Wednesday, May 23, 2018

IPIC -1MDB sham settlement, money laundering confirmed-"Units" worthless ,1MDB insolvent,All parties lied to LSE, regulators

by Ganesh Sahathevan

1MDB CEO Arul Kanda deceived banks using false documents 
accessory after the fact to a series of crimes currently before Singapore's courts

As reported by The Star on 23 May 2018:
Former directors say 1MDB can't pay its debts, RM9.8bil of 'investments' are scams.
"The directors of 1MDB confirmed that 1MDB was insolvent and unable to repay its debts," Finance Minister Lim Guan Eng told reporters on Wednesday (May 23) after the meeting.
"The former CFO (chief finance officer) Azmi Tahir had also written to the ministry in March to state that 1MDB will not be able to service its interest due in April and May 2018."

Which confirms the general  conclusions in this previous article:

Saturday, December 30, 2017

IPIC -1MDB "final" payment: Money laundering confirmed, MOF Inc needs to find USD 50 million every six months &USD 3.5 BILLION by 2022,and these is still USD3.5 BILLION owing IPIC

by  Ganesh Sahathevan

While IPIC and 1MDB have made various statements which give the impression that the Malaysian Government and 1MDB have  collectively settled all debts to IPIC,  their own words suggest the opposite and confirm the following:


"This arbitration settlement has weakened the US DOJ civil suit and claims that 1MDB's funds were stolen," said Umno supreme council member Mohd Puad Zakarshi in a statement today.Mohd Puad is also the director-general of the Information Ministry's Special Affairs Division (Jasa).


 Reuters summary of the IPIC -1MDB settlement: 

Under the settlement (with IPIC), 1MDB will make certain payments to IPIC .... 1MDB said obligations will be met primarily via monetisation of 1MDB-owned investment fund units

The DOJ's assessment of the value of the units:
"relatively worthless"

1MDB and MoF Inc., undertake to IPIC to assume responsibility for all future interest and principal payments under the two bonds issued by 1MDB Group companies that are guaranteed by 1MDB and IPIC; (i) US$1,750,000,000 fixed rate 5.75 per cent. notes due 2022 issued by 1MDB Energy (Langat) Limited and (ii) US$1,750,000,000 fixed rate 5.99 per cent. notes due 2022 issued by 1MDB Energy Limited.


Problems began when the Abu Dhabi fund denied it owned Aabar Investments PJS Ltd, a British Virgin Islands company which received payments of $3.5 billion from 1MDB meant for the IPIC.

Happy New Year,One And All.

Ganesh Sahathevan




by Ganesh Sahathevan

In the matters of Public Prosecutor v Yeo Jiawei and Public Prosecutor v Kelvin Ang Wee Keng. prosecutors have told the court:

Brazen Sky (a wholly-owned 1 MDB subsidiary)  owned all the shares of Bridge Global Absolute Return Fund SPC (segregated portfolio company), a fund that was managed by Bridge Partners.

This is contrary to what 1 MDB and Arul Kanda had to say about the Brazen Sky investments, that is, that Brazen Sky owned units in segregated portfolio company that was managed by some party external to 1 MDBThis story was only changed recently, when in a written reply to MP Tony Pua the Malaysian Ministry Of Finance said (as it turns, admitted) that there was no external manager

Consequently the entire series of transactions 1 MDB says were financed out of those units is in doubt, and 1 MDB's  current debts revalued upward accordingly.The existence of the units and any money that goes with it can be assumed to be a myth.

