Goldman Sachs staring at ‘significant penalties’, its system of accounting controls could be easily circumvented

Goldman Sachs (U.S. Financial Institution #1) -
“knowingly and willfully conspired to circumvent and cause to be circumvented a system of international accounting controls at [Goldman Sachs], contrary to the FCPA [Foreign Corrupt Practices Act]

From left: Leissner, Ng and Low.

Goldman Sachs Group has acknowledged that it may receive “significant penalties” resulting from its deals with 1Malaysia Development Bhd (1MDB).

It also recognised that it had weaknesses in its compliance controls, The Wall Street Journal (WSJ) reported.

In its third-quarter earnings filing to regulators, the investment management firm made citations about the indictment against its former employees for bribery and money laundering involving 1MDB, WSJ said.

Although it had acknowledged that it could face “significant penalties resulting from 1MDB”, Goldman Sachs said it was also cooperating with investigators, the report on Monday said.

According to WSJ, Goldman Sachs wrote in the filing that the indictment alleged the firm’s “system of internal accounting controls could be easily circumvented and that the firm’s business culture, particularly in South-East Asia, at times prioritised consummation of deals ahead of the proper operation of its compliance functions”.

The filing also mentioned that former Goldman Sachs bankers Tim Leissner and Roger Ng had “circumvented the firm’s internal accounting controls in part by intentionally deceiving control personnel and internal committees”.

Goldman Sachs is said to have received nearly RM2.5bil (US$600mil) in fees from the 1MDB deal.

Previously, the Financial Times reported that Goldman Sachs had helped 1MDB sell about RM27bil (US$6.5bil) of bonds between 2012 and 2013, two years before the authorities raided 1MDB’s offices to investigate allegations of massive fraud.

In a filing to the Securities and Exchange Commission on Friday, Goldman Sachs estimated that possible losses related to litigation proceedings could run as high as US$1.8bil (RM7.49bil) above its total reserves for such matters.

Previously, Goldman Sachs estimated litigation losses to be in excess of US$1.5bil (RM6.24 bil).

The Financial Times also reported that almost 30 people from Goldman Sachs had reviewed 1MDB deal’s approval process.

Meanwhile, in a 2016 indictment, the US Department of Justice (DoJ) alleged that most of the money raised with Goldman Sachs’ help was siphoned off by Low Taek Jho, also known as Jho Low.

The fugitive businessman together with bankers Ng and Leissner were indicted by the DoJ on Thursday for conspiring to launder money and violating the Foreign Corrupt Practices Act in relation to 1MDB.

Leissner pleaded guilty to conspiring to launder money and to violating anti-bribery laws. He has been ordered to forfeit US$43.7mil (RM182.27mil) as a result of his crimes.

The criminal charges relating to 1MDB are the first by DoJ.

In 2016, the DOJ reportedly recovered over US$1bil (RM4.17bil being the current conversion rate) that was allegedly stolen, and sought the forfeiture of property, including a Bombardier private jet, Manhattan penthouse, Beverly Hills mansion and paintings by Vincent Van Gogh and Claude Monet.

Low is currently wanted in Malaysia and Singa­pore and other countries over investigations into 1MDB.

In a separate report by the Associated Press, PKR incoming president Datuk Seri Anwar Ibrahim said that Low would be given a fair trial.

Anwar said he was “quite pleased” with developments in the case so far and that investigations in the United States, Malaysia and Singapore and other places were “progressing very well”.

The report also said Anwar had hinted that more former officials could be tried on corruption charges.

Malaysia has applied for a Red Notice to seek assistance from countries such as the United Arab Emirates, Indonesia, India, Myanmar, China and Hong Kong via Interpol, and Taiwan via diplomatic channels to arrest Low. - The Star

Related posts:

Goldman Sachs CEO: I feel horrible ex-bankers broke law in 1MDB case

https://youtu.be/L0XbbbqTHYw

SINGAPORE (Reuters): Goldman Sachs chief executive officer David Solomon said on Wednesday he felt "horrible" that two former employees "blatantly broke the law" in their dealings with 1Malaysia Development Berhad.

US prosecutors filed criminal charges against the two former Goldman bankers and a Malaysian financier linked to the alleged theft of billions of dollars from the fund.

An investigation into where 1MDB's money went became the largest carried out by the Department of Justice under its anti-kleptocracy programme, and the scandal was a major reason why Malaysian voters rejected Datuk Seri Najib Tun Razak, their prime minister for nearly a decade, in the May 9 general election.

"It is obviously very distressing to see two former Goldman Sachs employees went so blatantly around our policies and so blatantly broke the law," Solomon said in an interview with Bloomberg TV in Singapore.

"I feel horrible about the fact that people who worked at Goldman Sachs, and it doesn't matter whether it's a partner or it's an entry level employee, would go around our policies and break the law," Solomon said.

US prosecutors announced last week that Tim Leissner, former partner for Goldman Sachs in Asia, had pleaded guilty to conspiracy to launder money and conspiracy to violate the Foreign Corrupt Practices Act, and agreed to forfeit US$43.7mil (RM181.8mil).

Roger Ng, the other charged former Goldman banker, was arrested in Malaysia and is expected to be extradited.

Reuters was not immediately able to contact Ng's lawyer on Wednesday. His lawyer did not immediately respond to a request for comment after US prosecutors unveiled the charges last Thursday.

