FMT Reporters | June 24, 2017

1MDB probe was one of the toughest moments during her 16-year tenure as governor of central bank, says Zeti Akhtar Aziz.

PETALING JAYA: Bank Negara Malaysia was powerless to take further action than just some fines to “relevant bodies and financial institutions” over breach of regulations in relation to the 1MDB case.

This was the admission by former Bank Negara governor Zeti Akhtar Aziz, who added that the handling of the 1MDB case was one of her toughest moments in office, Sin Chew Daily reported.

“Although outsiders had very high expectations from Bank Negara, nevertheless, it did not have the power to prosecute.

“Bank Negara has the most comprehensive laws, including the Central Bank of Malaysia Act 2009 and Financial Services Act 2013 to preserve the integrity, stability and healthy functioning of the financial system.

“So, we could issue letters of administrative compound to relevant bodies and financial institutions breaching Bank Negara’s regulations in the 1MDB case. I would say the fines were probably the highest in history,” she told the Chinese vernacular daily, explaining how the whole matter was settled with the fine being paid. Read the rest of this entry »

Is the Barisan Nasional strategic communications director and Minister in the Prime Minister’s Department, Datuk Abdul Rahman Dahlan trying to help or hurt the Prime Minister, Datuk Seri Najib Razak, especially on the international 1MDB money-laundering scandal, which has landed the country with the appellation of a “global kleptocracy”?

Or is Abdul Rahman so obtuse or dense that he cannot understand that his way of helping Najib is in fact a most potent way to hurt him, furnishing a life testimony of the saying “With friends like these, who needs enemies?”.

Five days after the US Department of Justice (DOJ) filed its third kleptocratic actions to forfeit a total of US$1.7 billion of 1MDB-linked assets out of US$4.5 billion 1MDB money-laundering, Abdul Rahman held a media conference to ask why the US DOJ implicated Najib’s wife, Datin Paduka Seri Rosmah Mansor when it had no plans to seize the 28 jewellery items, which included a pink diamond necklace valued at US$27.3 million?

Abdul Rahman said the insinuation of impropriety of the “wife of MO1”, implying that she had committed a wrongdoing, was unfair targeting of the Prime Minister’s wife – becoming the first person in Malaysia, in government or outside, to publicly to identify the “wife of MO1” as Datin Paduka Seri Rosmah Mansor – just as Abdul Rahman was the first person to publicly admit at a BBC interview last September that “MALAYSIAN OFFICIAL 1” (“MO1”) was none other than the Prime Minister, Najib himself. Read the rest of this entry »

The latest news in the unending 1MDB international money-laundering scandal which has catapulted Malaysia into the dubious stratosphere of a “global kleptocracy” is that another bank, the Swiss private bank Edmond de Rothschild, has become the latest financial institution to be punished for regulatory lapses in relations to money laundering and the 1MDB scandal.

The Luxembourg Financial Sector Supervisory Commission (CSSF) fined the local arm of Swiss private bank Edmond de Rothschild EUR8.985 million (RM43 million) for failing to take proper safeguards against money laundering in the handling of funds linked to scandal-hit Malaysian investment fund 1MDB.

Luxembourg is the latest country and Rothschild the latest Swiss bank to be swept up in the 1MDB case, which has triggered money-laundering investigations in at least six countries including Switzerland, Singapore and the United States. Read the rest of this entry »

Last Saturday, when asked how the US Department of Justice (DOJ)’s updated kleptocratic suits to forfeit US$1.7 billion of 1MDB-linked assets in the United States, UK and Switzerland, would affect Barisan Nasional in the next general election, the Defence Minister, Datuk Hishammuddin Hussein replied that “the people would decide”.

I cannot agree more with Hishammuddin, now that all avenues under the institutional system of checks-and-balance in a parliamentary democracy to prevent abuses of power and uphold the principles of good governance and public integrity, are closed with the total breakdown of such checks-and-balances.

The Cabinet meeting yesterday was the last straw. Imagine at this stage and time when Malaysians are being shamed and humiliated as Malaysia is regarded worldwide as a global kleptocracy, the Cabinet can still embark on a frolic into the past and set up a Royal Commission of Inquiry (RCI) into the Bank Negara forex losses scandal a quarter of a century ago but has neither the time nor interest to set up a RCI into the biggest financial scandal in the nation’s history – the 1MDB scandal!

