya jatuh ke tangan negara asing

b) rakyat Malaysia melalui 1MDB sia sia terpaksa membuat hutang sebanyak RM18 billion. Pelaburan ini boleh dikatakan hangus begitu sahaja

c) rakyat Malaysia melalui 1MDB sia sia membeli syarikat syarikat IPP pada harga lebih tinggi dari pasaran iaitu sebanyak RM18 billion

d) rakyat Malaysia dijanjikan tarif eletrik lebih rendah apabila pembelian dilakukan dalam tahun 2012 tetapi tarif eletrik naik 15% dalam tahun 2014

e) industri strategik tanahair iaitu penjanaan kuasa elektrik boleh dimiliki 100% oleh negara asing

Jika 1MDB tidak pernah ditubuhkan maka kesan yang mungkin rakyat rasai adalah:

a) apabila tamat tempoh konsensi, IPP tersebut boleh dibeli oleh TNB pada harga yang jauh lebih rendah

b) syarikat Malaysia tidak perlu berhutang sebanyak RM18 billion untuk membelinya

c) syarikat milik Malaysia tidak perlu jatuh ke tangan pihak asing dengan lesen konsensi diperbaharui dengan begitu lama sekali

d) para menteri dan pengampu tegar tidak kedengaran begitu bodoh setiap kali bercakap untuk mempertahankan 1MDB

e) industri penjanaan kuasa eletrik tidak perlu diliberalisasi untuk tujuan menyelamatkan 1MDB

Hasil jualan RM9.83 billion bukannya untuk kebaikan rakyat Malaysia. Ianya tidak boleh digunakan untuk membina 2 lagi KLIA atau 8 lagi KLCC atau beratus-ratus sekolah dan hospital. Ianya juga tidak mungkin digunakan untuk membayar konsensi tol pada tahun depan. Ini kerana wang tersebut akan digunakan untuk membayar hutang.

Benarlah kata orang, bahawa 1MDB berniaga buluh kasap; hujung hilang, pangkalnya lesap.

Rakyat tidak dapat apa-apa untung darinya. Sepatutnya kerugian harta berbillion ringgit seperti ini perlu diiringi oleh pemecatan mereka yang terlibat secara langsung. Tetapi malang sekali, orang lain pula yang kena pecat.

Terima kasih Najib Razak!

Anda juga pasti ingin membaca:

1) Malaysia’s transparency upside down – TK Chua

2) Penjualan Edra Kepada Negara China – Hasil Pelaburan Strategik 1MDB!

3) Malaysia’s 1MDB Decoded – How Millions Went Missing

4) Faulty Reward System and Changeable Governments

5) Cerita Arul Kanda Untuk Yang Percaya

6) RM2 juta dalam akaun Rosmah Mansor adalah derma ikhlas?

7) Ada Orang Kata, PM Tak Malu

8) Harta Negara Akan Dilelong Untuk Selamatkan 1MDB

#1mdb, #malaysian-corporate-matters

Reasons why 1MDB’s Edra Energy IPO failed to be listed..

Some people tried to lie their way out by giving flimsy reasons and by blaming other people for 1MDB’s failure in listing its IPP assets, the Edra Energy Group for the past 2 years.

But there were specific reasons why the listing  did not come through since 2013.

The sock puppet of Najib Tun Razak, Arul Kanda in his recent press conference with the media stated that the proposed IPO targeted in November 2013 did not materialise because they have just bought the IPPs in 2012 and needed time to harmonise the group; therefore they discovered that the November 2013 deadline was unrealistic.

That was just a bogus excuse.

After losing RM5 billion cash in their first business venture with that dodgy Petrosaudi company in 2009 and gaining nothing in return except for some worthless units, 1MDB needed to raise money fast by venturing into the energy sector. That initial RM5 billion was obtained through shariah bond guaranteed by the Government but by they year 2011, they did not get any cash returns for it, only units. Hence they were unable to reuse that investment to buy other assets.

So how did they buy the IPPs? By getting another USD3.5 billion loan! This time it was guaranteed by an arab company called IPIC. Consequently, they then have the cash (new debt) to spend freely again.

But they bought 3 old IPPs above market prices and thought that they could raise enough cash to cover the first hole (PetroSaudi failed investment) and the second hole they just created (that USD3.5 billion loan) through the IPO listing of their IPPs.

Right from the beginning, as soon as they had purchased those IPPs in 2012, they had announced that an IPO will take place in 2013. This was their own target and presumably, it was made after a diligent business plan and financial model been deliberated. For a multi billion company making plans without being cognisant of their own capabilities and future direction is surely not an efficient way to run it. They might end up like a failed business model! (which they are)

Hello everyone! I am here to make a fool of myself! But I don't care since my salary is huge!!

Hello everyone! I am here to make a fool of myself! But I don’t care since my salary is huge!!

The Malaysian taxpayers was swindled about USD1.83 billion by that joint venture with PetroSaudi and surely 1MDB will not make the same mistakes again. But stupidity has no limit.

The real reason why they failed to list Edra Energy was because they had failed to sign and submit their 2013 audited accounts on time.

The real fact is, their auditor (KPMG) had refused to sign off the financial statements because of the USD1.83 billion fiasco made for the PetroSaudi joint venture.

1MDB’s financial year ends every 31st March and financial statements must be signed off within the next 6 months (30th September is the deadline).

KPMG could not determine and confirm the value of those mythical units and their audit partners were not comfortable enough to proceed in giving the audit report an unqualified opinion. Having a qualified audit report would have been a disaster for a multi billion debt laden company like 1MDB.

1MDB failed to submit their accounts on time, the draft prospectus for the IPO could not be lodged on time and the November 2013 deadline for the IPO listing was not met.

By year end 2013, 1MDB sacked KPMG and appointed Deloitte. As an effort to get their new auditor to sign the accounts, Deloitte actually had to dedicate 6 pages in the audit report about “Critical Accounting Judgements and Key Sources of Estimation Uncertainty” – regarding the dodgy units and other issues, presumably to cover the audit firm.

Note that in June 2015, the Finance Minister II claimed that the termination of KPMG was a normal process of audit rotation. We had claimed that he was lying on national TV, and the new revelation from investigative documents have revealed that indeed they were sacked.

Since the Prime Minister is also the top boss of 1MDB, they got a 6-months extension by the CCM to submit their accounts. This should have raised red flags across the financial market and indeed people are getting worried about the debt laden 1MDB and its going concern.

This was entirely 1MDB’s fault. The USD1.83 billion cash is gone and it has caused a domino effect in 1MDB’s other businesses.

Their second target mentioned by Arul Kanda was November 2014.

This joker (who could not even differentiate between cash and assets), mentioned that 1MDB needed to buy more assets before they could do a listing.

This was just another bogus attempt to fool the public and we are amazed how the media did not even question him further on this ridiculous statement. Having RM18 billion worth of IPP assets is not enough for it to be listed? If 1MDB had wanted to buy more IPP assets before it could be listed, then at what point should they stop buying assets? At RM20 billion? RM40 billion?

If you had planned to buy more assets before listing them, then why did you announced to list it in November 2013 initially?

The real reason why they failed to have an IPO in November 2014 is because they have failed to meet the deadline in submitting their audited financial statements again! They had to lodge prospectus in September 2014 but failed to do so.

Deloitte wanted evidence from 1MDB about the value of those units which 1MDB could not provide. As a solution, 1MDB and Deloitte met halfway by getting a third party – IPIC to guarantee those units that was borne from the PetroSaudi joint venture fiasco.

This is akin to putting your RM1,000 into an ASB unit trust account but after some time, you can’t be sure if RM1,000 is still there, you simply had to get a third party to guarantee it!

On top of that, those units were classified as third class assets. In other words, assets where their market value cannot be absolutely determined.

Their audited accounts was only available in November, a delay of two months. Also, they had to buy back the 49% option given to IPIC’s subsidiary called Aabar before they could even list Edra Energy.

Note that in both occasion, the delays were not caused by brickbats or the opposition or even by Tun Dr Mahathir.

It was entirely due to the stupidity and inefficiency of 1MDB top management which precipitated in the failure of their IPO plans.

The fact that they tried to blame everyone else for their inability to repay debts, the loss of USD1.83 billion and the potential decrease of RM52 billion in assets to RM12 billion is shocking.

Arul Kanda even gave an absurd answer as to why 1MDB amassed so much debts just to buy assets. He said:

“it creates a certain discipline in the company, and allowed the government to use its funds for other purposes, such as development for the people.”

Pray tell what kind of discipline has 1MDB shown since 2009? From evidence, we can safely say that 1MDB has no discipline at all. They lost and bungled their first investment venture, but learned no lessons out of it, took another huge loan and then failed to recoup any returns for it.

In the end, the people had to fork out money for 1MDB and lost nearly everything they originally had. Why is 1MDB and the people in it so stupid?

Why can’t you people be honest for once, stop blaming other people, stop issuing stupid statements and then resign honorably?

Too dumb to be a good, honorable person?

The thing is, people had predicted that 1MDB will become financial disaster (losing up to RM40 billion of assets just to pay debts is indeed a disaster).

Below is what Tony Pua (of all people) had written about 1MDB back in 2012:

What is of greater concern however, is the manner which 1MDB is financing its business and operations, which is funded entirely by debt guaranteed by the Federal Government.

The last time it took a RM5 billion debt, it invested RM4.2 billion in a speculative PetroSaudi Joint Venture with PetroSaudi International company for an oil exploration project. However, within 6 months, 1MDB converted its 40% investment in the joint venture into an 11-year loan to a company whose “track record” stretched back only to 2005.

The PetroSaudi stunt left 1MDB with very little cash for its new projects awarded without tender, by the Federal Government – the 160ha Bandar Malaysia in Sg Besi and the RM26 billion Kuala Lumpur International Financial District. Hence as it stands, 1MDB is already in need to secure further financing to develop these 2 mega projects.

Now, with the new RM8.5 billion investment in Tanjong Energy, there is absolutely no question that 1MDB will be the most leveraged company in Malaysia, with the risk entirely bourne by the tax-payers. With absolutely not expertise or experience in oil and gas, property development and now, the power generation sector, 1MDB is setting itself up to become Malaysia’s mother of all bail-outs. If it happens, it will be a disaster of epic proportions to our financial sector which will trigger possibly the worst economic crisis the country has ever faced.

The Prime Minister and Finance Minister, Datuk Seri Najib Razak must present an official ministerial paper to Parliament when it sits in the session commencing next week. Brakes and risk management measures must be put in place to prevent the country from falling headlong into financial disaster.

You might also want to read:

1) Serially late: 1MDB’s tale of missed deadlines

2) Continuing The Trial of our Finance Minister

3) Muhyiddin dan Shafie Ada Di Luar negara… Jom MKT Buat Mesyuarat!!

4) Malaysia’s Najib Razak Played Key Role at Troubled 1MDB Investment Fund

5) Timeline on 1MDB power assets

6) Australian Investigation Further Confirms 1MDB’s Cayman Con-Trick

7) Is this all a joke for Hasan Arifin?

8) Dr Mahathir resigned thirteen years ago, only Najib has not done so

9) “You know who my son is! He is son-in-law of the prime minister of Malaysia!”

Arul Kanda said so many stupid things about 1MDB, it is just sickening

… yet the stupid Umno people who attended this morning’s session in PWTC clapped their hands when Arul Kanda told them that Malaysia pays RM5 billion of service charge and fees in the course of 5 years for the RM42 billion debt borrowed; making the cost of borrowing to be alarmingly high. The banking creditors and Goldman Sachs says THANK YOU MALAYSIA AND THANK YOU NAJIB RAZAK!

