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Does Najib really believe that all Malaysians wake up this morning fully relieved that the twin mega scandals have disappeared into thin air?

If Malaysians wake up this morning with the feeling, hey presto, the 1MDB scandal has disappeared into thin air, then Prime Minister Datuk Seri Najib Razak would be fully vindicated with his upbeat 2016 New Year Message that he had delivered what he had promised in June last year that all the problems facing 1MDB will be resolved by the end of 2015.

If a poll is conducted among Malaysians, I dare say that there is not a single person who in the past year had been haunted and hounded by the 1MDB issue would feel on waking up this morning of being fully relieved of the pressures of the accountability, transparency, good governance and integrity dimensions and implications of the scandal.

In fact, the reverse is the case.

Najib’s twin RM2.6 billion “donation” and RM55 billion 1MDB mega scandals have by the end of the year become even bigger and more overwhelming than at any time of last year, as both mega scandals have achieved the virtually impossible feat of accumulating like a snowball even more questions than answers with each passing month! Continue reading “Does Najib really believe that all Malaysians wake up this morning fully relieved that the twin mega scandals have disappeared into thin air?”

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Shame of shame – Malaysia named among world’s six “worst corruption scandals of 2015”

It is a shame of shame – Malaysia named among the world’s six “worst corruption scandals of 2015” by the international website, foreignpolicy.com, which is published daily online by the Slate Group, a division orf Washington Post Company.

A report uploaded on Dec. 29 (Washington time), entitled “The worst corruption scandals of 2015” said that “massive corruption scandals embroiled world leaders, high court judges, and the men who run the world’s soccer industry, among many others” in 2015.

Heading the list of infamy was the FIFA (the Federation Internationale de Football Association) corruption, followed by Nigeria, with Malaysia in a dishourable third place.

The rest were taken up by Honduras and Guatemala which took fourth place, Ghanian judges and the UN General Assembly fifth and sixth places.

The infamous plaque of dishonour for Malaysia cited as follows: Continue reading “Shame of shame – Malaysia named among world’s six “worst corruption scandals of 2015””

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1MDB’s love affair with the Arab world

By Khairie Hisyam | Kinibiz
DECEMBER 21, 2015 8:00AM


From its first ever deal seven years ago, controversial 1MDB has had a persistent association with parties from the Arab world. The pressing question, on account of its mysterious and self-harming decisions while benefitting these friends, is why.

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When it was first set up as Terengganu Investment Authority (TIA) in early 2009, 1Malaysia Development Bhd (1MDB) set out to drive strategic development of national interests. After it was taken over by the federal government by mid-2009, however, the meaning of “strategic” seems to have taken an Arabic flavour.

The company’s board of advisors, for starters, count two prominent Middle Easterners as advisors – former Qatar prime minister Sheikh Hamad Bin Jassim Bin Jabr Al-Thani as special advisor while advisor Khaldoon Khalifa Al Mubarak is CEO of Mubadala Development Co, an investment company owned by the Abu Dhabi emirate in the United Arab Emirates.
Continue reading “1MDB’s love affair with the Arab world”

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A virtually impossible feat – Najib’s twin mega scandals entering new year in 36 hours with even more questions than answers

Prime Minister Datuk Seri Najib Razak’s twin mega scandals – the RM2.6 billion “donation” and RM55 billion 1MDB – have performed a virtually impossible feat, entering the new year in some 36 hours with even more questions than answers.

This, despite being the subject of multiple investigations inside the country – at one time, even by the highest-powered multi-agency Special Task Force under four “Tan Sris” led by the then Attorney-General Tan Sri Gani Patail himself until Gani was summarily sacked in a government purge on July 28 whose victims included the Deputy Prime Minister, Tan Sri Muhyiddin Yassin and the Special Task Force dissolved – and the target of separate investigations by at least seven foreign countries, the United Kingdom, Switzerland, Abu Dhabi, Singapore, Hong Kong, Australia and United States.

How could this happen?