Parliament is another lost cause unless the 14th General Election can usher in a new government with a new Parliament, where what happened at the end of 2015 would not recur – my six-month suspension from Parliament, not because I had stolen, robbed, murdered or guilty of corruption, but because I had wanted the Prime Minister, Datuk Seri Najib Razak to answer two simple questions about the 1MDB global financial scandal – Where the RM2.6 billion and more in his personal banking accounts came from and where the money had gone to. Read the rest of this entry »

Wall Street Journal
June 20, 2017

The U.S. Justice Department filed civil lawsuits late last week to seize a second trove of assets allegedly purchased with funds embezzled from the Malaysian state-run investment fund 1MDB. Last July the Feds went after more than $1 billion in financial assets, real estate, artwork, film rights and a private jet. Now the Kleptocracy Asset Recovery Initiative, as Justice calls it, is targeting $540 million in assets owned by relatives and associates of Prime Minister Najib Razak.

The most striking item on the list is a necklace worth $27.3 million featuring a 22-carat pink diamond. The lawsuit alleges that 1MDB funds were used to buy it and other jewelry for the wife of “Malaysian Official No. 1.” U.S. officials told the Journal that Official No. 1 is Mr. Najib.

The 1MDB fund denies that money is missing, Mr. Najib denies any wrongdoing, and Attorney General Mohamed Apandi Ali cleared Mr. Najib in January 2016. Mr. Apandi Ali said in a statement Friday, “We also note that there has been no evidence from any investigation conducted by any law enforcement agencies in various jurisdictions that shows that money has been misappropriated from 1MDB.” Read the rest of this entry »

For once, I agree with the Minister in the Prime Minister’s Department, Datuk Abdul Rahman Dahlan – why the US Department of Justice (DOJ) brought up the US$27.3 million diamond necklace bought from 1MDB laundered funds if it did not intend seize it in its kleptocratic civil litigation to forfeit 1MDB-linked assets!

Is the Cabinet meeting tomorrow going to challenge the US DOJ to apply to the US Court in California to also forfeit Rosmah Mansor’s US$27.3 million pink diamond necklace? Read the rest of this entry »

Loyal and patriotic Malaysian cannot but feel deep shame and mortification reading the online report this morning of a leading United States newspaper, New York Times, “Billions’ worth of Baubles Could Wind Up in U.S. Hands in 1MDB Case” with the following opening paragraphs:

“You can almost hear Robin Leach narrating the introduction to an episode of ‘Lifestyles of the Rich and Famous’ by describing a luxury yacht, diamond jewelry, a Picasso painting, and real estate in New York, Beverly Hills and London.

“The complaint details how 1 Malaysia Development Berhad, known as 1MDB, raised money by selling bonds that would help fund development in the country. The Justice Department claims that from 2009 through 2014, over $4.5 billion was diverted to benefit those with ties to Malaysia’s prime minister, Najib Razak, who ostensibly oversaw the fund, including as much as $1 billion funneled to accounts he may have controlled.”
Read the rest of this entry »

By PETER J. HENNING
New York Times
JUNE 19, 2017

You can almost hear Robin Leach narrating the introduction to an episode of “Lifestyles of the Rich and Famous” by describing a luxury yacht, diamond jewelry, a Picasso painting, and real estate in New York, Beverly Hills and London.

All those baubles — and much more — may end up in the hands of the federal government as the Justice Department filed its latest asset forfeiture lawsuit in Federal District Court in Los Angeles seeking an additional $540 million in goods obtained from looting a Malaysian investment fund, bringing the total sought to $1.7 billion.

Prosecutors may not be able to convict the individuals involved in suspect transfers, but an important tool in the federal arsenal lets them seize assets that are tied to foreign corruption, even if none of the criminal conduct took place within this country.

