Guess who is running 1MDB


April 11, 2016

Guess who is running 1MDB

by Sarawak Report

The facts published by Malaysia’s Public Accounts Committee have proved that the constant denials issued by Jho Low, Najib Razak, Shahrol Halmi and their friends at PetroSaudi over the past few months about 1MDB were repeated lies.

For example, Low has officially claimed that he had no involvement in 1MDB beyond May 2009, when he allegedly stepped down from his post as Najib’s official ‘Advisor’ to the fund.

In the same vein, Najib Razak has claimed he performed a distant ‘advisory role’.So, setting aside all the evidence of the emails from the PetroSaudi database, published by Sarawak Report, which PetroSaudi have libellously accused us of “tampering”, we now have the official report of the supreme Parliamentary authority on the matter.

The PAC report has confirmed that Najib was the sole shareholder and signatory for the fund – and now for the first time Sarawak Report is able to publish the actual documents to show the proof.  These company records show that from start to finish, Najib was signing off on resolutions, which the Prime Minister plainly knew were riddled with lies.

Government to Government with ‘KSA’

Take, for example, the on-going fiction that the PetroSaudi deal was a ‘government to government’ joint venture with the Kingdom of Saudi Arabia.  Najib was still signing documents alluding to this bogus claim as late as 2011, when he sent off yet another whopping sum of US$125 million, borrowed by 1MDB, supposedly again to PetroSaudi.

Still blagging about a government to government venture as late as 2011!

The fact that PetroSaudi had nothing to do with the Kingdom of Saudi Arabia and was merely a small private company, in which the King’s seventh son had a 50% share, was plainly known to Najib, since the beneficial owners had to be declared to the banks (we have already shown the documents).

We also have emails from shareholder Tarek Obaid’s brother warning that PetroSaudi must tone down Najib’s proposed press release at the launch of the joint venture, to make sure 1MDB did not mislead the international press with claims of a ‘government to government’ venture.

Warnings from the start about misleading claims that PetroSaudi was a Saudi government company

 

Najib wanted to give a false impression that the company was an official organ of the state and was involved in minute detail in the drafting of the public announcements, according to this evidence:

Screen Shot 2016-04-10 at 22.19.02

Ironically, PetroSaudi has been threatening to sue journalists for suggesting that Prince Turki was even a shareholder of the company (which he exited later in 2014).  Surely it ought to be suing Najib for claiming it was owned by the Kingdom of Saudi Arabia and indeed King Abdullah himself?

Jho Low phoned Najib during Board meeting to overrule 1MDB Chair

Meanwhile, in September 2009, Jho Low, far from having quit, was attending board meetings of the fund and calling the shots, most particularly at the crucial meeting of September 26, just two days before Najib and the executives from PetroSaudi signed their joint venture deal.

Sarawak Report has learnt that the former Chairman, Bakke Mohd Salleh  (also Chief Executive, Sime Darby) was particularly vocal and tough at this meeting, insisting that proper checks should be made before a billion dollars were hastily invested in a company, which the Board had not heard of until a week before.

In response, we have been reliably informed, Jho Low dialled up the PM on his handphone, which he then passed to board members, in order to be informed ‘from the top’ that the deal was authorised to proceed!  So, who do we conclude was running the show?

The result was a reluctant concession by the 1MDB board that the joint venture with PetroSaudi should be approved, but only subject to conditions, such as a proper and independent valuation of the company.

CEO Shahrol Halmi simply ignored those conditions and sent off the money anyway (mostly to a third party company, Good Star Limited, owned by Jho Low).  His excuse?  Section 117 of the articles of the company meant that the real boss was Najib, so it was Najib whom he chose to obey!

Converting PetroSaudi JV to a ‘Muharaba loan deal’

Other documents accessed by Sarawak Report show how Najib signed off on later major decisions. This included changing the relationship with PetroSaudi from a joint venture to a ‘Muharaba loan’ arrangement just six months later:

The details of the Joint venture (and payment to Good Star) were left out of the Audit through this accounting device

The details of the Joint venture (and payment to Good Star) were left out of the Audit through this accounting device. The point of this ‘sale share agreement’, say accountancy experts, was to hide the details of the joint venture (and the payment to Good Star) by superseding the arrangement – the manoeuvre was conducted just days before the end of the financial year.

Even so, auditors Ernst & Young were not happy with the information that they had been passed by 1MDB it has emerged.  The Hansard notes of the PAC meetings and PAC report make clear the frictions – the auditors having demanded to see the financial statements of the joint venture company from September 2009 and also documentary proof of the value of the assets of PetroSaudi, before agreeing to sign off on the 2009/10 accounts.