See also 

Australia's ASIC finds no evidence of 1 MDB's Cayman units 

1MDB has been made aware of an article, dated 10 October 2015, that has been published in the Sarawak Report, an online blog currently banned in Malaysia. This article has published selectively extracted materials and contains serious and unfounded allegations, in a clear attempt to manipulate readers with respect to events that have previously taken place at 1MDB.
1. 1MDB-Petrosaudi
The fund units, owned by 1MDB subsidiary Brazen Sky Limited, were originally valued at US$2.318 billion in September 2012, as the eventual outcome of various equity and murabaha loan investments totalling US$1.83 billion by 1MDB with PetroSaudi between 2009 and 2011. Over the investment horizon, 1MDB has received and reflected in its audited financial statements, cash returns, i.e. approximately US$81 million murabaha profit, and approximately US$263 million dividends from fund unit investments, i.e. a total cash return of approximately US$346 million and a total gain over time of US$488 million (US$2.318 billion less US$1.83 billion).
2. Fund Unit Redemptions
As of 31 March 2014, the fund units were valued at US$2.33 billion.  On 5 November 2014, at the time 1MDB's financial statements for the year ended 31 March 2014 were published,  an amount of approximately US$1.22 billion had been redeemed, in cash, with proceeds being substantially utilised for debt interest payment, working capital and payments to Aabar as refundable deposits for options termination.
A sum of approximately US$1.11 billion in fund units remained, which together with a dividend of approximately US$130 million, equates to the remainder sum of US$1.23 billion described in the notes to 1MDB's accounts.
On 14 and 24 November 2014, approximately US$170 million of the US$1.11 billion fund units were redeemed, in cash, leaving a balance of approximately US$940 million in fund units. On 2 January 2015, i.e. prior to Arul Kanda joining 1MDB, a final redemption of approximately US$940 million was undertaken through a sale of fund units to Aabar, with cash payment being deferred. (Note: Aabar was separately a guarantor of the fund in which the units were invested but by mutual agreement, the redemption was via sale of fund units instead of calling on the guarantee. This fund unit sale agreement was subsequently superceded via the Binding Term Sheet signed between 1MDB and IPIC, the "AA" rated parent of Aabar, on 27 May 2015, upon which a payment of US$1 billion was made by IPIC to 1MDB.)
3. 1MDB President and Group Executive Director Arul Kanda's comment
Whilst Sarawak Report has published a number of alleged 1MDB related documents in the past, which we now know to be stolen and possibly doctored goods, sourced from a convicted criminal, I can confirm that – in this particular case – it appears to have published an authentic 1MDB document, namely minutes of a 12 January 2015 Board meeting. This was the first 1MDB Board meeting I attended, i.e. a week after I joined the company on 5 January 2015.
At the meeting, I stated to the Board, based on my understanding of events that occurred before my time, that the redemption of fund units happened in cash for an amount of US$940 million. However, upon further investigation and verification, it became clear that this was a misunderstanding, which I then clarified to the Board and our shareholder, the Ministry of Finance. This clarification is clearly recorded in subsequent Board minutes and can be verified.
On 13 January 2015, I confirmed via a press statement that the remaining amount of US$1.11 billion had been redeemed, in full. What was unfortunately not made clear, was that the redemptions happened partly in cash and partly through the sale of fund units, with cash payment being deferred. It is this important distinction which caused a misinterpretation of my statement, first during a Business Times interview on 9 February 2015 and subsequently by the Ministry of Finance, in a Parliamentary answer on 12 March 2015.
I have explained in detail the sequence of events to the National Audit Department and to 1MDB's auditors, Deloitte, as part of their thorough and professional review of 1MDB's past transactions. In addition, I have openly and publicly taken full responsibility in June 2015 for the misunderstanding on this matter – i.e. the buck stops with me.
In my capacity as President, I answer to the Board and the shareholder of 1MDB. My strong track record speaks for itself and my only professional agenda is to fix the challenges in 1MDB. There is no need for me to lie or cover-up what has happened in the past, as has been alleged by those who make sensationalist claims to drive their own political agenda. Accordingly, I look forward to being questioned in detail on this matter at the upcoming Public Accounts Committee hearings and for my answers to be a part of the public record, to conclusively put this matter to rest.

