NINE QUESTIONS FOR SARAWAK REPORT: CURRENT / CLARE INNOCENT AND AUTHENTIC?

– - –

1.
2. RELATED: 'LIVID' 1MDB DIRECTORS WANTED US$700M BACK FROM PETROSAUDI'
3. RELATED: MINUTES OF 1MDB BOARD MEETING PROVES 1MDB'S ARUL A LIAR
4. RELATED: 1MDB BOSS DENIES SARAWAK REPORT'S CLAIM HE LIED
5. RELATED: 1MDB FILES POLICE REPORT OVER LEAKED INFORMATION
6. RELATED: PUA MAKES STARTLING ADMISSION

– - –

CLARE BROWN PROVEN INNOCENT: IGP MUST WITHDRAW WARRANT, GO AFTER 1MDB & NAJIB INSTEAD - TONY PUA

REPORTED BY MALAYSIA CHRONICLE

October 17, 2015 –

The Sarawak Report continued its exposé on the minutes of the 1Malaysia Development Bhd (1MDB) Board meetings with the disclosure yesterday indicating that the Directors (BOD) were furious with the top management team led by Datuk Shahrol Halmi.

The minutes dated 3rd October, soon after the signing of the 1MDB-Petrosaudi joint venture agreement, provided a damning confirmation that all the earlier documents leaked by the Sarawak Report were completely authentic.

Instead, the minutes proved that the Prime Minister Dato’ Seri Najib Razak and his cohort of Ministers, as well as the current 1MDB President, Arul Kanda’s repeated attempts to taint the leaked information and documents by the whistle-blower website are clear cut lies. They have obviously alleged that the exposed documents were “doctored” or “tampered” to cover up the multi-billion ringgit scandal.

The minutes revealed that the Board of Directors were furious with the top executives of 1MDB for signing the joint venture agreement in reckless haste, and without any substantive due diligence; the highly suspicious speed of preparation of the valuation report which was prepared by Edward Morse; and most damningly, misappropriating US$700 million to an account unauthorised and unrelated to the joint venture.

The minutes disclosed that the Board “viewed that the formalisation of the joint venture was completed in a very short time which raises questions as to whether adequate control measures, checks and balances were put in place to protect the Company’s interests”. The Sarawak Report had exposed the fact that the top management of 1MDB met with Petrosaudi for the very first time in London on 23rd September 2009 and signed the joint venture agreement a mere 5 days later on the 28th.

The Board were clearly distrustful of the valuation report prepared by Edward Morse, as it was prepared in less than a week although the Board “was previously informed that such valuation report would only be ready by March 2010”. The Board was so upset with the report that they demanded a separate “independent valuer to value the assets”.

The Sarawak Report has also published email trails showing Datuk Shahrol Halmi delivering his signed engagement letter to Edward Morse on 29th September 2009, a day after the signing of the joint venture agreement. Shockingly, the Edward Morse valuation report was produced and dated on the very same day!

The cake of course goes to the fact that the Board “was not consulted on the change of plans to remit US$700 million”. The Board had understood that the full US$1 billion investment was “to be wired to the joint bank account under the name of the [joint venture company]”.

The Sarawak Report had previously revealed that the US$700 million was transferred to the bank account of Good Star Limited in Switzerland, which was controlled by Low Taek Jho, better known as Jho Low.

With the evidence now clearly showing that the Sarawak Report had published the truth without any form of tampering, the Inspector-General of Police (IGP) must withdraw the arrest warrant against Clare Rewcastle, the founder of the whistle-blower website for the frivolous and trumped up charge of a “conspiracy to topple a democratically elected government”.

The failure of the IGP to withdraw their actions will only serve to prove that their actions are “politically motivated”, contrary to their claims of being independent and professional.

