UMNO leaders complicit in 1MDB cover-up


May 24, 2015

Phnom Penh

Umno leaders complicit in 1MDB cover-up

COMMENT

by Matthias Chang@ http://www.freemalaysiatoday.com

Najib and the Devil WomanThe Prime Minister cum Financial Minister (above), being a member of Parliament cannot be deemed ignorant of this fraudulent misrepresentation. Answers to parliamentary questions, whether from backbenchers or the opposition, are vetted before presented in Parliament. If the cash has been “diverted” or “unaccounted for” there is a basis for a charge of criminal breach of trust by all the relevant personalities involved in the transaction. There may also be elements of corruption.–Matthias Chang

It is elementary, Mr.Najib. You cannot be ignorant of what constitutes cash. Even a child knows what cash is, and when cash is deposited in a bank, the bank statement would reflect the cash deposited in the bank. Any paper or document other than cash cannot be deposited and reflected in a bank statement as cash.

Documents such as share certificates, treasury notes or bonds or other documents that are not considered as money, when deposited in a bank for whatever reason or placed in a fixed deposit box are never ever reflected in a bank statement.

The Minister of Finance, treasury officials, and members of the 1MDB Board of directors and its advisers are all experienced in finance and cannot by any stretch of the imagination be deemed ignorant of what is cash.

The balance sum amounting to US$1.103 billion is not some chump change and, when converted to Malaysian ringgit, would be more than RM3 billion. Therefore it is inconceivable that the Prime Minister, who is also the Finance Minister, and senior officials in the Ministry of Finance and Bank Negara do not know the difference between cash deposited in a bank and some “paper assets” to be held by the bank in Singapore, allegedly as custodian.

Therefore it is unpardonable that the Prime Minister, who is also the Finance Minister, and senior officials in the Ministry of Finance and Bank Negara do not know the difference between cash deposited in a bank and some “paper assets” to be held by the bank in Singapore, allegedly as custodian.

So when Ministry of Finance replied to Tony Pua’s queries in March 2015, surely its officials must have checked with the bank in Singapore or examined the relevant documents from 1MDB before confirming that 1MDB had “redeemed its balance of investment from the Cayman Islands in cash and transferred it to BSI Singapore”.

However, MOF has now issued a contradictory statement. A news report said, “The Finance Ministry has corrected its Parliamentary written reply in March that said the US$1.1 billion transferred by 1Malaysia Development Bhd (1MDB) from Cayman Islands to Singapore was not in cash.

“According to the latest written reply to Petaling Jaya Utara MP Tony Pua, the Ministry said the money that was “redeemed” was in the form of assets in US dollars.”

We cannot but agree that this is the Malaysian scandal of the century. Heinous and despicable crimes have been committed.

Why?

  1. For MOF to have issued the statement in March, forged documents must have been presented to show that cash was in fact deposited. This was corroborated by the current CEO, who said recently that the bank statement reflected that cash was so deposited. But the bank in Singapore has denied that cash had been deposited.
  2. The criminal offence of fraud and forgery is prima facie established and all the relevant personalities concerned with this transaction must be charged and it is for them to offer their defence in a court hearing
  3. When the statement by MOF/Prime Minister was made in Parliament that cash was deposited when it was not true, the august house was misled by a fraudulent misrepresentation. It was a blatant contempt of the house. The entire country was misled. The rakyat was cheated and led to believe a falsehood.
  4. In the past, members of Parliament were suspended for making a mere misrepresentation with no adverse financial consequences to the country. The members were penalised because the misstatement constituted an affront to the integrity of the proceedings of Parliament as well as to Parliament itself.
  5. The Prime Minister cum Financial Minister, being a member of Parliament cannot be deemed ignorant of this fraudulent misrepresentation. Answers to parliamentary questions, whether from backbenchers or the opposition, are vetted before presented in Parliament.
  6. If the cash has been “diverted” or “unaccounted for” there is a basis for a charge of criminal breach of trust by all the relevant personalities involved in the transaction. There may also be elements of corruption.
  7. The period between the March 10 and May 20 announcements in Parliament would by any measure be construed as a period when there was a massive cover-up. And all those personalities involved are accomplices in this cover-up.