Goldman has also placed its former co-head of Asia investment banking, Andrea Vella, on leave over his role in the firm's involvement with the case, pending a review of allegations, according to a person familiar with the decision.

The Wall Street bank said in a securities filing on Friday that it may also face penalties from dealings with 1MDB.

Asked if he could provide assurances that neither he, former CEO Lloyd Blankfein or any of the senior management team suspected illegality or compliance breaches in dealings with 1MDB, Solomon said:

"We take compliance and control in our firm extremely seriously, we always have...We are going to continue to cooperate with the authorities and there's a process in place and that process will proceed." According to prosecutors, the investment bank generated about US$600mil (RM2.49bil) in fees for its work with 1MDB, which included three bond offerings in 2012 and 2013 that raised US$6.5bil (RM23.29bil). Leissner, Ng and others received large bonuses in connection with that revenue.

Finance Minister Lim Guan Eng told Reuters in June that the government will be looking at the possibility of seeking claims from Goldman Sachs.

Prime Minister Tun Dr Mahathir Mohamad said Malaysia will look into why Goldman was paid around US$600mil in fees, an amount that critics say exceeds normal levels.

Goldman has maintained that the outsized fees related to the additional risks it took on after it bought the un-rated bonds while it sought investors and, in the case of the 2013 deal which raised US$2.7bil (RM11.24bil), 1MDB wanted the funds in a hurry for a planned investment.

The new Malaysian government has barred Najib and his wife from leaving the country, and the former premier faces multiple charges of corruption, money laundering and abuse of power, though he has consistently denied any wrongdoing related to 1MDB.

In another interview with Bloomberg on Tuesday, Malaysia's prime minister-in-waiting Anwar Ibrahim said it would be "inexcusable" if Goldman Sachs was complicit in the scandal. – Reuters

Guan Eng: Goldman Sachs should return RM2.4bil fees - Nation

American investment bank Goldman Sachs should return the US$588mil (RM2.4bil) in it was paid for 1MDB-related matters, says Lim Guan Eng.

The Finance Minister said the fees were for raising bonds totalling US$6.5 billion (RM23.29 billion) for the Malaysian state investment firm back in 2012 and 2013.

"They must pay us back this money, not only the US$588mil but much more than that," he said during a briefing on Budget 2019 at Hotel Equatorial Penang on Wednesday (Nov 7).

He said there were consequential losses due to the fees paid as it had cost Malaysia big losses.

This was in respond to Goldman Sachs chief executive officer David Solomon, who admitted that their employees had broken the law over 1MDB matters.

Read more at https://www.thestar.com.my/news/nation/2018/11/08/guan-eng-goldman-sachs-should-return-rm2_4bil-fees/#wqMtc2F6O1jC35UJ.99

 

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Malay supremacy - Ketuanan Melayu ! How to be supreme ?

"If we want to be tuan (master), we need to have knowledge, willingness to be hardworking, do things properly and not steal. Don't fellow the example of our previous prime minister (Datuk Seri Najib Tun Razak" said Dr. Mahathir:  
Dr M: All races to be consulted on ICERD first

How to be supreme!

Here’s a plea to reconsider an unpalatable term favoured by certain politicians and nationalists.

Tsk, tsk, tsk. Can our dear politicians stop fighting? That’s what they keep telling us, don’t they?

If it is a Malay politician, he is fighting for Malay rights. If it’s an Indian leader, he’s fighting for Indian rights. If it’s a Chinese bloke, he’s fighting for... You get the drift.

Instead of the aggressive and violence-laden word, “fighting”, how about they use words like “promoting”,

“protecting” or “nurturing”?

I actually like another word more: “sharing”. I wish politicians will say things like, “Let me share what the Malay community’s thoughts and concerns are so that we can address them together.”

The word “Malay” can be substituted by any of the following: Chinese, Indian, Iban, Kadazan, Orang Asli, Muslim, Christian, Buddhist, Hindu, etc.

And why should it be so? Because we share this nation. It’s as simple and obvious as that.

The soil, air and water we all need to live have no boundaries when it comes to pollution, global warming and diminishing resources that affect us collectively.

Because when our economy gets bad, everyone suffers – jobs are lost, crimes increase, prices go up... You get the picture. If that happens, will fighting over community rights or racial supremacy help?

That’s why this endless debate over Malay supremacy – ketuanan Melayu – is so pointless and unne­cessary.

Why do people get all riled up whenever it comes up, the latest being our youngest Cabinet member, Youth and Sports Minister Syed Saddiq Abdul Rahman, who said on Saturday the era of ketuanan Melayu had ended under the Pakatan Harapan government?

He went on to give the assurance that this did not mean the needs of the Malay community would be sidelined but that Putrajaya now preferred to emphasise the concept of “shared prosperity” to ensure fair and equitable distribution of wealth across all races.

Somehow that was misconstrued by some quarters and Tan Sri Muhyiddin Yassin, Parti Pribumi Bersatu Malaysia president and Home Minister, had to step in to explain and defend his young colleague. And how was Syed Saddiq misconstrued by the likes of Majlis Belia Negeri Johor?

Well, its president Md Salleheen Mohamad was quoted as saying that Syed Saddiq needed to understand Malay supremacy in the historical context.