- YB Tony Pua, Petaling Jaya Utara Member of Parliament (DAP)

('CLARE BROWN PROVEN INNOCENT: IGP MUST WITHDRAW WARRANT, GO AFTER 1MDB & NAJIB INSTEAD' - Malaysia Chronicle, October 17, 2015)

– - –
1. CLARE BROWN PROVEN INNOCENT: IGP MUST WITHDRAW WARRANT, GO AFTER 1MDB NAJIB INSTEAD - TONY PUA
2.
3. RELATED: MINUTES OF 1MDB BOARD MEETING PROVES 1MDB'S ARUL A LIAR
4. RELATED: 1MDB BOSS DENIES SARAWAK REPORT'S CLAIM HE LIED
5. RELATED: 1MDB FILES POLICE REPORT OVER LEAKED INFORMATION
6. RELATED: PUA MAKES STARTLING ADMISSION
– - –

RELATED: 'LIVID 1MDB DIRECTORS WANTED US$700M BACK FROM PETROSAUDI'

REPORTED BY MALAYSIAKINI

October 16, 2015 –

1MDB's board of directors wanted to redeem US$700 million belonging to the firm meant for a joint venture (JV) from PetroSaudi International (PSI), claimed whistleblower Sarawak Report.

This was based on alleged leaked minutes from a board of directors meeting on October 3, 2009.

"Documents from a special meeting of the board held on Oct 3, 2009, shortly after the signing of the joint venture with PSI, 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," said Sarawak Report editor Clare Rewcastle-Brown in an email to Malaysiakini.

An excerpt from the minutes said that the board "was not consulted on the change of plans to remit US$700 million to PSI. The board of directors' understanding was for the full US$1 billion to be wired to the joint bank account under the name of the JV company."

Malaysiakini has contacted 1MDB for its comments on this latest leak.

The leaked minutes appears to corroborate a report by The Star in July that two 1MDB directors had resigned in protest after the US$700 million intended for its JV with PSI was diverted.

Similarly, The Edge had also reported that US$700 million from 1MDB's initial US$1 billion investment in the JV allegedly went instead to Good Star Limited, which the daily claimed was controlled by businessman Jho Low at the time.

1MDB had criticised The Star's report as sloppy reporting.

Besides asking for the US$700 million back, the leaked minutes also showed that the board of directors was concerned at the speed the 1MDB-PSI JV was formed.

"(It) raises questions as to whether adequate control measures, checks and balances were put in place to protect the company's (1MDB) interests," the minutes read.

It also stated that the directors wanted confirmation that all the assets injected into the JV by PSI were now owned by the JV.

The directors wanted these assets to be evaluated, and to receive a briefing on the evaluation.

Previous reports said these assets were oilfield assets in Turkmenistan.

The JV was called off in 2011 and 1MDB was compensated with a 49 percent stake in PetroSaudi Oil Services Limited (PSOSL) valued at US$2.2 billion.

This stake was sold to Bridge Partners International Investment in August that year in exchange for promissory notes worth US$2.32 billion.

This was the alleged assets 1MDB had in the Cayman Islands.

('"Livid 1MDB directors wanted US$700m back from PetroSaudi."' - MalaysiaKini, October 16, 2015)

– - –

1. CLARE BROWN PROVEN INNOCENT: IGP MUST WITHDRAW WARRANT, GO AFTER 1MDB NAJIB INSTEAD - TONY PUA
2. 'LIVID 1MDB DIRECTORS WANTED US$700M BACK FROM PETROSAUDI'
3.
4. RELATED: 1MDB BOSS DENIES SARAWAK REPORT'S CLAIM HE LIED
5 RELATED: 1MDB FILES POLICE REPORT OVER LEAKED CONFIDENTIAL INFORMATION
6. RELATED:PUA MAKES STARTLING ADMISSION

– - –

RELATED: MINUTES OF BOARD MEETING PROVES 1MDB'S ARUL A LIAR

REPORTED BY HORNBILL UNLEASHED

(MALAYSIAKINI) October 11, 2015 –

Sarawak Report has furnished documents which the whistleblower website described as evidence that 1MDB president and executive director Arul Kanda is allegedly a “liar”.

This is in relation to his claim about “cash in the bank” at BSI Bank in Singapore.

Citing the purported minutes of a 1MDB board meeting which it obtained and published on the website, Sarawak Report claimed it proved Arul’s statement was not an “unfortunate miscommunication”, but part of a “deliberate strategy of misinformation”.