On Monday (Dec. 28), Deputy Prime Minister, Datuk Seri Zahid Hamidi urged the people not to fall for the latest report by the Wall Street Journal (WSJ) which cited an unknown source in explaining how US$850 million was transferred from 1MDB to a phantom offshore entity. Continue reading “A virtually impossible feat – Najib’s twin mega scandals entering new year in 36 hours with even more questions than answers”

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How 1MDB overpaid for its power assets

BY KHAIRIE HISYAM | Kinibiz
DECEMBER 20, 2015 10:30AM


On Nov 23, 2015, 1MDB announced that it has signed a deal with China General Nuclear to sell its power assets in return for RM9.83 billion in cash. This sale at a massive loss brings full circle its questionable purchases of the power assets while paying grossly inflated figures several years ago.

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Most of 1MDB’s power assets were acquired within a 16-month time frame between March 2012 and July 2013. The spending spree raised many questions at the time, which remain unsatisfactorily unanswered as at writing time.

The underlying logic of buying over independent power producers (IPPs), as understood by market observers, would likely be the strong cash flow. Continue reading “How 1MDB overpaid for its power assets”

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1MDB and the Money Network of Malaysian Politics

by Tom Wright and Bradley Hope
Wall Street Journal
Dec. 28, 2015

Prime Minister Najib Razak tapped wealth fund to ease ruling-party’s victory

KUALA LUMPUR — Malaysian Prime Minister Najib Razak was fighting for his political life this summer after revelations that almost $700 million from an undisclosed source had entered his personal bank accounts.

Under pressure within his party to resign, he called together a group of senior leaders in July to remind them everyone had benefited from the money.

The funds, Mr. Najib said, weren’t used for his personal enrichment. Instead, they were channeled to politicians or into spending on projects aimed at helping the ruling party win elections in 2013, he said, according to a cabinet minister who was present.

“I took the money to spend for us,” the minister quoted Mr. Najib as saying. Continue reading “1MDB and the Money Network of Malaysian Politics”

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How 1MDB overpaid Goldman Sachs

BY KHAIRIE HISYAM | Kinibiz
DECEMBER 18, 2015 8:00AM

With a number of questionable dealings over its seven years or so of existence, a considerable part of 1MDB’s shenanigans have involved Goldman Sachs who were handsomely, and extremely generously, rewarded. But why is the US firm so close to 1MDB?

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As the fires of the 1Malaysia Development Bhd (1MDB) controversy, long confined to embers unnoticed by the public, continue burning this year, authorities foreign and domestic have turned their attention to one of the company’s friends: Goldman Sachs.

It is no secret that Goldman Sachs seems to enjoy an intimate working relationship with 1MDB, having seen its services engaged for all three of 1MDB’s foreign market bond issuances.
Continue reading “How 1MDB overpaid Goldman Sachs”

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Another questionable use of loans – the Goldman bonds

BY P. GUNASEGARAM | Kinibiz
DECEMBER 17, 2015 8:00AM


In just one year, 2013, 1MDB had a huge US$6.5 billion (some RM27 billion at current exchange rates) of borrowings from bonds arranged by Goldman Sachs, nearly 65% of total borrowings. The problem is that it is not possible to ascertain how the funds were used.

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In 2013, 1Malaysia Development Bhd (1MDB) finalised US$3.5 billion through two bonds of US$1.75 billion each, both jointly guaranteed by 1MDB and International Petroleum Investment Co (IPIC). They carried effective interest rates of close to 6% (see Part 3 of this issue on the bond mispricing).

And then there was the US$3 billion bond, also priced at around 6% effectively, which had a letter of support from the Malaysian government.
Continue reading “Another questionable use of loans – the Goldman bonds”

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How 1MDB lost RM6 bil through bond mispricing

BY KINIBIZ
DECEMBER 16, 2015 8:00AM


1MDB has already lost some RM6 billion by mispricing its bonds. So was this deliberately done, and whose pockets ended up bursting at the seams?

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A big chunk of 1Malaysia Development Bhd’s (1MDB) fundraising over the years had been through issuing bonds. However, the company had been massively underpricing its bonds, losing some RM6 billion according to KINIBIZ estimates – and this is not paper but real, cold, hard cash.

