December 6, 2021

It was a mistake, Putrajaya admits after confusion over 1MDB’s Cayman assets

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22424757From Malay Mail Online

KUALA LUMPUR — Putrajaya admitted today (May 21) that the US$1.103 billion (S$1.47 billion) redeemed from 1Malaysia Development Berhad’s (1MDB) Cayman Islands account had been mistakenly described as “cash” instead of just assets by the investment firm.

Explaining the matter, Second Finance Minister Ahmad Husni Hanadzlah confirmed his ministry’s clarification earlier this week that the redemption, now parked in Singapore’s BSI Bank, is in the form of “units” and not US dollars as previously claimed by 1MDB CEO Arul Kanda Kandasamy.

“There’s a mistake… mistake in the sense that, the impression (given by 1MDB) when they said they have redeemed (the funds) and saved (them) in the Singapore bank (Singapore BSI)…. so the impression is that there’s cash, (but) actually that is a saving,” Mr Ahmad Husni said told reporters at the Dewan Rakyat today.

“That (the redemption) is (in) unit… that’s what it is… in unit, and then, that is being backed sovereign wealth funds,” Mr Ahmad Husni said, but declined to explain further what he meant by “units”.

He said that Putrajaya is also working to repatriate all its assets currently being kept in the bank in question.

Asked to comment on reports that 1MDB is in danger of defaulting on its massive RM42 billion (S$15.6 billion) debt, Mr Ahmad Husni said it is Putrajaya’s intention not to allow this to happen.

“We do not want it to default, because if there is a default, then it will cause a systemic effect, so we do not want this,” he said.

“The problem is the short-term cash flow problem, that’s all. So we will settle it,” Mr Ahmad Husni assured, adding that in terms of asset quality, 1MDB still has the assets to “pay all”.

“It’s only a short-term cash flow problem,” he reiterated.

In January, the Finance Ministry said 1MDB had deposited the US$1.103 billion it redeemed from its offshore account in the Cayman Islands into a Singapore-based branch of Swiss bank BSI Bank, with the amount held in US dollars.

Explaining why the funds were not repatriated back to Malaysia, Mr Arul Kanda told a Business Times interview in February that this was because the funds were to be used to service 1MDB’s US dollar debt interest payments.

Mr Arul Kanda, in clearing the air over the movement of the recently redeemed funds, said it was only “sensible” that the money stays in US dollars.

“There’s a very sensible and simple reason for that. We are keeping the money in US dollars as we have US$6.5 billion in bonds out there, in which interest payments come up to nearly US$400 million a year,” he was quoted saying in the report.

Yesterday, however, Democratic Action Party (DAP) Minister of Parliament Tony Pua revealed a parliamentary reply from the Finance Ministry claiming that the US$1.103 billion was in the form of “assets” and not in cash.

The news also contradicted a similar reply from the ministry on March 10 that said that the funds were fully redeemed and currently kept in BSI Bank in the form of US dollars.

The US$1.103 billion is the second tranche of funds in 1MDB’s Cayman Islands foray, which totalled US$2.32 billion.

1MDB, a brainchild of Prime Minister Najib Razak, is currently the subject of an investigation by the Auditor General’s Department and in line for further scrutiny by Parliament’s Public Accounts Committee. THE MALAY MAIL ONLINE

IMAGEMr Ahmad Husni confirmed the Finance Ministry’s clarification earlier this week that the redemption is in the form of “units” and not US dollars as previously claimed by 1MDB chief executive officer Arul Kanda Kandasamy. Photo: Malay Mail Online
For more on this story go to: http://m.todayonline.com/world/asia/it-was-mistake-putrajaya-admits-after-confusion-over-1mdbs-cayman-assets

Related stories:

Pua to Najib: Sack 1MDB CEO for ‘lying’ about Cayman [Islands] cash

arul_kanda_02_620_441_100From Malay Mail Online

KUALA LUMPUR, May 21 — 1Malaysia Development Berhad (1MDB) CEO Arul Kanda Kandasamy should be relieved of his responsibilities immediately for allegedly lying about the company’s recent Cayman Islands transaction, DAP MP Tony Pua said today.

The Petaling Jaya MP, citing conflicting responses from the Finance Ministry and Arul Kanda on the matter, said if allowed to stay on as CEO, Arul Kanda could become a stumbling block to the ongoing probe on 1MDB.

“His continued leadership of 1MDB will certain hamper the discovery of the truth and the culprits, which may result in further unbearable losses to the financially stricken company,” Pua said in a statement here.

“The Prime Minister, Datuk Seri Najib Razak and the board of directors of 1MDB will have no other choice but to immediately relieve Arul Kanda of his roles and duties in 1MDB.

“The failure to immediately sack Arul Kanda will further taint the Prime Minister and the Board of Director’s culpability for the monstrous sins of 1MDB,” he added.

