KUALA LUMPUR: No country can graduate to become high-income status without first improving governance, eliminating corruption and promoting integrity in every sector, according to Minister in the Prime Minister’s Department (Economy) Datuk Seri Mustapa Mohamed.
As the public is closely watching the government’s performance in areas of governance and integrity, the Auditor General’s Department must carry out its responsibility to audit all expenditures by ministries and agencies.
Amid the aspiration to be a developed nation in both the public and private sector, Mustapa admitted that issues of concerns have emerged in the country such as fraud, corruption, poor governance, weak financial management, abuse of power, and many unethical practices.
“Lack of integrity in institutions, public and private sector will be detrimental to our nation’s economic growth.
“In the current situation when we are facing tough economic and health challenges, these subjects (good governance and integrity) have become more important.
“We must be prudent in our spending. There must be zero tolerance for abuse of power and weak governance,” he said in his speech when officiating the virtual seventh annual ECoFI Symposium (AES) 2021 yesterday.
Mustapa said every sen spent on the government’s stimulus packages has to be monitored closely to ensure that the objectives of assisting the people and businesses were achieved in times of crisis, while strengthening the governance and integrity for swift economic recovery.
Meanwhile, Malaysia Association of Certified Fraud Examiners president Datuk Seri Akhbar Satar said there are numerous actions that needed to be taken in the Covid-19 response and recovery.
These include building fair framework for data openness and access; address immediate risks in the emergency public procurement, mechanisms for effective implementation, compliance and review, safeguarding fairness in the enforcement of public integrity standards and foster a culture of integrity in leadership.
“Transparency is even more crucial during a crisis. (The) lack in checks and balances can lead to abuse of public procurement as some rules and regulations have been loosened.
“It can even lead to the practice of price fixing and collusive bidding – which are normal methods used in emergency procurement,” he said. — Bernama
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
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
US President Donald Trump delivered his speech loud and clear at the UN General Assembly on Tuesday covering a spectrum of issues, ranging from global security, trade, and above all - his idea of "sovereignty." His bragging also attracted some chuckles among the world leaders. What key messages did Trump fixate on? And how is the international community reacting to Trump's speech and his "America First" policies?
The US has revamped a trade deal with the Republic of Korea (ROK). The new version of the United States-Korea Free Trade Agreement specifically aims to boost US auto sale, but its effectiveness remains in doubt. Will this deal set a new precedent for more so-called "US wins" in its multi-front trade war?
NZ Prime Minister Jacinda Ardern Explains Why The UN Laughed At Trump
https://youtu.be/aYsZv9JXmio
https://youtu.be/samRCVQTa-M
https://youtu.be/9lXNF-_cmnM
https://youtu.be/ZjjNKDlwpDc
What's next in the escalating China-US trade war?
https://youtu.be/V73Cgcy3dTA
China vs USA: Trade war
https://youtu.be/aHSSDQYaIjQ
Trump’s tariff policy has failed: analysts
After China slammed US President Donald Trump's accusation that China is meddling in the US midterm elections, analysts noted that Trump's behavior shows he has been shamed as his policy toward China didn't bring what he wants but has hurt his supporters.
If Trump discovers he is losing support due to China's trade retaliation, which has hurt the interests of his supporters, then he should blame himself and people who convinced him to impose additional tariffs against China, because it was his administration that started the frictions and led to China's retaliation, Chinese experts said on Thursday.
"We do not and will not interfere in any country's domestic affairs. We refuse to accept any unwarranted accusations against China," Chinese State Councilor and Foreign Minister Wang Yi said at the UN Security Council at once after Trump made his accusation.
Trump accused China during his remarks at the UN Security Council on Wednesday, saying, "Regrettably, we found that China has been attempting to interfere in our upcoming 2018 elections in November against my administration," CNN reported.
Trump offered scant details or evidence, which came during a session meant to focus on nonproliferation issues. He suggested the meddling attempts came as retribution for the budding trade war he has waged with Beijing, CNN's report said.
China's Ministry of Foreign Affairs also responded to Trump's remarks on Thursday. "China has always stood by the principle of non-interference in other countries' internal affairs, and this is a Chinese diplomatic tradition, and the international community knows this," Chinese Foreign Ministry spokesperson Geng Shuang said at a routine press conference.