1MDB failed to produce these basic documents and, instead, the records show that Najib signed off on a resolution to sack these pesky and demanding accountants, who were wanting proof about the value of the PetroSaudi deal:

High-handed? Najib sacked the auditors who were making basic checks on his dodgy deal

Who had signed off on this ‘investment’?  Najib, of course:

Najib was the driver behind the investment in the Cayman Islands of all the supposed profit from the 'sale' of its 'PetroSaudi interests' to Bridge Partners themselves (in the form of 'notes' which were then invested as 'units' in their hidden fund.

 

As the driver of all these decisions, through a series of changing CEOs and accountants, it is simply not acceptable for him to attempt to blame anybody else or expect anybody else to account for the money.

In late 2014 an attempt was made to imply that this so-called US$2.23 billion had been ‘redeemed’ and returned as ‘cash’ to BSI Bank in Singapore, into an account managed by Jho Low’s personal relationship manager Yak Chee Yiew.  By March 2015 this ruse had been exposed as a lie, because the Singapore authorities had determined that there was no actual money in the account.

Yak was sacked and he has now been followed into ‘retirement’ by his boss at the bank, Hanspeter Brunner.  The so-called Brazen Sky account in question has been frozen and is under investigation.

In fact, the whole world of global financial regulators is now avidly investigating 1MDB and tracing the money trail of the missing billions, while Najib persists in alleging that first nothing went wrong at 1MDB; second that no money has gone missing and third that if something did perhaps go wrong it was owing to 1MDB executives, or Board Members or perhaps those Finance Department officials whom he had banned from being involved in the company.

Power without accountability appears to be Najib’s favourite motto when it comes to 1MDB. – SARAWAK REPORT

 

16 thoughts on “Guess who is running 1MDB

  1. Najib’s answer options:-

    (1) It looks like my signature, but it is not my signature. An investigation will be conducted and anyone found to have committed any fraud, forgery will be dealt with severely. No stones will be left un-turned; please be patient and wait for the conclusion of the investigation.

    (2) I was thoroughly, comprehensively briefed by the CEO and or other management staff and members of the Board and was assured that based on their recommendations to me, (by people mind you who are involved in the day-to-day running of IMDB when I was not), that everything was above board and therefore done strictly according to the best business practices and above all in line with the law and the Memorandum and Articles, (“M & A”), of the company. I had full trust in the expertise and integrity of these people. I therefore, being a matter of formality as laid down in Clause 117 of the M & A, signed off these documents in good faith.

    If in the event there were any managerial failings, appropriated disciplinary actions would be taken in due course. Please be patient and let the appropriate enforcement agencies like the police and MACC do their jobs.

    (3) In hindsight and as advised by the police Special Branch, Bank Negara and the Minister for Home Affairs, that there was a conspiracy to sabotage and subvert the corporate integrity of 1MDB which, being a national sovereign fund to attract foreign investments for the national development of the country, is tantamount to subversion of Malaysia’s internal security. Investigations are already underway to uncover and expose those involved and announcements will be made at the appropriate time. Please be patient.

    Take your pick.

  2. Din

    Expect your blog to be blocked.Your blogs are hitting at raw nerves.
    _________________
    And so? –Din Merican

  3. Brazen Sky? Good Star Feh Cai? IPIC/Aabar/PSI etc etc? Good Grief! Never in my wildest imagination, could i come up with such ‘auspicious’ sounding names..

    Methinks the Brazen Bull will serve as a pretty good device to Roast the absolute controller (in accordance to sec 117 MNA) of the 1Mampus-Dan-Belot shindig.

    See here: https://en.wikipedia.org/wiki/Brazen_bull

    Notice how the worms start to crawl outta the orifices in accordance to set rituals-milestones, like after the PAC report and AG NFAs’? The longer the delay in ‘settling’ – the more thorough the ‘bungkus’. The so-called ‘clemency’ or plea bargaining period is over. And Jibros is hangin’ in there with the skin of their teeth..

    It’s difficult to imagine the depths of depravity to which the UMNOb Imbeciles have fallen into – in their vain attempts to protect their chief Dhobi man. Ahh..The arrogance of power! They must be the sickest bunch of Sireh leaves in the Universe.. They seem to think the bigger the Lie, the easier to get away with it. Monumentally criminal, immoral and cowardly.

    Err.. is that an ‘overkill’?

  4. Ms Rewcastle-Brown says:

    “The ultimate problem is that all this lying and abuse of power in Malaysia, which is based on a local misconception that Najib is ‘all-powerful’ and ‘untouchable’, cannot cover up the international money trail, which has started to emerge”.

