Najib & Rosmah conducted 1MDB business on their own :Why not seize the assets of Low Hock Peng,Vincent Tan ,and Bustari Yusof who were also present ?

Tuesday, May 9, 2017

Najib & Rosmah conducted 1MDB business on their own :Why not seize the assets of Low Hock Peng,Vincent  Tan ,and Bustari Yusof who were also present ?

by Ganesh Sahathevan

Larry Low Hock Peng 

Tan Sri Bustari Yusof

Vincent Tan Chee Yioun 

The IPIC "settlement" seems shaky,and the China "rescue" seems to have fallen apart.

A realistic avenue for the recovery of Malaysian taxpayers' money lost in the 1MDB debacle is needed, and while the US DOJ has an action to do so in play, Malaysians really ought to be helping themselves.

One possible solution may be the seizure of all and any assets held by Low Hock Peng (head of the Low Family,and father of Jho) ,Vincent Tan( head of the Berjaya Group of companies,  father of Robin  Tan) and Datuk Bustari Yusof of Sarawak.

As reported previously on this blog and by Sarawak Report, PM Najib and wife Rosmah illegally conducted 1MDB business with PetroSaudi on their own.It was also reported that those present during those dealings included  Jho Low, Robin Tan,and Bustari Yusof. Arguing that Jho and Robin's presence had nothing to do with their families' business interests would be akin to splitting what  hairs one might find on  Arul Kanda's head, which seems to be in danger of being axed.

It is more likely than not that all three were parties to the business that was conducted,despite not having anything to do with 1MDB.

It follows then that the assets of all three, who represent their families, could be seized as a means of recovering what has been lost from 1MDB.

There are likely to be a number of legal means that might be relied on for the purpose, but Vincent Tan and family,  and Bustari Yusof both are recipients of very lucrative government concessions that may be withdrawn at any time. These could be seized, placed in some form of public trust, and the proceeds used to recoup the 1MDB losses.

As with regards Larry Low Hock Peng and family, is it not time to drop the pretence that they are  "old money" philanthropists? The same may be said of PM Najib, whose own brothers rejected his claim of "legacy family assets".

END





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

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.

END 

Reference -Sarawak Report

"Innocent Owner" Riza Aziz 

Attended Yacht Meeting Before 

Good Star Heist - EXCLUSIVE

• 21 February 2017
     
• 16 comments

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

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

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.

Sarawak Report requests that various journalists, authors and film

 makers, who seek to use this site as their resource for commercial 

projects such as books and documentaries give full credit to this blog, acknowledge copyright and do not seek to apply for awards, 

commissions etc without so doing.

IPIC bonds fell in price by 20% in just a day.Was this 1MDB related ,and should not a class action follow,even if UK regulators remain silent?

by Ganesh Sahathevan




IPIC GMTN 5% GMTN NTS 15/11/20

On 10 February 2017 IPIC bonds fell from $ 108.905  to $ 85.30,approximately 20% in just a day.
It then recovered to $ 108.75 over a period of seven days and the price has essentially plateaued.


Given the issues including illegality and money laundering surrounding the settlement reached with 1MDB ,announced on 24 April 2017, it is probable that insiders started dumping the bonds in early February.The price recovery was probably due to "stabilization" efforts.

IPIC bonds are listed on the LSE ,and this type of manipulation has obviously caused significant losses to bondholders who are located all over the world. While UK regulators appear to be looking the other way, a class action is not unlikely.
END

China fails to deliver financing for Belt & Road Malaysian hub-Confirms suspicion that China cannot finance the project without local government assistance

by Ganesh Sahathevan 

In what looks like an abrupt about turn the Chinese Government has failed to deliver promised financing for what was meant to be the Malaysian hub of Belt and Road initiative.The Wall Street Journal reported:

A deal for a Chinese state-owned company to help bail Malaysia out of a multibillion-dollar financial scandal fell apart Wednesday after the Chinese government refused to authorize the investment.
China Railway Engineering Corp. and a local Malaysian partner had agreed in December 2015 to take a 60% stake in Bandar Malaysia, a major residential and commercial real-estate project in Kuala Lumpur that originally was being developed by 1Malaysia Development Bhd., a Malaysian state fund.
An internal Malaysian Finance Ministry document on problems with the sale, viewed by The Wall Street Journal, said a major reason for its failure was that China’s government declined to give the green light for China Railway to make the investment. A person familiar with the matter confirmed this.