When a bond is issued, it has a coupon rate and a face value. The coupon rate typically remains constant over the life of the bond and is a promise by the issuer to pay a certain percentage of the face value of the bond each year.

Bonds are commonly priced to give roughly similar yields as other comparable bonds in the open market. Yields are the annual coupon payments for the year divided by the price of the bond. Yields are adjusted by raising or lowering the bond price – they move in opposite directions.
Continue reading “How 1MDB lost RM6 bil through bond mispricing”

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The colourful family and friends of 1MDB

BY KHAIRIE HISYAM | KiniBiz
DECEMBER 15, 2015 8:00AM

From its inception to the present-day state of disarray, 1MDB counts an interesting – and colourful – group of people who are either directly involved in its operations or who are linked to the company in some manner.

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Controversial 1Malaysia Development Bhd (1MDB) has a “triple-tier” corporate governance structure, with a board of advisors chaired by the prime minister himself in addition to having a board of directors overseeing the senior management team.

That adds another shade of perplexing contradiction in light of the company’s dodgy dealings and controversial decisions in the past. KINIBIZ examines in no particular order some important characters involved:

Jho Low, the dealmaker Continue reading “The colourful family and friends of 1MDB”

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Anatomy of a money-spinner

BY P. GUNASEGARAM | Kinibiz
DECEMBER 14, 2015 8:00AM


The very setting up of 1MDB and its operations was aimed at spinning billions out of this self-styled strategic development company owned by the government for the benefit of various others. The eventual cost of this to the country might be as high as RM42 billion.
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[Note to readers: This article and the associated charts provide an overview map of our coverage of 1MDB, and attempt to link the various parts to the whole. The information for the series is obtained from various sources both public and private and includes reported content elsewhere and others from our own sources, which we believe to be accurate. Figures have been rounded off where it makes things clearer.]

Even before it became 1Malaysia Development Bhd (1MDB), it was mired in controversy as Terengganu Investment Authority (TIA) in 2009, Terengganu’s very own sovereign wealth fund. TIA was to be kickstarted with a RM5 billion bond issue guaranteed by the federal government.
Continue reading “Anatomy of a money-spinner”

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Was Hasan Arifin speaking for PAC or only for himself about being “satisfied” with Arul Kanda’s testimony on 1MDB, and if the former, was a vote taken of the PAC members whether they are “satisfied” with Arul’s evidence?

On the way to the launch of the Perak State Pakatan Harapan in Ipoh from a DAP dinner at Chuichak new village, I read that after its meeting today, the Public Accounts Committee (PAC) chairman Datuk Hasan Arifin issued a statement saying that he is satisfied with 1MDB president Arul Kanda Kandasamy’s explanation after a three-hour grilling.

I find Hasan’s statement most shocking as it contradicted the earlier statement by Tony Pua, the PAC member who is most knowledgeable about 1MDB, who had said that Arul Kanda’s answers were “not perfect” and “incomplete” and that the 1MDB president had evaded certain questions.

When Hasan said he was “satisfied” with Arul Kanda’s explanations at the continued PAC investigations into the 1MDB, was this a reflection of his “cari makan” mode of operation or did he take a vote from the PAC after Arul Kanda’s testimony to determine whether the PAC was “satisfied” with the 1MDB CEO’s testimony?

If Hasan had not taken a vote of PAC after Arul Kanda’s testimony, and merely given his own views, he was guilty of misleading Members of Parliament and the Malaysian public who have been following the PAC proceedings with great interest and anticipation.

The Malaysian public does not want the views of a “cari makan” PAC Chairman but the views of the PAC as determined by a vote as to whether PAC is satisfied with Arul Kanda’s testimony. Continue reading “Was Hasan Arifin speaking for PAC or only for himself about being “satisfied” with Arul Kanda’s testimony on 1MDB, and if the former, was a vote taken of the PAC members whether they are “satisfied” with Arul’s evidence?”

