Friday, April 8, 2016

1 MDB malady

Whatever happened to the 1MDB issue in the final analysis is just a malady .
1. For the opposition parties the 1MDB issue was drummed up into a big scandal to provide a seemingly massive excuse to topple Najib from his reins of power.
( Acessed on 4/9/16 at )

2. From various reports in news portal and social media websites  it would appear that the issue will cool down over time and Najib's administration can continue on with 'developing the economy' without being dragged down by drummed up issues.

3. The 1MBD issue is a good case of corporate management.  I need to write about this in future post.  Thus for today's labelling - 'Management issues'.

4. The 1MDB isuue ( this point will need further expansion/additions)
#  From Bloomberg business:  Beginning in March, as public pressure grew, the country’s auditor general, the parliament’s public accounts committee, the central bank, and the police have all homed in on 1MDB. The force of the scandal helped topple the ringgit, the worst-performing currency in Asia as of July 16, down 8.1 percent against the dollar since the start of the year. Foreign reserves plunged 20 percent in June from a year earlier. (acessed on 9/4/16 at )

# From Wall Street Journal : On July 3, the Wall Street Journal, citing documents from government probes, reported that investigators believe almost $700 million in cash moved through state agencies, banks, and companies linked to 1MDB before eventually finding its way into Najib’s personal accounts. The money reportedly included two transactions—one worth $620 million; another, $61 million—made in March 2013, two months before a general election returned Najib to power as part of the Barisan Nasional, or National Front, coalition.
In a country with no public campaign financing and few strictures on political donations, the alleged cash flows caused alarm. Before the 2013 election, on March 12, 1MDB Chairman Lodin Wok Kamaruddin and Khadem Al Qubaisi, then chairman of Abu Dhabi’s Aabar Investments, signed an agreement to form a joint venture. The following month, 1MDB announced it had raised $3 billion for its share of the partnership. “1MDB opted for a private placement to ensure the timely completion of this economic initiative,” the company said in a statement on April 15 of that year.
The timing was controversial. “1MDB may have been created with one of the key objectives being to raise a slush fund to finance Barisan Nasional’s election campaigns,” says MP Tony Pua, of the opposition Democratic Action Party. A statement from the prime minister’s office dismissed the allegations in the Wall Street Journal, saying they amounted to “political sabotage” at the hands of “certain individuals to undermine confidence in our economy, tarnish the government, and remove a democratically elected prime minister.” In a statement, 1MDB said it “has never provided any funds to the prime minister.”
# From the Edge Financial Daily : The Edge Financial Daily had published today another expose on 1MDB, this time detailing Penang-born tycoon Low Taek Jho’s alleged role in the multibillion ringgit controversy.
The business paper currently under investigation for its previous articles on the scandal claimed that the US$1.83 billion (S$2.51 billion) that state-owned 1MDB had invested in Middle Eastern oil company PetroSaudi International (PSI) between 2009 and 2011 was a scheme to defraud Malaysia that involved Low.
The Edge Financial Daily, is published by The Edge Communications of The Edge Media Group that also publishes The Edge Malaysia weekly.
The paper has been issued a show-case letter by the Home Ministry on July 1 for publishing unverified news on debt-laden 1MDB. ( Accessed on 9/4/16 at )

5. Management maladies in 1MDB. (to be expanded )
# accountability issue - accounting of debts,

6. Interested parties in the 1MBD problems:
# Swiss government ..the AG of Swiss gov't opened case on 2 ex-1MDB officials purportedly misappropriating corporate funds (Acessed on 4/9/16 at )