Half Million Dollar Denial! - Najib's Latest 1MDB Denial Is Directed Against Obama's Key Aide

Sarawak Report

Frank White Jr– DuSable’s Capital Management CEO and Obama’s chief political fundraiser was 1MDB’s latest JV partner

With the US President Barack Obama due to make a supposedly image-boosting visit to Malaysia next month, yet another embarrassing denial has come out from the Prime Minister over 1MDB.
This time Najib Razak has directed his denial against the testimony of a key aide of Obama himself, his chief fundraiser, the businessman Frank White Jr of DuSable Capital Management.
Our research shows that White registered a half million dollar payment from the Government of Malaysia with respect to 1MDB and he is assumed to have been one of the key facilitators of the friendly relationship between the two politicians, who played golf in Hawaii during the Malaysian flooding disaster at the start of the year.
DuSable Capital Management focuses on energy support services and over the past two years it has declared a somewhat ill-defined role in 1MDB’s latest energy project – a planned solar power plant in Kedah (which we have noted is budgeted at three times the amount of similar projects elsewhere).
In public depositions the company has stated “one aspect of DuSable’s activities will be to communicate with US Government Officials” [23.04.14] and also “to encourage the US Government to provide non-financial support for the [1MDB Solar Power] project” [26.09.13].
Given there is no obvious need for 1MDB to require any US government advocacy to support the construction of a field of power generating solar panels in Kedah, the inevitable assumption is that Frank White Jr had agreed as part of his deal with 1MDB to promote its stated boss “the Government of Malaysia” with his own political boss Barack Obama.
For example by arranging golf between Najib and the President.

Did 1MDB money flow into fixing this glorious moment for Najib?

Nevertheless, in a written answer to a Parliamentary question, Najib has now categorically denied that there had been any agreement between DuSable and 1MDB WHATSOEVER!

“1MDB has never signed any sort of agreement with DuSable Capital Management LLC in Kedah.” [Parliamentary reply by Najib]

The MP who asked the question, PKR’s Wong Chen, has expressed considerable surprise as a result:

“For this Parliamentary session, I put in a question for an update on the 1MDB solar power project in Kedah with DuSable Capital Management LLC (DuSable). The project was reported by The Star on 23^rd April 2014.
Yesterday, I received an official Parliamentary reply from the Minister of Finance, YAB Najib Razak that 1MDB has not signed any joint venture agreement with DuSable in Kedah.
We have been told that the Prime Minister’s golfing buddy, President Obama will be visiting Malaysia again this November.
The co-founder of DuSable is Frank White Junior. He has been described by Bloomberg as “President Obama’s top individual fundraiser, a former technology executive who collected millions of dollars for the Obama’s election campaigns.

So, is Najib’s company calling Mr Obama’s aide a liar?
After all, anyone who cares to check can look up the filings made by DuSable, because the United States’ transparency laws demand that all companies register their foreign dealings under the so-called FARA (Foreign Agents Registration Act).
Frank White Jr made a number of depositions about his deal with 1MDB, beginning in 2013 when the plan to build the solar station was announced.

“DuSable has engaged in a partnership with 1Malaysia Development Berhad to develop, finance and construct a 50 MWac solar project….”  the latest 2014 filing explains (second document below):

Submission to FARA by DuSable on 26th Sept 2013

DuSable amended the declaration the following year to say that the relationship would not involve any investment in the company by 1MDB, as had been stated previously.
Presumably the publicity surrounding the news that 1MDB would be investing in DuSable had been considered unconstructive:

1MDB will no longer be an investor in DuSable, but the arrangement remains in place – 2014

What all this documentation makes clear is that DuSable certainly had an arrangement of some sort with 1MDB.

Half a Million Dollars for Frank!

What’s more, the public declarations show exactly how much money DuSable was getting “from the Government of Malaysia” for a “joint venture partnership reimbursement for solar investment project in Malaysia” – according to DuSable US$506,079:

Over half a million dollars!

Nice money for Frank White Jr for his activities, which included communicating with US Government Officials to provide that non-financial support. He puts in the details in a separate form, included are Frank and his co-director’s hefty travel expenses to KL showing the final total paid by 1MDB to DuSable was US$524,394.10:

Could the PM explain these payments in the absence of an arrangement?

But, with such talk of joint ventures and partnerships, how is that Najib has stated there has been “no arrangement whatsoever”?  Does he mean that Frank White Jr, who is Mr Obama’s close and trusted confidante, is lying?!
Wong Chen has understandably now challenged Najib to straighten things out with the US Governement:

“If there is no partnership whatsoever between DuSable and 1MDB, will the Minister of Finance file a formal complaint to the US State Department of Justice against DuSable?” he asked yesterday.

Perhaps Najib should sort this little problem before Mr Obama jets in in a couple of weeks?

Defamation Games: A Swiss PR; Anonymous Attacks; A Fake Twitter Army - And Information They All Share

Sarawak Report

31 Oct 2015

Sponsored content on Facebook – who paid?

On October 23rd the latest paid PR campaign against Sarawak Report swung into its ‘new media’ phase.

We have seen it all before.

On that day a new Facebook site called ‘The Real Clare Rewcastle’ appeared online, replete with expensively commissioned cartoon videos denouncing the editor of Sarawak Report as a “liar”, “forger” and “activist posing as a journalist”.

Furthermore, it alleged that she had been paid by interested parties to work to “topple a democratically elected Prime Minister”.

On the self same day a bogus Facebook and Twitter army of  non-existent characters also made their debut to promote the videos and attack Sarawak Report.

Same things in common – started on same day, attacking same thing, same friends and followers – fake accounts.

Supposedly, the characters came from different countries, ages and backgrounds.

However, they are ‘followed’ by the same handful of organisations (including dating agencies) and share the same handful of links.

These October 23rd Tweeters and Facebook characters are all obsessed with the same issue, which is to encourage people to go and read the new Facebook site libelling Sarawak Report.

The motley crowd of allegedly unconnected fake people have also developed a parallel obsession with passing round an allegation that Sarawak Report is paid by none other than the Swiss pharmaceutical company Novartis.

Why Novartis would wish to pay for an alleged plot to “topple a democratically elected Prime Minister” remains unexplained, however the company is unpopular with certain environmental groups, who appear to be targeted in an attempt to undermine support for Sarawak Report.

‘KL air hostess Lillian’ is invited to present herself along with her other new friends of 23rd October

It is, of course, all entirely untrue.

Ella’s only three followers include ‘Erotic Beauty’ and ‘Handsome Fresh’ and her  two new Oct 23rd contacts Maya and Harry were soon attacking the comments section of Sarawak Report claiming we produce ‘no evidence’..