Roughly, giving away RM1 billion on average per year just for service charge and fees is not a bad business deal for the people in 1MDB.

Shahrir Samad, in his stupidity also declared there will be a happy ending when Arul Kanda declared that 60% of the government land meant for bumiputra development in Bandar Malaysia will be owned by foreigners. Obviously Shahrir is happy because he received RM1 million from the Prime Minister and had not furnished any documented evidence that the money was not used for personal amusement and benefit. The Prime Minister haven’t given the public such evidence as well.

The village idiots are so happy to lose RM40 - RM42 billion of assets just to pay their debts

The village idiots are so happy to lose RM40 – RM42 billion of assets just to pay their debts

If 1MDB hadn’t lost the billions of money that can be used to pay the debts, they could have the resources to develop Bandar Malaysia and TRX on their own and don’t have to sell it to foreigners at all. That would be a happy ending. Is Shahrir Samad the kind of politician to be happy giving away our sovereign lands to foreigners? He must truly be an idiot.

And did Shahrir Samad express his delight when 1MDB will be left only with RM10 – RM12 billion from its so called RM52 billion of assets? He must have.

Imagine, to pay off RM42 billion of debts, 1MDB had to sell nearly RM42 billion of assets.

Basically that is RM42 billion of assets lost to other people’s hands. And 1MDB had to pay billions of interests and pay billions of fees along the way! People actually clapped their hands when he announced that 1MDB will lose about 80% of their assets to pay off debts.

If for example the CEO of Apple had announced 80% reduction of assets, he and the board of directors would have been hung dry by the shareholders. But yesterday, some Umno people gave him an applause! Unbelievable.

And there were idiots who were giddily happy when Arul Kanda in his silly smile proudly telling them that 1MDB will sell the assets belonging to Malaysians to foreigners just so that the money they get will be given to creditors.

It is not enough that the rakyat had to pay RM950,000,000 in the form of standby credit for 1MDB, now they will lose majority of the assets to foreigners!

1MDB is on the verge of bankruptcy and they had to perform this asset stripping exercise dubbed ‘the rationalisation plan’ so that 1MDB will appear to be a success. The only success 1MDB has done so far is to stupefy the cabinet ministers and Najib Razak’s cybertroopers.

“We did it so help the rakyat”

“We did it to help the rakyat”

Another lie Arul Kanda said was that 1MDB bought the IPPs in 2012 at above market prices because they want to reduce the tariff, in order to help the rakyat.

“End of the day, the people will benefit”.

That is what he said.

But the electricity tariff went up 15% on 1st January 2014!

In the first place, the answer to the question as to why the IPPs were bought at above market prices did not have any correlation with the increase or decrease of rakyat’s electricity bills.

The immediate impact it had was that 1MDB incurred about RM18 billion of debts! The end game unfortunately is – the rakyat had to lose their IPPs after this stupid company had bought them at such high costs and on top of that, they had to pay higher electricity bills!

PM increased electricity rates after throwing away RM18 billion to buy IPPs

PM increased electricity rates in January 2014 after throwing away RM18 billion to buy IPPs in 2012

So what kind of stupidity have Arul Kanda said when he told the simpletons at PWTC yesterday that buying private IPPs from their owners at an astronomical prices will bring down the tariffs?!

Did he eat a bottle of stupid pills yesterday morning and hoped for the best?

Which part of this had benefited the rakyat? 1MDB promised that the tariff will be reduced, but that was just a lie. Worse, the tariff rate did not even maintain at the current level it had, it went up instead!

The only people that laughed the loudest were the IPP owners and the banks that gave the debts to 1MDB. Tun Dr. Mahathir said so many times as to why 1MDB is so stupid to pay so much for the IPPs when they could get it cheaper after their licence agreements expired.

This is what he said in June 2015:

17. RM18 billion was spent to purchase IPP belonging to Ananda Krishnan, Genting Sanyen Power (now known as Kuala Langat Power Plant) and Jimah Energy.

18. The prices paid for Genting Sanyen and Ananda’s IPP were well above market price. 1MDB also paid RM6 billion for unpaid loans. The Jimah IPP was to put up another power plant. But 1MDB had no money to build this plant

19. Genting Sanyen and Tanjung Energy (now known as Powertek Energy Sdn Bhd) were nearing expiration of their licenses. Had 1MDB waited until the licenses expired, the price would be next to nothing.

20. Why 1MDB did not wait until the expiry of the license is a mystery. Genting and Ananda clearly made more money than they were entitled to. One estimate is that the high price netted the sellers an extra RM3 billion. Besides they are relieved of the loan of RM6 billion.

21. So not only is the borrowing costly but the high cost of investments will mean low returns. Why is 1MDB so stupid.

22. As stated above 1MDB is unable to get the IPP listed again. Who would want to own overpriced and obviously unprofitable power plant.

Some people are saying that Arul Kanda was a legendary debater at a high school stage. Perhaps something went wrong along the way which made him appear to be a liar, a buffoon and a clueless hoodwinker these days.

No wonder an Umno grassroot leader sees him as a spinner. But then again, even George W. Bush went to an ivy league university at Yale.

I will just let Arul Kanda make a fool of himself over things I was responsible for

I will just let Arul Kanda make a fool of himself over things I was responsible for

As long as my salary is ridiculously high, I don't mind being the silly mouthpiece of Shahrol and Najib.

As long as my salary is ridiculously high, I don’t mind becoming the silly mouthpiece for Shahrol and Najib.

I wonder how those two jokers fare in defending my political career. Endless possibilities.

I wonder how those two jokers fare in defending my political career… endless possibilities.

You might also want to read: 1) Penerangan Perdana 1MDB – DiTanya Kenapa Beli IPP Lama Harga Mahal, Arul Konar Cerita IPP Baru! Belit betul la…

2) Arul – Dana Cayman Belum Tebus Sepenuhnya la …. Pulak Dah!??

3) Auta Arul yang berteknologi tinggi

4) From Cabinet Commander-in-Chief to Embezzler-in-Chief?

5) Najib, explain the US$3.5b guarantee by IPIC

#1mdb, #malaysian-corporate-matters

Kegagalan Najib Razak

Minggu lepas Perdana Menteri akhirnya mengaku bahawa 1MDB adalah satu perniagaan yang gagal.

Walaupun Perdana Menteri kita adalah seorang billionaire (kerana lebih RM2.6 billion terbukti dijumpai di dalam akaun peribadi beliau), dan beliau merupakan ketua penasihat 1MDB, syarikat tersebut ternyata gagal untuk mencapai misi yang patut dicapainya.

Setelah berbulan-bulan sebelum ini Perdana Menteri memaklumkan kita semua bahawa aset 1MDB melebihi liabiliti, dan cuba menipu mengatakan 1MDB tidak pernah kerugian lagi, ternyata semua kata-kata tersebut adalah kosong semata-mata. Ianya tidak lebih hanyalah untuk meyedapkan hati sendiri sahaja.

Ini kerana, rakyat sudah bijak mengkaji dan berfikir bahawa tiada apa yang boleh dilakukan oleh Perdana Menteri dan konco-konconya untuk ‘mewangikan’ bangkai yang busuk seperti 1MDB.

Kini setelah ternyata tiada apa bukti yang boleh ditunjukkan untuk menidakkan kebenaran, mereka beralih kepada hujah bahawa pelan rasionalisasi 1MDB sedang menunjukkan kejayaan.

Amat berbeza sekali tujuan 1MDB ditubuhkan dan tujuan pelan rasionalisasi tersebut. Pada asalnya 1MDB kononnya akan meningkatkan ekonomi Malaysia dengan terbinanya Bandar Malaysia, dan turunnya kadar letrik negara kerana pembelian IPP serta penyenaraiannya di dalam bursa. Pendek kata, 1MDB akan memakmurkan Malaysia dengan pembangunan ekonomi yang mampan tanpa menggunakan hutang kerajaan yang besar.

Tapi yang berlaku adalah sebaliknya. Oleh kerana penyelewengan telah berlaku dan wang berbilion telah hilang, maka tujuan 1MDB ditubuhkan telah bertukar kepada proses pembayaran balik hutang yang lebih banyak bertimbun. Maka bermulalah proses menjual semula aset aset yang telah dibeli melalui hutang, supaya wang yang akan diperolehi digunakan untuk membayar balik hutang-hutang tersebut. Tersenyum lah para pemberi hutang dan bank-bank yang berkaitan.

Rakyat Malaysia akan kehilangan aset-aset tersebut kepada pihak swasta dan pihak luar; hanya kerana Perdana Menteri dan konco-konconya di dalam 1MDB tidak tahu bagaimana hendak berniaga. Mereka cuma tahu menghilangkan wang sahaja. Hinggakan tidak cukup untuk membayar pinjaman mahupun bunga pinjaman. Tanah yang sepatutnya tanah kerajaan yang dikhaskan untuk pembangunan bumiputera juga mungkin akan terjual kepada pihak asing.

Bahkan wang rakyat berjumlah RM950 juta telah diberi oleh kerajaan untuk menolong 1MDB melangsaikan bunga pinjaman. Alangkah baiknya wang tersebut dapat diguna untuk membayar konsesi tol supaya rakyat tidak payah menampung kenaikan harga tol yang tinggi. Ini tidak, wang tersebut hangus cuma untuk membayar kepada peminjam sahaja.

Disebabkan Perdana Menteri pada mulanya cuba menipu rakyat dengan mengatakan semua berkenaan 1MDB adalah baik-baik sahaja akan tetapi bangkai gajah tidak dapat ditutup dengan nyiru selamanya. Oleh itu sememangnya kita boleh isytihar bahawa kepimpinan Perdana Menteri ini adalah yang terburuk di dalam sejarah Malaysia.

Semasa isu RM2.6 billion mula dibocorkan kepada umum oleh suratkhabar Wall Street Journal, Perdana Menteri telah memfitnah Tun Dr. Mahathir dengan mengatakan bahawa bekas perdana menteri itu telah bersekongkol dengan pihak asing untuk menjatuhkan beliau melalui tuduhan yang tidak betul.

Fitnah tersebut terbukti tidak benar apabila bukti bukti yang dikemukakan telah menunjukkan bahawa memang betul Perdana Menteri telah menjadi seorang billionaire di dalam tahun 2013. Dari mana atau untuk apa wang tersebut tiba tiba muncul, tidak pula diberitahu. Bahkan ramai di dalam Umno yang terperanjat dan siasatan pun dimulakan. Malangnya, beliau telah memecat orang-orang yang sedang menyiasat bukti-bukti tersebut.

Pandangan dunia mengenai Malaysia

Pandangan dunia mengenai pemimpin Malaysia

Perdana Menteri juga berkata bahawa punca Tun Dr Mahathir marah kepada beliau kerana kononnya Perdana Menteri tidak mahu menjadi proksi.

Akan tetapi, oleh kerana umum sudah mengetahui bahawa Perdana Menteri tidak tahu mentadbir negara dengan betul dan ternyata lebih cuba melindungi kroni-kroni beliau seperti Jho Low dan juga lebih mementingkan orang yang tidak cerdik tapi cuma tahu menjadi setia membabi buta sahaja, maka adalah lebih baik jika Perdana Menteri ini mempunyai proksi.