"The international community is also clear on which country is most interested in interfering with others' internal affairs," Geng noted. He urged the US to stop making groundless accusations and slandering China, and refrain from making wrong statements and actions that damage bilateral ties and the fundamental interests of the two peoples.
'Not what he wants'
"They do not want me or us to win because I am the first president ever to challenge China on trade," Trump said at the UN Security Council. "We are winning on trade. We are winning at every level. We don't want them to meddle or interfere in our upcoming elections."
However, Chinese analysts disagree with Trump's rhetoric.
"This shows that Trump has been ashamed into anger due to his unsuccessful policy on China," said Ni Feng, deputy director of the Chinese Academy of Social Sciences' Institute of American Studies.
"After a series of tariffs and provocations on the Taiwan question, and sanctions on the Chinese military department and personnel, China has continued to retaliate without any compromise and even refuses to negotiate with the US under the current circumstances. So this situation is not what he wants, which is why he is so angry and tries to make new accusations," Ni noted.
The US midterm elections are approaching, and the Republicans are facing a serious challenge and might lose the House after the elections. So Trump is trying to "pass the buck," said Diao Daming, an American studies expert and associate professor at Renmin University of China.
"Blaming China is a good option for him, and some radical Trump supporters will believe him regardless of the truth," Diao noted.
Due to the interdependency between China and the US, China's retaliation will definitely hurt US people's interests, including those of Trump supporters. But don't forget it was Trump who irrationally began the trade frictions with China, and China is forced to retaliate, Diao said.
"If the US people want to blame someone, they should blame their president. If Trump wants to blame someone for losing support or even the elections, he should blame himself and his advisers who urged him to start the trade row, rather than pass the buck to China," he noted.
A Chinese State-run English language newspaper inserted a four-page supplement in the Sunday edition of the Des Moines Register, an Iowa-based newspaper, to highlight the negative effects of the trade frictions Trump launched.
"China is actually placing propaganda ads in the Des Moines Register and other papers, and making them appear like news," Trump tweeted on Thursday.
"According to US laws, foreign media can cooperate with US media," and many other foreign media companies do the same thing. So, accusing this normal act as evidence of meddling in the elections is far-fetched and groundless, Geng said.
However, the US government, the Congress and the media have done a lot to interfere in China's internal affairs on Taiwan, Xinjiang and Tibet, Diao noted. "This is real interference in others' internal affairs." - Global Times By Yang Sheng
It would be best if Trump could assert a level of caution
when speaking at UN headquarters. Fabricated stories and slogans
designed to trick American voters will not have the same effect with UN
members.
As long as China keeps upholding its opening-up, foreign
enterprises, including many US ones, will continue participating in the
development of the China market. China should continue cooperating with
the Western world and the US on climate change, anti-terrorism, nuclear
nonproliferation, global poverty and stabilizing the financial
situation. As long as China keeps its development momentum, the US is
doomed to lose the trade war.
There are positive aspects as Trump emphasized the idea
of national sovereignty in his UN speech. Meanwhile, it is common sense
that sovereignty will only play a positive role if it is pre-conditioned
on equality, the basic principle everyone abides by.
We also hope that the Chinese public gets to know the
causes and effects of the event and the steadiness of the Chinese
government's policies. No matter how long China-US trade conflicts last,
China is doing what it should. China is honest and principled and a
major trade power with intensive strengths. No one can take us down.
The US is anxious about its temporary gains and losses.
One minute it wants Sino-US exchanges, but the next it worries China is
taking advantage. Its relevant policies are bound to change all the
time. Its latest decision is like the trade war. Washington's purpose is
to drag Beijing down, but it will mostly hurt itself.
The road to solidarity will reflect the times and China
still needs to accumulate experiences. But as long as all of China's
policies aim at serving the people, the country's solidarity won't go
wrong.
Source: Global Times | 2018/9/19 23:33:40
History has proved that Pyongyang-Washington ties have a
decisive effect on inter-Korean relations. In this sense, in the final
analysis, Seoul needs to focus on lobbying Washington.
When asked for comment, she said: “I’m okay. Alhamdulillah (Praise be to God).”