“In other words, it was a barefaced and extended lie,” said Sarawak Report in a statement emailed to Malaysiakini by its founder Clare Rewcastle Brown.

Pointing out how Sarawak Report had produced evidence from Singapore authorities that there was no cash in 1MDB’s BSI bank account back in April, Arul was then forced to make retractions over parliamentary statements by Prime Minister cum Minister of Finance Najib Abdul Razak, claiming that US$1.103 billion, supposedly redeemed in cash from the PetroSaudi joint venture, had been paid to BSI Bank.

Arul had said the assets held at BSI were in the form of ‘units’, which Sarawak Report claimed it had established are categorised as 'Level 3', whereby there is no guarantee as to their actual worth.

“We have now obtained minutes from an earlier board meeting in January, which make plain that the new CEO (Arul) had given detailed assurances to board members that there was indeed cash in the so-called Brazen Sky company account at BSI Bank.

“Arul (right) even gave a highly unbelievable excuse as to why, instead of using these alleged cash funds, 1MDB was borrowing even more money to cover its pressing expenses.

“This was in response to concerns by (then) chairperson, Lodin Wok Kamaruddin, that the management had publicly promised to repatriate the money and then failed to do so.”

Loan guarantee claim ‘nonsensical’

According to the purported minutes, Arul’s excuse for not repatriating the cash was that it had to be retained in the bank in Singapore in order to guarantee yet another loan by Deutsche Bank.

“The CEO had told his bemused board members that Deutsche Bank was preventing him from repatriating the money, because they were demanding that he keep the Singapore cash account as collateral for another almost identical sum of US$975 million they had loaned to 1MDB,” said Sarawak Report.

Sarawak Report however pointed out that it was nonsensical to keep money in the bank to guarantee the borrowing of a virtually identical amount, especially when the high financing costs had become a key concern at the fund.

“So, this was not a communication slip by Arul, it was a positive, detailed claim that the assets were being held in cash, giving the reason that the lending bank consortium would accept nothing less to guarantee their further loan.”

The whistleblower website also pointed out that 1MDB, in public statements, had claimed there was US$1.103 billion in the BSI Brazen Sky account.

“Yet, Arul informed the board there was only US$939 million – over a hundred million less. It appears that no one on the board saw fit to raise a query over such obvious matters.

“Sarawak Report suggests there is only one credible explanation for all these twists and turns, which is that Arul could not repatriate and use the alleged cash, because there was no cash.

“That the board accepted his feeble excuse that close to a billion dollars had to remain frozen in Singapore, in order to guarantee a further billion dollar loan from Deutsche Bank, means either they were half-witted or they had decided to turn a blind eye to a desperate situation caused by blatant corrupted management of the fund.”

‘Board members should know’

Sarawak Report however said it believes the board members were not “financially illiterate half-wits” and that they knew full well that the fund had been “mismanaged on their watch”.

“One individual, in particular, who can only have known better was a vocal member of the 1MDB board, whose comments are also registered in these revealing minutes of January 2015.

“This was none other than the fund’s former CEO, Shahrol Halmi (left), who knew exactly why there was no actual money in BSI’s Singapore accounts.”

Sarawak Report pointed out how it was Shahrol who had presided over the initial US$700 million from 1MDB back in day one of the “so-called” 1MDB PetroSaudi joint venture, which had allegedly been diverted.

Shahrol had also signed off two further major loans to PetroSaudi – US$500 million in September 2010 and then US$330 million that went straight from 1MDB into Good Star Limited in 2011 – allegedly linked to highflying businessman Jho Low – according to documents obtained by Sarawak Report from the Bank Negara investigations into investments by the fund.

“These payments total US$1.83 billion, which significantly represent the sum referred to by Bank Negara governor Zeti Akhtar Aziz when she issued a damning statement condemning the attorney-general’s refusal to issue proceedings against the theft.

“Yet Shahrol had the barefaced cheek to ask on behalf of the board for his successor Arul to ‘present the total amount received from the investment since 2009’.”

Malaysiakini has contacted 1MDB on the latest allegation and is awaiting their response.