Mengapa? Supaya dia dapat dipimpin tangan dan diperbetulkan dari melakukan perkara-perkara yang tidak baik (seperti melambatkan penyiasatan ke atas dirinya, meletakkan orang-orang yang mengampu dan melindungi beliau), dan akhirnya cukup pandai untuk meletakkan Malaysia di landasan yang betul.

Daripada mengikut telunjuk Amerika dalam hal TPPA atau menjadi pak turut kepada Jho Low dalam hal 1MDB lebih baik jika beliau menjadi proksi kepada penasihat-penasihat yang lebih bagus dan tidak berkepentingan. Sebenarnya Perdana Menteri patutnya menjadi proksi kepada seluruh rakyat Malaysia. Dengarlah dan lihatlah reaksi rakyat Malaysia terhadap kepimpinannya. Buat apa mendengar reaksi dari tukang ampu dan tukang kipas di kalangan menteri kabinet?

Mereka cuma tahu menjaga periuk nasi diri sendiri sahaja; bukannya untuk rakyat. Pangkat ‘wakil rakyat’ itu hanya pada nama sahaja. Mereka cuma wakil kepada perut masing-masing.

Langkah seterusnya untuk Perdana Menteri lakukan adalah dengan segera mengakui bahawa ekonomi Malaysia sedang goyah dan kadar matawang ringgit tidak sebagus dulu. Usahlah beliau dan menteri-menteri kabinet membuat ucapan yang kedengaran amat tolol dan terpekik pekik mengatakan ekonomi Malaysia adalah utuh dan kuat.

Kita tidak mahu dipimpin oleh para pemimpin yang buta tuli terhadap realiti dan hanya tahu menyelamatkan diri sahaja.

Amat malang bagi rakyat Malaysia kerana mempunyai Perdana Menteri yang suka membuat ucapan yang tidak benar dan tidak berani berdepan dengan masyarakat umum. Dua kali beliau lari dari majlis yang beliau patut hadiri.

Beliau seringkali mengatakan tidak pernah menggunakan wang RM2.6 billion untuk tujuan peribadi tetapi di mana buktinya? Mana butiran perbelanjaannya? Mana resit-resit bayaran apabila ianya dikatakan digunakan untuk memerangi ISIS dan Yahudi? Setakat cakap menghabiskan air liur sahaja mana mungkin orang yang ada otak akan percaya.

Perdana Menteri sepatutnya duduk di atas landasan moral yang tinggi (moral high ground), di mana sebelum rakyat tertunggu-tunggu berbulan lamanya, beliau terlebih dahulu sudah menerangkan dan memberi bukti secukupnya. Beliau tidak patut berdolak dalih atau menyalahkan orang lain. Inilah yang wajib ada pada orang yang bermoral tinggi. Bukannya diam menikus apabila Majlis Raja Raja menasihati beliau. Atau lari bertempiaran dari majlis-majlis yang beliau patut hadiri.

Perdana Menteri yang bermoral tinggi patutnya sudah lama meletakkan jawatan kerana apabila jawatan sudah tidak dapat dipertahankan lagi, maka lebih baik berundur daripada jawatan tersebut terus dicemuh, dihina dan dikecam masyarakat. Kerusi perdana menteri sepatutnya tidak boleh kehilangan rasa hormat.

Perdana Menteri bukannya tahap seorang kriminal yang menyorok dari tindakan undang undang walaupun seringkali mendabik dada mengatakan beliau pahlawan bugis yang pantang berundur bila sauh dilabuhkan untuk berlayar. Jika tidak mahu berkelakuan seperti Perdana Menteri yang gagal untuk bermoral tinggi, adalah lebih baik melepaskan jawatan dan terus berdepan dengan ujian undang-undang.

Itulah sebaik-baik pilihan agar Umno dan Barisan Nasional dihormati semula oleh masyarakat tempatan dan luar negara.

Terima kasih.

Anda juga mungkin ingin membaca:

1) The Trial of our Finance Minister

2) Agenda Najib bodohkan rakyat

3) The Stench of 1MDB

4) Najib can remain as PM so long as the Ringgit does not cross RM 4.60

5) Dr Mahathir moots council of elders to advise PM

6) TPPA: Mustapa To Be Held Responsible

7) Agreeing to disagree

Bukti Perdana Menteri Malaysia menjadi billionaire sekelip mata

Bukti Perdana Menteri Malaysia menjadi billionaire sekelip mata

#1mdb, #malaysian-corporate-matters

A recap on 1MDB’s first foray in their business misadventure

We didn't take much. We took a bit only..

We didn’t take much. We took a bit only..

In the previous article, we have discussed how the 1MDB USD2.32 billion “units” were so worthless, its value has to be guaranteed by a third party. The third party was IPIC/Aabar, 1MDB’s partner in crime for another business foray. In this article, we shall take a look at the whole scheme on how the idea which resulted in billions of worthless units was hatched.

Since The Edge’s ban was declared unlawful by the courts and their suspension was lifted, while the documents they published are now considered authentic due to lack of denials by 1MDB (in most cases, 1MDB confirmed that the documents were indeed valid and not tampered), we shall revisit the devious methodology used by the owners of 1MDB and PetroSaudi to conceal their fraudulent activities from the public.

Below is the recap on 1MDB’s business scam based on The Edge’s investigative reporting via findings from multiple investigations, public records and documents obtained. Taken from The Edge:

How Jho Low & PetroSaudi schemed to steal money from the people of Malaysia via 1MDB

Why we say the US$1.83 billion 1 Malaysia Development Bhd invested in Petro Saudi International between 2009 and 2011 was a scheme to defraud Malaysia

Key Points:

1. The joint-venture agreement was signed on Sept 28, 2009. The terms include 1MDB contributing US$1.0 billion cash for a 40% stake in the JV Co called 1MDB PetroSaudi Ltd. PetroSaudi Holdings Cayman will put in assets worth US$2.7 billion. The JV Co will be valued at US$2.5 billion with PetroSaudi Holdings’ 60% stake derived from assets it will inject into the JV Co.

2. The valuation of the assets that PetroSaudi Holdings will put in was done by one Edward Morse who was hired by PetroSaudi and work was done within days. Morse was issued his appointment letter on Sept 20, 2009 and submitted his report on Sept 29, 2009 — a day after the JV was signed. He valued the Turkmenistan assets at US$3.5 billion and the Argentinian assets at US$108 million.

3. PetroSaudi Holdings never owned the Turkmenistan assets that were to be injected into the JV Co. Those assets were owned by Buried Hill Energy (Cyprus) Co Limited. PetroSaudi Holdings was only in negotiation to buy the assets from Buried Hill. They signed a negotiation agreement on July 4, 2009 and this was eventually terminated on Nov 23, 2009.

4. 1MDB did not hire its own independent valuer to do the valuation. 1MDB management did not comply with a decision of its own board of directors to do an independent valuation.

5. PetroSaudi Holdings committed FRAUD by selling assets which it did not own into the JV Co. [JMD notes: Basically, 1MDB entered into a business with a company without any track records or assets!]

6. Lawyers for 1MDB, Wong & Partners, as well as the 1MDB board of directors were not given the valuation report by Edward Morse until after Sept 30, 2009 — two days after the JV agreement was signed.

7. When the deposit money of US$7.1 million paid to Buried Hill was returned after the negotiation was cancelled, the cash was not returned to the JV Co but to PetroSaudi Holdings. This deposit money should have been returned to the JV Co as it formed part of the assets sold by PetroSaudi Holdings to the JV Co.

8. There was also FRAUD in the creation of a fake US$700 million loan from PetroSaudi Holdings to the JV Co. These are the evidence of fraud:

a) There was no corresponding cash in the JV Co or any of its subsidiaries on or after Sept 25, 2009 (the date the loan agreement was signed). But a letter of demand dated Sept 29, 2009 from PetroSaudi Holdings was sent to the JV Co to pay the loan.

b) From the US$1 billion cash that 1MDB remitted for the JV, US$700 million was paid directly from 1MDB to Good Star Limited instead of the supposed lender PetroSaudi Holdings.

c) The scheme to scam US$700 million from 1MDB was discussed as “over payment” in various email exchanges and attachments between Jho Low and his associates Seet Li Lin, Tiffany Heah, with PetroSaudi executives Patrick Mahony and Tarek Obaid between Sept 11, 2009 and the signing of the JV on Sept 28, 2009.

d) Timothy Buckland (from the UK law firm of White & Case which represented PetroSaudi Holdings) admitted in an email to Charlie Sparrow of PetroSaudi Holdings and copied to Mahony that the letter of demand for repayment of the US$700 million loan was not needed but only “necessary for your docs to legitimise prepayment”.

e) The board of directors of 1MDB was not told about this “loan” prior to the signing of the JV on Sept 28, 2009.

9. The remittance of the US$700 million from 1MDB to Good Star at its bank account at RBS Coutts (Zurich) approved by then 1MDB CEO Sharol Halmi was done without the consent of the 1MDB board of directors which had approved payment of the entire US$1 billion directly to the bank account of the JV Co at JP Morgan Suisse (SA). Two directors of 1MDB Mohd Bakke Salleh and Azlan Zainol resigned because of this payment of US$700 million to Good Star.

10. This transfer of the US$700 million was also a breach of the approval given by Bank Negara Malaysia for 1MDB to remit US$1 billion for the JV. BNM approved payment to the account of the JV Co at JP Morgan Suisse (SA) and not to anyone else.

Why we say Good Star was controlled by Jho Low at the time 1MDB transferred US$700 million

Key Points:

1. 1MDB’s lawyers Wong & Partners, had questioned why the US$700 million was to be paid to Good Star Limited and not to the “lender” PetroSaudi Holdings Cayman. Patrick Mahony, the CEO of the JV Co, said that they were all part of the same company. He lied.

2. 1MDB had on Sept 29, 2009 remitted US$700 million to account number 11116073 at RBS Coutts Zurich. The Malaysian remittance bank was Deutsche Bank Malaysia. RBS Coutts’ risk and compliance unit wanted to know the beneficial owner of the account and then 1MDB CEO Shahrol Halmi replied that it was Good Star Limited.

3. Email communication between the banks and 1MDB on this payment was forwarded to Jho Low by 1MDB executive director Casey Tang.

4. Good Star executed an agreement on Sept 30, 2009 to pay PetroSaudi Holdings’ executive and shareholder Tarek Obaid US$85 million as broker fee. If Good Star was part of PetroSaudi why was there a need to do this?

5. Good Star signed a draft investment management agreement with another PetroSaudi executive Patrick Mahony on Sept 29, 2009. The chief investment officer of Good Star in the agreement was Seet Li Lin, an employee of Jho Low at Jynwell Capital. The metadata of this document in an email attachment showed Jho Low to be the last person to save this file on Oct 1, 2009.

6. On July 21, 2010, Jho Low emailed to Mahony’s Good Star bank account details at RBS Coutts in Zurich to receive part of the US$500 million that was to come from the Murabaha notes 1MDB was to subscribe.

7. On Sept 13, 2010, Jho Low emailed again to Mahony asking him to remit the money to Good Star.

8. Between June 2011 and September 2013, Good Star remitted a total of US$529 million in several transfers to a bank account at the Swiss private bank BSI in Singapore that belonged to Abu Dhabi-Kuwait-Malaysia Investment Corp (ADKMIC).

9. Jho Low has been identified as the beneficial owner of that bank account which was closed in February, 2014.

10. Jho Low had declared himself as a shareholder of ADKMIC when he was involved in the acquisition of the then Bursa Malaysia-listed UBG Bhd in 2010.