This failure to provide funding under a deal that both countries declared is  an important component in China's One Belt One Road initiative confirms fears that China is not really able to finance the project. 

END

References

One Belt One Road in Malaysia: China’s strategic enabler?

The Belt and Road Initiative

China says Darwin , PNG, parts of the China Belt And Road Initiative :Turnbull defence of Darwin Port deal looking increasingly shady....

Hadi vs Sarawak Report: The main event will be RPK in the witness box, talking about Altantuya, Scorpenes ......

by Ganesh Sahathevan

Malaysian Insight reported:

IN suing Sarawak Report’s Clare Rewcastle-Brown for libel in the High Court in London, PAS president Abdul Hadi Awang wants to stub out the allegation that he received a massive bribe from Prime Minister Najib Razak to compromise the Islamic party’s independence.

Hadi will rely on a number of Malaysians living in England to support his assertion that his reputation was seriously damaged in England and Wales.

Among them are:

* Raja Petra Raja Kamarudin, blogger. He has been a resident in the UK since 2009.

Being a witness, RPK can be cross-examined on a whole range of matters, including his sworn statutory declaration (even if he later contradicted it) and his story on the commissions paid by DCNS on the Malaysian Scorpene submarine deal.
These matters can be brought up in a variety of  way, but suffice to say that these are likely to be the main event (even if not the main issue).
END

 

My informer states that Acting Colonel Aziz Buyong was the person who placed the C4 on various parts of Altantuya’s body while being witnessed by Datin Seri Rosmah Mansor and Norhayati.

NO HOLDS BARRED

Raja Petra Kamarudin 

"It's mindboggling!" – That's how Raja Petra Kamarudin's statutory declaration alleging that Deputy Prime Minister Najib's wife was at the murder scene of Mongolian national Altantuya Shaariibuu was described today.

An aide to Najib Abdul Razak also said they were aware of this latest claim made by Raja Petra, who also runs the 'Malaysia Today' website.

"At the moment, we are looking into it. This is a very mind-boggling statutory declaration," said the aide when contacted.

The latest allegation hurled at Rosmah Mansor was made by well-known blogger Raja Petra Kamarudin via a statutory declaration (below) signed at the Kuala Lumpur High Court on Wednesday.

The aide however refused to comment if any action could be taken against Raja Petra.

Najib and Rosmah (left) have repeatedly denied they are linked to the killing of Altantuya, describing the widely-known allegations was nothing more than ‘slander and concocted stories’.

In his latest bombshell, Raja Petra accused Rosmah as among three individuals who were present when Altantuya was murdered on October 19, 2006.

"I have been reliably informed that between about 10pm on October 19, 2006 and early hours of the following day, the night Altantuya Shaariibuu was murdered, three other people were also present at the scene of crime," he said, according to his two-page statutory declaration.

He named the two other individuals as one acting colonel Aziz Buyong, who is described as ‘a C4 expert’ and the latter’s wife, known only as Norhayati, who is also said to be Rosmah’s aide de camp.

‘A crime not to reveal’

Altantuya’s body is alleged to have been blown up with C4 explosives at a secondary forest in Puncak Alam, Shah Alam. The murder trial is currently ongoing at the Shah Alam High Court.

"My informer states that Aziz was the person who placed the C4 on various parts of Altantuya’s body witnessed by Rosmah and Norhayati," Raja Petra claimed in the document.