Tuesday, May 15, 2018

The Low family; No need for taskforce, RCI etc, just seize their assets

Tuesday, March 21, 2017

The Low Family: A Billion Dollar Fortune Founded By Dato Low Meng Tak, But Only Larry Low ,His Children & Wife Claim To Be Beneficiaries Of The Family Fortune......

byy Ganesh Sahathevan

This was one of the earlier stories which attempted to explain Jho Low's sudden wealth:

THE Low family fortune was built by its patriarch the late Datuk Low Meng Tak. The family fortune was consolidated in 2008 into a global family trust for estate planning purposes.

The Low Family is extensive;

Sunday, May 13, 2018

Tony Fernandes' UK SFO corruption investigation among AA/AAX outstanding issues,market manipulation aided & abetted by the SC among them

by Ganesh Sahathevan

AirAsiaX goes for Rolls-Royce enginesFrom left: Datuk Tony Fernandes, Datuk Kallimulah Hassan, Sir John Rose and Datuk Seri Chan Kong Choy – Bernama 

So , the latest from Choirboy Tony Tajuddin Fernandes admitting to things which should if true have been brought to the attention of the market a long time ago.This is but the latest in a long history of market misinformation, aided and abetted by the Securities Commission and its chairman, Ranjit Ajit Singh:

“So foolishly I thought by doing the video, which I felt was fairly neutral and factual, and the plane from KK, would appease the government and protect the jobs of Allstars, and more importantly the very essence of allowing 18 million to people to fly every year at low fares,” said Fernandes, in reference to the A330-300 aircraft in the video which had flown Najib from Sabah back to the federal capital.
“Under the intense pressure I buckled. It wasn’t right... I will forever regret it, but it was a decision made at the spur of the moment to protect that baby that has given so much to Malaysia,” he said referring to his baby, AirAsia.
“AirAsia is in a very regulated industry, an industry where almost everything requires the approval of the government — from flights, to airport taxes, to routes — and so it is never very easy running an airline and one must always support the government of the day.”

Meanwhile , there is this outstanding matter:
UK's Serious Fraud Office (SFO) has named AirAsia Group as one of several foreign parties involved in bribery cases with jet engine manufacturer Rolls-Royce PLC.
AirAsia Group, in an immediate response, told Malaysiakini that it had complied with procedures in its dealing with Rolls-Royce.
The bribery in the AirAsia deal was one of 12 charges brought against Rolls-Royce after a four-year investigation into its dealings with clients in Indonesia, Thailand, India, Russia, China and Malaysia.