Who got what and the trail of international money laundering

Key Findings:

1. Good Star Limited received in total about US$970 million from the US$1.83 billion that 1MDB invested with PetroSaudi Holdings Cayman between 2009 and 2011. From this amount of US$970 million, US$529 million went to the bank account of Abu Dhabi Kuwait Malaysia Investment Corp (ADKMIC) at BIS Bank in Singapore. Jho Low was the beneficial owner of that account.

2. Javace Sdn Bhd, the company that Jho Low used in the 2010 takeover of UBG Bhd, received US$260 million via a loan from PetroSaudi International Seychelles. That money was transferred from the JP Morgan bank account of Tarek Obaid which he received from the US$500 million Murabaha notes subscribed by 1MDB in Sept, 2010. (See The Money Trail Flow Chart)

3. Besides the US$260 million, Tarek Obaid received in total another US$240 million from 1MDB. From this, US$77 million was paid to his partner at PetroSaudi, Prince Turki, US$33 million to Patrick Mahony and US$1.0 million to Nawaf Obaid. (See The Money Trail Flow Chart) [JMD notes: There is no limit to greed, even when you’re supposed to be an arab prince flushed with arab money]

4. Various PetroSaudi companies received around US$330 million, of which US$185 million was used to buy a drill ship. [JMD notes: This would be the Discoverer which they bought in January 2010. Malaysian public actually gifted money to PetroSaudi to buy their first asset! In September 2010, they bought another ship – the Saturn for USD260 million, after they received another USD500 million from 1MDB]

5. Some of the money received by these individuals were used for their personal investments. For example, Mahony used US$10 million (6.5 million pounds) to buy a house in his home country the United Kingdom. (See The Money Trail Flow Chart)

6. All these point to a clear case of fraud and international money laundering. 1MDB’s money went from Malaysia to Switzerland via US clearing banks and then to the United Kingdom, the UAE and Singapore.

7. What happened to 1MDB’s money is no longer a domestic issue but is a global fraud and money laundering matter involving the United States, the United Kingdom, Switzerland and Singapore. Global banks like JP Morgan, RBS Coutts, Credit Suisse, HSBC, Citibank, Deutsche Bank, BSI and others have all been channels for the money flow.

Covering the US$2.23 billion hole (Original US$1.83 billion cash & US$400 million paper profit) hidden as units in the Cayman SPC via the US$2.23 billion payment to retire the Aabar options

Key Findings:

1. With the US$1.83 billion cash 1MDB invested with PetroSaudi Holdings Cayman all gone, how then can it cover the hole plus the so-called US$400 million in declared profit that it was supposed to have made?

2. By 2012, all the US$2.23 billion was captured as Murabaha notes issued by PetroSaudi. It was later “redeemed” for a 49% stake in PetroSaudi Oil Services Ltd (PSOSL). [JMD notes: based on their own website, PSOSL was only created in 2009; the year 1MDB entered a business scam venture with PetroSaudi]

3. On Sept 12, 2012, 1MDB “sold” this 49% interest in PSOSL to Bridge Partners International Investment Ltd for US$2.32 billion. Bridge Partners International did not pay cash but issued promissory notes as payment.

4. On the same day, 1MDB through its subsidiary Brazen Sky Ltd, invested these US$2.32 billion of promissory notes in a fund called Bridge Global Absolute Return Fund SPC which was managed by Bridge Partners Investment Manager (Cayman). According to its prospectus, the fund makes high risk investments and investors can lose all its money. [JMD notes: And according to the latest discovery, the Cayman fund was only registered and licenced in November 2013, more than a year after it was ‘invested’ in the SPC].

5. The actual value of the US$2.32 billion kept in the SPC was unverifiable and the dispute 1MDB had with its then external auditor over this was the reason why KPMG was sacked for refusing to sign off the accounts for FY March 31, 2014.

6. Throughout 2013 and 2014, 1MDB’s board of directors had pressed its management to redeem the money from Cayman, because it was getting worried over the increased scrutiny by its external auditors.

7. Disputes and disagreements between 1MDB and Ernst & Young and then KPMG were primarily over the inability of 1MDB and Bridge Partners Investment Manager to provide enough proof that the fund was worth the US$2.32 billion ascribed to it or that they were readily realisable to be categorised as Available-For-Sale Investments in the audited accounts.

8. Subsequent to this, Aabar Investments stepped in to guarantee Bridge Partners International’s US$2.32 billion debt to 1MDB held as units in the Cayman SPC.

Covering The Hole:

1. In 2012, the International Petroleum Investment Corp (IPIC) of Abu Dhabi was given an option to subscribe to 49% of the future listing of the power assets owned by 1MDB. This 10-year option, which was later transferred to IPIC’s associate Aabar Investments, was for co-guaranteeing two bonds totalling US$3.5 billion that 1MDB issued.

2. In May, 2014, 1MDB and Aabar signed an agreement to terminate the options. This was stated in Page 172 of 1MDB’s FY2014 accounts but no details were given.

3. In page 169 of the FY2014 accounts, it was stated that 1MDB had obtained a bridging loan of US$250 million to buy back the options.

4. In page 171, it was stated that on Sept 2, 2014, Aabar had written to 1MDB that it wished to terminate the options according to the terms set out in the agreement signed in May. Again, no details were given.

5. 1MDB has never given out enough details of the terms and costs of terminating the Aabar options. But 1MDB appeared to have paid Aabar the following as termination costs:

i) US$250 million paid in May, 2014

ii) US$975 million paid in September, 2014 via a Deutsche Bank loan [JMD notes: This loan was paid by IPIC in June 2015 on behalf of 1MDB in return for 1MDB’s assets not yet identifiable]

iii) US$993 million paid in November, 2014 via a partial redemption of the Cayman SPC funds.

6. This adds up to a total of US$2.22 billion.

7. The scheme to cover the US$2.32 billion hole at the Cayman SPC is by paying Aabar US$2.22 billion as option termination fee. Aabar then passes the money to the Cayman SPC from which 1MDB would then be able to redeem the money, thus covering the money that was already gone.

8. The termination fee totalling US$2.22 billion that 1MDB paid to Aabar between May and November, 2014 was, however, not reflected in the FY December, 2014 of IPIC (which owns 100% of Aabar) as income or revenue. There were no such entries in IPIC’s accounts. This reinforces our analysis that the termination fees paid to Aabar were in reality used to cover the hole at the Cayman SPC. [JMD notes: This was confirmed by Wall Street Journal scoop where IPIC sources were quoted that they did not receive any of the money]

The rest of the recap can be read here.

You might also want to read:

1) The Money Trail Flow Chart

2) 1MDB’s Cayman “units” could not have been “redeemed” : Mahathir was right, the USD 2.2 billion is all gone

3) PSOSL did not exist and never owned any assets before 2010

4) Australia’s ASIC finds no evidence of 1 MDB’s Cayman units

5) 1MDB and the ‘donation’ issues are just the immediate causes, we have more reasons to change

6) Saving Prince Turki: UK regulator looks away in matter involving Turki Abdullah Al-Saud

7) Malaysia’s 1MDB Fund Scandal Spreads to U.A.E.

8) 1MDB – more questions on missing billions

9) Australian Investigation Further Confirms 1MDB’s Cayman Con-Trick

#1mdb, #malaysian-corporate-matters

1MDB “units” were so worthless, its value has to be guaranteed by a third party

This is a simple article. Please do not be intimidated by reading it. It’s a story of how billions of ringgit which came from bonds guaranteed by the Government, ended up being a worthless paper trail.

Perhaps you can share this story with your friends.

Once upon a time in 2009, 1MDB obtained RM5 billion from a bond issue called the Islamic Middle Term Notes. This amount is guaranteed by the Malaysian taxpayers (aka the Government) should 1MDB fails to repay the amount. (source)

As the name suggest, this bond must be used according to Shariah principles and the assets purchased must be endorsed by a Shariah Adviser. (source)

1MDB announced in 2009 that they will use this money to “participate in business and economic opportunities which result in the enhancement and promotion of the future prosperity and long-term sustainable economic development of Malaysia.” (source)

Q: Where is the RM27 billion? A: Sultan Pahang supports me

I don’t think I am the Shariah Adviser of 1MDB

In other words, the taxpayers of Malaysia is guaranteeing a debt of which the money must be used by 1MDB to invest in Shariah compliant assets which could trigger a prosperous and sustainable economic development in Malaysia.

Is this simple enough to understand? Good.

All seems great at that time, but what the public and the financial regulatory bodies such as Bank Negara Malaysia and Securities Commission didn’t know was, 1MDB had other intentions in mind. (source)

It turns out, from the period of 2009 to 2011, a total of USD1.83 billion of our money was given to an obscure company which had no track record whatsoever prior to 2009. (source)

This company is called PetroSaudi. It was a fairly inactive company when 1MDB started its joint venture with them. (source1, source)

How and why the Malaysian Government entered into an agreement with a company with no track records and no discernible assets is baffling. And why they agreed to give them billions is even more so. (source1, source2, source3)

Furthermore, public records have shown that USD700 million (approximately USD3 billion in current currency rate) out of the USD1.83 billion cash given, was transferred into a company called Good Star Ltd. This was never denied by anyone. Is sending money to Good Star Ltd in compliance to Shariah principles? What is their business activity which merited them to be given USD700 million of taxpayers money? (source)

Please don't ask me where the actual cash went

Please don’t ask me on what the actual RM5 billion cash was used for

Anyway by 2011, the cash USD1.83 billion was recorded as a loan to PetroSaudi. We don’t know what they do with the cash since the joint venture was terminated a year earlier in 2010, barely 6 months after it started. Usually when a joint venture was terminated, logic dictates that 1MDB must get all of its money back as soon as possible and invest it somewhere else more economically substantial. But 1MDB did the most crazy thing – continue loaning them money. (source)

1MDB even had the audacity to say that the money given to PetroSaudi can be used at that company’s discretion and they have full rights to do as it please. (source)

Basically, our taxpayers’ money which should have been used to develop Malaysia according to Shariah principles is being treated like a foreign company’s personal fund. We taxpayers must not question it.

Now by 2012, this loan to PetroSaudi which started from a failed joint venture business, was transformed into a 49% equity stake in PetroSaudi’s subsidiary worth USD2.22 billion. The USD1.83 billion was actually revalued upwards to USD2.22 billion. There was no cash profit at this time, only revaluation on paper. USD2.22 billion (approximately RM9.5 billion in current currency rate) is roughly as big as Sapura Kencana’s share capital. But 1MDB owned this company with such ease, coming in and out of it in barely four months. First they owned 49% of it in June 2012, then they sold that huge chunk of equity in September 2012. (source)

That huge chunk of equity was transformed yet again into ‘promissory notes’ when 1MDB sold their equity holding to an obscure fund management company called Bridge Partners from Hong Kong for USD2.318 billion. There was no cash changed hands. Only assets on paper. (source)

Let’s recap what we have so far. From cash obtained through Shariah debts, the taxpayers’ money has now become ‘promissory notes’. There goes the initial objectives of prospering Malaysia through sustainable economic development in Malaysia. The actual physical money has gone into Good Star and PetroSaudi.

1MDB now realised it has a few papers called promissory notes in its hands. They could not exchange it for real money anywhere in the world. So it then gave the ownership of those notes to its newly created subsidiary called Brazen Sky. Brazen Sky then gave those promissory notes to Bridge Global Absolute Return Fund to be ‘invested’ in Cayman Islands in the form of fund units. And now it seems, even Bridge Global did not have the necessary licence, or did not even exist when the transaction happened. (source)


HAHAHAHA as long as I got paid, why do you need to worry?

