Archive for category Financial Scandals
Alleged scandals surrounding Malaysian PM could have several consequences
Posted by Kit in Corruption, Financial Scandals, Najib Razak, Pakatan Harapan on Sunday, 27 September 2015
IAIN MARLOW
The Globe and Mail
Sep. 24, 2015
With a prime ministerial scandal burning away and acrid smoke shrouding huge swaths of Malaysia, one could be mistaken for thinking the government in Kuala Lumpur was quite literally going up in flames.
The smoke, of course, comes from forest fires illegally set to clear land on the nearby island of Sumatra. But it does provide a suitably gloomy backdrop for what’s happening to Prime Minister Najib Razak.
Mr. Najib, who has become increasingly unpopular, leads the United Malays political party and a coalition that has effectively controlled Malaysia since independence from Britain in 1957 – partly through electoral gerrymandering and censorship of the media. Despite other actions that make him unfit to lead a democracy, such as repeatedly jailing his main political opponent (a former deputy prime minister) on trumped up sodomy charges, he now finds himself at the centre of an ever-expanding series of corruption probes that have brought Malaysian politics to a standstill – and also threaten to bring his pseudo-authoritarian rule to an end.
These investigations, which began in Malaysia and have spread to the United States, relate to a sum of $700-million (U.S.) allegedly paid into bank accounts linked to the Prime Minister. Mr. Najib has denied he has done anything wrong and said the money came from a political donor in the Middle East, though he has not provided evidence. Read the rest of this entry »
From candidate as Tiger Economy to candidate for junk bonds – how far Malaysia has fallen under Najib!
Posted by Kit in Corruption, Finance, Financial Scandals, Najib Razak on Friday, 25 September 2015
From candidate as a Tiger Economy in the early nineties to a candidate for junk bonds – this is an indication of how far Malaysia has fallen under the premiership of Datuk Seri Najib Razak.
In two decades, Malaysia has transformed from a “darling” to a “villain” of the international media in our “transformation” from a model nation into a rogue state.
What has happened?
We seem to have the most useless and incompetent Cabinet in the nation’s history, unable to deal with the grave issues of the state at its meeting yesterday, especially the Sept. 16 Red Shirts Rally organized by UMNO which in fell swoop desecrated the concept and vision of Malaysia on the 52nd Malaysia Day anniversary and Najib’s own signature policy of 1Malaysia on the importance of racial peace, social harmony and national unity.
Nor was the Cabinet brave enough (with Najib absent, as the Prime Minister had left secretly for his UN, US and UK trip) to deal with two current issues which occurred after the last Cabinet meeting on 9th Sept, viz: (i) the Al Jazeera 101 East current affairs programme on “Murder in Malaysia” on new evidence on the brutal murder of Mongolian Altantuya Shaariibuu; and (ii) the New York Times report that a US federal grand jury is examining allegations of corruption and money laundering involving Najib and people close to him under the Department of Justice’s Kleptocracy Asset Recovery Initiative. Read the rest of this entry »
Pakatan Harapan’s Challenge – Turn the crisis-ridden Malaysia into an opportunity to initiate fundamental political and socio-economic changes to transform Malaysia into a vibrant, progressive and forward-looking nation instead of heading in the direction of a failed state
Posted by Kit in Crime, Financial Scandals, Law & Order, Najib Razak, Police on Thursday, 24 September 2015
Something has gone very wrong with Malaysia.
How did a country which was hailed as a model of Asian development and set to be one of the “Tiger” economies in the early nineties had so lost its way that it is today battling with a surfeit of negative developments and running the serious risk of becoming the “sick man of ASEAN” en route to become a failed state?
Three events illustrate that this Malaysian disease is reaching a terminal stage.
Firstly, there was yesterday’s charge of artist Bilqis Hijjas for dropping yellow balloons with the words “Justice”, “Democracy” and “Free Media” onto an event attended by the Prime Minister, Datuk Seri Najib Razak and his wife.
