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Sakmongkol ak 47

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Friday 15 April 2016

The Politics of the PAC Report.



Let us talk about this ‘project’. The 'project' is nothing more than to create a front/fence company whose bulk of capital if not all, will come from Malaysia led by its overeager PM/Finance Minister, the man much loved by all under the Malayan sky. The idea of the project was contained in a letter sent by one Prince Turki to the PM of Malaysia in August 2009.
The idea is to persuade the Malaysian government to put in USD1bilion cash as its contribution to the capital. Later, portions of this money will be quickly channeled fraudulently into accounts held and controlled by one JHo Low. The Company then went on a binge of issuing bonds and assuming debts placing the country on a perilous financial precipice. 
The only person wholly responsible for placing this country in economic harm's way is Najib Tun Razak. 

The ‘project’ was actually already discussed between Jho Low and his partners in crime. Tarek Obaid, Peter Mahoney, Prince Turki etc etc. The PAC Report never mentioned these people, possibly in compliance to its self-imposed terms of reference.
Thou shall not violate the first principle- never forsake the cari makan covenant.

Sarawak Report’s revelations of this sordid event are more credible and believable. The PAC Report gives absolute credence to what Sarawak Report had reported. Those who went out of their way to intimidate, discredit or stop Sarawak Report from revealing the facts of the matter should now be investigated. Who paid them and what were their motives in trying to put a lid on the biggest financial scandal in Malayan history?

Since 1MDB assumed the initial IMTN arranged by AMbank, I would like to see Ambank investigated for is role in the affair. The Terengganu government lodged a complaint to say that Ambank was somewhat an accessory to some financial tricks carried out by Shahrol Azral. How did Ambank get appointed as lead manager, primary subscriber or whatever in the first place? Let’s investigate whether there was a deal between Shahrol Azral and AmBank in the first place.

How now, brown cow?

Why isn’t Casey Tang investigated? He gave good recommendations to 1MDB’s BOD and indeed implored the BOD to conclude the deal by 28 September 2009. Why was he so anxious? Casey Tang made it out that the business deal is a G2G arrangement.

Was Casey Tang authorised to speak on behalf of the government and if so, was there a  written approval by the PM given to him? since by way of article 117, any commitment involving the nation and its interest must be approved by the greatest Bugis warrior in modern Malayan history, if Casey Tang hasn't gotten approval, then he, Casey Tang has committed a treacherous act. 

Casey Tang went even further by saying that PIL belonged to King Abdullah and was established in the year 2000. The PAC said that the company did not belong to King Abdullah and it was formed only in 2005. So Casey Tang was lying. Was he lying because he was paid money by Jho Low?

In fact as reported by PAC and of course earlier sounded out by Sarawak Report, Petrosaudi Holdings( Cayman) PHL registered a company called PIL( BVI) on 18 September 2009.

Everybody seems to be in the loop. The people in London who hatched the idea, Shahrol Azral, Casey Tang were all in to marry off 1MDB with PIL- the front company. What the AC report didn’t mention was these plans were concocted by Jho Low, Tarek Obaid, Patrick Mahoney, and possibly Shahrol Azral. Casey Tang was already a plant by this group and this ought to be enough to explain his eager exertions to close the deal. When he was briefing the BOD, he was in fact saying, trust me, this is a good deal. Casey Tang was in fact appointed as the corporate representative in the JV Company later.  

Where the hell is Carmen Santiago might as well be the same question posed of Casey Tang. Where the hell is Casey Tang now?

By this time, many are aware of article 117 of a company’s M&A. and its sub-clauses. In the case of TIA and then 1MDB it says every financial commitment must be approved by the PM. He was the first chairman of 1MDB and then later, its chairman to the advisory board of 1MDB. Doesn’t matter what it says, it meant his approval must be obtained before any money is sent out.

I have already said, the 3-tiered structure of approval, isn’t there to shield Najib from being directly linked to 1MDB; Its structured in such a way to ensure not a single sen can go out from 1MDB without his knowledge, awareness and final approval.

How does one infer Najib’s approval? By having his signature on every document. His signature validates any transaction. They carry his stamp of approval.

Now, we have heard one lawyer, who is more known as an out of court kautimer- says Najib’s signature does not mean he approves and is therefore responsible. Now of course, I realise the truth in a friend’s opinion that lawyers are like the eggs we buy from the supermarket. They come in various grades. So it’s up to readers to place into which grade to place the lawyer who says the PM’s signature has no meaning.