Wife of ex-PM questioned by MACC for 13 hours over 1MDB
While MACC investigators question Datin Seri Rosmah Mansor at length, believed to be over the 1MDB saga, a Dubai-based firm wants RM20.69 mil in bling back. The royal jeweller claims that he could bring his exquisite masterpieces to the ex-premier’s wife without having to go through Customs – thanks to officers from the PM’s Department. PUTRAJAYA: It proved to be a long, gruelling day for Datin Seri Rosmah Mansor as anti-graft officers interrogated her for 13 hours.
She entered the Malaysian AntiCorruption Commission (MACC) headquarters here at 9.50am yesterday.
Speculation was rife that the wife of former prime minister Datuk Seri Najib Tun Razak would be held overnight and charged today.
But at 10.40pm last night, Rosmah emerged from the MACC headquarters. Although she looked exhausted, the 66-year-old afforded a meek smile to waiting journalists outside the building.
When asked for comment, she said: “I’m okay. Alhamdulillah (Praise be to God).”
Her lawyers Datuk K. Kumaraendran and Datuk Geethan Ram Vincent said Rosmah would not be returning for further questioning.
“Datin Seri Rosmah has finished giving her statement. I will not comment further,” said Kumaraendran.
On June 5, Rosmah was questioned for about five hours by MACC investigators over a probe into SRC International Sdn Bhd, a former 1Malaysia Development Bhd (1MDB) subsidiary.
The latest interrogation is believed to evolve around the 1MDB scandal.
Rosmah looked calm when she alighted from a Proton Perdana and walked past a horde of journalists who converged outside the MACC building earlier in the morning.
Her attire and accessories were the centre of attention, as she had colour coordinated her green baju kurung and tudung with a Loewe designer handbag and wedge shoes.
The last time out, she wore a blue baju kurung and red tudung, with her bright red Versace handbag drawing the most stares.
Throughout the day, her lawyers were seen coming in and out of the MACC building at least three times.
As is the practice, lawyers are usually not allowed in the interrogation room. Both spoke of their long wait as journalists tried to find out from them how long the questioning would take.
This was the second time Rosmah had been questioned by the MACC.
Last Thursday, Najib was slapped with 25 fresh corruption and money-laundering charges. He was granted bail of RM3.5mil with two sureties in his latest court case.
Investigators have not ruled out that Najib as well as other individuals could be faced with even more charges related to the 1MDB case. - The Star
Every bit of money that was borrowed by 1MDB had Najib's signature, says PM
It is impossible for Datuk Seri Najib Tun Razak not to know of transactions related to 1MDB when his signature was on the documents, says Tun Dr Mahathir Mohamad.
The Prime Minister said he could not believe his predecessor’s claim that he knew nothing about money from the state fund ending up in his personal account.
“Who wants to believe him (that he didn’t know), when he signed (his name)?
“Every bit of money that goes in and out of the first borrowing of RM42bil, all (had) his signature,” said Dr Mahathir.
The amount refers to the total debt accumulated by 1MDB, a fund which was, in fact, founded by Najib in 2009.
“If he doesn’t know, it must be that he doesn’t understand what a signature means,” Dr Mahathir was quoted as saying in an interview with the Malay Mail yesterday.
Dr Mahathir described as “ludicrous” for someone to direct RM2bil to be transferred into his account, while refusing to be informed of the transaction.
“This cannot be. Because I have to sign to use the money.
“To use the money, I have to issue cheques. Najib always assumes that people are stupid,” Dr Mahathir added.
It was previously reported that about US$700mil (RM2bil) was allegedly misappropriated from 1MDB into Najib’s personal account.
In a Reuters report on Wednesday, Najib blamed his advisers and the 1MDB board for keeping the alleged embezzlement information from him.
He said he did not know if hundreds of millions of dollars that moved through his personal account was from 1MDB, and if money from the fund was eventually laundered to acquire assets globally, including yachts, paintings, gems and prime real estate.
To this, Dr Mahathir said the Government had all the information on Najib’s alleged involvement in moving the 1MDB money, and that it knew how much money had gone into Najib’s account.
On Wednesday, the Prime Minister disclosed that the authorities had “an almost perfect case” against Najib for embezzlement, misappropriation of funds and bribery.