Promoted content

Nevertheless, the Facebook site is ‘promoted’ content, which means that Facebook is being paid to direct it towards as wide a circle as possible of interested people – eg all Malaysians.

‘Ella’ (left) and her small army of fake friends have also started trying to harass anyone involved with Sarawak Report, in order to attempt to undermine their own separate contacts.

The sponsors of the site have remained anonymous, of course, to avoid being held accountable for their blatantly libellous content.

The UMNO communications boss, Rahman Dahlan, of Lester Melanyi fame would doubtless have approved of this whole cunning ruse to attack this website, but the finger points elsewhere on this occasion.

Oct 23rd also saw the invention of ‘Rosie’ – pro the Najib budget and anti-SR. She has two followers including “Badclass Lingerie”

A fortnight or so earlier Sarawak Report had received warnings that a Swiss PR firm was ringing round the UK looking for a partner in a ‘dirty campaign’ against Clare Rewcastle.

The campaign was to involve material gained from her whatsap communications with Xavier Justo, the ex-PetroSaudi Director who had passed her a copy of that company’s database, including the details of the 1MDB PetroSaudi joint venture involving the theft of US$1.83 billion dollars from Malaysia.

Most UK PR companies declined to be involved in this grubby job, but where there is money there is always an eventual taker.

Marc Comina

So who was the Swiss PR organising this campaign in the UK, which appears to be now manifesting itself in The Real Clare Rewcastle Facebook page and the British made videos attacking SR?

It is well known amongst Swiss journalists that the man handling matters supposedly on behalf of Xavier Justo in Switzerland over past weeks has been the PR spokesman Marc Comina, who has represented a variety of wealthy people in trouble.

Nathan created Oct 23rd and focused on attacking SR also has no personal friends, just the sort of follower you can easily acquire!

Other clients of Comina include the former Kazakh Minister of Energy; an art dealer who is presently accused of stealing paintings from Piccaso’s daughter and a Swiss wine producer accused by the authorities of breaking rules.

In a number of these cases Comina has worked together with a well-known and expensive Geneva lawyer named Marc Henzelin and sure enough Henzelin is also engaged alongside Comina to represent Xavier Justo in Switzerland regarding his present incarceration in a Bangkok jail.

As Malaysians all know, Justo was arrested in Bangkok because he was denounced by his former colleagues at PetroSaudi for leaking their database and they accused him of blackmail.

My own Twitter – Marc Comina

The question is how has Justo suddenly acquired the money to hire this expensive PR and legal team in Switzerland and what are they actually up to, supposedly on his behalf?

Sarawak Report has learnt that Comina has spoken extensively to selected Swiss journalists about Justo – some were granted exclusive access to fly to Thailand and visit the former PetroSaudi director, who had expected to be freed after confessing to what he understood were minor charges for attempted extortion – but instead received a three year jail sentence.

This lengthy sentence was thanks not least to the aggressive lobbying by PetroSaudi and 1MDB, who are together trying to also discredit the leaked material in Sarawak Report.

Comina has made clear to journalists that he and Henzelin’s current advice to Justo is to confess to being a blackmailer and to apologise to the Malaysian Prime Minister for the embarrassment caused by the PetroSaudi revelations.

Lawyer Marc Henzelin represents rich people in tight spots – he gave an exclusive interview to Le Temps alleging SR is linked to the opposition and could be a forger

Furthermore, Justo is being encouraged to allege that he was the victim of a plot by Sarawak Report to entice him to provide what he is now portraying as innocent material in the PetroSaudi database (“just some emails”) so that we could supposedly ‘doctor’ it to give a bad impression.

“My client has the impression he was used and manipulated” Henzelin told Le Temps.

Sarawak Report’s motive, according to the new Justo narrative, was not to expose a huge crime and a massive international story, but to carry out an ‘opposition plot’ to “topple a democratically elected Prime Minister”, for which they imply we were paid by ‘opposition forces’ (including Novartis?).

Thus, according to Marc Comina’s present PR, poor Xavier Justo had no idea what was in the material he first used to blackmail PetroSaudi and then was trying to sell for US$2 million.

He and Mr Henzelin have gone even further, to libellously imply that Sarawak Report is an unscrupulous forger.

This is what Mr Henzelin told the Chief Reporter of the newspaper Le Temps, Sylvain Besson in an ‘exclusive interview’ granted last month, during which the lawyer also takes the opportunity to promote the image of PetroSaudi:

“Besson: PetroSaudi is it a reputable company? Or a simple facade?
Henzelin: I am not a lawyer for PetroSaudi, but it is common knowledge that this is a serious oil company, not an empty shell. They have oil blocks and drill ships they operate.
Besson: Xavier Justo he knew what use the documents he handed over would be to Malaysian opposition? These documents were they altered before publication, as stated PetroSaudi?
Henzelin: My client has attended meetings where the Malaysian opposition and Clare Rewcastle Brown clearly evoked the political use they intend to make the documents they had not read. He considers that the documents have been used unscrupulous way and that some have been changed. But to what extent, what volume, he does not know. What is certain is that he has the impression of having been used, handled. In addition, he has not been paid, so he’s a little angry. [Google Translate]

Mr Besson never approached Sarawak Report for our comment on these accusations, although he had our number.  If he had asked, we could have confirmed that the story about a meeting between Justo, Brown and the Malaysian opposition is a complete lie.

So is the claim about forgery.

We would have added that while Mr Henzelin denies he is serving the interests of PetroSaudi, the entire PR-managed interview with Le Temps plainly serves that company’s interests above all others.

‘My client feels he is being manipulated’ but by whom?

Since Justo had very limited funds by the time he was arrested and since similar engagements with the Swiss Press by the Comina/ Henzelin team have promoted the same line ‘on behalf of their client’, we therefore question who is ultimately financing Comina, Henzelin and all this PR?

What is certain is that Justo has now reconciled with PetroSaudi and has told visiting journalists that the man who originally denounced him and got him jailed in Bangkok, PetroSaudi’s Director Patrick Mahony, has now visited him behind bars and agreed to ‘help him get out’.

What a very nice chap after all?

Meanwhile, Mr Comina has been circulating certain extra materials to his chosen contacts journalists, which include copies of whatsap messages between Justo and and the editor of Sarawak Report and also of Justo’s ‘confessions’ made without a lawyer present after he was arrested.

We have evidence that these materials were passed to Le Temps and other selected Swiss newspapers.

Dark materials!

Spinning sinister interpretations on private messages about a payment that was never made.

These whatsap messages and ‘confessions’ were also what was offered to the PR companies in the UK who were being recruited to conduct a dirty campaign against Sarawak Report.

And the same materials are exactly what are now being used out of context as the main ‘evidence’ behind the smear campaign and videos featured on ‘The Real Clare Rewcastle’ Facebook site.