He added that it wasn’t about the Malays as master and the non-Malays as slaves but about the position of the Malay sultans as pillars of the nation that protect the importance of Islam, Malay customs and the Malay language.

That sounds perfectly acceptable to me. But what is perhaps not very acceptable or palatable is the use of the word “supremacy” in the context of a race or community.

Despite the assurances that it is not about master versus slave, it brings to mind things like white supremacy and the Nazi’s brand of Aryan supremacism. And surely right-thinking people would agree these are really bad things.

The poster boys for white supremacists are the Klu Klux Klan of America whose members believe that the “white race” is superior in intelligence and culture over other so-called non-white races.

Back in the 1800s to the 1950s when white supremacy was at its height during the era of European colonisation of Africa and Asia, Europeans used being white-skinned and Christian to justify slavery and taking political and economic control of people of darker skin by military and religious methods.

But how “white” is defined is fluid. Not all ethnic groups with white skin were deemed white. The Irish and Italians were not considered as such in late 19th and early 20th century America. But the US government expanded its definition of whites to include Arabs and North Africans in 1944.

America is today very multi-ethnic but the Jim Crow mentality continues and is getting a major boost under Donald Trump’s presidency. The man suspected of sending letter bombs to Barack Obama and others last week considers himself a Trump supporter and a “foot soldier” for white supremacy. He openly proclaimed his love for Adolf Hitler and ethnic cleansing.

Indeed, the most dreadful and extreme example of racial supremacy was demonstrated by the Nazis and Hitler who used it to justify his extermination of millions of Jews and other undesirables like the gypsies, blacks, gay men and the disabled.

So when some people obsess over the need for their race or community to be supreme or “above” others, it doesn’t go down well as they come across as frightening and hate-filled.

That’s why such a term, Malay supremacy, to describe the up­hol­ding of the position of the Malay rulers and Islam is wrong in our Malaysian context.

Malays, I like to believe, are not hate-fuelled, nor do they want to exterminate the non-Malays. They just want to be reassured that the non-Malays understand this is a Malay-Muslim majority nation and that it will stay that way.

As a non-Malay Malaysian, I can give that assurance. And easily so. After all, as have been pointed out repeatedly, Malays dominate the armed forces, the civil service, the Cabinet, the GLCs and in plain demographics with a healthily growing urban middle class.

With such dominance and strength, surely the Malays are in a position to be more generous-hearted and can wean themselves off the siege mentality they were brainwashed with by the previous government that did it to stay in power.

As I have said before, non-Malays are not the enemy. Corrupt, divisive leaders are. They are the ones who want to continue the British colonial tactic of divide and rule that keeps the various races “at just the right distance from each other” so that it is easy to sow fear and suspicion against each other.

So let’s not fight any more. As Tun Dr Mahathir Mohamad, who has said he did not subscribe to the ketuanan Melayu concept, puts it, what is far more important is the willingness of all the communities to share the good and the bad and work together.

Here is where the Malays can show the way. It’s called leadership, Malay leadership. - The Star So aunty, so what? June H.L. Wong

AN OPEN LETTER TO OUR ELECTED NEW GOVERNMENT PUBLIC SERVANTS

Dear PH elected public servants, 

We, the rakyat, elected a coalition called Pakatan Harapan under a single banner led by a 92 year old statesman whom we have, at least, the most trust for to save this nation. This is a MALAYSIAN mandate. Do not forget that. You are all public servants. SERVE. 

We did not elect you to squabble over posts and spoils of war.  We want a reformed nation.  Not the same politicking and sharing of spoils amongst politicians.  We do not care which party you came from. 

The nation faces 3 immediate and present dangers:

1. We have an economic catastrophe waiting to happen due to economic malfeasance over the last decade - financed by debt.

2. We have a corrupt, racialist religiously-bigoted civil administrative system to be dismantled and replaced.

3. We have today an ineffective education but instead a religious-centric education system that has been the source of extremist indoctrination of Malay-Muslim youths and populace over the last 2 decades at least. The result being, Malaysia is per capita the largest exporter of terrorist Islamic fighters in the world and sympathisers. And a large unemployable pool of graduates as product of our failed system. 

Lets be honest in our euphoria of victory that the work ahead is difficult. To be honest, the economic problems, intractable as it looks, is the easiest to solve. That I have full trust in Tun, his brilliantly assembled Council and newly minted Minister of Finance. 

The other two challenges could very well be almost impossible but if not solved will mean the utter destruction of our beloved nation. 

It will take great political-will from your leadership to make hard decisions to drag some of you, not to mention the mostly entitled ketuanan bangsa and ugama Malay-Muslim populace kicking and screaming towards reforms. 

1. We need clear separation of religion and government. Government and public funds must stay out from the business of religion and religious morality. 

2. We need to take out religious education and proselytising from the public arena. Religion must be a private matter and kept private. 

3. Our education must emphasise education not indoctrination. There is no such thing as religious education, only indoctrination. The nation's future rests in its populace being science and technology passionate. 

In conclusion, as I had mentioned before, by 2050, seven of 10 Malaysians will be Muslims. We do not reform at our peril. Do we want our nation to be another failed Muslim majority country as everyone of them is, or do we want to pioneer one that is a model Malaysia - developed, wealthy, technologically superior multi-ethnic multi-religious nation fair to all. 

We, the Malaysian rakyat will be watching and  we will be calling you to account throughout your term. Mark my word, we and I are only starting. 