Rolls-Royce, in a Deferred Prosecution Agreement with the SFO on Tuesday, agreed to a disgorgement of 258.17 million pounds (RM1.42 billion) in illegal profits and an additional 239.08 million pounds (RM1.32 bilion) in financial penalty.
The profit disgorged from Rolls Royce's deal with AirAsia amounted to 17.08 million pounds (RM94.03 million).
In his judgment over the matter, Queen's Bench Division president Brian Leveson said that Rolls-Royce employees "took steps to pressure both junior sales and internal compliance personnel to create and approve corrupt arrangements" in the Malaysia case.
According to the Statement of Facts filed with the Crown Court at Southwark, Rolls-Royce failed to prevent its employees from providing an AirAsia Group executive with credits worth US$3.2 million (RM14.2 million) for the maintenance of a private jet.
This was despite Rolls-Royce employees believing that the credits would lead the AirAsia Group executive to perform his function "improperly".
"This financial advantage was given at the request of the AirAsia group executive, in return for showing favour towards Rolls-Royce in the purchase of products and services provided by Rolls-Royce and its subsidiaries, including Total Care Agreement services to be supplied to AirAsia X, a subsidiary of AirAsia Group," it said.
The document said the credits for the private jet used by the AirAsia group executive was solicited through an AirAsia X senior employee in 2011.
It also alleged that there was an attempt to conceal the fact that the credits, given to AirAsia X in 2013, would be used for the the private jet, which was unrelated to the AirAsia Group.
The document did not name who the AirAsia Group executive was.
AirAsia denies deal was concealed
AirAsia Group head of communications Audrey Progastama Petriny, in a statement to Malaysiakini, said AirAsia and AirAsia X board of directors and management were kept informed at all times of the transactions relating to the jet.
"The upkeep for which was also clearly spelt out in the annual reports for both companies and AirAsia X initial public offering prospectus," she said.
Petriny said the credits were obtained according to procedure and used to offset the operational costs of the corporate jet which was used by senior AirAsia X executives for business travel.
"The cost of maintaining and operating the aircraft has been fully borne by AirAsia and AirAsia X.
"AirAsia Berhad has acquired the aircraft in 2016 as announced on the Malaysian bourse," she said.
In June last year, AirAsia Berhad reportedly purchased a Bombardier BD-700-1A10 Global Express which had been used by AirAsia Berhad executive chairperson Kamarudin Meranun and group chief executive officer Tony Fernandes since 2012.
The private jet (photo) was purchased from Caterhamjet Global Ltd (CJG), a company in which Kamaruddin and Fernandes held a 18.56 percent indirect stake and is also a member of the Tune group.
According to the details of the case, an AirAsia X senior employee had approached a Rolls-Royce employee in August 2011 about the maintenance of a new private jet which the AirAsia Group executive was planning to purchase.
In November 2011, a Rolls Royce senior employee who met with the AirAsia Group executive reported that the latter was "very offended" due to the high Corporate Care rate that was offered for his new Global jet...

The AirAsia press statement includes a number of admissions that require, at minimum , an investigation into AA's management.

Note that Choirboy's "group chief executive officer"  designation  has no basis whatsoever , unless of of course Aireen wants to admit that her position is redundant, in which case she ought to resign, but not before her role in the matters below are properly investigated, and she and others brought to book.


AirAsia buys bosses’ plane

The purchase, the low-cost carrier said, would enable Kamarudin(left) and Fernandes(right) to continue enjoying the benefits of flying private, while at the same time, saving the company some money.
The purchase, the low-cost carrier said, would enable Kamarudin(left) and Fernandes(right) to continue enjoying the benefits of flying private, while at the same time, saving the company some money.
PETALING JAYA: AirAsia Bhd is buying Tune Group Sdn Bhd’s private jet plane, used primarily by its executive chairman Datuk Kamarudin Meranun and group chief executive officer (CEO) Tan Sri Tony Fernandes to carry out their airline business, for US$10mil (RM40.26mil).

The purchase, the low-cost carrier said, would enable Kamarudin and Fernandes to continue enjoying the benefits of flying private, while at the same time, saving the company some money.
In a statement to Bursa Malaysia yesterday, AirAsia said the private jet would be paid for in cash from the company’s internally available funds.
AirAsia entered into a deal with Caterhamjet Global Ltd (CJG) for the acquisition of one unit of Bombardier BD-700-1A10 Global Express 9M-CJG yesterday.
CJG is a unit of Tune Group, which was founded by Kamarudin and Fernandes.
CJG had purchased the aircraft for US$24mil on July 6, 2012 and refurbished the aircraft for US$0.7mil the subsequent year.
It added that private jet prices in Asia have declined over the past two years since the slowdown in the regional economy, which makes Global Express relatively cheap to acquire at the moment.
“Acquiring Global Express and bringing the flight and maintenance crew back into AirAsia would allow the company to save on this additional cost,” it said.
Kamarudin and Fernandes have been using the jet since 2012.
“As CJG is planning to sell the jet, the loss of the aircraft would mean that the executive chairman (Kamarudin) and the group CEO (Fernandes) will no longer be able to benefit from the convenience and efficient transport provided by Global Express when travelling to AirAsia’s associates for work, as they would have to rely on commercial flights which may be infrequent or inconveniently-timed,” it said.
AirAsia said that this would result in significant loss of productivity due to inefficient waiting times, especially with the high volume and frequency of travel undertaken by Kamarudin and Fernandes.
“Flying commercial would also mean that the executive chairman and the group CEO would not be able to conduct business discussions or hold meetings with senior management as they currently do in the private space of Global Express, adding to the inefficiency,” it added.
It also said the current commercial agreement with Tune Group was not efficiently structured, as AirAsiahad to pay the salaries of the staff it had seconded to Tune Group to operate Global Express, incurring the goods and services tax in the process.
“Absorbing the staff would also allow them to be better utilised, as they can be deployed to other operational functions within AirAsia and not just those associated with Global Express,” it said.
AirAsia said it would be able to leverage on its size and relationship with vendors and suppliers, especially those related to the aircraft components and maintenance, to potentially lower operating costs further.
TAGS / KEYWORDS:Airlines , Stocks , Earnings , Corporate News , Investing , airasia , jet