No wonder the whole Ministry of Finance including 1MDB’s clueless new boss were confused about this whole dodgy transaction. Was it cash, was it paper assets, or was it units? They themselves were confused by their own sneaky endeavours.

Now the USD2.318 billion question is, does the fund units have value? The answer is no and here’s why.

1MDB’s previous auditor (KPMG) had refused to sign off the accounts unless 1MDB can give proof of their marketable value. 1MDB could not. KPMG was sacked because they did not want to sign off the accounts. 1MDB then had to appoint another auditor (Deloitte) and had to ask their other partner in crime (Aabar/IPIC) from another joint venture to guarantee those units. Only then the new auditor was comfortable enough to sign it off. (source)

To put matters into perspective, this is akin to putting your RM1,000 into an ASB unit trust account but after some time, you can’t be sure if RM1,000 is still there, you simply had to get a third party to guarantee it! (source)

But some deluded people are saying that this is a good thing and that the very act of guaranteeing the units confirmed that those so called billions of units were not worthless. Perhaps they should look up for the words ‘guarantee’ and ‘guarantor’ in the dictionary. Perhaps they are out of their mind. If you hear anyone is saying these units have value and is profitable, please do not employ them anywhere in your company. Otherwise all your company cash might end up as units too! Then you are going to have an icky situation of paying staff salary using units instead of cash. If your staff ask ‘what are these units?’, just casually tell them, ‘they are units, just units’. (source)

Note that in exchange for  rescuing 1MDB many times, IPIC will be given assets belonging to 1MDB by June 2016. What these assets are, 1MDB and its lackey the Ministry of Finance have not answered to the public. Do you think IPIC will just help you (the taxpayers) for free? (source)

KPMG was right in not signing off those accounts while those vague USD2.318 billion worth of investments is left pending and unverified. They seriously do not want to follow the footsteps of Arthur Andersen accounting firm in the Enron financial fiasco. There are many instances when Audit Firm were caught colluding with their clients just for the sake of not losing the audit fee. (source)

There are other equally dodgy matters that had crept out due to the bungling of this so called ‘units’ that happens in the period of 2014 to 2015. But we shall save it in another simple story later.

The end.

You need to read these too:

1) The Idiot Guide to the Illogical Kandasamies of 1MDB

2) Decoding One of 1MDB’s Most Controversial Investments

3) Auditor General’s Report Proves KPMG Refused To Sign Off 1MDB’s Cayman Island Fund

4) 1MDB Board unhappy over hasty deal

5) Why RM13 billion Cayman Islands 1MDB investments may not be worth much

6) 1MDB denies evidence of their wrongdoings by issuing… some words.

7) 10 questions for 1MDB Chief

#1mdb, #malaysian-corporate-matters

1MDB, EDRA Global Energy and TNB; the case of buying the same asset twice (updated)

Back in 2012, 1MDB bought several IPPs for the price of RM18 billion. Where did they get this pile of cash to finance their purchase? Through acquiring debts. RM18,000,000,000 of debts.

As the result, 1MDB owns these IPPs and renamed them Edra Global Energy Bhd.

Shahrol "I was the one in charge" Halmi, the CEO of 1MDB then

Shahrol “I was the one in charge” Halmi, the CEO of 1MDB then

Debts will incur interests. And it has been piling up. The debt-laden 1MDB which has the Prime Minister as its ultimate boss, gave huge cash to the previous owners of those local and foreign IPPs and now they are sitting on a pile of debt with no means to repay them.

Fast forward to 2015, since 1MDB is on the verge of bankruptcy and had to be bailed out several times through debt repayment extensions, standby credit and a foreign company in return for some undisclosed assets, 1MDB is selling this group of IPPs to reduce their debts.

And so Tenaga Nasional Berhad (TNB) being owned by Khazanah Nasional Berhad whose ultimate boss is also the Prime Minister, is now poised to buy Edra Global for at least RM15 billion (according to reports), although the greedy 1MDB is asking between RM18 to RM20 billion. TNB may have to issue bonds for this purchase.

1MDB belongs to the MOF which ultimately belongs to the people. TNB is also ultimately owned by the people.

We can also get people to pay same things three times. Not my money what..

If you want, we can issue debt three times for the same thing also can. Not our money what..

If TNB wins the tender to buy Edra, this nice story of how the Prime Minister got Malaysians to buy the same asset twice will come to an end, rather awkwardly.

First 1MDB bought Edra for RM18 billion via debt. Then TNB have to fork out another RM15 billion (most probably via debt too) to buy it again. That RM15 billion cash given to 1MDB will then be used to pay debts to the banks. In total, RM33 billion worth of opportunity cost is used to buy the same asset. This is the equivalent to 6 years of BR1M pay out, or several construction of KLIAs or decades of compensation for toll highways, and millions of low cost houses.

Isn’t this an act of sabotage on Malaysia’s wealth?

This is the fate of Malaysians. 1MDB lost the original RM18 billion investment and had to be in debt because of that, while taxpayers will again rescue it for RM15 billion. Buat hutang dua kali.

That is the fate of Malaysians under this Prime Minister.

Although it is irrational, lets buy the same asset twice and call it '"Rationalisation Plan"!

Although it is irrational, we as government is buying the same asset twice and we will call this “Rationalisation Plan”!

The only people that are happy are the previous owners of IPPs who received a cool RM18 billion of cash, and the banks for getting back at least RM15 billion of that amount while Malaysians are saddled with debt interests every year.

And none of the 1MDB bosses got fired. No Minister of Finance resigned too. In fact, 1MDB’s director fees and remuneration increased from RM5.1 million in 2012, to RM5.9 million in 2013 to RM27 million (a whopping RM22 million was paid to a single director for terminating his contract in one of the IPPs) in 2014.

Taxpayers lost a lot of money, yet 1MDB top bosses get millions out of it.

This what happens when people with no experience in IPP were in charge of 1MDB. If there was no 1MDB and it was the expert (TNB) which had bought all those IPPs back then, we Malaysians today do not have to incur that RM18 billion debts plus interests since 2012.

You might also want to read:

1) Analysts cautious about TNB’s Edra bid from 1MDB

2) 1MDB gets three bids for Edra assets


4) Umno – Demi Najib (RM2.6 Bil), 1MDB dan Jho Low!?

5) Najib is born to create misfortune for the country

6) Rahman Dahlan is talking about dignity? It doesn’t sound like him

7) Malaysia’s 1MDB Scandal: Political Intrigue, Billions Missing and International Scrutiny


Cabaran Nazri Aziz; adakah beliau akan meletakkan jawatan MP di Padang Rengas?

Nazri Aziz, menteri yang umum mengetahui jarang bercakap hal-hal yang cerdik telah mencabar Tun Dr. Mahathir untuk berlawan dengan Najib Razak di Pekan atau Nazri sendiri di Padang Rengas.


Adakah ini bermakna, Nazri Aziz akan meletakkan jawatan beliau dalam masa 24 jam untuk membuktikan beliau berani menghadapi cabaran beliau sendiri?

Jika beliau meletak jawatan sebagai ahli parlimen di kawasan parlimen beliau, maka barulah pilihanraya kecil dapat diadakan di sana. Dan baru lah Tun Dr. Mahathir, atau sesiapa sahaja boleh bertanding di situ.

Oleh kerana nama Najib Razak pun sudah terpalit masuk dalam cabaran ini, maka adakah Najib juga akan meletakkan jawatan beliau?

Akan tetapi jika ahli-ahli parlimen meletakkan jawatan tanpa sesuatu sebab yang kukuh, undang-undang telah menetapkan bahawa mereka tidak boleh bertanding lagi di dalam pilihanraya untuk selama 5 tahun. Ini benar dalam kes Wan Azizah di mana beliau meletakkan jawatan sebagai MP di Permatang Pauh di dalam bulan Julai tahun 2008 untuk membolehkan Anwar Ibrahim mengambil tempatnya.

Susulannya, Wan Azizah tidak layak bertanding di dalam pilihanraya umum 2013 yang berlangsung di dalam bulan Mei tahun tersebut.

Cabaran Nazri Aziz yang tidak masuk akal ini juga telah dilakukan terhadap seorang bekas Perdana Menteri yang sudah bersara dari politik. Jika nak cabar Tun Mahathir pun, fikir-fikirlah sikit. Takkan Tun Mahathir nak jadi ahli parlimen lagi dalam usia 90 tahun? Beliau sudah lalui semua itu. Sudah pernah jadi Perdana Menteri pun.

Ku NanJaga-jaga Nazri Aziz, nanti Tengku Adnan boleh gantung keahlian kerana bercakap perkara-perkara yang tidak masuk akal.

Kalau betul nak cabar Tun Dr Mahathir pun, cabarlah beliau berdebat di dalam satu forum. Misalnya, kita bagi nama forum tersebut – “Nowhere2Hide”.

Mana mungkin pahlawan bugis seperti Najib Razak atau Nazri Aziz sendiri mahu lari dari forum yang akan dinamakan Nowhere2Hide ini? Anak jantan bukan? Hanya yang pengecut sahaja yang tidak akan hadir untuk berhujah dengan Tun Dr. Mahathir. Bak kata orang, berani kerana benar.

Apalah sangat cabaran hadirkan diri untuk berhujah dengan Tun Dr Mahathir berbanding dengan menghadapi pilihanraya kecil? Kalau takut nak berhujah pun, beranikan lah diri untuk bersemuka dengan Tun Mahathir di pejabatnya. Berhujahlah di sana.

Bukannya ada orang tahu pun kalau kalah berhujah dalam pejabat Tun. Dulu masa Nazri Aziz jadi pemangku Ketua Pemuda Umno, takkan tak pernah berhujah dengan Presiden beliau sendiri? Takkanlah bila Tun Dr Mahathir dah bersara baru tiba-tiba nak tunjuk berani?

Nazri Aziz dinasihati untuk memahami bahawa permintaan Tun Dr Mahathir agar Najib Razak meletakkan jawatan adalah merupakan desakan orang ramai juga. Adakah Nazri Aziz akan mencabar sesiapa sahaja yang mahukan Najib Razak letak jawatan untuk bertanding di Padang Rengas/Pekan juga, hatta mencabar orang biasa sekalipun?

Najib sekarang adalah manusia yang paling tidak popular di dalam Malaysia. Ini tidak boleh disangkal lagi. Najib Razak akan membuatkan Barisan Nasional kalah di dalam pilihanraya 2018. Waktu itu, tidak ada gunanya pun Tun Dr Mahathir bertanding di Padang Rengas atau di Pekan. Letak Dyana Sofya sebagai calon pun belum tentu Nazri Aziz atau Najib Razak boleh menang. Belum lagi jika Saifuddin Abdullah bertanding di sana. Ingat, di dalam tahun 1999 Najib Razak cuma menang majoriti lebih kurang 200 undi sahaja di Pekan.

Nazri Aziz sepatutnya bersikap lebih matang dari mencabar orang tak tentu pasal. Lebih baik buat kerja yang lebih berfaedah seperti menarik lebih ramai pelancung ke dalam Malaysia. Tahun ini kan jumlah kemasukan pelancung dah menurun, buat lah kerja yang sepatutnya. Sedarlah bahawa gaji menteri di bayar oleh rakyat.

Terima kasih.

Anda juga mungkin ingin membaca:

1) Muhyiddin – Kabinet Tidak Tahu Langsung Dan Tidak Terlibat Sepanjang 1MDB Beroperasi



4) Bursa Sambut Dingin Belanjawan

5) Simpan Simpan Bangang Tu..!