We wish you all the best and before I forget - congratulations. 

Siti Kasim

A Malaysian 

Note:  No need to ask, just share if you agree.

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Dr M: Malays should question themselves as NEP has failed to ...

 

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New Malaysia should push for meritocracy

Malaysia goes to UK court to challenge IPIC-1MDB consent award US$5.78bil (RM24.16bil)

Malaysia legally challenges a consent award granted in 2017 to Abu Dhabi's sovereign wealth fund, International Petroleum Investment Company (IPIC), following a debt dispute with its state investment fund, 1Malaysia Development Bhd.

Under the consent award, Malaysia is obliged to pay US$5.78 billion to IPIC and the bond trustee over five years. The country has paid US$1.46 billion so far.


Below is the full media statement from Malaysia's attorney-general, Tommy Thomas, explaining why the country is filing the legal challenge.

https://youtu.be/q_hewkxdyp8


CHALLENGING THE IPIC ARBITRATION CONSENT AWARD

1. The Government of Malaysia will apply to the Courts of England for an order to set aside a Consent Award recorded on 9th May 2017 by an Arbitration Tribunal sitting in London. We are confident that we have a strong case. The Arbitration, conducted under the Rules of the London Court of International Arbitration, was between International Petroleum Investment Company (“IPIC”) and Aabar Investments PJS, as Claimants, and 1MDB and our Minister of Finance Inc., as Respondents.

2. Under the Consent Award, Malaysia is obliged to pay US$5.78 billion to IPIC and the Bond Trustee over a five year period. So far, US$1.46 billion has been paid, leaving a balance of US$4.32 billion, with the next interest payment of US$50 million due on 11th November 2018. Similar interest payments are payable periodically until April 2022. The final bullet payments, representing principal and interest of US$1.8 billion each, are due and payable in May and October 2022.

3. The basis of Malaysia’s legal challenge in the High Court in London is that the Consent Award was procured by fraud or in a manner contrary to public policy. The Court application relates to the knowledge of IPIC and Aabar of the serious allegations made by the United States Department of Justice (DOJ) against former Prime Minister and Finance Minister Najib Razak, who was also the moving spirit and ultimate decision maker in 1MDB. Such knowledge on their part was acquired, “inter alia”, no later than the time when the DOJ’s Press Conference was held by the Attorney General of the United States, Loretta Lynch, in July 2016 when she announced the filing by by DOJ of several civil suits for the freezing of assets purchased by fraudsters from stolen proceeds, and popularly described as the greatest kleptocracy in modern history.

4. The grave, detailed allegations in those DOJ court documents were given tremendous global publicity, particularly in the political and business media. They had certainly entered the global public domain by July 2016. Najib Razak is identified as “MO1” in the DOJ pleadings. Any reasonable reader reading these court documents would immediately become aware of his central role in defrauding 1MDB to the benefit of himself, his stepson and Jho Low.

5. In such circumstances, Malaysia takes the position that IPIC and Aabar were aware of the fraud of Najib Razak. He was principally responsible for 1MDB and Minister of Finance Inc. consenting to the Award. Every system of law would hold that he could not possibly have acted in the best interests of his country and his company. Indeed, he did not. Fraud is an established ground to challenge the consent award for public policy reasons.

6. We are pleased to report that the application will be filed today in the High Court in London. Malaysia will claim that as a result of the fraud, we are relieved from any obligation to pay the balance of the US$4.32 billion to IPIC or Aabar under the Consent Award, and additionally have a right to recover the US$1.46 billion already paid.

Tommy Thomas Attorney General 30th October 2018  

Related:

1MDB and IPIC settle arbitration proceedings

https://youtu.be/ooyrdnnGtsc

Govt to appeal consent award - Nation | The Star Online

Malaysia to appeal for order to set aside RM24.16bil consent award in ...

 

AG says Malaysia doesn't have to pay US$4.32b to IPIC as 1MDB defrauded 

 

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Najib is guilty of incompetence, he says: board to be blamed for 1MDB debacle, not me, I don't know !

 

Ex-PM Najib, his treasury sec-gen Irwan & spy boss Hasanah charged with CBT RM6.63bil

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Ex-PM Najib, his treasury sec-gen Irwan & spy boss Hasanah charged with CBT RM6.63bil

https://youtu.be/ybg_Hkxw-yc

Keys officials: Hasanah (left) and Irwan

https://youtu.be/K3jgWOpmKpc

https://youtu.be/W1IPMaJ9KEQ

Ex-PM and Irwan slapped with six counts of CBT

KUALA LUMPUR: Former prime minister Datuk Seri Najib Tun Razak has been brought to court several times but yesterday, he shared a dock at the Sessions Court with former Treasury secretary-general Tan Sri Dr Mohd Irwan Serigar Abdullah.

The two were jointly charged with six counts of criminal breach of trust (CBT) involving funds totalling RM6.636bil that belongs to the government.

Najib, 65, was the first accused while Dr Mohd Irwan, 61, was named as the second accused.

According to the first two charge sheets, the two men were entrusted with dominion over RM1.2bil and RM655mil respectively, and committed CBT in respect of those sums.

The third charge alleges that Najib and Dr Mohd Irwan committed CBT relating to RM220mil in the government’s Federal Consolidated Fund. The amount was allocated for administration expenses for the Kuala Lumpur International Airport.