This is a reflection of a government which is petty-minded and insular instead of being visionary and inclusive.
Why can’t Najib be charitable and big-hearted enough to laugh off the incident and forgive Bilqis, instead of being vengeful and vindictive, demanding his pound of flesh for Bilqis’ creative and patriotic infraction?
Better still, if Najib could have met up with Bilqis and assure her that he is as concerned as her and others with the goals of justice, democracy and free media! Read the rest of this entry »
Malaysia’s Leader, Najib Razak, Faces U.S. Corruption Inquiry
Posted by Kit in Financial Scandals, Najib Razak on Wednesday, 23 September 2015
by Louise Story
New York Times
SEPT. 21, 2015
The embattled prime minister of Malaysia, facing mounting political turmoil and a parade of inquiries at home and abroad into a sovereign wealth fund that he oversees, is now coming under the scrutiny of American investigators as well.
A federal grand jury is examining allegations of corruption involving the prime minister, Najib Razak, and people close to him, according to two people with knowledge of the investigation.
The inquiry, being run by a unit of the Justice Department that investigates international corruption, is focused on properties in the United States that were purchased in recent years by shell companies that belong to the prime minister’s stepson as well as other real estate connected to a close family friend, said the people knowledgeable about the case, who asked for anonymity because they were not authorized to discuss it. Investigators are also looking at a $681 million payment made to what is believed to be Mr. Najib’s personal bank account. Read the rest of this entry »
Malaysia is pounded every day by a surfeit of lack of integrity issues and problems, which is hurtling Malaysia down slippery slope to failed state
Posted by Kit in Corruption, Financial Scandals, Najib Razak, Police on Sunday, 20 September 2015
Malaysia is pounded every day by a surfeit of lack of integrity issues and problems, which is hurtling Malaysia down the slippery slope to a failed state.
Something is very wrong with the national institutions and system of values, which have reached a very advanced stage of rottenness, when the Police confirmed today that the body found in a drum filled with concrete last Wednesday was that of deputy head of the Attorney-General’s Chambers Appellate and Trial Division, Anthony Kevin Morais.
Morais’ abduction and gruesome murder were believed to be related to a corruption case he was handling.
Today, we have three bad news all related to one mega corruption scandal in Malaysia – the long-running M50 billion 1MDB scandal, viz:
• FBI starts probe on 1MDB, says WSJ (Malaysiakini)
• Ambiga says ‘appalled’ by 1MDB critic’s six-day demand (MMO)
• Najib risks arrest if he travels abroad, says Dr Mahathir – by V. Anbalagan (TMI)
Questions teem everyone’s mind. Read the rest of this entry »
Malaysia Fund 1MDB’s Missing Money Problem Grows
Posted by Kit in Financial Scandals, Najib Razak on Friday, 18 September 2015
By BRADLEY HOPE And TOM WRIGHT
The Wall Street Journal
Sept. 17, 2015
Questions around a troubled Malaysian state investment fund and missing money in the Middle East have widened to include as much as $1 billion more.
The Wall Street Journal reported last week that officials in Abu Dhabi were trying to understand why a $1.4 billion transfer that the fund, 1Malaysia Development Bhd., said it made to a counterparty in the Middle Eastern emirate wasn’t received. Now, those officials are questioning a further $993 million that 1MDB reported it paid to the Abu Dhabi fund, the International Petroleum Investment Co., but which also appears to be largely missing, people familiar with the matter said.
Officials from 1MDB and IPIC didn’t respond to requests for comment.
The questions deepen the mystery around 1MDB, which was set up by Malaysian Prime Minister Najib Razak in 2009 to invest in Malaysia’s economy. The fund is now struggling to repay more than $11 billion in debt and is at the center of a corruption scandal that is destabilizing Mr. Najib’s government. Read the rest of this entry »
Malaysia Acts to Save its Markets from Crisis
Posted by Kit in Finance, Financial Scandals, Najib Razak on Tuesday, 15 September 2015
By John Berthelsen
Asia Sentinel
September 14, 2015
Najib says this should do It
Rising economic and political problems could render Najib’s moves ineffective
Malaysian Prime Minister Najib Razak’s announcement that a revived government equity investment firm intends to pour RM20 billion (US$4.6 billion) into shoring up the country’s stock market may face serious headwinds in a flagging economy.