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Abdul Rahman can only play with tweets as he has no input on the two seismic developments in the country – Najib’s galloping twin mega scandals and his courtship of Hadi and PAS leadership

My commiseration with Datuk Abdul Rahman Dahlan.

He is feeling so lonely and forlorn after he thought he has clambered up the mountain to deserve a special place next to the “The Chosen One”.

What a disappointment for him to find that he had been replaced or overtaken by others, even by a “political junior” from his home state, who have gone ahead to become the Minister for Communications and Multimedia, a position which is more important and higher on the political protocol than his recent sinecure as the Barisan Nasional Director of Strategic Communications (whatever that means).

I stand by what I said about him on July 24, 2015:

“Minister for Urban Well-being, Housing and Local Government, Datuk Abdul Rahman Dahlan will be guilty of the greatest national disservice if the sole agenda of his appointment as Barisan Nasional Strategic Communications Director is to distract attention from Wall Street Journal’s (WSJ) July 2 report that Malaysian government investigators have found US$700 million (RM2.6 billion) deposited into the Prime Minister, Datuk Seri Najib Razak’s personal accounts in AmBank in 2013 just before the 13th General Election instead of helping to establish the facts of the Prime Minister’s alleged RM2.6 billion personal accounts.

“Since his sudden appearance as BN Strategic Communications Director the previous Wednesday, Rahman had got so much eggs on his face, and on a daily basis, that it is virtually impossible to find a centimeter on his face which is not egg-splattered – whether because of Rahman’s “God-send” Lester Melyani; Lester’s utterly discredited video confession even before all the parts had been aired publicly; the crazy and counter-productive notion for Malaysian Communications and Multimedia Commission (MCMC) to block access to Sarawak Report (forcing Malaysians to undergo an instant education of how to circumvent official Internet blocks) or the hyping of patriotic and valiant efforts to pry open the RM42 billion 1MDB financial scandal whether by journalists in the Edge or by MPs like Tony Pua and Rafizi Ramli as offences like ‘activities detrimental to parliamentary democracy’, sabotage, ‘toppling the elected government’ or even treason!”

Continue reading “Abdul Rahman can only play with tweets as he has no input on the two seismic developments in the country – Najib’s galloping twin mega scandals and his courtship of Hadi and PAS leadership”

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Adenan Satem’s speech no more an unqualified endorsement but indication of the Sarawak Chief Minister’s wavering support for Najib as Prime Minister of Malaysia

The Sarawak Chief Minster, Datuk Adenan Satem, made headlines on Internet news this evening with his speech in the Sarawak State Assembly that Sarawak Barisan Nasional is prepared to reconsider its loyalty to Prime Minister, Datuk Seri Najib Razak if he latter is found to have committed wrongdoings in relation to 1MDB.

He told the Sarawak State Assembly: “I can give you assurance that if he is found guilty of 1MDB-related offences, then we might reconsider our loyalty to him.”

Adenan’s speech created waves because he sounded so brave, daring and independent, unlike the other servile and supine BN Chief Ministers, Mentri Besar or Ministers, in being prepared to draw a line with the Prime Minister if Najib is found guilty of wrongdoing in connection with the 1MDB controversy.

But further thought will show that such reactions are misplaced.

In the first place, is Adenan suggesting that there is a possibility that he and Sarawak Barisan Nasional will continue to be loyal to Najib as the Prime Minister of Malaysia and Chairman of Barisan Nasional even if Najib is found guilty of offences and wrongdoings related to the 1MDB controversy?

I would have thought that if Najib had been found guilty of offences in connection with 1MDB by any court of law, this would automatically mean forfeiture of all loyalty to Najib as Prime Minister and BN Chairman not just by Adenan or Sarawak BN but by all the other BN leaders in other states and even nationally.

Is there any room for doubt that this would be the case?

Secondly, the political facts of life of Malaysia will ensure that so long as he is Prime Minister, Najib will never be found guilty of wrongdoing or offences in connection with 1MDB by any court of law.