The RM1.3bil at the centre of the fourth charge was in the same fund and classified as an allocation for subsidy and cash aids.

The fifth and sixth charges were for allegedly committing CBT in respect of 1.95 billion yuan (RM1.261bil) and RM2bil.

All the offences were allegedly committed at the Finance Ministry office in Putrajaya between Dec 21, 2016, and Dec 18, 2017.

The charges were framed under Section 409 of the Penal Code and each carries a jail term of between two and 20 years with whipping, if convicted.

Offenders are also liable to fines. Section 409 covers CBT by public servants and agents.

Najib and Dr Mohd Irwan pleaded not guilty, with both replying “Minta bicara (I claim trial)” after each charge was read out by the court interpreter.

Former Federal Court judge Datuk Seri Gopal Sri Ram, who was appointed by the Attorney General’s Chambers to lead the prosecution, suggested bail at RM3mil each.

Najib’s lead counsel Tan Sri Dr Muhammad Shafee Abdullah objected, saying that his client had already paid RM4.5mil bail accumulatively for his previous 32 charges, an amount which could be “highest in the history of Malaysia”.

“A bail’s only criterion is to ensure his attendance and nothing else. It cannot be punitive. It cannot be oppressive,” he said, adding that his client’s accounts and assets had also been frozen.

Dr Muhammad Shafee asked the court to make an order for Najib to utilise the RM4.5mil bail for his current case.

Datuk K. Kumaraendran, who represented Dr Mohd Irwan, said the prosecution itself did not object to bail, which showed that his client was not a flight risk, and suggested bail of RM500,000 for his client.

Sri Ram replied that the court should not allow the first accused to utilise his RM4.5mil bail for the case as the charges were new.

“The sum we asked for is not fixed on the totality of the sum involved,” he said.

Sri Ram added that the second accused was paid “excessively” during his tenure as the Treasury secretary-general.

“This is not a tale of a good Samaritan. He is the trustee of the highest order of money in this country. He stands before you accused of breaching that trust.

“Any other sum would not reflect the justice of the case,” Sri Ram said.

Sessions Court judge Azman Ahmad allowed bail at RM1mil in two sureties for each of the accused.

He also ordered Dr Mohd Irwan to surrender his passport. Najib had surrendered both his civilian and diplomatic passports in his earlier court case.

The court also allowed for the accused to pay RM500,000 yesterday and to pay the balance in 10 days. Both accused paid the bail.

The case is set for mention on Nov 29. - The Star by nurbaiti hamdan and royce tan

Ex-spy chief Hasanah claims trial to US$12mil CBT

KUALA LUMPUR: Former spy chief Datuk Hasanah Ab Hamid has been charged with criminal breach of trust (CBT) involving US$12.1mil (RM50.3mil) belonging to the government at the Sessions Court here.

The former Malaysian External Intelligence Organisation (MEIO) director-general claimed trial before Judge Azman Ahmad on Thursday (Oct 25).

Hasanah, 61, who was charged in her capacity as a director-general of a research division, was accused of committing CBT in the Prime Minister's Department in Putrajaya between April 30 and May 9 this year.

The charge was made under Section 409 of the Penal Code, which provides a maximum 20 years' jail and whipping, as well as a fine upon conviction.

Lead Prosecutor Datuk Seri Gopal Sri Ram asked for a RM1mil bail.

Hasanah's counsel Shaharudin Ali, however, asked for the sum to be set at RM300,000.

Judge Azman Ahmad later set bail at RM500,000 in two sureties pending mention on Nov 29. - The Star by maizatul nazlina and royce tan

Related stories:

MACC: Sixth CBT charge linked to RM2bil land sale

Najib’s team eager for battle 

 

(Updated) Najib, Irwan claim trial to 6 charges of CBT | New Straits Times ...

 

Najib to face RM6bil CBT charge - Nation

PUTRAJAYA: Datuk Seri Najib Tun Razak and a former key official of his government will be jointly charged with criminal breach of trust, said to involve more than RM6bil.

The former prime minister and former Treasury secretary-general Tan Sri Dr Mohd Irwan Serigar Abdullah are expected to face six counts of allegedly committing CBT – all involving 1MDB.

The two are to be charged in the Kuala Lumpur Sessions Court over 1MDB’s dealings with Abu Dhabi’s wealth fund International Petro-leum Investment Company (IPIC).

Separately, another top official from the previous administration will also be charged in court.

Former spy agency chief Datuk Hasanah Abdul Hamid will also be charged with committing criminal breach of trust.

The Malaysian Anti-Corruption Commission said it had received the go-ahead from the Attorney General’s Chambers to charge Najib, Dr Mohd Irwan and Hasanah with committing criminal breach of trust involving the government’s money.

With Dr Mohd Irwan being hauled to court, it will be the first time a former civil servant is being charged in connection with the sovereign wealth fund scandal.

As for Najib, the number of charges against him is now close to 40. He is already slapped with a total of 32 charges today involving corruption, criminal breach of trust and money laundering.

Sources with knowledge of the case confirmed the number of charges and that the amount of money involved in the 1MDB-IPIC scandal “runs into billions”.

Yesterday, both Najib and Dr Mohd Irwan were summoned by investigators. Both came separately at 1.55pm and 3.25pm respectively.