“Malaysia’s market is much thinner than China’s so RM20 billion could make quite a bit of difference. On a fundamental basis the ringgit is grossly oversold and probably Malaysian equities are too,” said a Hong Kong-based financial analyst who covers Malaysia. “The problem is that fundamentals fly out of the window when there is growing concern about the probity of the political elite and the direction of policy. Malaysia has to resolve the 1MDB debacle before the market and the currency can stabilize and recover. That was supposed to happen in January and we are still waiting, which reflects entirely the poor economic and political management of the country.” Read the rest of this entry »
Congrats to UMNO for being “more united than ever” although the UMNO President had for the first time in history to sneak in and out of UMNO headquarters from the backdoor to avoid the unfriendly UMNO crowd in front
Posted by Kit in Corruption, Financial Scandals, Mahathir, Najib Razak, UMNO on Thursday, 10 September 2015
After yesterday’s UMNO Supreme Council meeting, UMNO leaders including the Barisan Nasional Strategic Communications Director, Datuk Abdul Rahman Dahlan who is also Minister for Urban Wellbeing, Housing and Local Government, were at pains to convince all and sundry that UMNO is now “more united than ever”. (NST)
Congratulations is in order to UMNO for being “more united than ever” although the UMNO President and Prime Minister, Datuk Seri Najib Razak had, for the first time in history of any UMNO President, to sneak in and out of UMNO headquarters from the backdoor to avoid the unfriendly UMNO crowd in front.
But the UMNO Supreme Council meeting failed miserably in assuring the public and the world that the governing coalition has the blueprint and the political will to end the prolonged crisis of confidence plaguing the country.
The UMNO/BN leadership were not only unable to bring a closure to the two mega financial scandals which had undermined national and international confidence in the Malaysian government – the RM50 billion 1MDB and the RM2.6 billion “donation” in the Prime Minister’s personal accounts twin scandals – but have allowed new issues to escalate and deepen the crisis of confidence in the country like the Red Shirt “Kebangkitan Maruah Melayu” rally in Kuala Lumpur on Sept. 16. Read the rest of this entry »
Bar Council seeks lawyers’ nod to sue anyone blocking probe into 1MDB, RM2.6 billion donation
Posted by Kit in Constitution, Corruption, Financial Scandals, Judiciary, Law & Order on Thursday, 10 September 2015
BY V. ANBALAGAN, ASSISTANT NEWS EDITOR
The Malaysian Insider
9 September 2015
The Bar Council wants its members to give their mandate to take legal action against any person responsible for obstructing investigations into the 1Malaysia Development Berhad (1MDB) fiasco and the case of the RM2.6 billion “donation” channelled into the prime minister’s private accounts.
This is among the suggestions forwarded by president of the Malaysian Bar Steven Thiru, who will move the motion at its emergency general meeting in Kuala Lumpur on Saturday.
Copies of the motion were sent to 16,000 lawyers in the peninsula yesterday.
A copy of the motion, sighted by The Malaysian Insider, also stated that the Bar mandates the council to take steps to affirm and preserve the rule of law, to uphold the Federal Constitution and to protect the administration of justice. Read the rest of this entry »
Malaysian prime minister weathers ‘people power’ movement — for now
Posted by Kit in Financial Scandals, Najib Razak on Wednesday, 9 September 2015
Global Risk Insights
September 2015
Malaysia’s prime minister has so far weathered anti-government protests calling for his removal. Without political stability and a strengthened economy, his long-term prospects of survival seem uncertain.