1MDB had fallen RM42bil in debt since its inception in 2009, and Dr Mahathir had been at the forefront raising questions on it over the past three years. -The Star
Najib: If I was informed about the troubles the fund was in, I would have acted
He does, though, have explanations for the vast sums of cash, luxury handbags and jewellery recently seized from his homes by the Malaysian authorities.
Speaking to Reuters in his first sit-down interview since his shock May 9 election defeat, Najib said his advisors and the management and board of 1Malaysia Development Berhad (1MDB), had wrongly kept the alleged embezzlement of funds a secret from him.
Newly-elected Prime Minister Tun Dr Mahathir Mohamad told Reuters on Tuesday that the authorities have “an almost perfect case” against Najib on charges of embezzlement, misappropriation and bribery linked to 1MDB.
Najib, in some of his most extensive comments yet on the 1MDB scandal, said he did not know if hundreds of millions of dollars that moved through his personal account was from 1MDB, and if money from the fund was eventually laundered to acquire assets globally, including yachts, paintings, gems and prime real estate.
“I’m not party to the yacht, the paintings...I’ve never seen those paintings whatsoever,” said Najib.
“I was not aware of these purchases. This was done without my knowledge. I would never authorise 1MDB funds to be used for any of these items. I’ve been in government so long, I know what’s right and what’s wrong,” Najib said in the interview held at a luxurious sea-facing private villa in a five-star hotel on Pulau Langkawi.
He blamed 1MDB’s board, saying it was incumbent upon them to tell him if something was wrong.
Relaxing in a black T-shirt and brown pants, Najib said he was enjoying golf, food, and time with his family.
The family booked the villa to celebrate Hari Raya holidays together. Najib’s children, including stepson Riza Aziz, a Hollywood film producer, were with him for the week, his aides told Reuters.
Malaysian investigators looking into 1MDB say they believe that Najib and his wife Datin Seri Rosmah Mansor have amassed vast amounts of wealth and property using funds from the state fund.
Rosmah briefly appeared at the interview but Najib said she would not take questions.
Nearly 300 boxes of designer handbags and dozens of bags filled with cash and jewellery were among the items taken away by police in raids at properties linked to Najib’s family.
Items included Birkin handbags from the luxury goods maker Hermes, each worth up to hundreds of thousands of dollars.
Najib said the public seizure of handbags and other luxury items created a negative perception but most were gifts given to his wife and daughter and had nothing to do with 1MDB.
“Yes these were gifts, particularly with my daughter’s they were tagged, they were actually labelled: when, by whom,” adding that a lot of them were wedding presents.
Najib said his son-in-law Daniyar Nazarbayev, the nephew of Kazakstan president Nursultan Nazarbayev, also gifted many of the handbags to Rosmah.
“People might find it hard to understand, but my son-in-law for example, he gets Birkin from his source, five or six at one go,” he said.
“His family has got some means, so it has nothing to do with 1MDB if it comes from Kazakhstan.”
US prosecutors have alleged that more than US$4.5bil (RM18.02bil) of 1MDB funds were laundered through a complex web of transactions and shell companies. The US Department of Justice (DoJ) has filed several lawsuits to claim about US$1.7bil (RM6.8bil) in assets believed to have been stolen from 1MDB.
Some of the assets sought include a Picasso painting, luxury real estate in South California and New York, shares in a Hollywood production company and a US$265mil (RM1.06bil) yacht, and more than US$200mil (RM800.9mil) worth of jewellery – including a 22-carat pink diamond pendant and necklace.
Najib said this jewellery set was also meant to be a gift for his wife but she never received it.
“And until today we do not know...she says the item is not in her possession,” Najib said.
In the interview, Najib for the first time also spoke at length about Low Taek Jho, a Malaysian financier better known as Jho Low.
US and Malaysian investigators have named Low as a key figure who benefited from 1MDB funds.
Najib said he felt that Low’s connections in the Middle East, particularly with Saudi Arabia and the United Arab Emirates, could be helpful in pulling in more investment to Malaysia from those places.
But he said he had never instructed Low to get involved in 1MDB, and had no control over what he did.
“I didn’t give him instructions, but he volunteered to do certain things, which he thought would help 1MDB. But whatever he did ultimately is the responsibility of the management and board.”
Malaysia is seeking to arrest Low, believed to be residing abroad, for his involvement in the 1MDB scandal.