Tuesday, May 8, 2018


by Ganesh Sahathevan

Photos show Najib, Rosmah , conducted 1MDB business with 
PetroSaudi on their own, without 1MDB management, or 
board present

A repost, which should be read with this story:

Swiss 1MDB Investigation Turns to PetroSaudi Officials

27 FEB


by Ganesh Sahathevan 

 malaysia net errors and omissions adjusted bop us dollar wb data

The value for Net errors and Omissions in the Balance Of Payments (BoP, current US$) in Malaysia  has fluctuated between $3,552,316,000 in 1993 and ($19,990,770,000) in 2010.
The "Errors and Omissions" figure is considered a proxy for "unofficial" or rather unaccountable flows of foreign exchange out of the country. 
2010 was of course the year when much of the 1MDB theft took place, and it does appear as if that massive unaccounted flow of US Dollars has shown up in the Balance of Payments.

As previously reported on this blog,Sarawak Report has obtained and published photos which show that PM  Najib and wife Rosmah may have conducted 1MDB business with PetroSaudi on their own, without 1MDB management, or board present
Given the extent of the sudden increase in leakages it is not improbable that the business conducted included off-balance sheet transactions executed in 1MDB's name. 

The extent of 1MDB's losses could well be in excess of the currently estimated USD 10 billion, and in fact closer to USD 20 billion.That the higher amount has not shown up in any of the investigations conducted so far is easy to explain.These are not in any way reflected in the books and known only to the chairman, PM Najib. Nevertheless,these would still be liabilities borne by  1MDB ,and by extension the Malaysian Government.

by Ganesh Sahathevan 

The photo above obtained by Sarawak Report shows PM Najib, wife Rosmah and Petrosaudi's Prince Turki Abdullah and Tarek Obeid in discussion, on board a yacht somewhere off the coast of the south of France.

Clearly visible in the photo are three sets of documents,which appear to be some form of prospectus (using that term in its broadest sense). Interestingly, Rosmah Mansor has her own copy. Obviously, this was no friendly holiday chat over drinks while taking in the sea breeze; detailed business matters were being discussed.

In its own words, PetroSaudi's business dealings in Malaysia have been with 1MDB,and hence it is hard to see that the above discussion did not concern 1MDB. 

The implications for Najib are obvious. To begin with the photo belies the(in any case idiotic) claim made by his  lawyer that his  "signature on 1MDB documents (is)a formality, doesn’t mean he decides or knows all." Consequently this photo adds to the existing evidence that puts him at the very centre of the 1MDB theft. 

Then , the apparent involvement of Rosmah in 1MDB's affairs does seem to confirm the allegations regarding  her, and her son Riza's dealings in 1MDB's cash assets.It is hard to see how Najib , or Rosmah can justify her being involved in discussions concerning 1MDB.