The Malaysian capital of Kuala Lumpur witnessed two days of anti-government protests over the weekend of August 29-30. The 34-hour marathon protests were organised by Bersih, an electoral reform group calling for the prime minister’s removal due to allegations of corruption.
These allegations relate to the 1MDB financial scandal, which has dogged Prime Minister Najib Razak since early July. The 1MDB investment fund is at the centre of an anti-corruption probe, which allegedly uncovered evidence of funds being channelled to accounts owned by Najib. Read the rest of this entry »
Malaysia’s Badly Timed Political Scandal
Posted by Kit in Financial Scandals, Najib Razak on Wednesday, 9 September 2015
By Editorial Board
Bloomberg
Sept 8, 2015
The storm sweeping over emerging markets has hit Malaysia at an especially fraught moment, with Prime Minister Najib Razak embroiled in a $700 million funding scandal. The country’s economic difficulties are bad enough by themselves. The political turmoil makes them all the harder to deal with.
Najib denies accusations that almost $700 million found its way from a state investment fund into his private accounts, and Malaysia’s anti-corruption commission has declared that the money represents donations from anonymous Middle Eastern sources. This explanation failed to satisfy the thousands of protesters who took to the streets of Kuala Lumpur last month to demand Najib’s ouster.
Leaders of the ruling United Malays National Organization, which has governed the country since independence in 1957 and has long prized loyalty over accountability, will certainly support Najib when they meet on Wednesday. But they need to ask themselves whether maintaining the political status quo is worth the continuing damage to Malaysia’s financial reputation and prospects for growth. Read the rest of this entry »
Malaysia’s 1MDB Fund Scandal Spreads to U.A.E.
Posted by Kit in Financial Scandals, Najib Razak on Wednesday, 9 September 2015
By BRADLEY HOPE and TOM WRIGHT
Wall Street Journal
Sept. 8, 2015
At issue is a $1.4 billion payment from 1MDB that officials at an Abu Dhabi investment fund said is missing
The corruption scandal around an economic-development fund in Malaysia is spilling beyond the country’s borders, as officials at a United Arab Emirates state investment vehicle raise questions about more than a billion dollars in money that they said is missing.
Abu Dhabi has long been a source of support for the fund, 1Malaysia Development Bhd., which was set up six years ago by Malaysian Prime Minister Najib Razak to develop new industries in the Southeast Asian country. Now, as 1MDB tries to fend off a cash crunch, its backers in Abu Dhabi are asking what happened to a $1.4 billion payment the fund said it made but which they never received, two people familiar with the matter said.
The dispute comes as Mr. Najib is battling a separate scandal linked to 1MDB. Malaysian investigators are examining the transfer of hundreds of millions of dollars into the prime minister’s alleged private bank accounts through entities linked to 1MDB. The disclosures have sparked a political crisis and set off a handful of investigations around the world, destabilizing the government and damaging confidence in Malaysia’s economy. Read the rest of this entry »
Three days of global PR disaster for Malaysia in the 16th IACC warrants Emergency Parliament in next fortnight to find answers to the corruption crisis in Malaysia
Posted by Kit in Corruption, Financial Scandals, Najib Razak, Parliament on Saturday, 5 September 2015
The three-day 16th International Anti-Corruption Conference (IACC) in Putrajaya were three days of global public relations (PR) disaster for Malaysia, a shameful 72-hour torment on the pride, honour and dignity of Malaysia never experienced by Malaysians in nearly six decades of nationhood.
It started with the Prime Minister, Datuk Seri Najib Razak’s last-minute, panicky and ill-advised pull-out from the opening ceremony of the IACC (in fear of hard questions, “personal issues” and “a possible hostile reception”), replaced by the Minister in the Prime Minister’s Department, Datuk Paul Low, who started his speech with the cryptic remark: “I am not here to defend the PM. I am here fighting for my job.”
