Thursday, May 12, 2016

#1MDB: Digging Up More Dirt


S’porean Ex-banker Linked With 1MDB Faces New Forgery Charge
By Kelly Ng. Published by Today Online on 12 May 2016.

Former private banker Yeo Jiawei, who has been linked with global investigation into Malaysia’s state investment fund 1Malaysia Development Bhd (1MDB), is facing an additional charge of forgery which Singapore prosecutors described on Thursday (May 12) as opening up “an entirely new front” in the probe by the Republic’s authorities.

Yeo, 30, now faces a total of seven charges. While the previous six charges made no mention of 1MDB or any related entities or individuals, the new charge alleges that Yeo had fraudulently signed a reference letter on Dec 23, 2013 to Citigroup Inc’s head of anti-money laundering to facilitate a transfer of US$11.95 million (S$16.37 million) from SRC International (Malaysia) Limited to Affinity Equity International Partners Limited, a firm owned by someone called Tan Kim Loong.

SRC International, which is a subsidiary owned by Malaysia’s Finance Ministry, had made headlines earlier this year for having transferred millions of ringgit into the personal accounts of Malaysian Prime Minister Najib Razak.


Najib's Stepson Alleged To Have Used US$50m From 1MDB To Buy Properties In U.S. - WSJ Report
By Chen Shaua Fui. Published by The Edge Markets on 12 May 2016.

Prime Minister Datuk Seri Najib’s stepson Riza Aziz Najib was alleged to have used at least US$50 million (RM201 million) diverted from 1Malaysia Development Bhd (1MDB) to acquire luxury properties in New York and Los Angeles, according to documents sighted by The Wall Street Journal (WSJ) and people familiar with the matter.

WSJ reported today that Riza Aziz had used money originating from 1MDB to buy a 7,700-square-foot duplex in the Park Laurel condominium tower, overlooking New York’s Central Park. He bought the US$33.5 million property from Jho Low.

Riza Aziz also bought an 11,000-square-foot walled mansion in Beverly Hills, with a 120-foot-long pool, for more than US$17.5 million, WSJ reported.  

The Journal wrote that the financing of those purchases was under investigation by the Federal Bureau of Investigation (FBI), which is conducting a wide-ranging inquiry into alleged misappropriation of billions of dollars from 1MDB, according to people familiar with the probe.

Investigators believe money used to buy the two properties, was part of at least US$238 million transferred to Red Granite Capital, an offshore company wholly-owned by Aziz, from Aabar Investment PJS Ltd, which was registered at BVI (Aabar BVI).

Aabar BVI has a similar name with the subsidiary company of International Petroleum Investment Co (IPIC), a business partner of 1MDB. Investigators believe Aabar BVI played a central role in the alleged multibillion-dollar fraud.

The Journal previously reported Aziz’ film company received US$155 million in loans originating from 1MDB, much of which went into financing the 2013 movie The Wolf of Wall Street, it added.


WSJ link: 

Malaysia Says Fiscal Position Intact, Denies It Will Raise GST To Pay 1MDB Debts
By Melissa God. Published by Channel NewsAsia on 12 May 2016.

Malaysia says its fiscal position will not be affected by defaults from its wholly owned subsidiary 1Malaysia Development Berhad (1MDB) and denied rumours that its raising the country's broad based consumption tax - the GST - to shore up its coffers.

Deputy Finance Minister Chua Tee Yong on Thursday (May 12) slammed those responsible for spreading rumours on social media that the government is set to raise Goods and Services Tax (GST) from 6 to 8 per cent in June to raise money to pay 1MDB's debts in the wake of troubled state fund recent default to bondholders.

Malaysia introduced the broad based consumption tax in April last year to replace the sales and services tax, to diversify its revenue to make it less reliable on income from oil and gas. But the GST has been blamed for rising cost of living, burdening the people who are already feeling the heat from a lower ringgit and a slowing economy.

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