For the record, Clare Rewcastle did not pay Justo any money; did not receive any money from the opposition or anyone paying Justo and only agreed in principle to try to assist Mr Justo achieve a promised third party payment for his story, as long as process was entirely legal. In the event no payment ever took place.

These private messages obtained from Justo’s law case are now being used selectively and out of context, in order to smear Sarawak Report and distract from the real crime, which was the theft by PetroSaudi and Jho Low of US$1.83 billion dollars.

Comina’s real client? PetroSaudi’s Tarek Obaid was paid an US$85m ‘brokerage fee’ by Jho Low for the 1MDB deal according to the documents acquired from Justo.

So, who do we think is behind that?

When we wrote to Mr Comina earlier this week and asked him if he was linked to the anonymous and libellous Facebook and Twitter campaigns, which are employing and distorting the very same material he also supplied to journalists, he nevertheless failed to reply.

On the other hand, the Le Temps senior reporter who obtained that exclusive interview with  lawyer Marc Henzelin, has roundly denied to Sarawak Report that he was aware of any PR manipulation in the genesis of his newspapers stories about Justo.

Sylvain Besson last week told Sarawak Report in a series of messages:

“I’d be glad to know which PR firm is conducting actions against you, so we can be aware of its actions and possible disinformation…”
“…. I can assure you we never heard of any PR firm disseminating material. They didn’t give it to us, at least. So we are still interested to know who they are, and to what extent they manipulate Justo’s lawyer and PR man.

On the other hand Besson acknowledged:

“….I confirm we’ll publish a story based on the messages exchanged between you and Xavier Justo”

These remarks were in response to our complaint after a journalists commissioned by Besson to write yet another critical item about Sarawak Report’s involvement with Justo explained:

“my mandate is to show our readers an example of transaction between someone who stole confidential data and people that agreed to pay for it.
There shall be no consideration about the situation in Malaysia, per se.
It is just a story about a Swiss guy who got trapped by trying to sell leaks.”

So who has determined Le Temp’s ‘mandate’, if a major international financial scandal involving Swiss banks is to be thus ignored we asked Besson?

And why was Mr Besson denying he had any knowledge of the hostile PR management behind Justo and his lawyer, given that other journalists were well aware that Marc Comina is the only way to reach the story?

We find it particularly odd given that Besson rates Comina as his number 4 best friend on Facebook:

Facebook friends with the PR manager who sees Justo’s best chances as accusing Sarawak Report for forgery and supporting PetroSaudi

Sarawak Report therefore agrees that Justo is being manipulated.

However, we suggest that the manipulators are his wealthy and unscrupulous former colleagues, from PetroSaudi, who are trying to escape from serious criminal charges regarding the theft of hundreds of millions of dollars from 1MDB.

PetroSauid conspired to bring accusations against their whistleblower to get him jailed in Thailand.

Twitter Oct 23rd Newbie, Seth,  loves the PM’s budget but has no friends to follow him

They are now promising him help to get him out, so long as he agrees to turn accuser against Sarawak Report and make ludicrous claims about us forging and doctoring PetroSaudi documents.

We therefore challenge PetroSaudi to stop playing in the shadows with these hired PR hands and all this anonymous Facebook libel – they should instead take us to a proper court.

Singapore ‘Court Case’

By this we do not include the latest whispering to newspapers from unidentified sources that Justo is to ‘bring a case’ next week against Sarawak Report in Singapore.

Since Sarawak Report has never been notified of any such case, this represents just more nonsense and gossip from those who dare not challenge us openly.

Another Oct 23rd Tweeter in favour of the budget and accusing Novaritis of paying SR to attack PetroSaudi.

Justo, PetroSaudi, as well as the authorities in Thailand and Malaysia have the originals of all the documents we obtained – if we have doctored them it is entirely open to them to prove the matter in the UK courts (under whose jurisdiction the joint venture deal was done).

Otherwise, the Swiss media should stop regurgitating Marc Comina’s malicious PR and start to cover the real story, which is the role of their banks in Malaysia’s Heist of the Century.

'Creating A Culture Of Fear': Human Rights Watch Point The Finger At Malaysian Government In New Report

Sarawak Report

“Freedom of expression and assembly in Malaysia are currently under attack” say Human Rights Watch

Malaysia’s Prime Minister Najib Razak comes under damning further criticism today with the release in Kuala Lumpur of an in-depth report by the leading US human rights organisation, Human Rights Watch, in advance of the planned visit by President Obama later this month.
The 145 page report accuses the Malaysian Government of creating a “culture of fear” and of “criminalising freedom of expression in Malaysia” and it is based on an in-depth analysis of Malaysia’s draconian laws between 2014-2015, including the Sedition Act, the Printing Presses and Publications Act, the Communications and Multimedia Act, the Peaceful Assembly Act and the Penal Code, all of which have been increasingly used against voices that are critical of the ruling Barisan Nasional government.
Human Rights Watch spotlights the worrying trend of abuse of the legal process, including ‘late night arrests’, ‘unjustifiable remands’ and a ‘pattern of selective prosecution’.
In doing so the NGO joins an army of critics, who are increasingly reporting on the strong-arm tactics used by Malaysia’s Prime Minister to silence dissent.
Sarawak Report itself recently reported how Najib Razak has been swiftly executing legal measures to outlaw and criminalise individuals, who attempt to take up their constitutional duties as a representative of the opposition or to exert their rights as critics of his regime.
In a statement issued today, Human Right Watch’s Asia Director, Brad Adams said:

“Prime Minister Najib Razak and the Malaysian government have repeatedly broken promises to revise laws that criminalise peaceful expression. Instead, Malaysia has gone on a binge of prosecutions of critics. The government is making a mockery of its claims to democracy and fundamental rights by treating criticism as a crime.
After the ruling coalition lost the popular vote in the 2013 elections, a crackdown on its critics began. That repression has intensified in the past year in the face of critical media coverage and rising public discontent over issues ranging from the imposition of a new Goods and Services Tax, to the government’s response to a spiralling corruption scandal involving the government-owned 1 Malaysia Development Berhad (1MDB), whose board of advisors is chaired by Prime Minister Najib.
Rather than engage in debate on the merits of these issues, the government has responded by arresting and often prosecuting those with critical views, including opposition politicians, activists, journalists, and ordinary citizens, suspending two critical newspapers for three months, blocking websites, and declaring peaceful protests “unlawful.
Malaysia should stop shutting down media and shutting up critics. These actions are increasingly noticed by the international community, and send the signal that the rule of law is under threat.”

Sarawak Report has been blocked in Malaysia under the Communications and Multimedia Act.

Sarawak Report have also recently found ourselves at the brunt of these newly enacted or amended laws, as Human Rights Watch points out.

