Day: August 3, 2016

FT View
Financial Times
3rd August 2016

Najib should stand aside while investigations run their course

The US Justice Department’s decision to seize more than $1bn in assets allegedly stolen from Malaysia’s sovereign wealth fund has sent shockwaves through the Southeast Asian nation. Until the US announcement last month, most Malaysians were resigned to creeping authoritarianism in their country as the prime minister, Najib Razak, concentrated power in his hands and eviscerated the last vestiges of independent governance.

Mr Najib has in effect removed anyone — from the deputy prime minister to the attorney-general — who questioned his role in the alleged theft of billions of dollars from 1 Malaysia Development Berhad (1MDB), the sovereign wealth fund he established in 2009.

Mr Najib’s party, United Malays National Organisation (Umno), has ruled the country without interruption for six decades with a mix of cash handouts and suppression of political opponents. But the alleged involvement of Mr Najib, his family and associates with the 1MDB scandal goes beyond the usual levels of corruption in Malaysia. Now the Obama administration has sent an implicit signal that Mr Najib no longer enjoys the unquestioning protection and support of the US. Continue reading “Malaysia forfeits US support with 1MDB graft”

By SARA SCHONHARDT in Jakarta and YANTOULTRA NGUI in Kuala Lumpur
Wall Street Journal
Aug. 2, 2016

JAKARTA, Indonesia — Malaysian Prime Minister Najib Razak, facing a loss of international standing as he wrestles with global investigations into alleged domestic corruption, on Tuesday urged countries not to meddle in the affairs of his Southeast Asian nation.

“I have always been a proponent of openness to the world and collaboration, but we must insist on respect for our own sovereignty, our own laws, and our own democratically elected governments,” Mr. Najib said at the opening of a summit on Islamic finance held in neighboring Indonesia.

Mr. Najib has struggled for more than a year in a scandal centered on the state investment fund 1Malaysia Development Bhd. He used a keynote address to the World Islamic Economic Forum to restate his country’s importance in Asian trade and security arrangements and as a counterbalance to Islamic extremism. Continue reading “Malaysia’s Najib Razak, Beset by Growing Scandal, Demands Respect”

DAP PJ Utara MP, Tony Pua has rightly castigated the Second Finance Minister, Datuk Johari Abdul Ghani for his indifference and lack of concern over Deloitte’s disavowal of its audited accounts for 1MDB for the years 2013 and 2014.

A week after the US Department of Justice (DOJ) civil action for forfeiture of over US$1billion 1MDB-linked assets out of US$3.5 billion misappropriated from 1MDB, Deloitte Malaysia said its audit of 1MDB in 2013 and 2014 would have been impacted if it had known at that time the information contained in the DOJ lawsuits to seize 1MDB-linked assets.

As such, Deloitte said that 1MDB’s 2013 and 2014 financial statements, which the auditing firm signed off on March 28, 2014 and Nov 5, 2014, “should no longer be relied upon”.

Johari’s statement on Monday that there was no impact on 1MDB for saying the 2013 and 2014 accounts that Deloitte edited should no longer be relied on is most irresponsible and shocking, and shows how little regard the Malaysian Government has for credibility, integrity, best corporate practices and good governance. Continue reading “Call on the Auditor-General and PAC to re-open investigations into 1MDB as the DOJ complaint about billion-dollar 1MDB global embezzlement, misappropriation, money-laundering and corruption have far-reaching impact on their Reports on 1MDB”