"Innocent Owner" Riza Aziz Attended Yacht Meeting Before Good Star Heist - EXCLUSIVE

"Innocent Owner" Riza Aziz 

Attended Yacht Meeting Before 

Good Star Heist - EXCLUSIVE

Last week in California the Prime Minister’s step-son, Riza Aziz, filed a notice to
 dismiss the US Department of Justice’s seizure of his properties on the grounds that
 he was the “innocent owner” and could not be held responsible for the fact the money was stolen from 1MDB.
Motion to dismiss by Riza's lawyers
Motion to dismiss by Riza’s lawyers
Those properties include a Beverly Hills mansion, the film production company Red Granite’s future earnings from Wolf of Wall Street, a London Belgravia town house and a New York penthouse.
What this defence contends is that Riza had simply no idea that the hundreds of millions that suddenly started coming his way was not stolen, but thought it was a gift. For this reason he reckons he should be allowed to hang on to all the items bought with Malaysia’s stolen development money (money which the Malaysian tax payer is now faced with paying back to the original lenders at high interest rates).
Yet Sarawak Report has established new evidence that Riza was in from the very start on the 1MDB heist, in that he was invited to attend the meeting where the first ‘joint venture’ was cooked up between Jho Low, the Prime Minister and company PetroSaudi on the super-yacht Tatoosh in August 2009.
A trip manifest reveals that the jaunt, which took place between 15-20th August, was organised by a “high-end boutique concierge company” named Baroque, of which Jho Low was a member. According to the note made by the representative for Baroque, Sahle Ghebreyesus, the trip was in fact commissioned by his client Jho Low (whom he describes on the manifest as “my guy”). In March the following year Tarek Obaid also joined Baroque, which is an agency designed to pamper the super-rich:
High-end boutique concierge company that organised the rental of Tatoosh
Photographs later obtained by Sarawak Report show the main players behind the theft of the first billion from 1MDB through the PetroSaudi ‘joint venture’, which was strategised during this super-yacht meeting.
However, we can now confirm that Riza Aziz also joined the party, along with Najib’s key financial cronies Bustari Yusof and Robin Tan.  Robin Tan is the son of Vincent Tan, long associated with BN political funding, and Bustari is the Sarawak PPB party treasurer cum billionaire, who was handed the ‘turnkey contract’ for the Pan Borneo Highway project and whose brother Fadillah has now been appointed Minister for Public Works.
This gives the Bustari brothers control over all the big contracts handed out by the Government, in Malaysia’s notoriously corrupted procurement process and Bustari has rarely strayed from Najib’s side in recent months.
'My guy" Jho Low fixed the trip. "innocent owner" Riza Aziz was also on board
‘My guy” Jho Low fixed the trip. “innocent owner” Riza Aziz was also on board
Did Riza have simply no idea what was going on as these guys did the business which was soon to send money streaming his way?
It was just a few short months later that he went on to launch his production company Red Granite Pictures at the most lavish launch party ever seen at the Cannes Film Festival in 2010.
And over the next two years Jho Low was at Riza’s side at every major film event involving Red Granite Pictures, including Wolf of Wall Street, which was funded by yet more money stolen from 1MDB, thanks to the later ‘Power Purchase Loan’ manoeuvres also organised by Jho Low.
According to the New York Times, Low was furthermore directly involved in the purchase of both of Riza’s US properties in Hollywood and New York. Did Riza simply fail to realise what was going on?
There can only be two conclusions. Either Riza is lying and he did know or Riza is a sad and stupid creature, who was merely used as a front and proxy by the players behind the scandal, which included his friend Jho Low and step-dad Najib.
He is therefore EITHER innocent OR the owner.  He cannot be the “innocent owner”!
left to right - Tarek Obaid, Prince Turki and Najib Razak - the three named Shareholders of the 1MDB PetroSaudi Joint Venture meeting a month before the deal on the yacht Tatoosh.
left to right – Tarek Obaid, Prince Turki and Najib Razak – the three named Shareholders of the 1MDB PetroSaudi Joint Venture meeting a month before the deal on the yacht Tatoosh.
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