The complaint details how 1 Malaysia Development Berhad, known as 1MDB, raised money by selling bonds that would help fund development in the country. The Justice Department claims that from 2009 through 2014, over $4.5 billion was diverted to benefit those with ties to Malaysia’s prime minister, Najib Razak, who ostensibly oversaw the fund, including as much as $1 billion funneled to accounts he may have controlled. Read the rest of this entry »

I have been wondering why the reactions of the Najib crowd have been jitterier and more hysterical than during the initial United States Department of Justice (DOJ) kleptocratic forfeiture suit of 1MDB-linked assets in the United States, United Kingdom and Switzerland some eleven months ago!

There have already been two rounds of counter-offensives in defence of the Prime Minister, Datuk Seri Najib Razak and his government in the past three days in response to the updated and expanded DOJ kleptocratic suit in California on Thursday.

There was firstly the initial response within hours by the Attorney-General, Tan Sri Mohamad Apandi Ali misleading the Malaysian public that there was nothing new while expressing regret at the “insinuations” against the Prime Minister in the DOJ’s latest 1MDB forfeiture suit, followed by four inane statements, viz:

— the first by the Minister for Communications and Multimedia Datuk Seri Salleh Said Keruak muttering about “treason”;

— the second by Najib’s press secretary, Tengku Sariffuddin Tengku Ahmad suggesting “domestic political manipulation and interference” as well as a “motivation that goes beyond the objective of seizing assets”;

— the third one by the Defence Minister, Datuk Seri Hishammuddin Hussein playing the diversion game by claiming that the latest US DOJ filing “would divert attention from a bigger agenda”; and

— the fourth one from 1MDB itself that there is no proof to back the DOJ allegations on misappropriation of 1MDB-linked funds. Read the rest of this entry »

M. Bakri Musa
19th June 2017

The dismissive attitude of Malaysian officials to the latest US Department of Justice’s (DOJ) civil forfeiture lawsuit targeting expensive assets allegedly acquired with funds illicitly siphoned from 1MDB is misplaced. Their stance is an embarrassing display of gross ignorance.

Yes, civil lawsuits in America are as common as mushrooms after a rainfall. This DOJ action however, is the largest (in dollar value) such forfeitures to date. This second set of lawsuits targeted assets allegedly given to Hollywood celebrities, as well as to the spouse of “Malaysian Official 1” (MO1). The two categories are separate though the latter believe that she is in the same class as the former.

Najib apologists and enablers never fail to point out with unconcealed smugness that the defendants to the lawsuits are not individuals, specifically Najib or his associates and relatives, rather those assets.

That is right, but such sophistry reveals a fundamental ignorance of the American judicial system. Those targeted assets do not exist in vacuo; someone or somebody owns them. They in effect are the defendants. Read the rest of this entry »

Plans by the Prime Minister, Datuk Seri Najib Razak, in the Ramadan month for a rescue and re-make of his image in readiness for the 14th General Election were blown apart by Najib’s and the country’s two largest financial scandals – the RM50 billion 1MDB international money-laundering scandal and the RM13 billion Felda Group Ventures Holdings Bhd (FGV) scandal.

As a result, the possibility of general elections being held after the SEA Games from August 19 – 30 and the 60th National Day celebrations on August 31, 2017 have dimmed, while the chances of the 14th General Elections being held next year have increased although I would not completely rule out the possibility of polls at the end of this year.

The FGV and 1MDB twin scandals have spoiled Najib’s carefully choreographed strategy to present himself as a “statesman” Prime Minister, respected by the nation and the world, and who deserve to win the next general elections with a two-thirds parliamentary majority.

They are indeed the latest living examples of the saying, “Man Proposes, God Disposes”. Read the rest of this entry »

By Emma Richards | 17th June 2017
Asian Correspondent

It’s got it all – super models, mega yachts, diamond necklaces, Hollywood superstars, fine art, and political intrigue.

While you could be forgiven for thinking I’m describing the latest extravagant and somewhat farfetched storyline of the latest James Bond outing, you would be wrong. For this story also involves a pudgy Malaysian businessman and the biggest theft in history from the coffers of the Malaysian tax payers.

I am, of course, referring to the 1 Malaysia Development Berhad (1MDB) scandal that has one again hit the headlines following the release of a 251-page court document issued Thursday by the US Department of Justice.