Amongst other cases, Human Rights Watch highlight the use of arbitrary laws against Sarawak Report

This blog has been blocked in Malaysia under the Communications and Multimedia Act because of our investigations into the 1MDB scandal, on the grounds that our articles, have been deemed “indecent, obscene, false, menacing, or offensive in character with intent to annoy, abuse, threaten or harass.”
The Editor has also found herself investigated under the Penal Code for “activities detrimental to parliamentary democracy” and a warrant of arrest has been issued against her, along with requests for her to placed on Interpol’s Red Notice List.
Requests that were swiftly rejected by Interpol.
Amongst several examples of Malaysia’s arbitrary laws being used against opposition politicians, human rights defenders, journalists, lawyers and even ordinary citizens, therefore, the report hones in on the blocking of Sarawak Report and calls on the Malaysian Government and the Malaysian Multimedia and Communications Commission to unblock our website and to cease investigations against us.

Human Rights Watch send a clear message to the MCMC!

In a letter to Malaysia’s Minister of Home Affairs, Ahmad Hahid Zamidi, Human Rights Watch posed the following question:

Although the Communications and Multimedia Act specifically states that “nothing in this act shall be construed as permitting censorship of the Internet,” the government has used that law to block access to the website Sarawak Report and its reporting on possible corruption involving 1 Malaysia Development Berhad, to prosecute individuals for “offensive” comments on social media, and to investigate online news portal The Malaysian Insider for its reporting on a matter of public interest. Does the government now take the position that it can and should censor the Internet?

Najib Razak has been accused of creating a culture of fear since the ruling party lost the popular vote in the 13th General Election.

This question along with a host of others were sent to the Minister of Home Affairs, the Attorney General, the Inspector General of Police and the Multimedia and Communications Ministry well in advance of the report being published. Unsurprisingly, Human Rights Watch received no response.
The report will make it difficult for world leaders to ignore the human rights abuses taking place under Najib Razak, many of who will be landing in Kuala Lumpur next month for the 27th ASEAN Summit.
The hard-hitting report includes interviews with civil society activists, journalists, lawyers, academics, opposition politicians, as well as public statements by the government, and media accounts of criminal proceedings involving free speech or peaceful assembly.

The full report “Creating A Culture Of Fear: The Criminalisation Of Peaceful Expression in Malaysia” can be read [HERE]

NEW PRIME MINISTER WON'T ENJOY SAME POWER AS NAJIB: Dr M turns activist to unseat former protégé

He makes a most unlikely blogger. And, for many, an even more unlikely full-throated advocate of freedom of speech.
But that is the role Mahathir Mohamad has carved out for himself inMalaysia, the nation he is credited with transforming into a regional economic powerhouse.
As he enters his 91st year, he has become the country’s most prominent and undoubtedly most effective activist.
He has come out of retirement to throw allegations of arbitrary arrest, throttling of the press and corruption against current prime minister Najib Razak – similar to accusations that were lobbed against him during his own premiership from 1981 to 2003.
Sitting in his cavernous office and surrounded by gifts from world leaders, the man whose two decades in power are described by rights groups as autocratic has slipped seemingly with ease into his new role.
“People are very angry but they have no way of voicing their feelings,” he said during an interview with the Guardian.
He said he felt compelled to speak out on his blog against Najib.
“It’s not something I enjoy,” he said. “I find I need to do something because lots of people came to see me, complaining about the government and asking me to do something.”
Mahathir has become the ringleader for one side of a political battle against Najib, his own handpicked heir who entered office six years ago.
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The embattled premier is facingallegations of corruption linked to a heavily-indebted state fund, 1Malaysia Development Bhd (1MDB).
Najib has vigorously denied that a sum of nearly $700m that was moved into his personal bank accounts is linked to 1MDB, while Malaysia’s anti-corruption agency says the cash was a donation from the Middle East.
But Mahathir, speaking in the country’s administrative capital Putrajaya, says the allegations convinced him that Najib has to step down, and he has created a coalition of politicians to denounce the man he sarcastically calls “the king”.
This month, Mahathir held a press conference with members of the ruling party who have been sidelined by Najib, including sacked deputy prime ministerMuhyiddin Yassin. He condemned “a climate of fear among the people” and abuses of power after two men investigating Najib were arrested.
Dressed in his trademark khaki suit, Mahathir talked of Najib’s ills, painting a picture of a man obsessed with holding on to power.
“Previous prime ministers – we have had five prime ministers – have never been so condemned for corruption as this one and everybody says so,” he said. “[Najib] controls the mainstream media. They dare not say anything, they sort of censor themselves voluntarily,” he added.

Dr M
“They may be be transferred, they may be sacked, their paper may be stopped from publication. There are all kinds of things that he can do. He can call up the editors for questioning, which is always quite unpleasant, so people try to avoid that.”
Taking occasional breaks to cough, the 90-year-old has lost his youth but kept his direct gaze. Dwarfed by piles of books, documents and newspapers, he remains a central part of Malaysian political life and is visited at his riverside office by the country’s elite, who keep him informed.
“The only avenue is for a vote of non-confidence,” Mahathir said of hisdesire to oust Najib. “Or some demonstration to the ruler that he has lost the confidence and support of the majority of members of parliament.”
His relationship broke down gradually with Najib, he says: “I tried at first to talk to the prime minister. He doesn’t do anything at all to take that advice. Then I had to tell him privately that I no longer supported him. That also didn’t have any effect. Then I went public and told the public I am not supporting him.
“That had to go through the alternative media because he has literally blocked out anything that I say from the mainstream papers. Lots of people read my blog and they have commented on it,” he said.
Many Malaysians feel his attack on Najib is somewhat incongruous from a man accused of using repressive laws to silence or imprison his own critics.
“What a lot of us feel is that he started that. And we are reaping what he sowed,” said Shamini Darshni, Amnesty International Malaysia executive director. While Darshni says the current human rights climate is worse, she adds that detention without trial started with Mahathir.
While in office, he was condemned for his regular use of the Internal Security Act to detain individuals indefinitely and for curtailing the power of the judiciary through rewriting laws and intimidating of judges.
In 1999, 2000 and 2001, the Committee to Protect Journalists put Mahathir on its list of the 10 worst enemies of the press for his stranglehold on the mainstream media. Some of the Malaysian publications that are being intimidated by the current administration were also harassed by Mahathir.