He described Low and Najib’s stepson Riza as friends but said he was not aware of any dealings involving 1MDB funds in Riza’s Hollywood production company, which produced The Wolf of Wall Street among other movies.
When asked if he was still in touch with Low, Najib said:
“We have cut off communication again. I don’t know where he is.”
Low’s lawyer did not immediately respond to a request for comment.
Najib has consistently denied any wrongdoing in 1MDB. He has said US$681mil (RM2.72bil) transferred into his personal bank account was a donation from Saudi Arabia, and not as US lawsuits have alleged misappropriated funds from 1MDB.
Najib said he had been given assurances from the late Saudi King Abdullah bin Abdulaziz Al Saud that Saudi Arabia would be sending a donation.
“All I knew, I accepted at face value that this is coming from the Saudis, from King Abdullah at his behest, at his instruction,” Najib said. – Reuters
Najib: I did not benefit from 1MDB in any way
His say: ‘If anyone is found to be on the wrong side of the law, let the legal process take its course.’
LANGKAWI: Former prime minister Datuk Seri Najib Tun Razak has denied that he benefitted from 1MDB, adding that he believed that the sovereign fund had been created to do “something good for the country”.
“If I knew there was going to be misappropriation of funds, if that was my knowledge, I would have acted,” he said.
To a question if he blamed the 1MDB board for the fund’s troubles, he said:
“No. I am saying as a general principle, if they are in the know that something is not right, then it is incumbent upon them to tell me. It is the fiduciary duty of the board and the management to do the right thing. I expect them to do the right thing and to follow the law.”
He also said that they had no control over what Jho Low – who has been named the main suspect in the 1MDB investigation – did, adding that he could not pass judgment.
“But there are certain things which he may or may not have done. But I am right to say that investigations should proceed and if anyone is found to be on the wrong side of the law, let the legal process take its course.
“No, he was not working on my behalf. All those items he never invoked my name but he did say he was acting for someone else,” he said.
Asked who Low was acting for, Najib said: “You have to ask him that.”
He also said that he had not talked much about the 1MDB allegations because all these things happened out of Malaysia and that there were some “international ramifications” if he were to name certain prominent individuals who might affect the country’s diplomatic relations.
“I would also like to place on record that (his step-son) Riza has done very well – the movies, the box office sales has reached beyond RM3.2bil. So, it is not abusing concern. It is a profitable concern. But source of funding is subject to investigation. I think we will leave it at that.”
On RM2.6bil that was moved into his personal account in 2013, he said with the general election coming then, he had not wanted to get funding from companies as they would expect something in return eventually.
“If I have a source of funding, I could fund the elections and I could also do a lot CSR (corporate social responsibility) work without being obligated to anyone. That was my real intention you see. And I assumed everything was fine,” he said, maintaining that the RM114mil ringgit allegedly seized during investigation into 1MDB to be “genuine donations because the raid happened just two days after the 14th General Election. As president of the party, I had to prepare for the elections, and elections are very expensive affairs.
“Because donations are made in cash in election times. You don’t send cheques during election times, because people want cash. That is when monies are disbursed accordingly.”
On Barisan Nasional’s defeat in the elections, Najib said he saw part of it coming but that he did not expect it to be this catastrophic, blaming it on Opposition’s allegations that changed public opinion.
On the reopening of the Altantuya Shaaribuu murder case, he said the case had already been dealt with and denied that there was any evidence that he had ever met her.
“There are no records, no pictures or witness to say that I even knew her. It was subject to a proper trial and my name didn’t come up during the trial whatsoever.
“I’m on record to have sworn in a mosque in the name of Allah that I had nothing to do with the case.” - The Star
KOTA KINABALU: Datuk Seri Mohd Shafie Apdal has been arrested, a day before his 60th birthday and after nearly four hours of questioning by the Malaysian Anti-Corruption Commission.
Shafie, who was arrested at 9pm yesterday, is expected to be taken to the Kota Kinabalu High Court to be remanded today. MACC deputy chief commissioner (operations) Datuk Azam Baki confirmed the arrest.
The Parti Warisan Sabah president arrived at the MACC office at about 5.15pm yesterday, after flying in from Kuala Lumpur, to be questioned over projects implemented during his watch as Rural and Regional Development Minister between 2009 and 2015.