The document details the crafty workings of Malaysian financier Jho Low – among others, including Malaysian Prime Minister Najib Razak’s stepson Riza Aziz – who is accused of going on a lavish spending spree that beggars-belief with money stolen from the Malaysian people via the fund established by Najib in 2009 to promote economic development. Read the rest of this entry »

Straits Times
17th June 2017

These are some of the alleged assets bought using stolen funds from 1Malaysia Development Berhad (1MDB), as well as new pieces of information, detailed in the third filing by the US Department of Justice (DOJ) in its 251-page civil lawsuit.

“This money financed the lavish lifestyles of the alleged co-conspirators at the expense and detriment of the Malaysian people,” US Acting Assistant Attorney-General Kenneth Blanco said in a statement on Thursday.

The DOJ wants to seize the items as part of its Kleptocracy Asset Recovery Initiative. Read the rest of this entry »

By Una Galani
BreakingViews
Reuters
16 June 2017

1MDB’s money trail is quite something. Cash siphoned from the disgraced Malaysian sovereign fund ended up in a luxury yacht, technology startups, the movie “Dumb and Dumber To”, a pink diamond pendant, and artwork by Picasso and Basquiat, the U.S. Department of Justice alleges. This reads like a parody of the shopping habits of the rich and decadent.

With the latest filing, made public on Thursday, authorities now claim more than $4.5 billion was misappropriated between 2009 and 2015. Out of that, the DOJ is seeking to seize $1.7 billion of assets. The lawsuit shows in gritty detail how money was handled by the world’s biggest banks including Goldman Sachs and Deutsche Bank. They are not accused of wrongdoing, but no one comes out looking good in the largest case brought under the department’s so-called “Kleptocracy Asset Recovery Initiative”. Read the rest of this entry »

Aljazeera
17th June 2017

Malaysia officials have denied US allegations that the assets were stolen from the country’s sovereign wealth fund.

The US Department of Justice is seeking to recover $540m in assets that it says were stolen from Malaysia’s troubled sovereign wealth fund, prompting objections from Malaysian officials who said on Friday there was no evidence of such crimes.

The move by the United States, announced on Thursday, is part of an effort to seize luxury property, art, and other ill-gotten assets linked to fraud at the government-controlled fund, which is intended to promote economic development projects in the Asian nation.

It was the latest development in a complex money laundering scheme the Justice Department says was intended to enrich top-level officials of the fund, including some who are close to Malaysian Prime Minister Najib Razak.

Najib has denied wrongdoing. The prime minister’s press secretary, Tengku Sariffuddin, attacked the latest move and said: “The judicial process is not served by headline seeking.”

The Justice Department says more than $4.5bn has been stolen from the fund, known informally as 1MDB, which was created in 2009.

“This money financed the lavish lifestyles of the alleged coconspirators at the expense and detriment of the Malaysian people,” acting US Assistant Attorney General Kenneth Blanco said in a statement. Read the rest of this entry »

Congratulations to the sixth Prime Minister of Malaysia, Datuk Seri Najib Razak!

He has hit the international jackpot as no other incident in his seven years as Prime Minister has so dominated world headlines in the last 36 hours as his brainchild – the 1MDB monster – after the expanded United States Department of Justice (DOJ) litigation to forfeit another US$540 million of assets it alleged were stolen from 1MDB, bringing the total 1MDB assets US DOJ wants to be forfeited because of money-laundering to more than US$4.5 billion.

The latest US DOJ action has laid to rest the hopes of some in the inner Najib circle that the new US President Trump would quash the US DOJ kleptocratic action on 1MDB, as Najib boasts as Trump’s “golfing buddy” and “favourite Prime Minister” with Najib having a signed photograph of Trump on his desk.

Nobody knows whether Trump’s signed photograph would now be removed, but Trump is fighting for his political life, with the fastest worsening presidential approving rating falling below 40 per cent in the history of US Presidents and facing possible impeachment proceedings following investigation for obstruction of justice to have much time and thought for Najib and the 1MDB scandal. There is in fact a large betting market in the US as to whether Trump could finish his first term of office. Read the rest of this entry »