When pressed on the point that Najib is using executive powers that come from Mahathir’s time in office, the former prime minister claimed he used them only to quell sometimes violent racial divides. Muslim Malays make up around 60% of the 30 million population, with ethnic Chinese at about a quarter and ethnic Indians less than 10%.
“During my time, yes, there were things that I did that were maybe not considered democratic and all that, but my job was to ensure that the race relations in this country remained healthy,” he said.
“To that extent, I never used [the powers] for my personal gain, for trying to acquire funds in an illegitimate way. That is an abuse of power.”
Mahathir has never contented himself with his successors, three times turning on men he handpicked to continue his work at the helm of the United Malays National Organisation (Umno) party.
He first contrived to give the reins to his former deputy Anwar Ibrahim, who is now in prison for sodomy, a crime in Malaysia.
“Sodomy is not a crime in many countries. Even [foreign] ministers now come with their boyfriends. That is very acceptable. These people think I am not giving enough freedom. Well, this country is very conservative. We don’t want that kind of behaviour to be connected with our prime minister,” Mahathir said.
“I wanted him to succeed me, I brought him up. But with his faulty moral character, I don’t think he was suitable to become prime minister.

“I think he should have succeeded me. In fact, I was ready to step down after the Commonwealth games in 1998. I thought, ‘I’ve had 18 years of prime ministership, it’s time I go and give it to him.’ But it was exactly at that time that these things were exposed. I felt that he no longer deserved to become prime minister.”
Next to go was his once-loyal deputy Abdullah Badawi, whom Mahathir cultivated for years before Abdullah rose to become prime minister from 2003 to 2009. Mahathir came out of retirement to say he had lost confidence in Abdullah.
Najib, who headed several posts in Mahathir’s cabinet, was sworn in a day after Abdullah resigned. But now Najib too has fallen out of favour, Mahathir is considering whether any Malaysian can hold the office and the power he had in his grip for so long.
“I think if [Najib] steps down, whoever takes over will not be given the kind of authority he had, especially over the police,” he said.
“I think the people have learnt our lesson. They cannot give too much power to the prime minister.”

http://www.theguardian.com/

MsiaChronicle on Twitter

M'SIA POLITICAL CRISIS WORSENS: FEARS OF CLASHES AMID RUMORS OF NAJIB TRYING TO ARREST DR MAHATHIR

M'SIA POLITICAL CRISIS WORSENS: FEARS OF CLASHES AMID RUMORS OF NAJIB TRYING TO ARREST DR MAHATHIR

Written by Iskandar Dzulkarnain

Deputy Prime Minister cum Home Minister Ahmad Zahid Hamidi has revealed to Parliament that the Police have opened three investigation papers on former Prime Minister Dr Mahathir Mohamad for criminal defamation.
The probes followed two police reports in Klang and one police report in Jinjang against the former premier which has been promptly submitted to the Attorney-General's Chambers on Oct 9 for further action.

Inspector-general of police Khalid Abu Bakar previously said Mahathir was being investigated for criminal defamation for accusing Umno of corruption during the Bersih 4 rally and his increasingly aggressive efforts to oust Prime Minister Najib Abdul Razak.

So the Home Minister, who surely has the blessings from his boss Prime Mnister Najib Razak, has finally shown his hidden card to reveal that Tun Dr Mahathir is indeed under probe and may face arrest soon enough, just like Umno Rebel Zainuddin Abu Hassan and Lawyer Matthias Chang who has been charged for allegedly sabotaging the country’s economy.

Will the day come, when Dr M be handcuffed and paraded in front of a witness stand like a terrorist, and charged under the Sosma Act, or is it merely another ploy to silence other critics from questioning the government?

Is the ongoing probe retaliation for his press conference held the other day, which he and other top BN leaders vehemently protested against the misuse of Sosma to jail crtitcs under the terrorist Act?
Those present at the protest were former Deputy Prime Minister Muhyiddin Yassin, former Umno Vice President Shafiie, Umno supreme Tengku Razaleigh, ex Minister Sanusi Junid and former MCA President Ong Tee Keat.
A leader extraordinaire

Tun Mahathir led the country as Prime Minister for 22 years. In that time he has implemented many policies good and bad, which has touched and moulded our present existence in one way or another.
He was a strong leader who possessed good political acumen that kept him in power long after he has overstayed his welcome.

Although there are a good many out there who continues to curse him to his grave, most if not all have given him space to regret his past actions and to leave him alone in his twilight years.

He is 90 years old today and nobody can continue to be vengeful of an old man or try to settle any old scores with him. None whosoever, safe for one present embattled Umno President who cannot wait to get rid of him, just like what he did to ex Opposition leader Anwar Ibrahim.
What are the repercussions if Dr M is arrested and jailed

.Most people are powerless to stop the flow of historical events following his 22 year old rule. While to some he is the devil incarnate, to others Dr M remains a hero that has brought much development to this country.

He still continues to be an inspiration to the masses, and wherever he goes he continues to garner deep respect, love and adulation. Just imagine how the rakyat would feel if he is arrested and jailed for speaking up against corruption and mis-governance?

Sincerely, it is very hard to believe that Dr M, or for that matter anyone, could be arrested simply for asking Najib to resign for his failure to answer for the suspicious RM2.6 billion in his personal accounts.
A perseverant critic, Dr M has also accused Najib of mishandling 1MDB, bribing certain Umno leaders and for stealing the country’s money.
The Police’s misplaced agenda

The rakyat too is suspicious as to why so much of our precious Police resources are channelled into probing a harmless critique like Dr Mahathir or Bersih activists, while Najib seems to be above suspicion?

Someone slyly commented that for some strange and inexplicable reason, our IGP can believe that somebody, Arab or not, is willing to donate RM 2.67 billion to our dear Prime Minister!

How gullible can anybody get or how mentally-challenged can a head honcho of a Government Department be? Just where did UMNO BARU/BN Government dig up all their Department Heads???

Tuan IGP, please investigate that donation and go easy on that over-staying ‘Warga Emas! (Golden Years Citizen) We enjoy having him around! And for goodness sake; please stop taking the people for granted.
A Stunning backlash with People’s Power expected

Malaysians are pleasantly surprised that Dr M still has the fighting spirit to defend the country against the crooks out there, whom he accuses of looting the country and destroying it.

Any attempts to touch him, arrest him or incarcerate him will only accelerate the demise of Umno and BN. It will lead to a stunning reaction amongst the masses who are supporting Tun and others who are supportive of the government.

Clashes and skirmishes cannot be ruled out and it will be total chaos which will lead to a divided nation. Umno itself would experience a big split right down the middle resulting in massive internal haemorrhage.

The Malay masses will rise up in such numbers that even Arab Spring will look like a kindergarten walkabout. How can any true blue blooded Malay allows such humiliation of a respected elderly statesman being stripped of his self respect?

Already the murmurings have begun, with many staunch Malay critics vowing to retaliate and cursing; over their dead bodies, should even one hair of Dr M be touched.

The meeker ones are calling for ‘Solat Hajat’ prayers for divine intervention to open their eyes as to who speaks the truth and which leader is lying through their teeth, and may God’s wrath be upon them!

