Saturday, July 15, 2017

Singapore has shown how Najib and Cabinet used SRC to launder money stolen from 1 MDB: Najib's "Saudi Royal" shown to be a shell used in that laundering

by Ganesh Sahathevan

The following paragraph has been extracted from the Statement Of Facts filed by the Attorney General's Department ,Singapore, on 17 July 2017,  in the matter of PP v Yeo Jiawei:

32. The scheme of transactions that was executed included the following transactions in September 

2013. On 4 September 2013, SRC International (Malaysia) Limited (“SRC Malaysia”),15 a 

subsidiary of SRC, received cash traceable to Tanore Finance Corporation. 16 On 5 September 2013, 

SRC Malaysia utilised the moneys by subscribing in approximately US$228.8 million (less of fees) 

worth of securities in Pacific Harbor Global Growth Funds AA4 and AA5 under Pacific Harbor 

Global Growth Fund Limited (“Pacific Harbor”). 17 On 9 September 2013, the same amount was 

transferred by Pacific Harbor, which served as a pass through intermediary, to Affinity Equity 

International Partners Limited (“Affinity”),18 a company beneficially owned by Jho Low’s associate 

Eric Tan. On 10 September 2013, Affinity used these moneys to pay a Bridge Fund-associated bank 

account US$65 million for a 2.8 percent stake in BGA and US$133.4 million pursuant to a “profit 

undertaking” in favor of BGA dated 6 September 2013. These two sums of moneys were, on 11 

September 2013, paid to Brazen Sky purportedly as “dividends” and “capital distribution”.

Remember dears readers that :
a) SRC was a 1MDB subsidiary that was then transferred to the Ministry of Finance

b) Toanore Finance is supposed to be a company owned by or which represents Najib's Saudi donor.The USD 681 Million that was deposited into Najib's account came from and was sent back to Tanore.

c) That the above transactions would have been approved by PM Najib and the Cabinet.As former  Second Finance Minister Datuk Seri Ahmad Husni Hanadzlah says:

“1MDB is under the purview of the Finance Ministry. So the ministry must be responsible. That responsibility is then brought to the Cabinet to get their endorsement to what 1MDB is doing......"

It has taken Singapore to demonstrate the obvious:  That Najib and Cabinet used SRC to launder money stolen from 1 MDB and that  Najib's "Saudi Royal" is really a shell used in that laundering 




by Ganesh Sahathevan 

Malaysia's attorney general, Apandi Ali. Photo: AFP


263. The Attorney General of Malaysia publicly stated that he conducted an inquiry into the $681 million in payments. In a press release issued on January 26, 2016,

the Malaysian Attorney General confirmed that, “the sum of USD681 million (RM2.08 billion) [was] transferred into the personal account of [MALAYSIAN OFFICIAL 1] between 22.03.2013 and 10.04.2013,” and that, “in August 2013, a sum of USD620 million (RM2.03 billion) was returned by [MALAYSIAN OFFICIAL 1]. . . .” The Malaysian Attorney General ultimately characterized the payment of $681 million as a “personal donation to [MALAYSIAN OFFICIAL 1] from the Saudi royal family which was given to him without any consideration.” 264. Bank records associated with the Tanore Account show that TAN was the beneficial owner of the Tanore Account, from which the $681,000,000 payments to the account of MALAYSIAN OFFICIAL 1 were made, and that 1MDB OFFICER 3 was added as an authorized signor on the Tanore Account roughly one day before the first wire of $620,000,000 was sent from the Tanore Account to the account of MALAYSIAN OFFICIAL 1. 

Switzerland's  FINMA
Falcon also had a client relationship with a young Malaysian businessman with links to individuals in Malaysian government circles. The bank did not verify how this individual had been able to acquire assets of USD 135 million in an extremely short period of time or why a total of USD 1.2 billion was transferred to his accounts at a later date – a transaction which was clearly at variance with the information he had provided when opening the account. Falcon also failed to adequately investigate the commercial background to pass-through transactions amounting to USD 681 million and the repayment six months later of USD 620 million via these accounts despite conflicting evidence. In this context, an internal Falcon email states: "We started this six months ago and now we have to go through with it – somehow"

To be read together with

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