The PAC Report is like Utusan Malaysia and some of the Chinese language newspapers. The only piece of news which is true and real in these papers, are the 4 digits results and Prayer times. Similarly, the only material that is true to the extent they are published in the PAC Report, are the numbers and figures. The narration is doubtful and I am not even sure its cari makan chairman read the Report. Many of us know for a fact, and that is because we know him personally, he knows nuts about 1MDB. Never bothered to follow the issue other than bitch-ying about Mahathir going overboard. This was before he even became the PAC chairman.

The Report can’t even differentiate between a parent company and its subsidiary. Petrosaudi Holdings Cayman Ltd is referred to both as the Parent Company and subsidiary of PetroSaudi International Ltd. So which is which? On page 24 of the PAC Report, PHL (Cayman)  was mentioned as the parent company. On page 31, the same company was mentioned as a subsidiary.

PAC’s Board of directors are there to provide a semblance of good governance and compliance.  It remains that through the entire saga of 1MDB. Shahrol Azral can dismiss and ignore with impunity all the remonstrations and plaintiff requests of the BOD. Why?

Because he answers directly to the PM who remains at all material times, the mastermind behind all the transactions of 1MDB. He does not need to micromanage the beastly 1MDB if Chief Nazri Aziz wants to know, he has his boy Shahrol Azral and then later Arul Kanda in 1MDB doing his bidding. That’s effectively micromanaging 1MDB.

Because of its failures to act after repeatedly seeing Shahrol violating and defying its directives, all members of the BOD are complicit in the greatest heist of the century. Never believe this snobbish humility in admitting its dereliction of duty.Members of the Board and Top Management are just a malapertness of pedlars.


7 comments:

Anonymous,  15 April 2016 at 23:25  


Last week when my son asked me to top up his lunch account at the school cafeteria because it was empty, I obliged. Instead of waiting for my wife to do it as is normal, I did it immediately myself because it was empty. On Monday, he told me he couldn’t buy anything because it was still empty. How can that be? I was sure that I had made the deposit at the cafeteria machine.

Upon checking, I found out that I had made the deposit into the wrong account. I had punched in a wrong digit. It was an honest mistake by an old man with unsteady hands. I am sure that the unintended recipient will return it or even if he doesn’t know that someone had made a deposit into his account (as is common apparently since it even happened to our PM), what the heck! RM100 is not much in these hard times, only a week’s lunch money.

I hope that that it is a similar case with 1MDB paying 13,000 million ringgit to the wrong company. 1MDB CEO Arul Kanda has finally admitted IMDB could be a victim of a fraud. An honest mistake! A negligent act by people entrusted to safeguard our billions of ringgits and not worth 5 sen of the huge salaries they were paid.

That the two top executives of Aabar had facilitated for 1MDB to pay 13,000 million ringgit into the bogus company Aabar Investments PJS Limited account instead of the correct company, Aabar Investments PJS is now obvious. In their position they could also slow down the fraud’s discovery by the public.
All it takes now is find out who controlled the bogus company, its shareholders and the signatories to its bank account which has now been emptied and the company wound up. Then follow the money trails to see how the money was spent or given to whom. It’s not rocket science and soon enough it will be public knowledge.

If some of that money went for the use of anybody who has anything to do with 1MDB, then collusion is likely. Not an honest mistake. If that is true, they deserve to face a firing squad. 13,000 million ringgit would pay for so much that the country needs. Heck, it will pay for the whole Pan Borneo Highway plus some!

Like I wrote before, the buck has to stop somewhere. My son’s lunch money for the week is coming from my cigarette money or I will never hear the last of it from my wife. But 13,000 million ringgit is a bit over anybody’s budget, even the PM.

But for the PM’s personal lawyer to feel compelled, as was reported, to defend the PM by saying that the PM’s signature doesn’t mean he’s liable because the PM doesn’t know what he is signing, sent chills down my spine. If the PM’s signature is not worth the paper it is signed on, I dread the numerous times I had advised my clients to the contrary. It is worth a lot! The idiot lawyer was just not articulate enough to explain stuff he may not understand,

With a lawyer like that, the PM’s fate is sealed. What the lawyer meant was the representations made to the adviser by the Board of Directors count. If the representations were wrong, the PM is not liable for the mistake but the liability is on the Board. The lawyer couldn’t even explain that coherently when he wasn’t even asked about the PM’s liability. That’s what you get for hiring a wet-behind-the-ears lawyer who is easily overcome by an occasion whose challenges exceed what he usually merits.

Half of the PM’s problems could be solved if his cheerleaders would just shut up or think first before opening their mouths. We don’t even know who the chief cheerleader is. But you can bet it is not this punk.