Others are accusing Najib of playing the role of Police Chief, Chief Justice, Jury and Executioner as well, and if he is brave enough to arrest Mahathir, he wont last 24 hours as the backlash will nail Najib’s political goose right up to the wall.

It will also be Dr M’s final trump card, if the authorities ever fall into his trap to have him arrested. “Mahathir incarcerated for trying to save the country or Najib jailed for corruption and theft’, will be the blaring headlines. Who do you think the people will support?

Not only would it be the most talked about news of the year with daily headlines like; “Mahathir arrested” “Najib a freeman” - it will also be the drama of the century with everyone hoarding pop-corn to watch the spectacle unfolding before them.

Najib too will face international condemnation for arresting a past leader responsible for Malaysia’s progress and the repercussions will jettison the BN coalition into deep space before the year is out.
Letting him be, however may bring new blood flowing again through Umno’s varicose veins, while Najib’s unconditional resignation may be the only answer for Umno and BN to wake up from their ICU(Intensive Care Unit) induced coma. - MAILBAG

MsiaChronicle

NAJIB'S BUDGET 2016 WILL 'KILL' M'SIA FASTER AS IT ADDS ON DEBT QUICKER THAN ECONOMY CAN GROW - TONY

Written by Tony Pua

As the Malaysian economy gets hit by a slowing global economic environment, declining commodity prices, rising inflation and a plunging ringgit, the Budget for 2016 just announced by the Prime Minister is long on grandiloquence and short on substance.

While the Prime Minister praises his Government for its far-sightedness to introduce the Goods & Services Tax (GST) as the income from the new tax will make up for the loss of revenue from the oil and gas sector.
The reality is Malaysians, particular the middle and lower income population are now burdened with coughing up RM39 billion of GST relative to the loss of RM17.5 billion from the Petroleum Income Tax.
In comparison, the Sales and Services Tax collected in 2014 amounted to only RM17 billion. This means that Malaysians have to suffer an increase in taxes by a whopping RM22 billion.

While the taxes paid by the man-on-the-street have been increased drastically, the Federal Government has failed to increase its prudence on expenditure. As an example, the budgeted expenditure for ‘Supplies and Services’ has been maintained at RM36.3 billion for 2016 when it was only RM20.8 billion in 2010. Why has this provision increased by 75.4% in just 5-6 years?

The consequence in the failure of the Federal Government to be prudent in spending can be reflected in the increase in Federal Government debt from RM582.8 billion in 2014 to an expected RM627.5 billion by the end of 2015. The increase in Federal Government debt by 7.7% also significantly outpaced the growth of Malaysia’s GDP of only 4-5% per annum.

Despite the above, Dato’ Seri Najib Razak has embellished his budget announcement with several mega project announcements including RM28 billion for the proposed MRT2 line, the Pan Borneo Highway and other infrastructure projects. Besides the fact that these projects were just recycled announcements from last year’s 2015 Budget, the Finance Minister forgot to mention the fact that these projects are funded by off-budget financing which isn’t reflected in the official budget.

These off-budget measures make a complete mockery of the Prime Minister’s boast that the Budget deficit will be further reduced from 3.2% in 2015 to 3.1% in 2016. This is because the projected deficit does not take into consideration the off-budget expenses funded by government guaranteed borrowings will ultimately be borne by the Federal Government.

Based on the Federal Government Financial Statements 2014, the contingent liability of the Federal Government arising from these Government guarantees will increase from RM157.5 billion in 2014 to RM172 billion in 2015. The resulting 9.2% increase is at an even faster than the rising Federal Government debt. This shows that the Government is shifting an even larger percentage of expenditure to “off-budget” to hide its inability to keep a lid on its expenditure.

Finally, for all the language of bravado peppered in the entire Budget speech, Dato’ Seri Najib Razak failed to deal with the key issues which has shattered domestic and international confidence in his administration. The Prime Minister did not see it fit to take on the massive elephants in the room, that is the RM42 billion 1MDB scandal and the RM2.6 billion purported “donation” into his personal bank account which also involved a Finance Ministry subsidiary, SRC International Sdn Bhd.

The Federal Government has already extended an emergency RM975 million in February this year, a “letter of support” to obtain a US$150 million loan from Bank EXIM and indemnified International Petroleum Investment Corporation (IPIC) for a US$1 billion advance to 1MDB. The inability of 1MDB to repay its debts and the realisation of the above contingent liabilities will have serious consequences to the Government finances and will naturally create a negative domino effect to the rest of our economy.

Hence the failure to tackle the extremely damning and damaging allegations against 1MDB and provide a credible plan for the Government against all 1MDB contingencies, the 2016 Budget will not only fail to lift local and international investor confidence, it will be another non-event which will soon be overshadowed by the multi-billion ringgit scandals of Najib’s administration.
Tony Pua MP for PJ Utara

:MsiaChronicle

Furious 1MDB Board Demanded Back Jho Low's US$700 Million Five Days After JV Was Signed! MAJOR EXCLUSIVE

Sarawak Report

Chairman Mohd Bakke Salleh soon resigned in disgust

Sarawak Report has now received a devastating vindication of its exposes of 1MDB through the release of further Board Minutes, which the Prime Minister and 1MDB executives have been fighting to keep secret for months.

Damning documents from a Special Meeting of the Board held on Saturday October 3rd 2009, shortly after the signing of the joint venture with PetroSaudi, reveal that furious Directors complained at how US$700 million was siphoned off from the company’s original US$1 billion investment in the venture.

So extreme was their concern that the Board even demanded that efforts should be undertaken to ensure the return of the money!

“arising from the gravity of the situation, the following instructions/requests were made by the BOD to the Management:
a) To determine if it is possible to seek the return of the US$700 million from PSI [PetroSaudi International] so that the funds could be remitted through the originally agreed channel” [Minutes 3rd October 2009]

Get the money back!! – unprecedented debacle

The statement by the 1MDB Board further confirms the claim by the Bank Negara Malaysia  last week that the money invested in the joint venture was not used in the manner agreed.

Yet, despite such devastating comments by the members of its own Board, the present CEO of 1MDB, Arul Kanda, has maintained for weeks that our reporting on the matter has been misleading and inaccurate and that nothing had been untoward with the deal.

It is a matter of record that the then Chairman of the Board, Mohd Bakke Salleh, one of Malaysia’s most senior corporate figures, resigned shortly after this episode, along with another Director, Azlan Mohd Zainol.

Wilful disobedience of the Board by 1MDB Management

The availability now of a series of relevant minutes shows a pattern of wilful disobedience of the Board by 1MDB management.

Critics believe this indicates they were taking orders from another source, presumed to be the Minister of Finance/Prime Minister, who we now know was secretly the only person authorised to sign investment decisions and his official advisor, Jho Low (into whose bank account the US$700 million eventually went).