Right from the very beginning of the opening ceremony, Malaysia’s corruption crisis, in particular the “two elephants in the room”, the RM50 billion 1MDB and RM2.6 billion “donation” financial scandals, took centre-stage and remained the most obsessive issue throughout the three-day conference, up to the closing ceremony. Read the rest of this entry »
Malaysia’s economic frailty is all too familiar
Posted by Kit in Finance, Financial Scandals, Najib Razak on Thursday, 3 September 2015
David Pilling
Financial Times
September 2, 2015
The country is facing comparisons with the 1997 Asian financial crisis
Malaysia is in the middle of a political maelstrom. But the country’s worries do not stop with the scandal affecting Najib Razak, the prime minister. Weak oil prices, a creaking Chinese economy and the prospect of higher US interest rates have all hit Southeast Asia’s third-biggest economy simultaneously. Could this be a re-run of the 1997 financial crisis?
Critics will call such a scenario alarmist. In many ways, Malaysia appears to be in better shape than it did before the last Asian financial crisis. It has had consistent current account surpluses, as opposed to deficits in the run-up to 1997. Its foreign exchange reserves, though depleted, are nearly double the four months’ export cover it had in 1996, the year before the precipitous fall of the Thai baht triggered capital flight all over Asia. Malaysia was not the worst affected back then. That honour went to Indonesia. Even so, Malaysia’s economy shrank more than 6 per cent in 1998. Read the rest of this entry »
Bersih 4 and 1MDB: Cleansing Malaysia and cleaning out Malaysia
Posted by Kit in Bersih, Financial Scandals on Tuesday, 1 September 2015
— Koon Yew Yin
Malay Mail Online
August 31, 2015
AUGUST 31 — Two big issues have taken up the national attention during the past few weeks. One is the Bersih rally or what can be called the cleaning of Malaysia organised by civil society activists. The second is the 1MDB scandal which can be called the cleaning up of Malaysia organised by Putrajaya.
The first one cost taxpayers — or rather donors —several millions of ringgit. Though the full accounts are not in yet, we know that thousands of ordinary Malaysian dipped into their own pockets to pay for this activity. Much of the money is in small change – tens to hundreds of ringgit. The funds will be used to defray the costs of organising rallies held throughout the country to demand the cleaning up of our political system as well as to save our economy. The objectives of Bersih 4 in summary are as follows:
Clean Elections (#PilihanrayaBersih);
Clean Government (#KerajaanBersih);
Save Our Economy (#SelamatkanEkonomi); and
Right to Dissent (#HakMembantah). Read the rest of this entry »
Acknowledgement by IGP Khalid that “no confidence” move against Najib is neither criminal nor police concern will allow a proper and less inhibited discussion of alternatives to the present Najib administration
Posted by Kit in Finance, Financial Scandals, Good Governance, Najib Razak on Tuesday, 25 August 2015
The country is sick and in crisis.
Today sees the rout of the Malaysian ringgit which fell to a record 17-year low of 4.26 to a US dollar and another record low of 3.08 against the Singapore dollar.
Malaysia’s foreign exchange reserves fell 19% since the start of the year, dipping below the US$100 billion for the first time last month since 2010, fueling speculation that Bank Negara is digging into the reserves to shore up the currency.
It has fallen to US$94.5 billion on August 14 from US$96.7 billion on July 31.
The lower a country’s forex reserves, the less it is able to do to shore up a sinking currency.
Meanwhile, capital outflows from the country are accelerating, to three times the size of capital investments in the country in Q1.
The reserves slid four times as fast as Indonesia, whose rupiah is the second worst-performing currency in the region. Read the rest of this entry »
1MDB a 1-tonne millstone
Posted by Kit in Bersih, Financial Scandals on Tuesday, 25 August 2015
George Chang
The Malaysian Insider
25 August 2015
Are those joining the Bersih 4 rally in various parts of the globe in bed with the conjured-up conspirators to sabotage the economy and dislodge Prime Minister Datuk Seri Najib Razak from office?
Look at the mess the government is in and you won’t fault them for wanting to see the PM go.
