Malaysia's 1 MDB scandal: AUSTRAC takes a "see no evil" approach even as Swiss & Singapore regulators investigate

by Ganesh Sahathevan

News that an Australian company was involved in  Malaysia's 1 MDB  billion dollar  money laundering scandal was published in Singapore's Business Times in November last year.
Then, the Wall Street Journal reported that the ANZ managed AMBank in Malaysia was party to a suspicious transactions involving the transfer of  hundreds  of millions of dollars from a Singapore bank account possibly linked to 1 MDB ,into the account of Malaysia's Primie Minister Najib Razak..
Subsequently it has been reported on this blog that persons within Australia may have been paid out of that same pool of funds siphoned out of 1 MDB.  Switzerland's FINMA has since announced that it has commenced a criminal investigation into among other matters, the flow of funds from the accounts of a Swiss private bank's branch in Singapore into Najib's AmBank/ANZ account.

AUSTRAC and its CEO Paul Jevtovic have been sent queries by this writer concerning the above, but in its usual manner,AUSTRAC has remained silent and proposes , it would seem, to do nothing.
END




anking & Finance
Over US$2b of 1MDB's Cayman funds managed by Aussie firm
Anita Gabriel , Over US$2b of 1MDB's Cayman funds managed by Aussie firm
726 words
22 November 2014
STBT
English
(c) 2014 Singapore Press Holdings Limited
Avestra shares several executives with Bridge Global, whose fund 1MDB has invested in
Singapore
AUSTRALIAN firm Avestra Asset Management has been managing over US$2 billion of 1Malaysia Development Bhd's monies invested in several Cayman Islands funds.
The Business Times understands that 1MDB's investments via several segregated portfolio companies (SPCs) in the CaymanIslands called Bridge Global Absolute Return Fund are now managed by Queensland-based Avestra.
This is not known by many because the controversial Malaysian strategic fund, which is sprucing up its energy assets for a massive US$3 billion initial public offering sometime in the first quarter of next year, has not provided details on the funds or the names of the fund manager, although it has long been under pressure to do so for the sake of transparency.
It is not clear how and when Avestra emerged in the picture as investment adviser of the funds under Bridge Global. BT's numerous attempts to contact Avestra's top executives and 1MDB drew a blank.
These funds - some 60 per cent of which have reportedly returned to Malaysia recently - were invested by the state-backed fund through Brazen Sky Ltd - a wholly owned unit incorporated in the British Virgin Islands (BVI).
According to Avestra's website, the asset management firm operates in Australia and Asia with research and marketing facilities in Hong Kong, Singapore and Malaysia.
There are several common individuals on the management line-up of Avestra and Bridge Global - Paul Rowles, who established the Avestra Group in 2004, Jason Dixon and Nick McDonald. Several attempts to reach Mr Rowles were also unsuccessful.
Bridge Global, according to its website, has over US$2.5 billion under management and to date, has launched nine segregated portfolios in the Cayman Islands.
News that 1MDB had ploughed some US$2.3 billion into Bridge Global funds which is managed by little-known Hong Kong-based Bridge Partners was first reported by BT in May this year. The link between Bridge Partners and Avestra, however, appears unclear.
These funds itself arose from a convoluted tie-up between 1MDB and obscure firm PetroSaudi International (PSI) initially involving US$1.8 billion which eventually fell through and was converted into an Islamic debt facility.
The investments in the Cayman Islands regulated funds are generating US$267 million in dividend, said 1MDB chairman Lodin Wok Kamaruddin recently at the fund's first media briefing since it was set up five years ago where he vouched for the fund's transparency, although the event itself was open to very few, selected local media organisations. "To date, almost 60 per cent, or RM4 billion (S$1.55 billion), of the fund has been liquidated for settlement of1MDB's financial commitments. The balance will be liquidated before the end of the year," said Mr Lodin, according to a Malaysian news report.
1MDB, wholly owned by the Ministry of Finance and with Prime Minister Najib Razak as chairman of its advisory board, has been under stinging criticism for keeping its monies offshore, given that it is regarded as a sovereign wealth fund with most of its assets in Malaysia.
In recent weeks, there has been renewed and relentless attacks on 1MDB by opposition politicians in and out of Parliament.
On its part, 1MDB's opaque investment decisions and the fact that it is saddled with hefty debt - its borrowings have ratcheted up to RM41.9 billion for fiscal year 2014 from RM36.2 billion a year ago - have made it an easy target.
The fund's recently released delayed accounts for the fiscal year ended March 2014 provided additional fodder; escalating borrowing costs led the firm to swing into the red with losses of some RM665 million from a profit of RM778 million a year ago.
Last year's numbers were aided by huge revaluation gains of property assets of RM2.7 billion, in the absence of which the fund would have bled some RM1.9 billion.
Despite frequent remarks by top Malaysian officials and 1MDB executives that 1MDB is able to service its debt load, there still appears to be palpable and widespread concern over the fund's surging debt.
Singapore Press Holdings Limited
Document STBT000020141121eabm0000c

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