6) Ghapur Salleh Mana Janji 1 Juta Rumah?

“1MDB, please answer simple questions first”.

There was a series of simple but important questions to Arul Kanda, written by a member of the public and published in the Malaysian Insider today:

I refer to Arul Kanda Kandasamy’s statement on 1Malaysia Development Berhad’s (1MDB) rationalisation plan, debt equity swap, asset/equity sales in TRX and Bandar Malaysia and its ability to pay off interest charges and debt obligations on time.

I am just a layperson trying to understand, so please forgive me if I have misconstrued.

Are we supposed to be proud of all these measures mentioned by Arul Kanda, ie. 1MDB now has a rationalisation plan, is able to pay interest charges and debt obligations on time and is selling more of its valuable assets/equities to raise cash?

How did a strategic company set up with massive government support end up talking about rationalisation plans and paying debts and interest charges every day?

Frankly, I have a problem understanding 1MDB’s business model. The company initially raised lots of debts to buy so-called strategic assets. Now it is selling these assets to pay off debts. So what exactly are these guys in 1MDB doing, really?

I thought 1MDB had obtained the assets at good value, like those at TRX and Bandar Malaysia (let’s forget the energy assets for the time being). I thought these assets would have catapulted 1MDB to stardom. But why are they carving up the lands slice by slice and selling it off to raise cash to pay off debts?

I just don’t understand, I thought most of us would want to start a corporation to make money and to create value. But in 1MDB’s case, it appears to me that the corporation started with debt rationalisation before it made anything. Now it is happy just to sell assets to pay off interest charges and debts obligations or to indulge in debt equity swaps to keep the creditors at bay.

I don’t know, all this sounds very odd to me. We incur debts to buy assets. Having done that, we should make use of these assets to make profits to pay off debts. But in 1MDB’s case, why borrow to buy assets and then sell assets to pay off debts? In between, it incurred massive finance charges. May I know what business 1MDB has been doing all these years?

I have one final question – please forgive me again if it sounds superficial. By the time 1MDB has cleared off all its debt obligations, will there be anything left to the company, notwithstanding the “assets greater than liabilities” mantra?

If it has very little or nothing left, can we then say the lands in TRX and Bandar Malaysia were given to 1MDB for nothing?

TK CHUA – 28 October 2015

Let’s call a spade a spade shall we? This ‘rationalisation plan’ is just a fancy word for insolvency and asset stripping. 1MDB has all the signs of a company facing bankruptcy.

That is why, they had to get an outside help to pay their debt interests. Why can’t the Government be honest with this fact?

1MDB has suffered an acute cashflow problems which unable them to pay their debt interests on time. This is true in 2014 when they had to apply more than one extension on the interest payment due date.

I'm here to give out silly smiles while talking nonsense in the hope that the public is dumb enough to believe my hyperboles

I’m here to give out silly smiles while talking nonsense in the hope that the public is dumb enough to believe my hyperbole

It was all over the news back then. What happens if an average man failed to pay his car hire purchase loan on time, say 3 months late? The car will be repossessed.

What happens if a business failed to pay interests on time, say 5 months late? In the case of 1MDB, they will get extensions, and get a bail out of RM950 million from the taxpayers and then, get a foreign company to pay for them more billions in exchange for the assets originally owned by Malaysians.

1MDB is actually a stinky, debt-laden non-performing giant, which could not even muster enough money to pay for their debt obligations. Yes they could pay their debts on time, but only after a few extensions and in some instances not by their own money, but through other people’s pockets.

The best part is, Malaysians gain nothing out of 1MDB. The money obtained from selling those assets will be used to pay off debts. It won’t go into the nation’s coffers or back to the taxpayers. The bankers will get the money and be smiling all the way through the next decade as 1MDB struggles to reduce the billions of debt it has amassed needlessly.

Did the management of 1MDB get the sack out of this? No, their former CEOs and BOD as well as their stupid board of advisors are happily smiling away as if nothing has happened. They trumpeted this ‘rationalising plan’ as if it was a job well done.

They are also trumpeting some gibberish notion that ‘any wrongdoing, if any will be dealt with’. That is another hyperbole which epitomises lack of accountability. How can you deal with any wrongdoing when the suspects are placed high up in the political pyramid?

When you have no accountability, it will destroy your integrity. Once your integrity is gone, you will have no more credibility. When you have no credibility, nobody will even trust you. 1MDB excels in this department.

From now on, who would want to do business with 1MDB? Only TNB is dumb enough to pick up the hot steaming excrement that 1MDB had left behind. Other companies dealing with 1MDB can do some arm twisting for the prized-jewels – the lands once belonged to the Government.

Plus, who could trust 1MDB when they acted so nonchalant in ignoring the rules of its own central bank? For example, do you want to invest in a UK company which had breached and ignored the rules made by Bank of England?

TK Chua above had summarised his questions in such clear manner which had exposed how stupid 1MDB really is. Yet, the Government especially the people involved in it are desperately showing signs of denial. To claim that 1MDB is a job well done, instead of a massive failure transcending leadership, good governance, commerce and rule of law is imperative for one’s political survival.

Honesty, the decency to tell the truth and be responsible for it, is truly a lost virtue among this political leaders and their corporate lackeys.

You may also want to read:

1) Malaysia’s 1MDB secures second extension on $1.9 bln loan

2) Bibir Manis ! – Kemahiran Najib dan Arul1MDB Yang Tidak Dapat DiSangkalkan

3) Hutang IPIC USD481 Juta – Najib Tak Tipu la..

4) Malaysian Government pretends 1 MDB does not exist.Budget 2016 a worthless document for the exclusion

5) Ringgit falls as Fitch warns deficit target may be out of reach

6) Lemahnya Hujah Wakil Rakyat BN di Parlimen

7) Why is Najib still PM?

8) 1MDB Said to Seek Another Loan Extension Before $3 Billion Energy IPO

9) Bank Negara powerless to act on 1MDB loan extension request

#1mdb, #malaysian-corporate-matters

Latest news: United Nation urges Governments to protect whistleblowers


The latest UN report presented in the UN General Assembly on 22nd October 2015 had found that it is common for Governments to restrict information and penalise sources and whistleblowers under the pretext of ‘national security and intelligence’. This contravenes with Article 19 of the Declaration of Human Rights.

Below is the news report:

NEW YORK / GENEVA – Governments and international organizations are failing to ensure adequate protections to whistleblowers and sources of information, according to a new report by the UN special rapporteur on freedom of expression, David Kaye.

“Countless sources and whistleblowers around the world are intimidated by officials, co-workers, and others, depriving everyone of information that may be critical to public debate and accountability,” Mr. Kaye told the UN General Assembly during the presentation of his study.

“All too often, those revealing allegations of wrongdoing lack effective protection,” the human rights expert warned. “Silence is too often the only safe option left to them, with the public left in the dark and wrongdoing left unpunished.”

In the first major UN report devoted to the subject, the UN Special Rapporteur reviews national and international norms and practices and presents recommendations to establish or improve available protections.

“Laws guaranteeing confidentiality must extend beyond traditional journalists to bloggers, citizen reporters, NGO researchers, authors, academics, and many others,” the expert noted. “How can they carry out investigative work if they cannot extend the basic assurances of confidentiality to their sources?”

“While there are major gaps in protections, there are also important advancements in norms protecting sources and whistleblowers around the world. Yet they are often riven with loopholes or, even with strong legal protections, not enforced in practice,” he said.

The study also emphasizes that the right of access to information – central to Article 19 of the Universal Declaration of Human Rights – requires that authorities take into account the public interest of information disclosed when adopting measures against unauthorized disclosures.

“States may restrict access to information in specific areas and narrow circumstances, yet the disclosure of information relating to human rights or humanitarian law violations should never be the basis of penalties of any kind,” Mr. Kaye underscored.

The study notes that the UN and other international organizations also frequently fail to protect their own whistleblowers. “The UN, as most international organizations, have adopted rules for enabling whistleblowing and prohibiting retaliation. Yet allegations of wrongdoing and retaliation are rarely protected effectively,” the human rights expert noted.

“Without protection against retaliation, few would disclose wrongdoing. Protections should be detailed explicitly in law, providing clarity for whistleblowers and others on the nature of the protection they may seek,” the Special Rapporteur said, calling upon Governments and international organizations to strengthen protection mechanisms for sources and whistleblowers.


You might also want to read:

1) Report of the Special Rapporteur to the General Assembly on the Protection of Sources and Whistleblowers

2) Whistleblowers silenced, intimidated: UN urges govts, intl organizations to protect leakers

3) U.N. Report Calls on Governments to Protect Whistleblowers Like Snowden, Not Prosecute Them

4) TI-Malaysia says 1MDB must stop abusing power and that justice must prevail

5) If innocent, no need to interfere in 1MDB probe

5 Lagi Sebab Mengapa Kepimpinan Rejim Najib Ini Terburuk Dalam Sejarah

Di dalam artikel “10 Reasons Why Najib Razak And His Regime Is The Worst” yang lepas, kita sudah membincangkan 10 sebab pertama mengapa kepimpinan Dato Sri Najib Razak adalah yang paling teruk dalam sejarah Malaysia.

Berikut adalah pelbagai lagi contoh yang boleh menguatkan lagi anggapan tersebut.

Sebelum itu, dukacita dimaklumkan bahawa sebuah kaji selidik yang di jalankan dalam bulan Ogos lalu telah mendapati bahawa 4 dari 5 rakyat Malaysia tidak berpuas hati dengan kerajaan Najib Razak. Ini merupakan kedudukan terburuk yang pernah diraih di sepanjang pentadbiran rejim beliau.

Bagaimana ini boleh berlaku? Bagaimana majoriti penduduk Malaysia, dari peringkat Majlis Raja Raja hinggalah ke rakyat marhaen, boleh hilang kepercayaan kepada Najib Razak?

Ini kerana kerajaan ini diketuai oleh barisan kepimpinan yang tidak segan silu melakukan sesuatu perkara yang buruk secara sewenang-wenangnya.

Sebagai contoh:

1) Mereka semua adalah hipokrit

Dalam bulan Februari 2012, Najib Razak telah membuat ucapan berikut:

“Setiap sumbangan yang ingin diberikan kepada mana-mana parti politik samaada di peringkat pusat mahupun negeri, hendaklah disalurkan melalui akaun rasmi parti. Ini bagi mengelakkan ahli-ahli politik menyalahgunakan nama parti untuk meminta atau menerima apa-apa sumbangan yang kemudiannya diselewengkan untuk kepentingan persendirian. Kerajaan percaya inisiatif seumpama ini akan mengelakkan sebarang bentuk perbuatan rasuah dan penyelewengan..”

Kenapa pembangkang tanya soalan yang semua dah tahu jawapannya?

Kenapa pembangkang tanya soalan yang semua dah tahu jawapannya?

Akan tetapi, Najib sendiri tidak mengikut apa yang beliau cakap. Beliau sendiri berkata bahawa apa-apa sumbangan mesti masuk akaun rasmi parti, kerana ini akan mengelakkan perbuatan rasuah dan penyelewengan. Tetapi perbuatannya dengan selamba menerima ‘derma’ berbillion ringgit (RM2.6 billion) dari sumber yang tidak diketahui, malah tidak mahu dijelaskan dengan terperinci kepada umum telah mengakibatkan beliau sendiri dikecam teruk oleh masyarakat dalam dan luar negara.