Anonymous,  15 April 2016 at 23:58  

Salam sir..thank you for writing the above article.. Hope you don't mind me giving some ideas..It seem we are too occupied with the petrosaudi dealing that we missed a lot hanky panky surroundings things like Trx land dealing..edra energy and the land in Penang which 1mdb had bought it for over more 1 billion..It all about "commission" and "front loading"..Yes..1mdb had to absorbed the total costs of the loan and interest on top of it..But the peoples who brewed up the idea of this spending spree had enjoy the easy picking of their labour by commission..maybe the act from the movie "wolf of wall street" where the character played by De caprio was given a prep talked by his boss summed up the whole scam.."it all about commision".. no wonder jho low was given a special thanks by the end of the credit..Surely a sign of bragging right for him to pull off such a scam..Talking about life imitating art and vice verse..

Donplaypuks® 16 April 2016 at 02:55  

I think Ambank may not be among the villains of the piece. According to the 4C ABC team, Ambank officials went 3 times in 2013-14 to meet Zeti and Bank Negara officers to report about the billions of ringgit that were flowing in and out of Najib's personal a/c at Ambank

But Yeti refused to entertain them and in fact ordered them to take back the files and documents so that she and BNM would not be implcated in any future inquiry! Recently, Zeti and BNM imposed a RM57.3 million fine on Ambank for alleged failure to comply with paperwork. Yet, it relates to events that occurred in 2013, and Zeti had been told about the suspicious transactions.

So, it looks like a belated CYA (Cover our Ass) move by Zeti, who only "sprung" into action AFTER the Wall St Journal and Sarawak Report had exposed Najib's RM2.6 billion "donation" and the looting of $42 million of SRC funds by Najib, to rig GE 2013 and spend money on Rosmah's diamonds (RN3 million) etc.

More than that, Pascal Najadi still unwaveringly maintains that his father Hussein Najadi had also reported it to Zeti and BNM, and had lodged a police report that seems to have vanished (the IGP denies there was ever a report). As everyone is now aware, Hussein Najadi was shot down in cold blood in broad daylight in KL in July 2013!!

Anonymous,  16 April 2016 at 09:00  

So, all the papers and agreements and whatever other documents signed by Najib are therefore suspect lah, because although he signed them he is not liable since he never read them! What bullshit is this? Might as well have a robot PM.

Anonymous,  16 April 2016 at 11:37  

I wonder if FM/PM has even signed any cheque himself. If arul has admitted that 1dmb could be a victim of a fraud, their beloved PM could also tell the same, d fraud victim. hmmmmm
~FOS

Unknown 16 April 2016 at 22:29  

To all dedak eater. Tell me who must take responsibility. Sharol Azral said he bypass the BOD but please look at clause 117 so he is not guilty n Najib sign off without kniwing anything bcoz he is blind so he is not guilty. Let me put it to you,are saying no one to be blame ? We are squeeze from left to right with all sort of taxes by our caretaker government (it doesnt belong to your father) now 28 billion is not accounted. Because our corrupt leader want to steal some other foreig individual and financial institution gets a lot. Dear God fearing leader how can you answer to God. You will rot in jail n then rot in hell.

Unknown 17 April 2016 at 15:34  

It started with a simple premise: raise money and use the money to buy assets that you could "enhance" value. Then some folks decided, what the heck, why buy assets at RM 10 when you can profit from a deal with the vendor by paying him RM 15 ? All we needed were compliant vendors where the excess funds could be channeled offshore for my shopping trips. So we had Tanjong Energy and Genting Sanyen. Then someone decided these tricks were chicken feed, and also possibly running out of compliant companies willing to do such deals, so the next step was to create JVs. Plug in some ridiculously priced termination options in the JVs, and 6 months later, just terminate the JV to ensure there is a well-documented payment due to someone. Create companies that closely resemble those joint-venture partners and divert the termination payments to these fake companies. Then liquidate these fake companies after emptying them of cash.

Nobody will notice if the assets keep going up in value, and you sell some assets to cover any shortfall in cash, and keep the scam going.

If this was an onshore scam, then everything would be swept under the carpet. But this is an offshore scam involving some big names like Goldman Sachs, KPMG, Ernst & Young, Baker & McKenzie, Petro Saudi, IPIC.....and some fake names involving Aabar, Blackstone.....and all bank transfers have an electronic trail....and it is not too difficult to find out where the money all ended up.

Thank Goodness, the Americans are on the case, the Swiss, the Luxembourg, the Singapore and Hong Kong authorities....and soon we will know the true extent of this money laundering exercise.

Yes, the heist of the Century that people will talk about all over the world !

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