The Deputy Prime Minister, the heads of Wanita UMNO and UMNO Youth and the members of the party’s Supreme Council, have failed to demand answers and to insist on seeing all the relevant documents so as to verify for themselves the truth or falsehood of the allegations brought by all concerned citizens. They should have done so especially after the bank in Singapore had declared the banking documents showing cash was deposited was a forgery. Alarm bells ought to have rung loud and clear, but these leading members of Umno chose to bury their heads in the sand and slavishly declare their so-called undivided support to the Prime Minister.

The Board of 1MDB even had the audacity to threaten to sue any one who dared question its integrity. Shame on you, UMNO.

The Prime Minister must resign and if UMNO leaders do not demand the resignation of the Prime Minister and continue to use their public office to deny this irrefutable confession by the MOF then they are all complicit in this heinous crime.

All the UMNO leaders who have accused Tun Mahathir Mohamad of wrongfully criticising the Prime Minister and sounding the alarm bells and raising the red flag of imminent crisis should humbly seek forgiveness not only from him, but from the entire country. The rakyat demands a public apology and the culprits must be charged in court for their crimes.

Matthias Chang is a Barrister and once served as the political secretary of Dr. Mahathir Mohamad

8 thoughts on “UMNO leaders complicit in 1MDB cover-up

  1. If what is written herein by Matthias Chang is true, then the matter is more serious than what the people are led to believe. It is sad to know that those concerned had deemed it proper to have given such wrong information to Parliament.. Chung Tat Lim

  2. I have NEVER met a competent senior manager that has no idea or have a very trusted subordinate that knows exactly in its cash account at any moment. Even now, despite many investments in multiple countries, I can, at an instance call someone and get exactly how much cash is in each bank account. It shows 1MDB is structurally UNSOUND management wise. It is badly managed and Najib should be fired for such poor management of such a large sum that so many rakyat desperately need it to be well managed..

  3. Quote:- “It is sad to know…..”

    You are just sad?

    Not angry, disgusted, felt cheated, felt betrayed in being lied to in Parliament, your Parliament, the one place, in fact the very last place in the whole country where truth must be told because if deliberate lies can be told in Parliament and nothing happens, then where else can we go to hear the truth, at ceramahs?

    Quote:- “1MDB is structurally UNSOUND management wise….”

    Please, it has nothing to do with “structure”, sound or not. The people on the Board are not financial , managerial novices. They are appointed precisely for reasons of their financial, managerial knowledge and long years of experience. One of them is even the secretary-general of the Finance Ministry itself. How much more “sound structure” do you want?

    We all know why these things happened at 1MDB, and they certainly did not happen because of “structurally UNSOUND management”

  4. It was a big blow to Najib and an insult to Malaysia after the bank in Singapore had declared the banking documents showing cash was deposited was a forgery. Only after this did Najib declared that he had made a mistake in Parliament.

  5. Though Matthias is mostly right in this article, he is better known for his conspiracy theories. He was the one who thought he had stumbled onto the greatest secret of all time – that the Singapore economy is going bust, going the way of Greece as it has a similar debt/GDP ratio of more than 100%. He had called on the world to short the Singapore Dollar. I wish he had done so personally and licking his wounds now.

    What he had failed to understand, as had quite a few self-styled casual experts on Singapore, is that Singapore’s public debt (as opposed to external debt) was largely incurred by the Government through the issuance of Singapore Government Securities to broaden and deepen the debt capital market in Singapore. In fact, the Singapore Government has the reputation of being a scrooge – it squirrels away hundreds of billions (US$), while spending on medical and social facilities fall behind those of the advanced nations. Singapore is a net credit. Period.

    https://www.cia.gov/library/publications/the-world-factbook/geos/sn.html

    Comparison of Debt/GDP; External Debt; Reserve of Forex & Gold
    Greece: 174.5%; US$568.7bn; US$5.7bn
    Malaysia: 54.2%; US$109.3bn; US$133.4bn
    Singapore: 106.7%; US$28.9bn; US$279.7bn

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