By Una Galani
Reuters
March 12, 2015

The author is a Reuters Breakingviews columnist. The opinions expressed are her own.

Malaysia’s 1MDB faces a daunting task. The six year-old sovereign fund was set up to finance big national projects but expanded too fast, took on heavy debts and is now at the centre of a growing controversy. An ambitious restructuring brings both political and financial risks.

The fund which counts Prime Minister Najib Razak as chairman of its board of advisors has pledged to dismantle itself following a strategic review led by new chief executive Arul Kanda. It plans to stop making new investments and raise cash through an initial public offering of Malaysia’s second largest independent power producer. Selling unused land and finding equity partners for real estate projects that include a new financial centre in Kuala Lumpur and a development built around the terminus for a planned high-speed rail link with Singapore should bring in additional funds.

1MDB’s most pressing objective is to pay down net debt, which stood at around 38 billion ringgit ($10.3 billion) in March 2014. In the same year it made a net loss of 665.4 million ringgit, despite booking a gain from the revaluation of its property portfolio. Absent similar revaluations, it also made a loss in the previous two years. Read the rest of this entry »

The London Sunday Times expose on Sunday, which shook the Najib administration to its very roots with reports of joint Sunday Times-Sarawak Report investigations into the RM42 billion 1MDB scandal and revelation that they have obtained access to thousands of 1MDB transactions and email which 1MDB had attempted at the end of last year to wipe out from all its computers, employee laptops and servers, started with the story of “The Whale”.

In its report “Harrow playboy linked to troubled Malaysian fund”, Sunday Times London of Sunday, 1st March 2015 which launched its series of investigation exposes on 1MDB scandal (which has forced the Malaysian authorities to seriously think of an “exit strategy” for Najib in 1MDB) opened as follows:

“IN THE summer of 2009, a Malaysian nicknamed ‘the Whale’ appeared on the New York nightclub scene. He would travel with a large entourage in a fleet of Cadillacs and his party would spend tens of thousands of dollars a night in the company of socialites such as Paris Hilton.

“’The Whale’ is said to have celebrated his 28th birthday with a four-day event in Las Vegas that included a party at a pool surrounded by caged lions and tigers. Manhattan was abuzz with questions over his identity and the source of his wealth.

“It emerged that the ‘mystery man’ of the nightclubs was the Malaysian tycoon Taek Jho Low, who had been educated at Harrow School and the Wharton School in Pennsylvania. He claimed his success was due to being in the ‘right place at the right time’. Read the rest of this entry »

The Cabinet meeting and outcome on 1MDB yesterday seemed to have been scripted and choreographed by the Prime Minister, Datuk Seri Najib Razak’s “master publicist” Paul Stadlen with one objective in mind, to avoid accountability for the RM42 billion 1MDB scandal in the whole month of Parliament beginning on Monday.

If true, this must be the first time a Cabinet anywhere in the world is led by the nose like a flock of sheep by a “master publicist” to play out the script choreographed even before the Cabinet meeting, which does not redound to the credit of Malaysia’s Ministers, whether their intelligence or integrity.

The cabinet decided, after 1MDB and its auditors provided a briefing on the company’s current situation and responded to a series of questions posed by Cabinet Ministers, including the Prime Minister and Deputy Prime Minister, that the debt-laden state investment firm 1MDB has done nothing wrong.

Did all the 35 Cabinet Ministers yesterday know what they were doing and fully understood the going-ons in 1MBD in the past six years when they issued a clean bill of health and integrity to 1MDB?

Were they presented with any Cabinet papers on the 1MDB to read and study before the Cabinet meeting?

Were they given access to the “thousands” of 1MDB transactions and email which London Sunday Times and Sarawak Report have said they have obtained access to, despite abrupt attempts by 1MDB at the end of last year to call in all of its computers, employee laptops and servers to wipe them clean of such transactions and emails? Read the rest of this entry »

Asia Sentinel
By Our Correspondent
Posted on March 1, 2015

Sarawak Report blog details how deeply a flamboyant financier and friend of PM Najib actually ran the fund

In December of last year, the controversial investment fund 1Malaysia Development Bhd abruptly called in all of its computers, employee laptops and servers and wiped them clean of all emails.
(Read: Controversial Malaysian Investment Fund’s Computer Records Wiped Off)

It was too late. The reason has come embarrassingly clear with a report by Clare Rewcastle Brown, the indefatigable blogger who edits The Sarawak Report. Rewcastle Brown had already obtained thousands of emails and documents before the shutdown, detailing that transactions by the fund were actually run by Taek Jho Low, a close friend of the family of Prime Minister Najib Tun Razak. There were times when the CEO of 1MDB, Shahrol Halmi, and his Malaysian colleagues had no idea what was going on.

Jho Low has repeatedly told the media that he has had nothing to do with 1MDB’s investment activities, and that he has received no money or benefits. But the emails allegedly show that he orchestrated a 2009 joint venture between 1MDB, as the fund is known, and a fledgling oil exploration firm called PetroSaudi International, which was little more than a shell. Read the rest of this entry »

I have just seen the Sarawak Report website claiming that together with London’s Sunday Times newspaper, it has completed an in-depth investigation into the trail of the missing billions at the heart of Malaysia’s 1MDB (One Malaysia Development Berhad) financial scandal.

It claimed to have obtained access to thousands of documents and emails relating to transactions by 1MDB, including its initial joint venture with the little known oil company PetroSaudi International from 2009.

It alleged that the documents establish that, in spite of copious official denials, the entire joint venture project was conceived, managed and driven through by the Prime Minister’s associate and family friend the party-loving billionaire tycoon, Jho Low and that the documents also prove that the USD$700 million so-called “loan” that was supposedly repaid to PetroSaudi as part of the joint venture agreement, was actually a “front” to channel the money to a company controlled by Jho Low.

It had previously been reported that all computers and servers at 1MDB had been called in and wiped clean just before the end of last year, and if it it is true that the combined investigation team of Sarawak Report and London Sunday Times have obtained access to “thousands of documents and emails” relating to transactions by 1MDB, then we have the makings of the biggest financial scandal in the nation’s history.
The RM42 billion 1MDB scandal is setting a record as the greatest of all the financial scandals in the country, eclipsing even the worst and biggest of Mahathir’s financial scandals. Read the rest of this entry »