"I make this statutory declaration because I have been reliably informed about the involvement of these three people who have thus far not been implicated in the murder nor called as witnesses by the prosecution in the ongoing trial at the Shah Alam High Court.

"I also make this statutory declaration because I am aware that it is a crime not to reveal evidence that may help the police in its investigation of the crime," read the document, which was first posted on the bigdogdotcom blog run by another blogger.

Raja Petra, contacted by Malaysiakini, has confirmed the content of the document.

He further alleged that he has also been ‘reliably informed’ that Prime Minister Abdullah Ahmad Badawi knows of Najib's (right) wife alleged involvement.

"[…] Abdullah has received a written report from military intelligence confirming what I have revealed and this report was subsequently handed over to his son-in-law Khairy Jamaluddin for safekeeping," he said.

Apart from Abdullah and Khairy, Raja Petra claimed "one of the (Malay) Rulers" has also been briefed about the matter and is fully aware of the allegation.

He said he has agreed not to reveal their names other than mention that the prime minister and his son-in-law have been given a copy of the military intelligence’s report.

Police inaction over report

"The purpose of this statutory declaration is to urge all these parties who have been duly informed and have knowledge of this matter to come forward to reveal the truth so that the police are able to conduct a proper and thorough investigation into the murder of Altantuya.

"And I make this solemn declaration conscientiously believing the same to be true and by virtue of the provisions of the Statutory Declaration Act, 1960," he said in his declaration.

In the phone interview, Raja Petra explained why he did not lodge a police report on the latest allegation which could lead to a fresh police probe on the Altantuya (left) murder.

The blogger said since there was no action over a police report he had lodged in a separate case in 2001 when he was allegedly beaten up by a high-ranking policeman, "I am not bothered in making a police report".

When asked why the document was posted elsewhere instead of his own 'Malaysia Today' site, he retorted: "Why must it be published on my site?"

Raja Petra was called in for police questioning early last month over an article titled ‘Let’s send the Altantuya murderers to hell’ in which he implicated Najib and Rosmah in the high-profile murder case.

A close aide to Najib, political analyst Abdul Razak Baginda and two police special operations force personnel have been charged with the murder of the Mongolian national.

All three have pleaded not guilty for the ongoing trial. They face the death sentence should they be found guilty. (MALAYSIAKINI.COM)

STATUTORY DECLARATION

I, RAJA PETRA BIN RAJA KAMARUDIN (IC No: 500927-71-5257), a Malaysian citizen of legal age residing at No. 5, Jalan BRP 5/5, BuKit Rahman Putra, 47000 Sungai Buloh, Selangor Darul Ehsan, do solemnly and sincerely affirm and say as follows:-

1.    I have been reliably informed that between about 10 p.m. on 19th October 2006 and early hours of the following day, the night Altantuya Shaariibuu was murdered, three (3) other people were also present at the scene of the crime;

(a)    Datin Seri Rosmah Mansor, wife of the Deputy Prime Minister of Malaysia, Dato’ Seri Najib Tun Razak

(b)     Acting Colonel Aziz Buyong (then Lt. Col.) a C4 expert

(c)     Acting Colonel Aziz’s wife, Norhayati (one of Rosmah’s ADC)

2.    My informer states that Acting Colonel Aziz Buyong was the person who placed the C4 on various parts of Altantuya’s body while being witnessed by Datin Seri Rosmah Mansor and Norhayati.

3.    I make this Statutory Declaration because I have been reliably informed about the involvement of these three people who have thus far not been implicated in the murder nor called as witnesses by the prosecution in the on going trial at the Shah Alam High Court. I also make this Statutory Declaration because I am aware that it is a crime not to reveal evidence that may help the police in its investigation of the crime.