Adenan’s brave statement therefore means nothing at all, what Shakespeare said about “full of sound and fury, signifying nothing”! Continue reading “Adenan Satem’s speech no more an unqualified endorsement but indication of the Sarawak Chief Minister’s wavering support for Najib as Prime Minister of Malaysia”

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Najib must learn quick and fast that there is no way to resolve his grave problem of trust deficit unless he gives full and satisfactory accountability on his twin mega scandals

Datuk Seri Najib Razak’s trust deficit, already lowest for any Prime Minister among all racial groups in the nation’s 58 year history, continued to nose-dive after the UMNO General Assembly, with over a dozen adverse developments and stories keeping Najib’s twin mega scandals alive and kicking in the past three days.

There were six such adverse stories in the last 24 hours in Malaysiakini, viz:

1. PM’s flirtation with gaming world draws scorn

2. Australian court shuts down 1MDB-linked funds

3. Delay in handing over auditor-general’s 1MDB report to PAC

4. To uncover 1MDB truth, cross examine Najib in court – by Nurul Izzah and Tian Chua.

5. The colourful family and friends of 1MDB

6. Malaysian police record Justo’s statement in Bangkok

A day earlier there were two news reports about former MCA President Tun Dr. Ling Liong Sik legal entanglements with Najib’s over the latter’s twin mega scandals, about Najib’s claim against Ling and Ling’s counter-claim against Najib, and the former MCA President’s accusation that Najib had not instituted the legal suit against Ling with the genuine intention to seek legal redress, or Najib should have sued all UMNO leaders, past and present, who have criticised him, such as Tun Mahathir as well as Wall Street Journal and Sarawak Report. Continue reading “Najib must learn quick and fast that there is no way to resolve his grave problem of trust deficit unless he gives full and satisfactory accountability on his twin mega scandals”

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Malaysians do not want to hear from Zahid or even the MACC – they want Najib himself to stop procrastinating and prevaricating and to give full and satisfactory accountability on the RM2.6 billion “donation” and RM55 billion 1MDB twin mega scandals

Malaysians do not want to hear from the Deputy Prime Minister, Datuk Seri Zahid Hamidi or even by the Malaysian Anti-Corruption Commission (MACC), as they want the Prime Minister, Datuk Seri Najib Razak himself to stop procrastinating and prevaricating and to give full and satisfactory accountability on the RM2.6 billion “donation” and RM55 billion 1MDB twin mega scandals.

Having misled the nation and Members of Parliament to wait for six weeks for the last day of Parliament on Dec. 3 to answer all questions about the twin mega scandals, Najib should not disappoint Malaysians a second time – and his winding-up speech at the UMNO General Assembly later today is the last opportunity for him to come clean on the RM2.6 billion “donation” and 1MDB scandals.

The 1MDB scandal went back to more than six years ago, when 1MDB was incorporated in 2009 after its precursor, Terengganu Investment Authority (TIA), was turned into a federal agency, with the unprecedented Clause 117 in the 1MDB’s Memorandum and Articles of Association requiring the Prime Minister’s written approval for any of 1MDB’s deals, including the firm’s investments or any bid for restructuring, amendments to the company’s Memorandum and Articles of Association and appointments and removal of directors and senior management team of 1MDB.

The RM2.6 billion “donation” scandal is more recent, going back to March 2013, just before the 13th General Election on May 5, 2013, but awareness in the corridors of power that “something is rotten in the state of Denmark” did not begin only on July 2 this year when Wall Street Journal shook the country and the world with the scoop about the RM2.6 billion “donation” in Najib’s personal banking accounts in March 2013, but much earlier. Continue reading “Malaysians do not want to hear from Zahid or even the MACC – they want Najib himself to stop procrastinating and prevaricating and to give full and satisfactory accountability on the RM2.6 billion “donation” and RM55 billion 1MDB twin mega scandals”

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On RM2.6b, Najib’s answers beg more questions

Kee Thuan Chye
Malaysiakini
11th December 2-15

COMMENT There’s something not right about Prime Minister Najib Abdul Razak’s revelation on national television on Dec 8 that he did receive RM2.6 billion from donors.

In fact, it was even laughable to hear him say that the donors wanted the money to be deposited in his personal account.