The minutes make it absolutely clear that the Board considered themselves inadequately informed and ultimately misled over the siphoning of the US$700 million into Jho Low’s Good Star Limited.

Not informed

We now know from the previous minutes of September 18th that all the members of the 1MDB Board had expressed unhappiness on learning that the company PetroSaudi was not attempting to bring cash to the joint venture, only a supposed injection of assets.

The Board had resolved that PetroSaudi should inject “at least” US$1 billion in cash to merit their 60% share of the company.

However, by October 3rd the minutes make plain that the Board of Directors had realised these demands had been simply ignored.  PetroSaudi had been allowed to get away with merely injecting “assets” into the venture.

What the minutes show is that at this juncture the Directors were already alarmed as to whether sufficient checks had been made to be sure that even these assets were genuine.

Significantly, the minutes record sharp questions by Board Members over why this deal had gone through at such breakneck speed, when they had understood that a thorough valuation of what PetroSaudi actually had in the way of assets ought to have taken till the following March 2010 – 6 months instead of just two weeks!

Why the rushed job? Where the due diligence, asked Board Members?

These are precisely the issues which Sarawak Report and numerous others have raised over the past few weeks as details of the PetroSaudi deal have emerged and on each and every occasion 1MDB CEO Arul Kanda has dismissed our concerns and sought to discredit our evidence.

Now we know that (unless Mr Kanda is going to deny the authenticity of these minutes) 1MDB’s own Board of Directors had been arguing exactly the same issues from the moment the deal was signed without their proper permission!

It is worth mentioning that the conduct of breakneck speed deals has subsequently become a signature feature of the loss-making 1MDB. None was so breathtakingly fast at the 1MDB /Aabar “strategic partnership” venture signed 12th March 2013, after which 1MDB raised US$3 billion within exactly one week!

The bankers Goldman Sachs charged a staggering US$300 million for the service of finding the money and gave the explanation that their client had been in an exceptional hurry.  One wonders why there was such a hurry to raise the money for a proposed project to build the Tun Razak Exchange, when two and a half years on little has been built?

As Sarawak Report has previously mentioned, two days after this money was raised  US$681 million was transferred into the Finance Minister/ PM’s bank account from an “anonymous donor” to support the election which was called just a few days later.

Once again the loan has turned out to be disastrous for 1MDB, which soon lost the money on ill defined payments, thus adding to its mountain of debt.

Board demanded PetroSaudi Assets be properly valued

The October 3rd minutes also confirm the concerns we have reported about the so-called valuation of PetroSaudi’s assets by the US banker Ed Morse.  Arul Kanda may have dismissed the matter when it was raised by opposition MPs, but the Board of Directors was also clearly extremely shocked at the situation that had developed with a billion dollars signed off into a joint venture where plainly not the slightest checks had taken place.

The demands that the board are minuted as being forced to make AFTER THE EVENT are as breath-taking as anything so far produced in this lamentable story of malpractice:

Imagine asking for such checks AFTER signing away a billion dollars!

Section iv of the minutes (above) makes plain that the Board was forced to demand from management that they make some of the most basic possible checks on the deal AFTER they had paid out the money!

These checks included getting confirmation that the assets PetroSaudi claimed were genuine; checking that the assets were of the value claimed; getting a copy of the Ed Morse ‘valuation report’ (meaning 1MDB had still not got a copy five days after the deal had been signed); to drag Morse in for questioning on his findings and also to get a separate “independent valuer” to do another report on PetroSaudi’s worth, because as the Board clearly realised, Morse was not independent and had been hired by PetroSaudi!

What an unbelievable mess the 1MDB Board Directors had found themselves facing that Saturday 3rd of October in the aftermath of a deal that had been driven through like lightning without them having signed off on the details!

In the final paragraph (above) CEO Shahrol Halmi was ticked off like a boy in the Headmaster’s study and told to obey rules in future and that if he was unsure of his remit he should ask his bosses on the Board.

Yet, in truth Halmi had got his way, however meek his response. The money had been got out of 1MDB and into the Good Star account and it was never coming back: this was plainly the purpose of the PetroSaudi deal, since there has not been a squeal of complaint from the Minister of Finance over the loss of the money nor from PetroSaudi nor 1MDB’s management either!

Was the 1MDB JV signed behind the backs of the Board of Directors?

The fear and panic radiating out of normally dry minutes, in the case of this dramatic October 3rd meeting, represents a realisation by Board Members that US$700 million had just been snatched from public funds through the Jho Low PetroSaudi heist of the century.

What they imply is that the entire signing had been done behind their backs and without their knowledge!

Minutes from 18th September made clear that the Board were originally informed that the planned date for signing the deal was the 28th of the month – they were told (untruthfully) by Casey Tang that the King Abdullah himself would be needed to ink the paper.

The Board knew mid-September when the deal was due to be signed, despite talk of no valuation before March

However, the same September 16th minutes also show that the Board had demanded PetroSaudi commit cash rather than mere assets for the deal to go ahead.

From the later minutes on 3rd October one concludes that notice had later been given that the Saudis would nevertheless only be paying in assets, in which case the Board had responded that the date must be postponed until those assets could be checked (not before March).

If so, this request from the Board had plainly been ignored by the powerful forces propelling the deal, including Jho Low, his ‘Big Boss’ the Prime Minister and the tame figures in 1MDB management.

As we know none of the Board’s demands were met.

The Chairman resigned to be replaced by a compliant long-term agent of the Prime Minister from his days at the Ministry of Defence, Lodin Wok Kamaruddin, who has waived through every 1MDB deal without a murmur ever since.

The new Prime Minister had got his way with little resistance from the supposed decision makers of 1MDB – after all, they weren’t really the decision-makers anyway, as we now know.

JVA Was Signed Behind Our Backs – 1MDB Board Fury Further Explained!

Sarawak Report

18 Oct 2015

Board Meeting 2 days before deal was signed made plain that 1MDB Directors were not ready to sign

IMDB’s management was only authorised to “proceed with negotiations” for what was still described merely as a “proposed venture” by their Board of Directors, at a meeting just two days before the Joint Venture Agreement with PetroSaudi was actually signed!

The information comes from further minutes obtained by Sarawak Report, this time of a Special meeting of the Board of Directors held on 26^th September 2009.

The records of this board meeting make clear that Directors considered that there were numerous detailed due diligence checks still outstanding on the joint venture, including a proper valuation of PetroSaudi’s assets, before they could move to completion.

It was agreed, therefore, that Management could proceed with negotiations, but needed to abide by recommendations, comments and amendments made by the Board, which included commissioning an independent valuation of 1MDB.

The only possible conclusion, therefore, is that the deal was signed two days later on 28^th September behind the backs of 1MDB’s very own Board of Directors, whose instructions about how to proceed with the negotiations were simply ignored!