1MDB was ordered to repatriate the funds after Bank Negara revoked three permissions granted it under the Exchange Control Act 1953 (ECA) for investments abroad, totalling US$1.83 billion (approximately RM7.5 billion at the current exchange rate).

1MDB in its response to Bank Negara said it could not repatriate the funds because the funds had either been spent or earmarked for a debt transfer.

('Minutes of board meeting proves 1MDB's Arul a liar.' - Hornbill Unleashed, October 11, 2015)

– - –

1. CLARE BROWN PROVEN INNOCENT: IGP MUST WITHDRAW WARRANT, GO AFTER 1MDB NAJIB INSTEAD - TONY PUA
2. RELATED: 'LIVID' 1MDB DIRECTORS WANTED US$700M BACK FROM PETROSAUDI'
3. RELATED: MINUTES OF 1MDB BOARD MEETING PROVES 1MDB'S ARUL A LIAR
4.
5. RELATED: 1MDB FILES POLICE REPORT OVER LEAKED INFORMATION
6. RELATED: PUA MAKES STARTLING ADMISSION

– - –

RELATED: 1MDB BOSS DENIES SARAWAK REPORT'S CLAIM HE LIED

REPORTED BY THE MALAY MAIL

October 10, 2015 –

1Malaysia Development Berhad (1MDB) president Arul Kanda Kandasamy denied today a claim by whistleblower site Sarawak Report that he had lied to the board about cash in the state investment firm’s BSI Singapore bank account.

Arul Kanda acknowledged that Sarawak Report appeared to have published yesterday an authentic 1MDB document, which was the minutes of a January 12, 2015, board meeting, saying that it was the first 1MDB board meeting he attended a week after joining the company on January 5 this year.

“At the meeting, I stated to the Board, based on my understanding of events that occurred before my time, that the redemption of fund units happened in cash for an amount of US$940 million (RM3.9 billion),” Arul Kanda said in a statement on 1MDB’s Facebook page.

“However, upon further investigation and verification, it became clear that this was a misunderstanding, which I then clarified to the Board and our shareholder, the Ministry of Finance. This clarification is clearly recorded in subsequent Board minutes and can be verified,” he added.

1MDB said in the same statement that fund units, owned by 1MDB subsidiary Brazen Sky Limited, were originally valued at US$2.318 billion in September 2012 as the outcome of various equity and murabaha loan investments totalling US$1.83 billion by 1MDB with Saudi oil company PetroSaudi between 2009 and 2011.

According to 1MDB, about US$170 million of the US$1.11 billion fund units were redeemed, in cash, on November 14 and 24, 2014, leaving a balance of about US$940 million in fund units.

“On January 2, 2015, i.e. prior to Arul Kanda joining 1MDB, a final redemption of approximately US$940 million was undertaken through a sale of fund units to Aabar, with cash payment being deferred,” said the company, referring to Abu Dhabi state fund Aabar Investments.

1MDB said the fund units were valued at US$2.33 billion as of March 31, 2014 and that on November 5 last year, about US$1.22 billion had been redeemed in cash, leaving a remaining US$1.11 billion. Together with a dividend of about US$130 million, the remainder sum equated to US$1.23 billion described in the notes to 1MDB’s accounts, the company said.

Arul Kanda said he had confirmed in a press statement on January 13 this year that the remaining amount of US$1.11 billion had been redeemed in full.

“What was unfortunately not made clear, was that the redemptions happened partly in cash and partly through the sale of fund units, with cash payment being deferred. It is this important distinction which caused a misinterpretation of my statement, first during a Business Times interview on February 9, 2015 and subsequently by the Ministry of Finance, in a Parliamentary answer on March 12, 2015,” he said.

Arul Kanda, also the 1MDB group executive director, said he has explained in detail the sequence of events to the National Audit Department and to 1MDB’s auditors, Deloitte.

“My strong track record speaks for itself and my only professional agenda is to fix the challenges in 1MDB,” he said.

“There is no need for me to lie or cover-up what has happened in the past, as has been alleged by those who make sensationalist claims to drive their own political agenda.