At 5pm, Najib left the Malaysian Anti-Corruption Commission headquarters despite earlier speculation that he would be held overnight.

On the previous occasions, prosecutors had held the former prime minister and brought him to court the next day.

While Najib was released after giving his statement, MACC confirmed that Dr Mohd Irwan was arrested at 3.35pm and was being held overnight. Dr Mohd Irwan had made several trips to the MACC regarding the 1MDB-IPIC case, the last being on Aug 10.

Graft investigators had probed both Najib and Dr Mohd Irwan on 1MDB’s dealings over settlement payment of US$1.2bil (RM5.04bil) made to IPIC in 2017.

As for Hasanah, the former director-general of Malaysian External Intelligence Organisation is being charged with criminal breach of trust involving money belonging to the government.

She is being held answerable to committing one count of criminal breach of trust by misappropriating funds worth US$12mil said to be meant for the 14th General Election.

Despite earlier talk that Hasanah would also be held, sources said she was asked to present herself in court today instead.

Hasanah was among nine people who were remanded in September over the misappropriation of the fund. - The Star by mazwin nik anis and joseph kaos jr

Spotlight on Najib’s key officials

PUTRAJAYA: Datuk Seri Najib Tun Razak is to be hauled to court for a third time to face extra charges, but the spotlight will be on former Treasury secretary-general Tan Sri Dr Mohd Irwan Serigar Abdullah and ex-spy boss Datuk Hasanah Abdul Hamid.

The two former top civil servants are expected to face a multitude of charges brought against them by the Malaysian Anti-Corruption Commission (MACC).

All three will have to present themselves today at the MACC headquarters here where they will be held overnight before being taken to the Jalan Duta Courts Complex in the morning.

While it will be the third date in court for the former prime minister, the fresh development involves Irwan and Hasanah, two key officials of Najib.

Irwan is expected face charges in connection with the 1MDB scandal while Hasanah, who headed the Malaysian External Intelligence Organisation (MEIO), is expected to be charged for alleged misappropriation of funds worth US$12mil (RM49mil).

Sources said Najib and Irwan will be charged in connection with 1MDB’s dealings with Abu Dhabi’s wealth fund, International Petroleum Investment Company (IPIC).

However, it could not be confirmed if Najib – who is expected to be slapped with six more charges – and Irwan will be jointly or separately charged.

Najib is already facing 32 charges of criminal breach of trust, corruption and money laundering.

Najib will first face the Public Accounts Committee (PAC) in Parliament this morning before heading to the MACC headquarters in the afternoon.

Sources familiar with the investigation said a statement would be recorded from Najib today. While they did not reveal the amount of the misappropriation involved in the six more charges expected to be slapped against him, one can expect the total to run into billions of ringgit.

“It is a lot of money involved here,” said an MACC source without elaborating.

Last week, Najib was called up twice by MACC to explain the payment of over US$1.2bil (RM5.04bil) made to IPIC by 1MDB in a settlement over a US$6.5bil (RM27.3bil) claim made by IPIC.

The settlement was triggered by 1MDB’s default on a bond payment due in 2016, which was guaranteed by IPIC in 2012 for the acquisition of two power plants. It is understood that Najib, who was chairman of the 1MDB advisory board, would be held liable for his role in the debt settlement.

It is, however, not known how many charges Irwan and Hasanah, both aged 61, will be facing. Irwan had been called up by investigators several times to be queried on the debt settlement between 1MDB and the Abu Dhabi wealth fund. His last session was on Aug 10.

Irwan had even lodged a report with MACC over the controversy involving the “missing” RM18mil in Goods and Services Tax (GST) refunds to determine if there were grounds for an investigation.

He later claimed that the allegation by the Pakatan Harapan government was baseless and that he lodged the report to enable the anti-graft body to investigate.

Finance Minister Lim Guan Eng had claimed in Parliament that the Barisan Nasional administration had stolen a total of RM18bil in GST refunds.

As for Hasanah, prosecutors are expected to bring several charges against her, mostly with committing criminal breach of trust.

She was among nine persons who were arrested in connection with misappropriating funds meant for the 14th General Election.

Hasanah, seven other former MEIO officers and a businessman were arrested in late August.

MACC deputy chief commissioner (operations) Datuk Seri Azam Baki was reported to have said that US$12mil (RM50.4mil) of government funds were allegedly misappropriated.

The cash was believed to have been brought in via air, possibly through the Kuala Lumpur International Airport.

Highly-placed sources in the anti-graft body had said that this needed to be looked into as it would be difficult to carry such a staggering amount of money undetected.

Malaysian law requires those bringing in US$10,000 (RM41,000) and above into the country to have it declared at the point of entry.

Investigators found out that the money was brought into the country in May.

Investigators also do not discount the possibility of the funds coming from 1MDB.

The MACC has already called several witnesses, including three foreigners, and at least 20 more witnesses will be tracked down to assist in the investigation, a source said.

MEIO was listed as the “research division” of the Prime Minister’s Department under the Barisan administration.

Hasanah had courted controversy after writing to US Central Intelligence Agency director Gina Haspel, appealing to the United States administration to support Najib.- The Star by mazwin nik anis


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UMNO President Zahid hit with 45 charges of CBT, money laundering and graft

https://youtu.be/C7HK0qSOmdg


KUALA LUMPUR: Datuk Seri Dr Ahmad Zahid Hamidi has claimed trial to 45 charges of money-laundering involving RM72mil and criminal breach of trust and accepting bribes involving RM42mil.