In January, the Finance Ministry said 1MDB had deposited the US$1.103 billion (RM3.91 billion) it redeemed from its offshore account in the Cayman Islands into a Singapore-based branch of Swiss bank BSI Bank, with the amount held in US dollars.

Explaining why the funds were not repatriated back to Malaysia, Arul Kanda told a Business Times interview in February that this was because the funds were to be used to service 1MDB’s US dollar debt interest payments.

Arul Kanda, in clearing the air over the movement of the recently redeemed funds, said it was only “sensible” that the money stays in US dollars.

“There’s a very sensible and simple reason for that. We are keeping the money in US dollars as we have US$6.5 billion in bonds out there, in which interest payments come up to nearly US$400 million a year,” he was quoted saying in the report.

Yesterday, however, Pua revealed a parliamentary reply from the Finance Ministry claiming that the US$1.103 billion was in the form of “assets” and not in cash.

The news also contradicted a similar reply from the ministry on March 10 that said that the funds were fully redeemed and currently kept in BSI Bank in the form of US dollars.

“The above proved that Arul Kanda is an unscrupulous liar and a man without any honesty and integrity,” Pua said today.

“In effect, we know now that all the new 1MDB president executed was a ‘slight-of-hand’ transaction by just moving the “assets” to BSI Bank.

“He then pretended that the moving of assets to be a ‘redemption exercise’. There was in fact no actual sale of the Cayman assets!” he continued, adding that these “assets” could even be worthless.

The US$1.103 billion is the second tranche of funds in 1MDB’s Cayman Islands foray, which totalled US$2.32 billion.

1MDB, Najib’s brainchild, is currently the subject of an investigation by the Auditor General’s Department and in line for further scrutiny by Parliament’s Public Accounts Committee.

IMAGE: Arul Kanda told a ‘Business Times’ interview in February that this was because the funds were to be used to service 1MDB’s US dollar debt interest payments. ― Reuters pic

For more on this story go to: http://www.themalaymailonline.com/malaysia/article/pua-to-najib-sack-1mdb-ceo-for-lying-about-cayman-cash#sthash.2qXeK9mh.dpuf

Finance Ministry: 1MDB CEO did not secure fake bank statements

najib_razak_20052015_620_413_100By Yiswaree Palansamy From Malay Mail online

KUALA LUMPUR, May 21 — 1Malaysia Development Berhad (1MDB) chief executive officer Arul Kanda Kandasamy did not secure any falsified statement on the firm’s assets in Singapore’s BSI Bank, the Finance Ministry said today, rebutting a Sarawak Report expose on the matter last month.

In a one line reply to Raub MP Datuk Ariff Sabri Abdul Aziz, Finance Minister Datuk Seri Najib Razak denied the allegation, saying that “it is not true” that Arul Kanda had obtained the fake bank documents.

“Your statement that CEO Arul Kanda had obtained bank statements not belonging to BSI is not true,” Najib said briefly in a written reply.

Ariff had asked Najib to state how Arul Kanda had obtained the allegedly falsified bank statements and that if the claim were true, would it then leave 1MDB open to legal action by the Singapore-based Swiss bank.

In Sarawak Report’s latest expose last month, it was alleged that Arul Kanda had distributed falsified financial statements to various parties on 1MDB’s assets held in BSI Bank.

The assets, Petaling Jaya Utara MP Tony Pua later noted from the expose, were purportedly held under 1MDB’s wholly-owned subsidiary Brazen Sky Limited.

The whistleblower site also claimed that the Swiss bank branch in Singapore told the island state’s authorities that the documents did not originate from them and do not represent the true picture of 1MDB’s assets.

The information was subsequently relayed to the Malaysian authorities in March.

In January, the Finance Ministry said 1MDB had deposited the US$1.103 billion (RM3.91 billion) it redeemed from its offshore account in the Cayman Islands into a Singapore-based branch of Swiss bank BSI Bank, with the amount held in US dollars.

Explaining why the funds were not repatriated back to Malaysia, Arul Kanda told a Business Times interview in February that this was because the funds were to be used to service 1MDB’s US dollar debt interest payments.

Arul Kanda, in clearing the air over the movement of the recently redeemed funds, said it was only “sensible” that the money stays in US dollars.

But in the latest twist to the story yesterday, Pua revealed yet another Finance Ministry reply to him claiming that the redeemed investment was not held in BSI Bank in cash but in assets.

The US$1.103 billion is the second tranche of funds in 1MDB’s Cayman Islands foray, which totalled US$2.32 billion (RM8.23 billion).

1MDB, a brainchild of Najib’s, is currently the subject of an investigation by the Auditor General’s Department and in line for further scrutiny by Parliament’s Public Accounts Committee.