"Accordingly, I look forward to being questioned in detail on this matter at the upcoming Public Accounts Committee hearings and for my answers to be a part of the public record, to conclusively put this matter to rest,” he added.

('1MDB boss denies Sarawak Report's claim he lied.' - The Malay Mail, October 10, 2015)

– - –

1. CLARE BROWN PROVEN INNOCENT: IGP MUST WITHDRAW WARRANT, GO AFTER 1MDB NAJIB INSTEAD - TONY PUA
2. RELATED: 'LIVID' 1MDB DIRECTORS WANTED US$700M BACK FROM PETROSAUDI'
3. RELATED: MINUTES OF 1MDB BOARD MEETING PROVES 1MDB'S ARUL A LIAR
4. RELATED: 1MDB BOSS DENIES SARAWAK REPORT'S CLAIM HE LIED
5.
6. RELATED:PUA MAKES STARTLING ADMISSION

– - –

RELATED: 1MDB FILES POLICE REPORT OVER LEAKED CONFIDENTIAL INFORMATION

REPORTED BY ASTRO AWANI

KUALA LUMPUR, (BERNAMA) October 12, 2015 –

The 1Malaysia Development Bhd (1MDB) today filed a police report on the action by one or more parties whom they suspect leaked and sold confidential or proprietary information.

The police report follows the Sarawak Report's blatant admission of having obtained confidential documents from Bank Negara Malaysia and open admission by an international publication, Wall Street Journal, that it too had reviewed documents relating to a 'government probe' on 1MDB and had access to transcripts of the Parliamentary Accounts Committee (PAC) proceedings and the interim Auditor-General draft report on 1MDB.

"Despite these admissions, no action has been taken against either those parties who have published the said documents, nor against the parties that are leaking them, in contravention of the law," the company said in a statement here.

The company said that for the second time in as many days, Sarawak Report, a foreign-run online blog that is currently blocked here for publishing stolen and forged materials, has carried an article with what appear to be authentic 1MDB Board meeting minutes.

"We note with concern that this follows previous statements by Sarawak Report acknowledging that it has obtained documents from Bank Negara investigations specifically, '... according to documents obtained by Sarawak Report from the Bank Negara investigations into investments by fund'," it said.

1MDB believes that the action by one or more parties to leak the confidential information was done with malicious intent and may have breached the Malaysian laws, including but not limited to the Penal Code, the Official Secrets Act 1972, the Houses of Parliament (Privileges and Powers) Act 152 and the Standing Orders of the Dewan Rakyat of Malaysia.

"We have full faith and confidence in the investigative ability and professionalism of the lawful authorities to take all actions required to uphold the laws of Malaysia," it said.

('1MDB files police report over leaked confidential information.' - Astro Awani, October 12, 2015)

– - –
1. CLARE BROWN PROVEN INNOCENT: IGP MUST WITHDRAW WARRANT, GO AFTER 1MDB NAJIB INSTEAD - TONY PUA
2. RELATED: 'LIVID' 1MDB DIRECTORS WANTED US$700M BACK FROM PETROSAUDI'
3. RELATED: MINUTES OF 1MDB BOARD MEETING PROVES 1MDB'S ARUL A LIAR
4. RELATED: 1MDB BOSS DENIES SARAWAK REPORT'S CLAIM HE LIED
5. RELATED: 1MDB FILES POLICE REPORT OVER LEAKED INFORMATION
6.
– - –

RELATED: PUA MAKES STARTLING ADMISSION

REPORTED BY THE NEW STRAITS TIMES

KUALA LUMPUR, September 9, 2015 –

Petaling Jaya Utara member of parliament Tony Pua admitted yesterday that it was he who had introduced Clare Rewcastle-Brown, the woman allegedly spearheading a smear campaign against Prime Minister Datuk Seri Najib Razak, to The Edge Media Group’s top guns.

As evidence from investigations into the case of former PetroSaudi employee Xavier Andre Justo began to emerge, Pua made this startling revelation but was quick to qualify that he was not privy to the leaks or any transactions.