Berita bahawa beliau menerima RM42 juta ringgit dari syarikat anak milik kerajaan bernama SRC International juga telah memeranjatkan semua pihak.

Seolah-olah seperti si Qarun tiba tiba mendapat harta karun yang banyak tetapi dibuat secara senyap-senyap hinggakan timbalan beliau dan semua ahli majlis tertinggi Umno pun tak tahu menahu pasal rahsia tersebut.

Ahli-ahli Umno tak malu ke ada Presiden macam ni?

Bila dah terhantuk, baru nak tengadah. Baru nak terhegeh-hegeh menerangkan pada orang ramai apabila rahsia kemasukan wang tersebut terbongkar. Punyalah kelam kabut rejim beliau nak pertahankan penerimaan wang tersebut dengan menggunakan pelbagai alasan; dari hendak pertahankan Malaysia dari ancaman Yahudi, sebagai terima kasih kerana melawan ISIS, hinggalah kerana Malaysia memegang ajaran Sunnah Wal Jamaah. Tidak masuk akal sama sekali!

Ini kerana hingga kini, Najib Razak tidak membentangkan apa-apa bukti tentang perbelanjaan yang beliau lakukan dari RM2.6 billion dan RM42 juta tersebut. Mana buktinya? Setakat cakap dengan air liur saja mana cukup. Kita rakyat Malaysia ingin tahu secara keseluruhannya baru lah kita boleh percaya bahawa Perdana Menteri tidak menggunakan sesen pun wang tersebut untuk kepentingan peribadi. Apabila siasatan dilakukan, dengan licik mereka menukar anggota penyiasat dan melambatkan siasatan.

Berani bentangkan kerana benar, takut bentangkan kerana memang dah terbelanja untuk kepentingan peribadi ke?

Sebarang usaha nak melindung kewajaran Najib menerima bertimbun-timbun wang tersebut memanglah tidak boleh diterima akal. Masakan tidak, pada awalnya Ketua Penerangan UMNO Datuk Ahmad Maslan pun dengan keras berkata, Perdana Menteri bodoh mana yang akan mengambil RM2.67 bilion untuk dimasukkan ke dalam akaun peribadinya. Jika benar, ia adalah kebebalan yang terlalu amat sangat.”

Pada masa kini, terbukti sudah bahawa wang tersebut memang dimasukkan di dalam akaun peribadi Perdana Menteri. Hairan juga kenapa Ahmad Maslan masih lagi nak bekerja di bawah Perdana Menteri yang menurut beliau, ‘bebal yang terlalu amat sangat’?

Mengapa juga rakyat Malaysia patut dipimpin oleh Perdana Menteri seperti ini?

2) Mereka lupa sejarah

Najib Razak dan kuncu-kuncunya adalah orang yang lupa sejarah. Kita ingat pada bulan lepas bila Najib cuba perli Datuk Seri Mukhriz Mahathir dengan mengatakan jawatan Menteri Besar Kedah tersebut diberikan juga kepada Mukhriz walaupun ramai lagi Adun yang lebih ‘senior’ dari Mukhriz sepatutnya jadi Menteri Besar.

Macam lah Najib masa jadi Menteri Besar Pahang dalam tahun 1982 ketika berumur baru 29 tahun tidak ada Adun yang lagi senior masa tu. Siapa Perdana Menteri yang lantik dia? Ada dia nak cakap terima kasih dan ingatkan diri sendiri pasal lantikan tu?

Semalam, seorang Menteri di Kementerian Blog ada menulis dalam blog dia mengenai betapa setianya Najib ketika menjadi Timbalan Presiden kepada Tun Abdullah Badawi. Ya, Najib Razak memang amat setia, sebab itu semasa Pak Lah umum tidak bertanding dalam Perhimpunan Agung Umno, dia langsung tak berkeras menyatakan kepada orang ramai supaya Pak Lah jangan letak jawatan.

Ada dia nak berlari-lari ke arah rostrum menghalang Pak Lah dari berbuat demikian seperti mana Tan Sri Rafidah Aziz lakukan terhadap Tun Dr Mahathir 13 tahun dahulu?

Ya, pada mulanya memang Najib menyokong Pak Lah sejurus selepas pilihanraya 2008. Tapi keadaan berubah lima bulan selepas itu, apabila akar umbi dan ketua-ketua bahagian menolak Pak Lah. Menteri blogger tu tak payah lah nak cerita sejarah sekerat-sekerat. Dia bukannya ada di tempat kejadian pun.

Faktanya di sini, Najib adalah penerima manfaat terbesar (greatest beneficiary) apabila Pak Lah turun dari takhta. Tak nak secara terbuka ucapkan terima kasih kepada Tan Sri Muhyiddin Yassin? Sebab beliau lah, akhirnya tuan Presiden boleh dapat ‘derma’ RM2.6 billion ye tak? Kalau betul lah Najib tak mahu mengkhianati Pak Lah, kenapa dia tak berdiri teguh bersama-sama Pak Lah untuk menghadapi pilihanraya umum tahun 2013?

Di sini kita boleh lihat bahawa kita boleh menukar Perdana Menteri pada bila bila masa, tidak payah tunggu pilihanraya pun. Najib sendiri melakukannya dalam tahun 2009 apabila dia menurunkan Pak Lah. Tun Mahathir pun bersara bukan sebab kalah pilihanraya. Begitu juga Tun Hussein Onn dan Tunku Abdul Rahman. Peralihan kuasa dalam Umno tidak menyebabkan kerajaan Barisan Nasional tumbang.

Idealogi yang Najib war-warkan bahawa Perdana Menteri hanya boleh ditukar jika kalah pilihanraya umum sememangnya tidak berpandukan sejarah dan mempunyai elemen kediktatoran.

Takkan nak tunggu sampai pembangkang menang pilihanraya, dan Barisan Nasional dah jadi pembangkang baru terhegeh-hegeh nak tukar Presiden Umno? Siapa dalam Umno yang akan jadi Ketua Pembangkang ketika itu? Molek sangat ke untuk di dengar, yang Presiden Umno dah jadi ketua pembangkang selepas 2018?

Menteri Blogger usahlah nak jadi kaki bodek. Buat lah kerja betul betul. Jangan jadi buta dan tuli seperti para menteri yang lain. Semuanya sudah bisu dan penakut. Kalau yang bukan bisu pun, mereka bercakap tidak masuk akal. Ketika Muhyiddin Yassin dan Datuk Shafie Apdal menentang penyalahgunaan SOSMA, ada menteri berkata, dulu Muhyiddin Yassin jugak yang menyokong SOSMA. Punyalah gelihati kita mendengarnya. Rakyat Malaysia sememangnya ramai yang menyokong SOSMA kerana ianya untuk menentang keganasan dan terrorisma. Yang mereka berdua dan orangramai menentang adalah penyalahgunaan kuasa undang undang tersebut.

3) Mereka semua tidak boleh dipercayai

Di dalam ucapan Belanjawan 2016 Jumaat lepas, pandai pula Najib meminta rakyat mempercayai dan memberi keyakinan kepada kepimpinan beliau:

“Kepada rakyat sekalian,… usahlah berbimbang-bimbang dan bergundah-gundah… letakkanlah keyakinan,… taruhlah harapan, bahawa inilah Kerajaan yang boleh dibergantung harap, demi masa depan hari muka, anak cucu dan keturunan kita.”


Dipetik dari Facebook Suara Rakyat

Bagaimana mungkin nak percaya pada kerajaan jika seringkali cakap tak serupa bikin? Nak beritahu hal sebenar pasal ‘derma’ berbillion pun susah, ini pulak nak suruh kita percaya pada dia bulat-bulat. Ingat tak dulu bila GST mula nak diperkenalkan? Apa yang mereka berjanji pada kita semua?

Bahawa GST tidak akan membebankan rakyat, kutipan tersebut untuk membina hospital dan infrastruktur yang lain. Tidak kurang juga ada yang berkata bahawa hasil kutipan GST akan dikembalikan kepada rakyat.

Tetapi di dalam Belanjawan yang baru ini tiba tiba Najib Razak berkata: “Namun, keadaan telah berubah. Hasrat ini perlu diimbangi dengan realiti kedudukan kewangan negara, berdasarkan perkembangan harga minyak dunia yang tidak menentu seperti yang saya sampaikan tadi. Tetapi, disebabkan oleh kekurangan kutipan hasil petroliam, kutipan GST-lah yang terpaksa menjadi tampungan sebahagian besar daripadanya.”

Kesimpulannya, rakyat terpaksa membayar kadar tol lebih tinggi untuk menolong kerajaan membayar perbelanjaan belanjawan, GST pula dikenakan kepada rakyat untuk kerajaan mendapat duit lebih untuk membayar perbelanjaan negara, dan akhir sekali rakyat terpaksa bayar lebih mahal untuk petrol, gula dan sebagainya kerana subsidi telah dihapuskan agar kerajaan boleh berjimat supaya ada duit lebih untuk menampung dasar fiskal.

Ini melanjutkan kita kepada sebab berikutnya..

4) Rakyat pula yang kena bagi subsidi pada kerajaan!

12122567_527100527468469_4717889612404972362_nJika negara sudah dapat berbillion dari pengorbanan rakyat, mengapa janji-janji bahawa wang GST akan dikembalikan tidak boleh ditepati?

Najib sendiri berkata kutipan GST tahun ini adalah RM39 billion. Jika sistem SST tidak dihapuskan, ianya hanya boleh menjana kutipan sebanyak RM18 billion sahaja. Di situ, sudah ada tambahan pendapatan sebanyak RM21 billion.

Tak cukup dengan itu, kerajaan sudah berjimat ratusan juta kerana tidak perlu membayar pampasan kepada syarikat-syarikat tol baru baru ini. Rakyat yang terpaksa menanggung kenaikan tersebut. Jika kerajaan ini pandai dan bagus, dan tidak perlu menyelamatkan 1MDB dengan memberi RM950 juta kepada mereka awal tahun ini, mungkin kita semua tidak perlu terseksa membayar kadar tol yang lebih mahal sekarang ini.

Berbillion-billion ringgit juta telah dijimatkan kerana kerajaan tidak perlu menanggung kos subsidi bahan api dan gula. Tetapi mana pergi semua duit yang patutnya dah dijimatkan? Kabinet menteri semua ni ingat duit yang mereka belanja dan gaji mereka semua dapat tu sebab dipetik dari pokok-pokok di belakang Seri Perdana ke?

Dan hutang RM950 juta ‘standby credit’ tu bila 1MDB nak bayar balik pada MOF? Hutang RM42 billion tu siapa yang bakal tanggung? Nak kena jual tanah, jual balik IPP untuk langsaikan hutang? Akhirnya, tanah tergadai, aset semua jadi milik orang, tapi duit jualan semua tu diguna untuk bayar hutang saja. Bank-bank jugak yang tersenyum. Kalau duit dari hasil jualan tu masuk balik dalam perbendaharaan takpe juga. Ini tidak, orang Malaysia habuk pun tak dapat. Tanah yang dulunya milik kerajaan pun bakal jadi milik swasta atau pihak asing. Semuanya sebab nak bayar hutang bertimbun.

Patutnya kerajaan berkhidmat untuk rakyat, ini rakyat pulak yang kena menanggung beban kerajaan.

5) Kerajaan tidak tahu cermin diri


Tak tersangka-sangka, tak terduga-duga seorang PM boleh dapat duit sebanyak itu

Kalau dah tahu tak pandai nak uruskan duit negara, tolonglah kurangkan waktu bermain golf. Pergilah cari ikhtiar dan pergi ke luar negara untuk cari lebih banyak foreign direct investment (FDI) atau pelaburan langsung asing.

