Ganesh Sahathevan

by Ganesh Sahathevan The issue of the Sarawak Report , WSJ expose of  a movement  of some USD 700 million in funds  from 1 MDB to the private accounts of Malaysia's Prime Minister Najib Razak is highly emotive but as I have mentioned in my prior post,  1 MDB and the  PMO's initial responses leave open the door to other plausible but no less damaging allegations . Since that post, t he Attorney-General of Malaysia has all but confirmed  the substance of the SR and WSJ stories; that is that there has been a movement of funds from 1 MDB to the  private accounts  of Najib Razak. Consequently, given that 1 MDB has a three-tiered system of governance the company, its advisors directors and its CEO Arul Kandasamy must all be presumed to have had knowledge of the transactions referred to. Given the sums involved,given the quantum of  the liability or liabilities, real and contingent, that have arisen as a result of the transactions, denial ra...

Malaysian Government  and 1 MDB responses to the WSJ expose are interesting, given their  choice of words.  Readers might recall the case of former Selangor Menteri Besar Harun Idris : The more recent response from the PMO: Regarding the (WSJ) allegations themselves, it must be noted that 1MDB has already stated that the company never provided funds to the Prime Minister. The earlier responses published by WSJ in their expose: "The prime minister has not taken any funds for personal use, " said a Malaysian government spokesman.  A 1MDB spokesman said, referring to the transfers into Mr. Najib's account: "1MDB is not aware of any such transactions, nor has it seen any documents to this effect." The spokesman cautioned that doctored documents have been used in the past to discredit 1MDB and the government. As the stories all show, the funds were moved out of accounts in the name of PetroSaudi and Jho Low. , and from there,disappeared: The  BSI  records then d...

by Ganesh Sahathevan The deluge of "tampered" documents seems never ending.These excerpts are from the 1 MDB, 1 MDB RE , Bandar Malaysia Sdn Bhd information memorandum filed with the Securities Commission. Given the default on the IPIC guaranteed loans, as well as the demand for early repayment of the Deutsche Bank syndicate loan, the consequences of the following provisions are obvious:  2. PRINCIPAL TERMS AND CONDITIONS - (c) Facility description :  An unrated sukuk issuance programme based on the Shariah principles of Murabahah (“Sukuk Murabahah”) of up to RM2,400.0 million in nominal value (“Sukuk Murabahah Programme”).  7. During the tenure of the Sukuk Murabahah, BMSB (as part of its obligation to pay the Deferred Sale Price) shall make periodic Profit Payments (as defined in item 2(j) below) to the Sukukholders. Upon maturity (unless earlier redeemed) or  upon the declaration of an event of default, BMSB shall pay all amounts outstanding  in respect of ...

NOTE No end to these tampered documents, this time from the LSE  and IPIC. In short,IPIC not only paid the Deutsche syndicate USD 1billion loan,it has also had to assume repayment of interest on the two USD 1.75 billion   1 MDB loans it guaranteed.In other words, 1 MDB has defaulted on those loans. 1 MDB is on the face of it insolvent. Regardless, the Malaysian Government  has until 4 June  2016 to repay IPIC approximately USD 4.5 billion.  IPIC has had to make these disclosures to the LSE for its bonds are listed on the LSE. http://www. londonstockexchange.com/ exchange/prices-and-markets/ debt-securities/company- summary/XS0558268891LUUSDCWNR. html?ds=0 1MDB Debt Settlement Arrangements   On 28 May 2015, International Petroleum Investment Company ( IPIC ), Aabar Investments PJS ( Aabar ), Minister of Finance, Inc., Malaysia ( MOF ) and 1Malaysia Development Berhad ( 1MDB ) entered into a binding term sheet that provides for the following principal matters...

Just published by 1 MDB today ,confirming what has been published on  Sahathevan Blog since March this year, based on an analysis of 1 MDB's 2013 financial statements:  "In September 2012, 1MDB sold its shares in PetroSaudi Oil Services Limited for USD2.318 billion and received fund units in a Cayman registered fund. "The Cayman registered fund is managed by Bridge Partners, a Hong Kong-based fund manager. "These fund units were owned by 1MDB via its 100 percent subsidiary, Brazen Sky, and held through BSI Bank Singapore as custodian," it said in a statement today. Wednesday, April 22, 2015 Confirmation : 1 MDB transaction generated no cash by Ganesh Sahathevan Sarawak Report has just reported    that 1 MDB  banker   " BSI Bank has dismissed documents supplied by 1MDB relating to its Brazen Sky Limited account in Singapore, saying they are false bank statements........  t here is no actual cash in the relevant Brazen Sky Limited account." This confirms...

Nude mountain climbers and angry spirits aside, East Malaysia has been for a very long time prone to tremors and earthquakes The gravity anomaly image above encompassing Sabah and Sarawak suggests that there is a significant area where a low gravity (blue) area collides with a high gravity (darker colour) region.Studies suggest that earthquakes are more likely in low gravity zones, and it should not  be assumed that the normal laws of geophysics do not apply to Malaysia. As the Borneo Post story copied below shows, there are a number of major fault lines that cut across Sarawak, and any  movement of the Earth's crust has the potential to activate those faults. KUCHING: A seismotectonic map showing earthquake fault lines in Sarawak drawn up in 2006 by Minerals and Geoscience Department in Sabah shows the site of the proposed Baram Dam is in the close vicinity of two fault lines. This was disclosed by Alexander Yan the former director of Minerals and Geoscience department to The...

by Ganesh Sahathevan At the Public Accounts    Committee hearings yesterday ,10 June 2015,  1 MDB auditor  Delloittes confirmed that  evidence was found for  only RM 13.4 Billion of 1 MDB's RM 15.4 Billion in investments held at BSI Bank in Singapore. As reported by The Star :  (PAC chairman) Datuk Nur Jazlan Mohamed described the probe into Deloitte’s role as auditors as “a blessing in disguise” as it had provided the bipartisan committee crucial information.On 1MDB's standing as of March 31, 2014, he said the committee had accepted Deloitte's explanation of its unqualified audit which was carried out in a “true and fair” manner.“They said 1MDB was a going concern and had sufficient assets to operate as a sovereign fund,” he said, adding that 1MDB had assets totalling RM13.4bil in Singapore’s BSI Bank. The above seems to be at odds with these figures released by Arul Iskandar Kandasamy: The RM 15.4 billion in " Total Investment Cost" includes ...