In a white shirt, Shafie Apdal was accompanied by his wife Datin Seri Shuryani Shuaib; Warisan vice-president Datuk Peter Anthony who was detained earlier and released on bail; and their lawyers Martin Tommy and Loretto Padua.
Before he left for the MACC office, Shafie told reporters at his Taman Gold View home: “We are willing to facilitate and when they called me, I flew back from Kuala Lumpur.
“It's a process of law and we need to give our cooperation. We are not going to obstruct and I know that MACC is just doing its job.”
He also said that he was saddened by the detention of his two siblings – Hamid and Yusof – in the investigation but reiterated that MACC was just doing its job.
Urging his supporters to remain calm and to continue the party’s work, Shafie and a relative led a short prayer before heading to the MACC office.
Earlier, a crowd of supporters gathered at the Kota Kinabalu International Airport to greet him.
Later, Shafie was taken to Queen Elizabeth Hospital for overnight observation for having high blood pressure, said his lawyer and Warisan deputy president Darell Leiking.
MACC has so far arrested 10 people, including Shafie’s brothers, his nephew Warisan Youth chief Azis Jamman, Peter, Tenom Umno Youth chief Jamawi Jaafar and his Tawau counterpart Ariffin Kassim, Warisan media representative Armarjit Singh, Hamid’s son-in-law Manzur Hussein Awal Khan, a 52-year-old local contractor and a 40-year-old senior civil servant in Putrajaya, over the case.
Hamid, who was warded at Damai Specialist Hospital for health problems since Sunday has been released on MACC bail.
Magistrate Stephanie Sherron Abbie, granted Hamid bail at RM50,000 in two sureties.
MACC prosecuting officer Mohd Faliq Basirudin said Hamid’s remand was supposed to only end today but he was released earlier because the investigation on him was complete.
Stephanie went to Gleneagles Hospital later, for the release of Manzur, 37, who is also warded over health issues.
He was granted bail at RM30,000 in two sureties and ordered to report once a month to the MACC office.
The government is moving ahead to investigate whether there were any wrongdoings in the massive foreign exchange losses suffered by Bank Negara some 25 years ago. Many people today may not have a good recollection of what happened, while many others probably had no knowledge of it until it became news again recently as the sitting government took aim at this nasty episode under Tun Dr Mahathir Mohamad’s rule.
I was a reporter with Reuters then and had covered the losses that surfaced when the central bank released its annual reports for 1992 and 1993 in March 1993 and March 1994, respectively. I recall that those losses first puzzled me and others because bank officials did not come forward to talk about them at the press conference nor was the information contained in the press release. They were, however, disclosed in the last few pages of the 1992 report on the bank’s financial statement, which normally do not attract attention, as reporters would focus on the earlier parts that touched on the performance of the economy and banking sector.
But that year, we took a cursory look at those back pages and spotted something odd. Bank Negara’s financial statement showed its Other Reserves had plunged from RM10.1 billion in 1991 to RM743 million in 1992, or a loss of RM9.3 billion. There was also a Contingent Liability of RM2.7 billion.
When we asked about this, I recall that both then Bank Negara governor, the late Tan Sri Jaafar Hussein, and his deputy, Tan Sri Dr Lin See Yan, said it was nothing serious, as they were mere paper losses that could be recovered later. We were not convinced, but we were unable to challenge them, as we did not under stand the manner in which Bank Negara presented its accounts.
The next day, however, the market was abuzz with talk that the bank had lost billions in foreign exchange transactions and I remember writing stories on this for the next week or so. But nothing more came of it, although opposition MPs led by Lim Kit Siang continued to press the Ministry of Finance and Bank Negara for answers.
The matter really blew up a year later when Bank Negara tabled its 1993 report and disclosed another forex loss of RM5.7 billion. Here is what Jaafar said:
“In the Bank’s 1993 accounts, a net deficiency in foreign exchange transactions of RM5.7 billion is reported, an amount which will be written off against the Bank’s future profits. This loss reflected errors in judgment involving commitments made with the best intentions to protect the national interest prior to the publication of the Bank’s 1992 accounts towards the end of March 1993. As these forward transactions were unwound, losses unfolded in the course of 1993. In this regard, global developments over the past year had not been easy for the Bank; indeed, they made it increasingly difficult for the Bank to unwind these positions without some losses. For the most part, time was not on the Bank’s side. Nevertheless, this exercise is now complete — there is at this time no more contingent liabi lity on the Bank’s forward foreign exchange transactions on this account. An unfortunate chapter in the Bank’s history is now closed.”