4.    I have further been reliably informed that Prime Minister, Dato Seri Abdullah Ahmad Badawi has received a written report from the Military Intelligence confirming what I have revealed above and that the report was subsequently handed over to his son-in-law, Khairy Jamaluddin, for safe-keeping.

5.    I have also been reliably informed that one of the Rulers has been briefed about this matter and His Highness is fully aware of what I have revealed above.

6.    I have knowledge of who has informed me of this matter plus I have knowledge of the Ruler who has been briefed and is aware of the matter but I have agreed that I shall not reveal this information other than mention that the Prime Minister and his son-in-law have been handed a written report confirming what I have revealed.

7.    The purpose of this Statutory Declaration is to urge all these parties who have been duly informed and have knowledge of this matter to come forward to reveal the truth so that the police are able to conduct a proper and thorough investigation into the murder of Altantuya Shaariibuu.

And I make this solemn declaration conscientiously believing the same to be true and by virtue of the provisions of the Statutory Declaration Act, 1960.

SUBSCRIBED and SOLEMNLY DECLARED                             )
by the abovenamed RAJA PETRA BIN RAJA KAMARUDIN    )
at Makhamah Tinggi Kuala Lumpur                                              )
this 18th day of June 2008                                                              )

                        Before me,
 

The Deputy Minister of Defence lied to the Malaysian Parliament when he said the commission was paid by the French 

According to sources cited by the plaintiffs, it was not the company Armaris that paid 114 million euros to Perimekar, but rather the Malaysian government, "with the sole purpose of circumventing the OECD Convention."

Rue89

Translated from: Sous-marins malaisiens : la piste des rétrocommissions se précise

http://www.rue89.com/2011/04/02/sous-marins-malaisiens-la-piste-des-retrocommissions-se-precise-197722?page=1#commentaires

In the string of "suspicions over corruption relating to arms deals" a new case is about to join those that followed the sale of frigates to Taiwan and submarines to Pakistan: French submarines sold to Malaysia.

Further legal action is due to be initiated in the next few days, with Suaram, a Malaysian NGO dedicated to the fight against corruption and member of the International Federation for Human Rights (FIDH), applying to join proceedings as a civil party, which already applied for a judicial review in November 2009.

Suaram would thereby have access to the details of the investigation, which is also a way to force the prosecution service to contact an examining magistrate, the last step before a trial that could last for years.

As was the case for contracts won by the DCN for submarines to Pakistan and frigates to Taiwan, there are increasing suspicions of retrocommissions to French political parties (See following graph). This case concerns the sale of two Scorpène submarines and an Agosta submarine to the Malaysian government. A contract worth approximately one billion euros, that was signed in 2002 with the Malaysian DCNS (former DCN, Department of Naval Construction) and Thalès.

A model’s body blown up with explosives

Sex, murder, bribery, and suspicions rocommissions: the cocktail is explosive. It all started with the 2006 murder of Altantuya Shaaribu, a young model, interpreter and also an intermediary in this contract. Her body was found in the Malaysian jungle after being blown apart with explosives.

The young woman appears to have been assassinated for having loudly demanded her share of the commission in an arms deal, in which the other parties involved were her lover, Abdul Razak Baginda, a friend and adviser of the other person involved, Rajib Nazak, then Malaysia’s Minister of Defence and now the country’s prime minister.

However, this shady affair hides another, which the French courts took note of. In December 2009, Suaram filed an initial suit against X at the Paris court for “active and passive corruption, trading of favours and abuse of corporate assets".

The state prosecutor Jean-Claude Marin then opened a preliminary investigation.

At the time, it was suspected that a bribe of 114 million euros had been paid by the company Armaris (a subsidiary of DCNI and Thalès) to the Prime Minister Najib Razak and his entourage, through the company Perimekar.

This company, which was officially established to "coordinate" the sale of the three submarines, had Abdul Razak Baginda's wife as its majority shareholder.