This is the first time a serving Umno president has been hauled to court to face criminal charges.

For charges one to 10, Dr Ahmad Zahid, who was trustee of Yayasan Akalbudi, was accused of committing CBT involving RM20,833,132.99 belonging to the foundation.

The former deputy prime minister and home minister allegedly committed the offences at Affin Bank Bhd at Jalan Bunus here between Jan 13, 2014 and Jan 11, 2016.

The charges under Section 409 of the Penal Code provides for imprisonment between two and 20 years, whipping and fine, upon conviction.

For charges 11 to 18, Dr Ahmad Zahid was accused of receiving RM21,250,000 in gratification in his capacity as home minister.

The bribes were allegedly from Syarikat Mastoro Kenny IT Consul­tant & Services as an inducement for the accused to assist the company obtain MyEG projects which is under the purview of the Home Ministry; Syarikat Data Sonic Group Bhd director Chew Ben Ben, with the company appointed to insert passport chips for five years or 12.5 million chips in Malaysian passports; and from Syarikat Profound Radiance Sdn Bhd director Azlan Shah Jaffril, with the company appointed as service provider of a one-stop visa centre for Pakistan and Nepal.

The offences were allegedly committed at Malayan Banking Bhd in Bangsar between Dec 7, 2016 and March 15 this year.

The charges under Section 16(a)(B) of the Malaysian Anti-Corruption Commission (MACC) Act 2009 carry a jail term of up to 20 years and fine of not less than five times the sum of gratification or RM10,000, whichever is higher, upon conviction.

For the remaining 27 charges, Dr Ahmad Zahid was accused of money laundering involving RM72mil, said to be proceeds from unlawful activities by way of:

> Giving directions to deposit between RM600,000 and RM9.35mil into two bank accounts;

> Giving instructions to purchase two bungalow lots worth RM5.9mil in Kajang; and

> Instructing one Omar Ali Abdullah to convert RM6.8mil into 30 pieces of cheques for the purpose of purchasing fixed deposits in Maybank.

The offences were allegedly committed at Maybank in Bangsar and Marhaba Enterprise Sdn Bhd in Jalan Bukit Bintang between March 29, 2016 and April 11, 2018.

The charges under Section 4(1)(a) of the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001 carry a jail term of up to 15 years and fine of not less than five times the sum involved or RM5mil, whichever is higher, upon conviction.

Dr Ahmad Zahid, 65, who wore an orange batik shirt, appeared calm as the charges were being read out for about an hour.

At one point, he even turned around and smiled at the public gallery.

Counsel Hisyam Teh Poh Teik stood by him outside the dock as the court interpreter read the charges.

Datuk Seri Gopal Sri Ram, who was appointed to lead the prosecution by the Attorney General’s Chambers (AGC), suggested that bail be set at RM2mil.

Hisyam asked that bail be paid in two instalments, to which Sri Ram argued: “The rule is that the accused must post bail on the same day, otherwise he may have been kept in custody. There must be no exception.”

Hisyam said there were judicial precedence in the cases involving Datuk Seri Najib Tun Razak and Datin Seri Rosmah Mansor where the same court allowed bail to be posted in instalments, and added that there was no risk of his client escaping.

Sessions Court judge Azura Alwi allowed bail at RM2mil in one surety, to be paid in two instalments.

“There is no question of this court according special treatment to anyone,” she remarked, ordering RM1mil to be posted yesterday and the balance to be settled by or on Oct 26.

A family friend of the accused posted the first bail instalment. Mention was fixed for Dec 14
 - The Star by Nurbaiti Hamdan

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Najib & his strong wife Rosmah with 17 charges in Court over money laundering

Najib & his strong wife Rosmah with 17 charges in Court over money laundering

> https://youtu.be/tMl-fpyH388

https://youtu.be/rh39urccnYw


PUTRAJAYA: In an unprecedented turn of events, former prime minister Datuk Seri Najib Tun Razak and his wife Datin Seri Rosmah Mansor will both be in court today.

After spending a night in the MACC lockup, investigators are bringing Rosmah to the Sessions Court in Kuala Lumpur to face a slew of money laundering charges while the case management for one of Najib’s cases will take place at the same time.

Najib is facing some 32 charges including criminal breach of trust, abuse of power and money laundering of funds linked to 1Malaysia Development Bhd and its offshoot, SRC International Sdn Bhd.

So far, Najib has been brought to court three times to face charges since July 4.

As for Rosmah, today will be the first time she will be formally charged in relation to money laundering activities.

It is believed that Rosmah could be slapped with up to 20 charges.

Rosmah, 67, will go down in Malaysian history as the first wife of a prime minister to be indicted.

The arrest came after she was questioned for more than four hours yesterday morning at the Malaysian Anti-Corruption Commission (MACC) headquarters here.

The Star, followed by other media, broke the news of her arrest after the lunch break yesterday.

At 3.20pm, MACC confirmed her arrest.

The MACC made the arrest after being given the go-ahead by the Attorney General’s Chambers.

The commission also said that Rosmah would be charged under Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act.

However, Rosmah’s lawyers said they were unaware of the charges that would be brought on their client.

“We were only informed by the MACC of her arrest and that she would be brought to the Kuala Lumpur Sessions Court to be charged tomorrow.