Jaafar took responsibility for what happened and resigned, as did the bank official directly responsible for its foreign exchange operations, Tan Sri Nor Mohamed Yakcop.
How did Bank Negara lose the billions?
Jaafar said the losses were owing to commitments made to protect the nation’s interests. He was referring to the bank’s operations in the global forex market to manage the country’s foreign reserves and, obviously, something went wrong in a big way.
Forex traders and journalists who covered financial markets in the late 1980s knew that Bank Negara had a reputation for taking aggressive positions to influence the value of the ringgit against the major currencies. When the bank is not happy with the direction of the ringgit, up or down, it makes its intentions known by either selling or buying ringgit.
One question I had always asked forex dealers when writing market reports for Reuters was, “Is Negara in the market today?”
Bank Negara has always maintained that its market operations were to prevent volatility and undue speculation. Its critics, on the other hand, said it also did so for profits, which it enjoyed for years.
What went wrong in 1992?
That was the year George Soros and other hedge funds bet heavily against the British pound on the basis that it was overvalued. The Bank of England (BOE) fought back by buying billions of sterling while Soros and gang shorted the battered currency.
As it did not want to deplete too much of its reserves to defend the fixed rate of the pound within the European Exchange Rate Mechanism, BOE capitulated by withdrawing from the ERM on Sept 16, 1992, since called Black Wednesday.
It was widely believed then that Bank Negara had bet on the wrong side of the fight between BOE and the hedge funds. It never thought that central banks could lose against specu lators, but BOE lost and Soros was said to have pocketed at least US$1 billion.
Bank Negara has never confirmed nor denied that this was indeed what happened but the evidence, although circumstantial, points to this as the reason for the loss of RM9.3 billion in its 1992 accounts and the subse quent loss of another RM5.7 billion in 1993, bringing its total loss to RM15 billion.
Was the loss more than RM15~30 bil?
Former Bank Negara assistant governor Datuk Abdul Murad Khalid was reported as saying recently that the losses were actually US$10 billion. That would work out to RM25 billion at the then exchange rate of RM2.50 to a dollar. Murad also alleged that there were no proper investigations into the matter.
Following his allegations, the Cabinet has now set up a task force led by former chief secretary to the government, Tan Sri Sidek Hassan, to investigate whether there were wrongdoings that caused the losses, whether there was a cover-up on the size of the losses, and whether Parliament was misled.
So, who should the task force call up as part of its probe? I am guessing the following:
Tun Mahathir, who was the prime minister then;
Tun Daim Zainuddin, who was the minister of finance from 1984 to 1991 when Bank Negara was active in the forex market;
Datuk Seri Anwar Ibrahim, who was the minister of finance when the losses surfaced in 1992 and 1993;
Dr Lin, who was deputy governor of the central bank then;
Tan Sri Ahmad Don, who succeeded Jaafar as governor;
Murad, who made the allegations; and
Nor Mohamed, who was head of forex operations.
Who is Nor Mohamed?
Nor Mohamed is the man who lost billions for Bank Negara and resigned along with Jaafar in 1993. He then kept a low profile with short spells at RHB Research Institute and Mun Loong Bhd.
In an ironic twist, the man who lost billions for the country was later credited with helping save the ringgit from currency speculators in 1998.
Frustrated by the year-long failure of governments and central banks to fight off speculators, who had devalued Asian currencies (the ringgit plunged to as low as 4.80 to the dollar), Tun Mahathir turned to Nor Mohamed for help. The doctor did not understand how the currency market worked and Nor Mohamed took him through it in great detail. The two men then confidentially devised the plan that shocked the world — the imposition of controls on Sept 1, 1998.
Widely criticised at the time (Ahmad Don and his deputy Datuk Fong Weng Phak resigned in protest), some now say the move helped bring an end to the crisis, as speculators feared other affected countries would do the same.