France in violation because of the OECD Convention

However, in the suit filed in December 2009, the plaintiffs argued, that in light of the way the company operated:

"There is no doubt that this legal entity [Perimekar] was created with a single goal: to organise the payment of commission and distribute the amount amongst the different beneficiaries – Malaysian officials and/or Malaysian or foreign intermediaries."

However, this contract was signed after the OECD Convention came into force in France in 2000, which punishes corruption of foreign public officials with ten years' imprisonment and a 150,000 euro fine. Following this complaint, a preliminary investigation was conducted by prosecution: the hearings were made and searches were made at the premises of DCNS and Thalès.

Revealed in September 2008, the note books of Gérard-Philippe Menayas, former chief financial officer ofthe DCN, who was indicted in the Karachi Case, also confirm the suspicions of hidden commissions. In his memorandum (PDF), Menayas mentioned the Malaysian submarine contract as follows:

"Since the entry into force of the OECD Convention regarding the fight against corruption in September 2000, only two contracts have been signed; the first with India, and the second with Malaysia in 2002. These two contracts are the result of commercial actions undertaken prior to the OECD Convention. Furthermore, they are both suspected of non-compliance with this Convention. I have evidence to support this”.

At the time of the contract’s signature Alain Richard was the Minister of Defence, in Lionel Jospin’s government (socialist party).

Three commissions instead of one for the sale of submarines

With the forthcoming indictment, and the revival of this case, new items have been contributed to the case by the plaintiffs.

First, according to sources cited by the plaintiffs, it was not the company Armaris that paid 114 million euros to Perimekar, but rather the Malaysian government, "with the sole purpose of circumventing the OECD Convention."

This is a true revelation, while the Malaysian Minister of Defence ended up "confessing" to the payments made by foreign companies to Perimekar ...

Where did this money go? Were there retrocommissions to French politicians?

Secondly, there does not appear to have been a single commission, but rather three. In addition to that of114 million euros, there are two further instalments:

• one paid by the DCNI to the commercial networks of Thalès, for over 30 million euros, corresponding to "commercial fees relating to the negotiation and execution of the contract";

• the other for 2.5 million euros.

However, according to Gerard Philippe Menayas:

"Until the OECD Convention against corruption came into force in France, no contract for the sale ofdefence equipment to an emerging country could take place without the payment of commissions to policy makers (euphemistically called "commercial fees for exports" or "FCE")."

The second commission was paid by Thalès to a recipient, who remains unknown, in order to convince the Malaysian government of the need to conduct additional work.

Finally, according to the complaint filed by the firm Bourdon, Suaram’s lawyer, the company Gifen, which was established by Jean-Marie Boivin in Malta, intervened in the negotiations "so as to facilitate the money transfers in this case", and particularly finance the trips of Baginda and Altantuya.

The "catch" is that Jean-Marie Boivin is also cited in the Karachi case... for his role in the system for supplying slush funds to political parties.

http://www.malaysia-today.net/mtcolumns/guest-columnists/39450-malaysian-submarines-the-trail-of-retrocommissions-is-becoming-clearer

Felda deal with Martua Sitorus brings back memories of Martua's involvement in the secretive Kestrel group of companies

by Ganesh Sahathevan


The Star reported this morning:

A MAJOR reshuffle is on the cards for the Federal Land Development Authority (Felda) and its plantation arm, Felda Global Ventures Holdings Bhd (FGV), that could see the emergence of a new shareholder in the latter.

Felda is said to be seeking the return of the land that is currently leased out to and managed by FGV because it feels that it can extract higher returns.

At the same time, FGV is also likely to see a new shareholder emerging.

According to sources, the party is said to be an investment vehicle led by Wilmar International Ltd co-founder Martua Sitorus.

“The strategic partner may either simply acquire the shares or inject plantation assets into FGV or both.

All this brings back for this writer memories of Martua's history with the Kestel group of companies, which were meant to remain in the shadows.Here is a summary.