“They did not tell us the nature of the charges,” said Datuk Geethan Ram Vincent.

The media who were stationed outside the MACC building from 9am waited for Rosmah who was called in for questioning for the third time since June 5.

The investigations are related to the trail of funds from 1MDB and SRC International.

She arrived at the MACC headquarters at 10.42am, dressed in a light green baju kurung and a matching selendang.

As she walked past the crowd of reporters, she appeared calm and even stopped to shake hands.

Sources said that Najib was informed of his wife’s arrest.

“He appeared calm,” said a source when asked on Najib’s reaction to the news of Rosmah’s arrest.

Asked about Rosmah’s condition, Geethan said: “She’s ok.”

Rosmah was first called to the MACC on June 5 to answer questions on SRC International Sdn Bhd.

On Sept 26 and yesterday, she was interrogated over the 1MDB scandal and money laundering.

The first inkling of Rosmah being charged was on Sept 24 after MACC chief commissioner Datuk Seri Shukri Abdull was quoted as saying that the investigations on her had been completed and the report had been submitted to the Attorney General.

He said then that it was up to the AG to prosecute Rosmah.

Yesterday, Najib was also detained for questioning on matters related to 1MDB but in another location and by a different law enforcement agency.

While Rosmah was in MACC, Najib was giving his statement at the Anti-Money Laundering and Anti-Terrorism Financing Prevention Unit (Amla) headquarters at Menara KPJ in Jalan Tun Razak.

Pemantau Malaysia Baru president Datuk Lokman Noor Adam, who is also an Umno supreme council member, announced the day before on Facebook that Najib would be called in by the police at 10am yesterday.

Najib was taken into the building through a side entrance after he arrived at Menara KPJ at about 11am, giving the media the slip.

He managed to evade the press when he left the building from the elevated car park at 1.05pm, nearly three hours after he came to the Amla headquarters.

Yesterday morning, a white luxury MPV was seen leaving the couple’s house in Jalan Langgak Duta earlier in the morning.

However, it was not known whether it was transporting the couple or either one of them.

Prior to his questioning at Menara KPJ yesterday, Najib, who is Pekan Member of Parliament, was called up on Aug 27 and 30 and then on Sept 30 to have his statement recorded on the case.

In both instances, it was with the MACC.

Exactly a week ago on Sept 26, Rosmah was called in for a second round of questioning – this time on 1MDB – which lasted 13 hours, also at the MACC.

Credit: mazwin nik anis, joseph kaos jr, royce tan, vincent tan,  and chu mei fong The Star

 The 17 charges on Rosmah - MalaysiaGazette

Datin Seri Rosmah Mansor, wife of former Malaysian Prime Minister Datuk Seri Najib Tun Razak was being charged under the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act (AMLATFPUAA) 2001 at the Kuala Lumpur Sessions Court. PIC: AFIQ RAZALI / Malaysia Gazette / 4 OCTOBER 2018 

By Mohd Zaini Samsu Hadi
KUALA LUMPUR – Datin Seri Rosmah Mansor, wife of former Prime Minister Datuk Seri Najib Razak was slapped with 17 charges on money-laundering involving a total of RM7 million.

Following are the list of charges on Rosmah:

• Depositing RM200,000 from illegal activities into personal account on 4 December 2013
• Depositing RM100,000 from illegal activities into personal account on 15 December 2013
• Depositing RM200,000 from illegal activities into personal account on 23 December 2013
• Depositing RM100,000 from illegal activities into personal account on 28 January 2014
• Depositing RM100,000 from illegal activities into personal account on 29 January 2014
• Depositing RM200,000 from illegal activities into personal account on 28 February 2014
• Depositing RM100,000 from illegal activities into personal account on 14 March 2014
• Depositing RM100,000 from illegal activities into personal account on 8 April 2014
• Depositing RM1.6 million from illegal activities into personal account through 8 transactions between 4 September 2014 and 22 December 2014
• Depositing RM3.85 million from illegal activities into personal account through 127 transactions between 21 January 2015 to 12 December 2015.
• Depositing RM510,000 from illegal activities into personal account through 87 transactions between 28 January 2016 and 7 November 2016
• Depositing RM30,000 from illegal activities into personal account through 5 transactions between 28 March 2017 and 8 June 2017
• Failure to declare RM500,000 deposited into her personal account between 4 December 2013 and 23 December 2013 as required by the Income Tax Act
• Failure to declare RM2.2 million deposited into her personal account between 28 January 2014 and 22 December 2014 as required by the Income Tax Act
• Failure to declare RM3.85 million deposited into her personal account between 21 January 2015 and 12 December 2015 as required by the Income Tax Act
• Failure to declare RM510,000 deposited into her personal account between 28 January 2016 and 7 November 2016 as required by the Income Tax Act
• Failure to declare RM30,000 deposited into her personal account between 29 March 2017 and 8 June 2017 as required by the Income Tax Act

Rosmah was charged according to Section 4(1) of the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act (AMLATFPUAA) 2001,
She shall be liable to imprisonment for a term not exceeding fifteen years and shall also be liable to a fine of not less than five times the sum or value of the proceeds of an unlawful activity or instrumentalities of an offence at the time the offence was committed or five million ringgit, whichever is the higher upon conviction. – MalaysiaGazette

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