“Yes, that was the donor’s wish,” he said. “The donation was made to me personally, that is why the account is under my name.”Is Najib that naïve? He allowed the donors to dictate that despite the risk of the money being easily traced to him?

If you recall, when The Wall Street Journal (WSJ) came out with its report about the RM2.6 billion last July, even Deputy Finance Minister Ahmad Maslan responded that no prime minister would be that stupid to have such a huge amount deposited into his personal account.

And that’s Ahmad Maslan, mind you. Continue reading “On RM2.6b, Najib’s answers beg more questions”

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Can Najib explain why he dared to explain the RM2.6 billion “donation” and 1MDB twin mega scandals in a tame and orchestrated interview with UMNO media and at closed-door UMNO meetings but not in Parliament in the presence of Pakatan Harapan MPs and critics?

Last night, the Prime Minister Datuk Seri Najib Razak broke his silence on the RM2.6 billion “donation” scandal which had been dogging him and his government for the past five months in an exclusive interview with UMNO media, conducted by Media Prima Bhd group managing editor of news and current affairs Mohd Ashraf Abdullah, the New Straits Times Press (Malaysia) Bhd group managing editor Abdul Jalil Hamid and Utusan Group editor-in-chief Abdul Aziz Ishak.

Najib said that the donation of RM2.6 billion deposited into his account is neither from a public fund nor the government’s strategic investment company, 1MDB, that it was the donor’s wish that the funds were deposited into his account and that the donation was made in a personal capacity.

Najib’s explanation on the twin mega scandals leaves open a thousand-and-one other questions, but the most important issue is why Najib dared to explain about the RM2.6 billion “donation” and 1MDB twin mega scandals in a tame and orchestrated interview with UMNO media and at closed-door UMNO meetings but not in Parliament in the presence of Pakatan Harapan MPs and critics?

Why did Najib run away from Parliament on the last day of the budget Parliamentary meeting last Thursday, after fobbing off some 90 questions from Pakatan Harapan MPs in the 25-day parliamentary session with the promise right from the very first day of Parliament on Oct. 19 that all the questions about the twin mega scandals would be answered in “one go” on the last day of the Parliamentary meeting? Continue reading “Can Najib explain why he dared to explain the RM2.6 billion “donation” and 1MDB twin mega scandals in a tame and orchestrated interview with UMNO media and at closed-door UMNO meetings but not in Parliament in the presence of Pakatan Harapan MPs and critics?”

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Let Najib clarify in his UMNO Presidential Address at the UMNO General Assembly whether he is the first Malaysian Prime Minister to be investigated by the FBI as to whether he is a ‘kleptocrat’

Should Pakatan Harapan MPs from DAP, PKR and Parti Amanah Negara who have been in the forefront demanding full and satisfactory accountability from the Prime Minister, Datuk Seri Najib Razak for his twin mega scandals on RM2.6 billion “donation” and RM50 billion 1MDB go on their bended knees and thank their lucky stars that the Prime Minister was so merciful and spared them the agony and shame of an expose on the last day of the 25-day parliamentary meeting last Thursday (Dec. 3)?

This is because Najib said last night that the opposition spews nothing but “lies” on 1MDB (auta bukan fakta), declaring: “It they (the opposition) attack us using logic, rational thinking and facts, they will lose. It’s now the battle of the minds.”

If Najib is right, and the Prime Minister had appeared in Parliament on the last day of the budget parliamentary meeting on Dec. 3 to lay down the facts of the two scandals, all the Pakatan Harapan MPs who had been harping them would have been mercilessly exposed not only as opportunists, charlatans and even ignoramus.

However, before deciding whether the Pakatan Harapan MPs should be thankful for such little mercies from Najib, they must ask why the Prime Minister was so kind to them, if it was true that it would be so easy for him to squash the Opposition MPs who had been raising a storm particularly since March about the 1MDB scandal? Continue reading “Let Najib clarify in his UMNO Presidential Address at the UMNO General Assembly whether he is the first Malaysian Prime Minister to be investigated by the FBI as to whether he is a ‘kleptocrat’”