There is indeed frustration and anger with the state of affairs, and for those who identify themselves as Malaysians abroad, the rally is an opportunity to show their solidarity with the people back home.
After all public protests are very much part and parcel of life in the west.
No one in authority is going to threaten or stop you from attending a political gathering let alone an “illegal assembly”. A rally is a “proper channel” to voice your grievances. Read the rest of this entry »
Is there a reprieve in sight for the ringgit?
Posted by Kit in Finance, Financial Scandals, Najib Razak on Sunday, 23 August 2015
G. Sharmila
KiniBiz
August 21, 2015
TigerTalk
The ringgit has taken more than its fair share of beatings this month, weakening past the 4.0 level against the greenback and some analysts are predicting that it will hit the 4.2 level. Tiger thinks that the currency desperately needs a reprieve and believes that it may happen, though not as soon as she would like.
“Desperation is like stealing from the Mafia: you stand a good chance of attracting the wrong attention.” – Douglas Horton
A special trait that all Tigers have is the ability to sniff out desperation kilometres away from the source, which is usually an unfit kijang struggling to get away or a human being desperately climbing a tree to avoid being eaten by yours truly and the rest of her kind.
But the desperation of the worst kind is when it comes from panicking investors – in this case, those heedlessly fleeing from the weak ringgit. Tiger thinks in some ways they are unjustified and believes that there could be a reprieve in sight for the ringgit, if a confluence of factors take place sooner rather than later. Read the rest of this entry »
Najib Razak has too much power for Malaysia’s good
Posted by Kit in Corruption, Election, Financial Scandals, Najib Razak on Thursday, 20 August 2015
David Pilling
Financial Times
August 19, 2015
Once a model of development, the country’s reputation is sinking and so is that of the PM
The story is that in March 2013 one or more unnamed Middle Eastern donors transferred a total of nearly $700m into the personal account of Najib Razak, prime minister of Malaysia. The generous amount was a donation to be lavished on that year’s election campaign of the ruling United Malays National Organisation as Mr Najib saw fit. So sordid are the goings-on in Malaysia these days that, astonishingly, this is not the case being mounted against the prime minister. This is the case for Mr Najib’s defence. Malaysia’s widely lampooned prime minister is in such a deep, dark and money-stuffed hole that this is the version of events being promoted by his allies.
It was also the finding this month of the Malaysian Anti-Corruption Commission. It turns out that an anonymous donation from a foreign benefactor is the least damaging explanation of how 2.6bn ringgit found its way into Mr Najib’s account. The prime minister has denied committing any wrongdoing or accepting money for personal gain.
If this is the positive take, the negative version is worse. Read the rest of this entry »
Escaping Najib’s Malaysia, Investors Also Flee Currency and Stock Market
Posted by Kit in Financial Scandals, Najib Razak on Wednesday, 19 August 2015
Y-Sing Liau and Lilian Karunungan
Bloomberg
August 19, 2015
While Malaysian Prime Minister Najib Razak’s cabinet overhaul may have achieved the “unified team” he was seeking in the face of probes into his bank accounts, global funds have been voting with their feet.
The ringgit has slumped 6 percent, the benchmark stock index lost 8 percent and sovereign bond risk jumped to a four-year high since the Malaysian Anti-Corruption Commission on Aug. 3 said Najib had received 2.6 billion ringgit ($634 million) from donors and not state investment company 1Malaysia Development Bhd. The conclusion failed to help 1MDB’s bonds, which are trading at 82 cents on the dollar.
PineBridge Investments LLC has cut Malaysian sovereign bond holdings, while Schroder Investment Management Ltd. says it’s too early to buy Asia’s worst-performing currency, as political uncertainty clouds the outlook for an economy rocked by plunging oil prices and an emerging-market selloff. Najib denies taking money for personal gain and has counterattacked against what he described as a campaign to oust him, by reshuffling his cabinet, suspending a leading newspaper and seeking the arrest of a newsletter’s founder. Read the rest of this entry »
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