File Note 

ACCORDING TO A SEARCH made on 11 March 1999 at the Registrar of 
Companies, Hong Kong, the Annual Return of Kestrel Capital (HK) Pte Ltd
("Kestrel") made up to 12 January 1995, showed the issued share capital 
to be 30,000,000 ordinary shares of HK$1.00 each.  Among its prominent 
shareholders were the following:

  Kestrel Capital Investments Ltd (British Vigin Islands) 9,000,000 
  Kestrel Capital Partners (M) Sdn Bhd (Klang)            1,500,000
  Berjaya Group (Cayman) Ltd (British West Indies)        1,500,000 
  K.I.P. Inc (Republic of Liberia)                        6,000,000 
  Lim Cheok Peng (Malaysian)                              1,500,000
  Tony Tan Chong Keat (Singaporean)                       1,500,000

In its lineup of Directors were the following high profile
well-connected individuals: 

  Mokhzani Mahathir -- also Director/Shareholder of Kestrel Capital
    Partners (M) Sdn Bhd;
  Lim Eng Hock -- also Director/Shareholder of Kestrel Capital Partners 
    (M) Sdn Bhd;
  Lim Cheok Peng -- also Managing Director of Parkway Healthcare Ltd;;
  Wee Ee Chao -- also Director/Major shareholder of K.I.P. Inc and Kay
    Hian Holdings Ltd. 

     Between mid-1995 and 1996, Berjaya (Caymen) Ltd., a wholly-owned 
subsidiary of Berjaya Group Bhd (BGB) and another subsidiary, Berjaya
Equities (Caymen) Ltd, began building up a 7.2 per cent stake in Parkway 
Holdings Ltd (listed on the Singapore Stock Exchange, SES).  Tony Tan is 
the Managing Director of Parkway Holdings Ltd (PHL).  Meanwhile, PHL's
private hospital arm, Parkway Healthcare Ltd, owns among others, Mount 
Elizabeth Hospital in Singapore.  On the other hand, Wee Ee Chao's
family controls UOB, one of the largest banks in Singapore, and which
has substantial banking interests in Malaysia, hence providing the
financial connexion.  Wee's own company, Kay Hian Holdings Ltd, is
listed on the SES, and has a wholly-owned stockbroking subsidiary, Kay 
Hian Securities Pte Ltd, and where Lim Eng Hock was a remisier.

     At or about the same time, BGB gained control of Hospital Pantai 
Berhad (HPB), which is listed on the Kuala Lumpur Stock Exchange (KLSE).
By late 1995, BGB's stake in HPB stood at about 79 per cent.  During the
material time, HPB's share price had meanwhile shot up from the 
RM3.00-RM4.00 range to between RM15.00-RM18.00.  BGB then used HPB to
acquire a further 12.8 per cent stake in PHL, and by mid-1996, BGB
controlled 20 per cent of PHL, through HPB and BGB's Cayman Island
subisidiaries.  BGB's subsidiaries then sold their stakes in PHL and
HPB.

     By November 1996, BGB had reduced its stake in HPB to 30 per cent, 
while another of Mokhzani Mahathir's listed companies, Tongkah Holdings 
Bhd (THB) announced it had acquired 21 per cent of HPB.  Kestrel's
Director, Lim Eng Hock, was responsible for placing out BGB's shares in
HPB to investors in Singapore and Indonesia.  It is likely that he 
brokered the earlier deals between BGB, PHL, HPB and THB.

     BGB eventually sold down its stake in HPB, and which now appears to
be controlled by Mokhzani's THB.  Nevertheless, BGB's foray into HPB 
proved to have been a very profitable one, given the rise in HPB's share
price during the relevant period.  Similarly, this would have also
profited those who purchased shares in HPB and PHL in early 1995, prior 
to the deals involving these companies.  The involvement of Mokhzani,
Tony Tan and Lim Cheok Peng, and Berjaya Group (Cayman) Ltd, which
originally bought the shares in PHL, together with Lim Eng Hock, who
brokered these deals in Kestrel, prior to the finalisation of such 
deals, suggests that Kesrel was used by them as a vehicle to deal in PHL
and HPB shares on the basis of information known only to themselves at 
the material time.
 