IMAGE: Najib said it is not true that Arul Kanda had obtained the fake bank documents. — Reuters file pic

For more on this story go to: http://www.themalaymailonline.com/malaysia/article/finance-ministry-1mdb-ceo-did-not-secure-fake-bank-statements#sthash.CBKI2jZL.dpuf

Malaysian fund’s US$1.1 bln from Cayman Islands are ‘assets in US dollars’: PM Najib

najib_razak_20052015_620_413_100From The Straits Times

KUALA LUMPUR (REUTERS) – Malaysia’s prime minister said on Wednesday the remaining US$1.1 billion (S$1.47 billion) that state investor 1MDB redeemed from its offshore account in the Cayman islands into a Singaporean bank was in United States dollar-denominated assets.

Prime Minister Najib Razak had earlier said the assets were in cash.

1MDB, or 1Malaysia Development Bhd, has been dogged by years of controversy over its management of funds and the US$11.6 billion in borrowings it has amassed to finance the purchase of power assets, a burden that has also weighed on the ringgit currency and on Malaysia’s sovereign credit rating.

Singapore’s Business Times said last week that the US$1.1 billion fund is collateral to a US$975 million syndicated loan to 1MDB. The lenders, led by Deutsche Bank, were worried about the collateral and planned to ask 1MDB to pay up before the loan falls due in less than four months, the report said, citing sources.

IMAGE: Malaysian Prime Minister Najib Razak said on Wednesday, May 20, 2015, that the remaining US$1.1 billion (S$1.47 billion) that state investor 1MDB redeemed from its offshore account in the Cayman islands into a Singaporean bank was in United States dollar-denominated assets. — PHOTO: REUTERS

For more on this story go to: http://www.straitstimes.com/news/asia/south-east-asia/story/malaysian-funds-us11-bln-cayman-islands-are-assets-us-dollars-pm-naj#sthash.cjsUVXXz.dpuf

Khairy: Jho Low’s ‘fingerprints all over 1MDB’, must not escape PAC’s eye

Khairy_Jamaluddin_putrajaya_2005_620_465_100By Kamles Kumar From Malay Mail online

PUTRAJAYA, May 20 — Flamboyant billionaire Low Taek Jho must be investigated over his alleged link to 1Malaysia Development Bhd (1MDB), Umno Youth chief Khairy Jamaluddin said today.

Responding to the Public Account Committee (PAC) saying it will not yet summon the tycoon known as Jho Low for its investigation, Khairy insisted there was too much speculation about the former’s involvement with 1MDB to be ignored.

“I hold PAC by the words ‘at the moment’, but Jho Low should eventually be called in. His alleged fingerprints are all over the 1MDB dealings,” the youth and sports minister told reporters at Putrajaya today.

“There is too much speculation on his involvement in 1MDB. I don’t think we can not call him in.”

PAC chairman Datuk Nur Jazlan Mohamed said yesterday that the committee did not “see the need at the moment” to question the flamboyant billionaire better and Prime Minister Datuk Seri Najib Razak.

Calling Jho Low “one of the main characters in the 1MDB saga”, Khairy said the PAC should at least take his statement to resolve the unanswered questions from the public over his involvement.

“They (PAC) must call him in because, as far as the public is concerned, if you do not call him in there will be no closure,” he said.

“The public expects that because the allegations against him and his involvement are not small,” Khairy said.

In March, Najib ordered the Auditor-General and PAC to investigate 1MDB, amid growing demands for explanations over the state investment firm’s allegedly opaque investment decisions and for amassing a RM42 billion debt pile.

A month after, Khairy demanded authorities to investigate Low for his role in 1MDB, after the tycoon accused Umno of blaming him for the state-owned investment firm’s troubles.

Low has repeatedly denied any association with 1MDB but continues to be linked with it due to his involvement in 1MDB’s predecessor, the Terengganu Investment Authority (TIA).

1MDB was incorporated in 2009, after Najib announced the decision to turn the TIA state fund into a federal agency.

Since then the fund has been dogged by negative publicity over its finances and debts with the most recent one being the controversial land deal with Lembaga Tabung Haji (LTH).

IMAGE: Youth and Sports Minister Khairy Jamaluddin speaks to reporters during a tour at the Putrajaya Youth Festival (FBP) in Putrajaya, May 20, 2015. ― Picture by Kamles Kumar

For more on this story go to: http://www.themalaymailonline.com/malaysia/article/khairy-jho-lows-fingerprints-all-over-1mdb-must-not-escape-pacs-eye#sthash.XjZjIbag.dpuf

See also iNews Cayman related stories published March 11 2015 “1MDB moves $1.53b from Cayman Islands to bank in Singapore, not Malaysia” at: https://www.ieyenews.com/wordpress/1mdb-moves-1-53b-from-cayman-islands-to-bank-in-singapore-not-malaysia/

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