1MDB management were merely authorised to continue to negotiate and were ordered to abide by the recommendations and amendments proposed by the Board, including commissioning an independent valuation of PetroSaudi – yet two days later the deal was signed without the valuation!

That they had not authorised the signing of the Joint Venture Agreement explains even more clearly the fury expressed at the October 3rd emergency meeting of the Board, held just a week later, when Directors had not expected to meet again before October 9th.

At this meeting, on which we have already reported, the Directors expressed outrage that the deal had in fact been signed, when plainly none of the steps they had requested had been carried out.

The October 3rd minutes revealed that Directors had considered a realistic time line for the deal to be concluded was by March 2010, certainly not two days after they had commissioned key information checks about their proposed joint venture partner.

On 26th September the Board had not expected to have to meet again as early as October 3rd

There was, of course, further concern expressed during the October 3^rd meeting because by then it had emerged that US$700 million of 1MDB’s billion dollar investment had been diverted into an unauthorised account outside of the JV partnership, controlled by the Prime Minister’s agent Jho Low.

Board Members demanded to find out if the clearly misappropriated money could be brought back, given they had never sanctioned the deal in the first place!

Government to Government

The direct oversight and involvement of the Prime Minister’s Office over this entire joint venture operation is also plain from the records (above). Najib may have posed merely as the Chairman of a Board of Advisors to 1MDB, but in reality he was the sole shareholder and the only individual able to sign off on investment decisions.

The fact that the Prime Minister was preparing to make an announcement on the completion of the deal, rather than its progress, had clearly not dawned on the Directors on 26^th September.

What’s more, the 26^th September minutes make clear that at this date the Directors were still labouring under the false impression that the proposed joint venture was a “Government to Government” initiative, thanks to misleading information provided by the managers of 1MDB and PetroSaudi and the tone of the Prime Minister’s Office’s own pronouncements, which indicated the deal related to a new age of partnership between Malaysia and Saudi Arabia involving the investment of surplus Arab cash.

This directly influenced the Board’s willingness to waive certain normal business provisions and it further confirms the shocking level of deceit perpetrated by the company’s managers, including the then Chief Executive Shahrol Halmi, now himself on the 1MDB Board.

The Joint Venture was drawn up to waive normal wind-up and dispute procedures, on the basis that this was a Government to Government venture and matters would be handled politically

Earlier, on 18^th September 1MDB’s Executive Director, Casey Tan, had told Board Members that PetroSaudi was “ultimately owned by King Abdullah” and was an arm of the Saudi State. Tan has now fled Malaysia where he is wanted for questioning by Bank Negara.

However, any glance at the company’s incorporation documents, audits or online information would have alerted 1MDB management and their lawyers from Wong & Partners, that this was not the case. In fact PetroSaudi was a small private company with limited paid up capital and few active concerns, owned by Tarek Obaid and Prince Turki/Terky bin Abdullah.

The shareholders were two private individuals

Yet the minutes of 28^th September show that key decisions leading up to the joint venture were still be made under this false impression that PetroSaudi represented the Government of Saudi Arabia.

The belief caused the Board to minimise provisions for protecting the company, on the basis that disputes would be “arbitrated” on a government to government (“G-to-G”) basis rather than through normal civil legal channels.

In particular, so-called deadlock and wind-up provisions in case of dispute were deliberately drawn up with “fewer options” for 1MDB on the basis of this non-existent “G to G” relationship!

A later section of the minutes reiterates the plain misunderstanding that had been deliberately promoted:

Only the Malaysian Government had an interest, unknown to the Board!

The minutes also record (section vii above) that Directors were also falsely informed that PetroSaudi was bringing “over 20” companies under the Joint Venture Company’s “umbrella”.

In fact, PetroSaudi had one minor investment in Argentina, using borrowed cash and had merely opened up a couple of shell companies off-shore in the past days.

A web of holding companies with few genuine assets

In the light of this misinformation that there would be 20 companies under the JV umbrella the Board sensibly resolved on 26^th September that there needed to be “effective reports regarding the performance of these companies” before a decision was made.

The deliberation underscores the message that the Board of Directors had no intention of signing off on the Joint Venture and authorising the US$1 billion proposed investment just two days hence.  They wanted a thorough examination of the company that would take several months.

Indeed the Directors made a specific requirement at this 26^th September meeting that an independent valuation of PetroSaudi should be commissioned from an expert appointed by 1MDB (which is described in the minutes as The Company).

Specific requirement that 1MDB commission its OWN valuation – instead CEO Shahrol Halmi allowed PetroSaudi to cook up a two day report through their pal Ed Morse

Instead PetroSaudi itself had hired the valuer Ed Morse, a contact of their own directors Tarek Obaid and Patrick Mahony, to produce a report that was drawn up in two days based on information supplied by PetroSaudi.

As already known from the October 3^rd Board Minutes published previously, the Directors were equally furious and alarmed at this self interested and hasty report delivered after the deal was signed and demanded a further valuation immediately.

Why the 1MDB PetroSaudi schemers could not afford delays

The real people behind the PetroSaudi deal – (from left) Jho Low, Prince Turki, Najib, Rosmah and Tarek Obaid – on the occasion they hatched the plan in August 2009 on a hired yacht off the South of France

It is clear why the recommendations and requirements of the Directors made at the September 26^th Board Meeting were ignored by those who were orchestrating events and anxious to get US$700 million paid as soon as possible into Jho Low’s Good Star Swiss bank account.

Because, if any of the proper checks required by the board had been carried out, the joint venture could never have gone ahead.

PetroSaudi would have been revealed as a two bit company and its temporary option on a so-called Farmin deal for a Turkmenistan oil field (due to run out in early October) would have long-since expired, meaning it could no longer pretend to an “interest”, which was being projected as an ownership.

Sarawak Report contends that this audacious plan in blatant defiance of 1MDB’s Board by its Management could never have proceeded without the direct support and authorisation of the real power at 1MDB, the Finance Minister cum Prime Minister himself, who was willing to project a deal with a private company, owned by one of the Saudi King’s many dozen children from over thirty wives, as a ‘Government to Government’ venture between Malaysia and the State of Saudi Arabia.

Would the likes of Shahrol and Casey have dared defy their bosses on the Board unless thus instructed through the agency of the official ‘Advisor’ Jho Low, who has already been demonstrated through documents released from the PetroSaudi database as the person actively managing the deal?

Sarawak Report contends that the wealth of evidence now obtained surrounding this venture points to one conclusion only, which was that the sole objective was to divert public money, borrowed on behalf of Malaysian development, into the private bank account of Jho Taek Low and from thence to places which can be explained by the Central Banks of Switzerland, Singapore and elsewhere.