Nor Mohamed’s star shone again and he later became Minister of Finance 2 under Tun Mahathir and Tun Abdullah Ahmad Badawi. He is now deputy chairman of Khazanah Nasional.
But now, a ghost from his past has been dug up as fodder for the political contest between Prime Minister Datuk Seri Najib Razak and his biggest nemesis, Tun Mahathir. The objective is obvious. Tun Mahathir has attacked Najib incessantly over 1Malaysia Development Bhd. The current administration is fighting back by saying billions were also lost under Tun Mahathir’s watch. Tun Mahathir says there is a 1MDB cover-up and his foes are accusing him of doing the same.
Will the task force unearth anything that is not already known?
The task force needs three months to complete its work, so we will just have to wait for the full picture before we can come to any conclusion that can bring closure to something that happened 25 years ago.
Perhaps, one day, we will be lucky enough to also have the full picture of the affairs of 1MDB. Current Minister of Finance 2 Datuk Seri Johari Abdul Ghani did say this month that no action had been taken against anyone in Malaysia over 1MDB because we have only “half the story” so far.
In that case, should we not have a task force on 1MDB as well so Malaysians can have the full picture?
By: Ho Kay Tat
Ho Kay Tat is publisher and group CEO of The Edge Media Group
This article appears in Issue 772 (March 27) of The Edge Singapore which is on sale now.
Figures could be even greater than what had been disclosed, says STF chairman
KUALA LUMPUR: A Royal Commission of Inquiry (RCI) can reveal more details on the foreign exchange (forex) losses suffered by Bank Negara (BNM) in the 1980s and 1990s, said Tan Sri Mohd Sidek Hassan.
The chairman of the Special Task Force (STF) to probe the forex losses said the figure was greater than what was disclosed.
However, the STF was unable to scrutinise further due to the limitations that it had, he said in an interview on Friday.
“As a task force, we have limitations. We were established on an administrative basis and not under any legislation.
“As such, the STF had no power to coerce anyone to come forward for any discussion or to give any information,” he said, adding that it only had access to documents that were available to the public, such as BNM’s annual reports and consultations between the central bank and the International Monetary Fund.
“We also cannot compel anyone to come forward. Even if you ask them to come and they don’t want to come, there is no issue about it.
“And even if they came and we questioned them, and they refused to answer, we cannot do anything about it.
“And it was not under oath. Even if they answered, we don’t know if that was the truth.
“So, that is why the RCI is better, although it is safe to say that the STF has reason to believe that the actual loss is different and much more than the figures given earlier,” said Sidek, a former Chief Secretary to the Government.
He added that the RCI could have access to documents relating to the forex losses, for instance from the Finance Ministry or BNM.
On Jan 26, former BNM assistant governor Datuk Abdul Murad Khalid revealed that the central bank suffered US$10bil (RM42.9bil) in forex losses in the early 1990s, much higher than the figure of RM9bil disclosed by BNM.
Subsequently, a seven-member STF headed by Sidek was formed in February.
Sidek, who is Petronas chairman, said the STF focused on the three points in the terms of reference, one of which was conducting preliminary investigations into losses by BNM related to its speculative foreign currency transactions.
It also investigated whether there was any action to cover up the losses and whether the Cabinet and Parliament were misled and it had to submit to the Government recommendations for further action, including the establishment of an RCI.
On June 21, the STF submitted its findings, concluding that it found that a prima facie case to merit in-depth investigations by establishing an RCI.
Explaining the process of the investigation, Sidek said 12 people, including former BNM governor Tan Sri Zeti Akhtar Aziz, were interviewed by the STF, and all cooperated well.
Among the others who were summoned by the STF were PKR adviser Datuk Seri Anwar Ibrahim, DAP adviser Lim Kit Siang, and former Finance Minister II and BNM assistant governor at the time Tan Sri Nor Mohamed Yakcop.
Asked on the need to investigate something that happened about two decades ago, Sidek said though it took place a long time ago, it had been revealed that the losses were huge.
“I feel that the people need an explanation on the matter, and the Government had decided to conduct an investigation.
“Therefore, an RCI is the only way for a complete understanding. If this is not done now, the matter will prolong.
“Five or 10 years from now it will crop up again.
“With a full investigation through an RCI, there could be closure to this,” Sidek said. — Bernama
Bernama pic of Sidek