  5. Dato,
    Can this actually be posted without being cite for sedition? I would like to share it with others. Please advice. tq
    _____________
    Do what you think is right. I did what I think is right. Have no fear but fear itself(FDR).–Din Merican.

  6. guten morgen dato – all roads do point to najib evidently……in other unrelated news, malaysia is seeing a supply deficit in covers for pots boiling over

  7. “As the driver of all these decisions, through a series of changing CEOs and accountants, it is simply not acceptable for him to attempt to blame anybody else or expect anybody else to account for the money.”

    Absolutely and for every document that has your signature on it makes you answerable and accountable (unless you put forward the under duress averment which is unheard of in this case). Looks like, there is none whatsoever from NTR. The Govt and 1MDB try to absolve this matter by using the dead set secret official act in hole up the auditor’s report, scheming their way out eh?. Who are they trying to dupe? Some people maybe but definitely not me!

  8. PetroSaudi, a global private investment company owned by the Saudi royal family, is expected to invest billions of ringgit in Malaysia. The international oil exploration and production company has indicated interest to invest over US$2bil (RM6.2bil) in the infrastructure and energy sectors.

    The company already has an RM8.7bil joint venture with 1Malaysia Development Bhd, a wholly Government-owned firm, which acts as a vehicle for Middle East investments in Malaysia.

    The joint venture is expected to focus on global strategic assets in petroleum-related industries, renewable energy and power, for the benefit of lowering the cost of energy in Malaysia.

    “Ultimately, the bulk of the capital and returns will be reinvested in Malaysia,” said banking sources.

    The sources said PetroSaudi is also eyeing significant direct investment in Malaysia’s Islamic banking sector.

    Details are not immediately available but the sources said discussions were on-going which would feature Malaysia in the roadmap of Islamic banking.

    “Over the next few months, exciting developments will take place to boost Malaysia’s position, especially participation from long-term Middle-Eastern investors,” said a government source.

    Cash rich PetroSaudi, founded by the Saudi royal family with Tarek Essam Ahmad Obaid leading the charge, has been snapping up value investments.

    Last week, it acquired Malaysian builder UBG Bhd for RM1.5bil by raising its stake to 89.8% after its three stakeholders agreed to sell the company and its two subsidiaries.

    At the same time, PetroSaudi also leased a US$2.5bil (RM7.7bil) platform to Venezuela’s state oil company, Petroleos de Venezuela SA as announced by Venezuela’s Energy Minister.

    The platform will be used to develop offshore natural gas resources in the country, which has the most natural gas reserves in South America.

    Saudi sources said Tarek, a partner of Renault F1 team, had a positive impression of Malaysia with support from the Saudi royal family, whose relationship with Prime Minister Datuk Seri Najib Tun Razak is at an all-time high.

    In January, Najib was awarded the King Abdul Aziz Order of Merit (Ist Class) by King Abdullah Abdulaziz Al Saud, the first Asian leader to be given the honour.

    The highest Saudi civilian award was also given to US President Barack Obama when he visited the country last year.

    “The relationship between King Abdullah and Najib is important.

    “It has been crucial in the support showed by the Saudis, initially through PetroSaudi and more substantial foreign direct investiment is expected,” the Saudi sources added.

    The sources said yesterday that key members of the Saudi royal family were expected to visit Malaysia over the next three months when several major announcements would be made.

    In Kuala Lumpur, analysts say the US$2bil from PetroSaudi Inter national Ltd is expected to provide a boost to the domestic economy.

    A bank-backed analyst believed that the investment from the Arab country would pave the way for more capital inflow from the Gulf.

    “It (investment from PetroSaudi) will bring a positive spill-over to other sectors of the economy.

    WITH HINDSIGHT, WE NOW KNOW THAT THE WHOLE THING IS A SCAM.

  9. 1. I am real scared of being the citizen of a country where the No. 1 man can sign billions off without any sense of ownership, more so when
    2. the deputy chairman of the PAC, after sitting through all the proceeding on !MDB and given the opportunity to ask questions to satisfy himself, can come out to declare that No 1 is not involved despite the signature pursuint to Article 117 of the M&A and Sarawak Report producing evidence of signing off by the Advisor;
    3. The PAC Deputy Chairman rebuking his own party Publicity Chief for upholding his integrity;
    4. PAC transcripts at one key meeting regarding the JV where the owner of Good Star through one call to you know who, got you know who to silent all dissenting voives
    Good show Dato Din. The country need more citizens like you

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