Atau sekurang-kurangnya letaklah jawatan. Pak Lah pun pandai letak jawatan bila tak dapat undi dua pertiga sewaktu pilihanraya. Tak payah tunggu undi tak percaya pun..

Tak usahlah mendabik data menggunakan data-data yang terpilih cuma untuk mencantikkan resume sebagai Perdana Menteri. Hakikatnya, jika semuanya bagus, kerajaan patutnya tidak mengurangkan peruntukkan kepada mana mana kementerian di dalam belanjawan yang lepas.

Dan lagi satu, jika betul ikhlas dalam menangani masalah kos sara hidup rakyat Malaysia, Najib patut memotong gaji beliau dan gaji para menteri untuk membuktikan kesungguhan bahawa beliau bersama rakyat.

Beliau juga berkata bahawa: “Kerajaan ini tanpa jemu-jemu dan putus-putus ingin membuat kebaikan dan kebajikan kepada sekalian rakyat.” Oleh itu, buatlah dengan betul, bukan dengan menganiaya orang tidak bersalah dan melakukan pemborosan berterusan.

Seorang rakan memberi satu teori mengapa Najib Razak dan barisan pengampunya berkelakuan sebegini. Rakan tersebut berkata, ini adalah petunjuk dari Tuhan bahawa mereka yang munafik dan penipu akan dinampakkan sebagai bodoh, buta dan tuli di depan khalayak ramai. Sebagaimana ayat 9 hingga 20 dari surah Al-Baqarah:

9. Mereka hendak menipu Allah dan orang-orang yang beriman, pada hal mereka hanya menipu dirinya sendiri sedang mereka tidak sadar.

10. Dalam hati mereka ada penyakit, lalu ditambah Allah penyakitnya; dan bagi mereka siksa yang pedih, disebabkan mereka berdusta.

11. Dan bila dikatakan kepada mereka: “Janganlah kamu membuat kerusakan di muka bumi”. Mereka menjawab: “Sesungguhnya kami orang-orang yang mengadakan perbaikan.”

12. Ingatlah, sesungguhnya mereka itulah orang-orang yang membuat kerosakan, tetapi mereka tidak sadar.

13. Apabila dikatakan kepada mereka: “Berimanlah kamu sebagaimana orang-orang lain telah beriman. Mereka menjawab: “Akan berimankah kami sebagaimana orang-orang yang bodoh itu telah beriman? “Ingatlah, sesungguhnya merekalah orang-orang yang bodoh, tetapi mereka tidak tahu.

14. Dan bila mereka berjumpa dengan orang-orang yang beriman, mereka mengatakan: ” Kami telah beriman”. Dan bila mereka kembali kepada syaitan-syaitan mereka, mereka mengatakan: “Sesungguhnya kami sependirian dengan kamu, kami hanyalah berolok-olok “.

15. Allah akan (membalas) olok-olokan mereka dan membiarkan mereka terumbang-ambing dalam kesesatan mereka.

16. Mereka itulah orang yang membeli kesesatan dengan petunjuk, maka tidaklah beruntung perniagaannya dan tidaklah mereka mendapat petunjuk.

17. Perumpamaan mereka adalah seperti orang yang menyalakan api, maka setelah api itu menerangi sekelilingnya Allah hilangkan cahaya (yang menyinari) mereka, dan membiarkan mereka dalam kegelapan, tidak dapat melihat.

18. Mereka tuli, bisu dan buta, maka tidaklah mereka akan kembali (ke jalan yang benar)

19. Atau seperti (orang-orang yang ditimpa) hujan lebat dari langit disertai gelap gulita, guruh dan kilat; mereka menyumbat telinganya dengan anak jarinya, karena (mendengar suara) petir, sebab takut akan mati. Dan Allah meliputi orang-orang kafir.

20. Hampir-hampir kilat itu menyambar penglihatan mereka. Setiap kali kilat itu menyinari mereka, mereka berjalan di bawah sinar itu, dan bila gelap menimpa mereka, mereka berhenti. Jikalau Allah menghendaki, niscaya Dia melenyapkan pendengaran dan penglihatan mereka. Sesungguhnya Allah berkuasa atas segala sesuatu.

Najib Razak di dalam pembentangan belanjawannya pandai meletakkan sepotong ayat Quran dari surah al-Yusuf di akhir ucapan beliau.., mungkin surah al-Baqarah di atas perlu juga dirujuk.

Akhir kalam, nescaya dengan dipersaksikan masa dan dineraca oleh waktu,… yang benar tetap benar,… sejarahnya kelak menjadi bukti.

Anda mungkin juga ingin membaca:

1) Budget 2016: Too rosy?

2) Teks ucapan belanjawan 2016

3) Budget 2016 not sensible for developing nation, says Sarawak BN minister

4) Malaysia’s 1MDB scandal: Australian connection in Malaysia scandal

5) Malaysia’s 1MDB Scandal: Political Intrigue, Billions Missing and International Scrutiny



8) Najib telah hilang kelayakan sebelum beliau menjadi Perdana Menteri lagi

9) Subsidy cuts and other things Najib didn’t tell you in Budget 2016



Zeti of BNM fights on while Ranjit of Securities Commission did not even bother

Kudos to Tan Sri Zeti Akhtar for having the gumption to do what is right pertaining the fraudulent activities executed by the unethical 1MDB management back in 2009.

In the press statement by Bank Negara Malaysia on 9th October 2015, it was clearly said that 1MDB had supplied inaccurate information during their application to remit money overseas. This had violated the Exchange Control Act 153 (ECA).

The excerpt of the statement is as below:

The Attorney General’s decision with respect to the investigations on 1Malaysia Development Berhad (1MDB) relates to Bank Negara Malaysia’s recommendation to initiate criminal prosecution against 1MDB for breaches under the Exchange Control Act 1953 (ECA).

The Bank at all times expects full and accurate disclosure of information by applicants in considering any application under the ECA. On its part, the Bank concluded that permissions required under the ECA for 1MDB’s investments abroad were obtained based on inaccurate or without complete disclosure of material information relevant to the Bank’s assessment of 1MDB’s applications.

What was the incorrect information given by 1MDB?

It was exposed by Sarawak Report that 1MDB had told BNM that the billions of ringgit that was to be remitted for their overseas investment is specifically for investing in a public listed company in France in September 2010.


The BNM investigation document published by Sarawak Report

But what happened after BNM had given their approval was nothing short of extraordinary. 1MDB went on to give loans to PetroSaudi eventhough the business joint venture was already terminated 6 months earlier.

Application to remit another USD330 million was also made by 1MDB in May 2011 and BNM recorded the reason for this is to pursue foreign direct investment into Malaysia.

The BNM investigation document published by Sarawak Report

The BNM investigation document published by Sarawak Report

But did Malaysia obtain a lot of FDIs for this? We all know it did not happen. Again, 1MDB had infamously given this huge amount of money to PetroSaudi as a loan, which in the end had strangely turned into units which in the 2014 audited accounts, they were so worthless, its value had to be guaranteed by Aabar.

It’s like putting your RM1,000 into an ASB unit trust account  but after some time, you can’t determine the value of your own investment, you simply had to get a third party to guarantee it!

Imagine, you need to get someone else to guarantee the value of your own money in order to lend credence to your investment. Laughable right? But that is what happened and what Arul Kanda had often smiled sheepishly about.

Of course, Bank Negara only realised this much later and in June 2015, they released a press statement that they have commenced investigations on 1MDB pertaining the cross border movement of funds exceeding RM50 million.

Rightfully, by October 2015 BNM had revoked the initial permissions granted by them and had ordered 1MDB to repatriate the USD1.83 billion to Malaysia.

The wrongdoing is crystal clear but 1MDB was not prosecuted because the Attorney General deemed that BNM was at fault in not asking further clarification! The stench of if all was overwhelming. Instead of penalising 1MDB, it was BNM who got lambasted!

Minutes of 1MDB BOD paper published in Sarawak Report

Minutes of 1MDB BOD paper published in Sarawak Report

The best part is, 1MDB never denied that the documents and the findings were not authentic. They are more concerned on how the documents were leaked, as if they have not done anything wrong at all.

Then there was the matter of that USD700 million which went into Good Star Ltd. This huge pile of cash went into a company which even the 1MDB Board of Directors did not know of. The BOD was furious and had asked the 1MDB management to seek the return of this taxpayers money.

Minutes of 1MDB BOD paper published in Sarawak Report

Minutes of 1MDB BOD paper published in Sarawak Report

Where did 1MDB got this money? From the RM5 billion bond they have received back in May 2009. This bond was called the Islamic Medium Term Notes (IMTN) and was issued when 1MDB was known as the Terengganu Investment Authority.

1MDB’s first business venture was to have a meeting in a yacht with the owners of the then obscure company called PetroSaudi.

This IMTN bond which was fully guaranteed by the government can be categories as taxpayers money. Because in the event of a default, it is the taxpayers who had to pay for it. Since BNM had revoked the permissions, this should trigger red flag from other regulators.

One such regulator is the Securities Commission (SC).

The SC is the controller of bond issuance process. And they also ensure compliance to documents when the bond was offered. Below is the term sheet for the IMTN and the purpose stated when it was issued:



Clearly shown the principal terms and condition of the loan is to be utilised in compliance to Shariah principles

Is sending money to Good Star Ltd in compliance to Shariah principles? What does Good Star do? Selling hijabs to Hollywood celebrities during lavish birthday parties?

Plus, is putting the USD1.83 billion in Cayman Islands in compliance with Shariah principles? Are the units endorsed by a Shariah Adviser? Is the Hong Kong based Bridge Partners which ultimately managed those worthless units a Shariah compliant company? The bond is called the ISLAMIC medium term notes guaranteed by the Government, not It’s My Daddy’s Money So I Can Do Whatever I Want With It.

Many rules, act and terms were broken here yet there weren’t any noise coming out from Securities Commission. The data and goalpost have been changed unilaterally by 1MDB’s management yet the supervisory body like Securities Commission did not even make a squeak.

The latest press release by Securities Commission was about an audit partner who was charged by SC for giving misleading information when auditing a client company. They have never made any press release regarding 1MDB’s blatant misused of the bonds, nor have they commence any investigations after BNM had announced about the fraudulent dealings made by 1MDB.

Is Datuk Ranjit unaware of the situation?

Will this Executive Chairman of SC wake up from his slumber?

Will this Executive Chairman of SC wake up from his slumber?

Any other companies which had violated the rules by the SC will be quick to be charged. But since June (when shit hits the fan), there was no movement, no initiative taken by this supposedly infallible and highly credible institution.

Alas, only time will tell if this Malaysian regulatory body will become as wayward as the other institutions under this unscrupulous government, or maintain its high standards and integrity in the face of difficult times ahead.

A heroic woman from Bank Negara Malaysia had shown the way. We are sure it won’t be too hard for a man in Securities Commission to do a man’s job.

You might also want to read:

1) WSJ: Auditor only closed 1MDB’s books after UAE firm guaranteed US$2.32b in Caymans

2) The chronology of 1MDB’s suspicious joint venture

3) The Attorney General defends 1MDB

4) EXCLUSIVE: Furious 1MDB Board Demanded Back Jho Low’s US$700 Million Five Days After JV Was Signed!

5) 1MDB – more questions on missing billions

6) Pergolakan politik atau kesalahan jenayah?

#1mdb, #malaysian-corporate-matters