Pua refused to commit when the New Straits Times asked him on WhatsApp if it made sense for a person, acting as the go-between for the sale of US$2 million (RM8.6 million) worth of supposedly valuable commodity, not to have knowledge of what was being put up for sale, its authenticity or even where it came from.

He was also asked if he was aware that he was aiding and abetting in the sale of stolen data. To this, he asked if the NST was levelling accusations against him.

According to investigation documents traced to the Thai authorities, Rewcastle-Brown, who was allegedly acting as Justo’s broker in selling the data he stole from his former employer, had contacted him in February this year to say that she, together with Pua, had arranged for the sale of the stolen data to The Edge Media Group owner, Datuk Tong Kooi Ong.

Pua’s name cropped up several times in Justo’s written confession and transcript of three-month long WhatsApp conversations involving Rewcastle-Brown, Justo and The Edge’s Tong and Ho Kay Tat, who had allegedly set up the thread.

In another WhatsApp thread between Justo and Rewcastle-Brown (they were using the pseudonyms Fullerton and Athene Ban) to discuss the stalled promised payment to Justo, Rewcastle-Brown told him, “I have asked Tony to set up a meeting with Tong”.

Justo, in his response, asked Rewcastle-Brown to take it from there, saying: “You decide. I thought Tony was the leverage. If they don’t care about Tony, what can the others do.”

Clare responded: “Ok. Waiting for Tony to expand on this. He introduced me and has involvement. None of the parties want this out, I assume.”

In the exchanges, in which Justo’s patience appeared to be wearing thin, Rewcastle-Brown had also allegedly told him: “I have told Tony that if he doesn’t pay up then he will be seen to have been dealing with me as you (Justo) are threatening to publish (make public the deal).”

Pua was called to Bukit Aman on September 4 over his statements in relation to 1Malaysia Development Bhd (1MDB).

He then held court outside Bukit Aman, telling the media that police had asked him if he knew Rewcastle-Brown and Justo.

He then said: “I told police that I know Clare and that I met her in London previously.

“However, I do not know Justo and have never met him.”

The member of the Public Accounts Committee told his audience that he had declined to answer other questions posed by police and exercised his right to remain silent.

The NST yesterday asked Federal Criminal Investigation Department (CID) deputy director (Investigation and Law) Datuk Amar Singh, who had on that day confirmed that Pua had been called in, if Pua had mentioned anything about acting as the go-to guy between Rewcastle-Brown and Tong.

Amar said it was not mentioned at all, adding that police would study this new evidence.

Pua had said he was being investigated under Section 124B of the Penal Code for activity detrimental to parliamentary democracy, and Section 124J of the Penal Code for receipt of documents and publication detrimental to parliamentary democracy.

Yesterday, Deputy Prime Minister Datuk Seri Dr Ahmad Zahid Hamidi said police had received cooperation from the Thai authorities to do what was necessary, including opening new investigation papers, against those with involvement to overthrow the government.

“These (procedures) are normal,” he said.

Meanwhile, former PAC chairman Datuk Nur Jazlan Mohamed told NST that Pua never disclosed any knowledge of the stolen data or the dealings to the parliamentary committee, which sat from May to July (when it was temporarily suspended) to investigate 1MDB.

The dealings for the stolen data started as early as March, before it came to an abrupt end in late June when Justo was arrested by Thai authorities for blackmailing his former employer.

Justo, in his confession, said he made it clear to those involved in the deal that he had stolen the data, adding that Tong had told him that there was nothing to worry about and that he “would take care of things”.

“I did not alter or forge any of the data, but I can’t say what Clare, Tong and Ho Kay Tat did to it after I gave it to them.

“All I know is that when I look at the original PetroSaudi data relating to the 1MDB deal, I couldn’t see any wrongdoing,” the documents quoted him as saying.

Protection Group International (PGI) had in July, said Sarawak Report’s published information on 1MDB was “inconsistent” and “unreliable” and that there were inconsistencies between the original information and what was published by the blog.

The cyber security firm was hired by PetroSaudi to investigate the source of the data published online and verify its authenticity.

On June 24, 1MDB said probes into Justo showed that some of the emails concerned had been tampered with, adding that it was confident that the authorities would investigate, establish the facts and take action.