LCIA IPIC-1MDB consent award further complicated by revelation that IPIC is directly involved in a sham transaction,not disclosed to holders of its debt securities

by Ganesh Sahathevan

Singapore's main English daily, the government owned Straits Times, reported on Friday 28 April 2017: 

According to senior financial and legal executives, the main hurdle was fund units amounting to US$2.43 billion (S$3.4 billion) held by two 1MDB subsidiaries, Brazen Sky and 1MDB Global Investments, that were guaranteed by IPIC subsidiary Aabar Investments PJS. Aabar had disputed the guarantee.

To overcome the hurdle, 1MDB agreed to waive its right to claim from Aabar the US$2.43 billion guarantee. In return, Abu Dhabi arranged for an undisclosed entity domiciled in the Seychelles to buy the units from 1MDB at the guaranteed value, to be settled by deferred payments from this month to October 2022, said a senior financial executive familiar with the matter.

The transaction highlighted above implies that IPIC is  involved in a round robin transaction where it is in effect paying itself. Worse, the transaction will be booked at the guaranteed value , even after the guarantee is waived. This is clearly a sham transaction.

This new Straits Times revelation adds to the issues of illegality that taint the IPIC-1MDB settlement (see story below),and in fact shows IPIC itself to be directly involved in a new transaction in which the implication of money laundering is hard to avoid.

In addition , given IPIC's   reporting obligations to the London Stock Exchange and its own bondholders pursuant to its GMTN debt programme, the ST story shows IPIC to be guilty of concealing material information from the market.

The London Court Of International Arbitration (LCIA) is being asked to hand down a consent award that will encompass this and all the other transactions currently under investigation by the US Department Of Justice and the FBI, who  the Malaysian Government has made no secret they expect will be defeated by the LCIA consent award.

The likelihood that the consent award will be denied to illegality gets ever more likely.

END 

Thursday, April 27, 2017

Illegality may prevent London Arbitration Court from making a consent award in the IPIC-1MDB matter-Settlement may be denied

by Ganesh Sahathevan

Settlement weakens DOJ's case

IPIC informed the LSE on Monday:


International Petroleum Investment Company PJSC (IPIC), Aabar Investments PJS (Aabar), the Minister of Finance (Incorporated) Malaysia (MoF Inc.) and 1Malaysia Development Berhad (1MDB) are pleased to announce that an agreement has been reached between all parties that provides for a settlement in respect to the arbitration proceedings at the London Court of International Arbitration (the Settlement). The agreement is conditional on the Arbitration Tribunal making a consent award by 31 May 2017.


Meanwhile, a  senior figure in the Malaysian Government and ruling UMNO ,Puad Zarkashi, has said publicly that the settlement is intended to defeat a criminal investigation by the US Department of Justice ,and other national enforcement agencies into 1 MDB, the Malaysian Government and Najib Razak , the Prime Minister and Finance Minister: 

"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).

While the rules governing arbitration courts are complex, it is hard to see that the London Court Of International  Arbitration  would want  to be a party to a  consent award where at least one party has made public that the award will be used as a means to defeat a a criminal investigation.To make matters worse, this is a matter that has been very widely publicized. worldwide and it would be impossible for anyone, including the arbitrators in this matter, to deny knowledge of what is intended.

END

Other references:

1MDB -IPIC settlement: 1MDB insists that IPIC will be paid out of "units" guaranteed by IPIC itself:-IPIC now implicated in money laundering

In July 2016 IPIC denied ever guaranteeing "fund units" which are central to its settlement with 1MDB:Units worthless without the guarantee