Friday, September 11, 2015


The latest unfolding development, in the never ending 1MDB narrative, are press reports that US$1.4 billion made by 1MDB to IPIC as a security deposit is not accounted for in the latter's books.

The Financial Times reported 1MDB's deposit "does not appear to be an obvious corresponding entry in Ipic’s published accounts for either year".

Here are the links to IPIC's  2012 and 2013 financial statements and below are screenshots, which I understand, may indicate that the deposit is indeed unaccounted for. 

Also, in both year end accounts, the Notes do not mention any prerequisite or conditional deposit other than the benefit deriving out of IPIC's guarantee.

As always, 1MDB was swift to respond that "it stands by it's audited accounts".

I won't comment on 1MDB's lack of understanding of the undercurrent meanings that can be arrived from the missing deposit reports but will comment on the significant impact it will have on accounting firm Deloitte.

1MDB in no uncertain terms has specifically stated that its "auditors, Deloitte, made specific and detailed enquiries on these payments prior to signing off on the 1MDB audited accounts".

If these reports, of 1MDB's unaccounted deposit, are accurate and should the IPIC scrutiny of its accounts confirm that that it is indeed the case, it will be huge blow to the reputation of the accounting firm Deloitte

Sunday, July 5, 2015

The Wall Street Journal Datuk Seri Najib 1MDB "Bomb"

LATEST UPDATE 11.30pm: News is spreading like wildfire. Should the WSJ exposé be found false, Voice of America, Washington Post, AP, Newsweek, will be eating more than humble pie. No amount of apology from WSJ can compensate the damage done on the international image of PM Datuk Seri Najib. The die has been cast. By the way who is Eileen Ng of AP? Who did I say? Don't be surprised.

Original Post

I am averse to any foreign media reports on anything to do with Malaysia and especially when it has nothing good to say.

Most often than not these media have hidden agendas for specific purposes. This is not to say that our local media are free from such hidden agendas and biases. Its a no brainer.

In the present, the issue that has grabbed everyone's attention has been the 1MDB fiasco, if anyone would care to notice, I have quoted mostly local reports and NOT those known to be opposition friendly.

The likes of which include Malaysiakini and The Malaysian insider.

So, when The Wall Street Journal came out with an explosive report on PM Datuk Seri Najib, "Investigators Believe Money Flowed to Malaysian Leader Najib’s Accounts Amid 1MDB Probe (bylined) Prime Minister Najib’s bank accounts are scrutinized during investigation of investment fund 1MDB", I took it with a very large pinch of salt. 

I would be lying if I said that I was angry with such a damaging report and this has to do entirely in how the whole sordid 1MDB affair has been handled, the lack of transparency and the weak responses et al by the parties directly involved in this federal entity. A former 1MDB CEO had stated that 1MDB is NOT a sovereign wealth fund. Something that will be discussed another time and precisely what I mean.

According to the WSJ, their report are based on "investigation documents" reviewed and the expose solid.
"Documents reviewed by The Wall Street Journal include bank transfer forms and flow charts put together by government investigators that reflect their understanding of the path of the cash."
The WSJ graphic below sustains its stand on "documents" and "Govt investigation",

Denials, to no one's surprise, was imminent - immediate, late or never.

The immediate denial by 1MDB to the WSJ indictment, as far as I am concerned, means nothing.

The main body of doubt and questions directed to and at 1MDB has been unsatisfactorily responded to-date. In fact 1MDB's various replies, rebuttals and denials has created even more doubts and questions, giving extra munition for those seriously seeking honest to goodness answers.

PM Datuk Seri Najib's denial is convincingly covered by the Scribe A Kadir Jasin and the PM's intention to sue WSJ has Datuk Rocky weighing the legal option.

In regards to Datuk Rocky's posting, with respect I would have liked to have commented there, I can only say of our PM seeking legal recourse - Damn if he did, damn if he don't.

Scribe AKJ put it simply,  "All that is needed is for AmBank to deny the existence of the alleged account". I believe it is easier said than done.

The WSJ named the 4 Govt agencies including the PAC investigations.

They are Bank Negara "Bank Negara probes 1MDB, no special exception for 1MDB", the PAC "PAC starts own probe on 1MDB, says won’t wait for federal audit", the Auditor General "A-G starts 1MDB investigation" and PDRM "PM among those to be investigated over 1MDB, says IGP"

Interestingly, in that Sundaily report of the PDRM investigations, the IGP was reported to have said,
"Inspector-General of Police Tan Sri Khalid Abu Bakar said today that the special task force to probe 1MDB comprises the police, Attorney-General's Chambers and Malaysian Anti-Corruption Commission (MACC)"
In effect it would mean 6 bodies, the 5 Govt and the Parliamentary Accounts Committee, actively investigating 1MDB.

Apart from 1MDB and PM Datuk Seri Najib, of these six bodies investigating, none have made any significant denial as to the veracity or existence of the  so-called "investigation documents" as described in the WSJ report.

Only time will tell whether the WSJ report has any truth at all.

Whether it is truly an explosive bomb, a British bomb or a flopping "bomb".

Every which ever way, for everyone involved directly and/or indirectly in this 1MDB saga, it does seem to be, a ticking time bomb.

Tuesday, June 23, 2015


Recent flashback "US1b payment from IPIC is not a loan or bail out: 1MDB" NST 31 May 2015
 “That is absolutely not the case. This is a business transaction; not a loan, not any kind of debt and not a bail out
“It is an initial payment as part of a broader agreement to comprehensively address the various financial asset and liability transactions between IPIC, Aabar and 1MDB, further details of which will be announced in due course,” 1MDB President/Group Executive Director Arul Kanda in a statement today.
Just sighted this,
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:

·    on 4 June 2015, IPIC provided US$1 billion to 1MDB for 1MDB to utilise immediately to settle certain of its liabilities (the Cash Payment);

·    from 4 June 2015, IPIC has assumed the obligations to pay (on an interim basis) all interest due under two IPIC guaranteed 1MDB financings amounting to US$3.5 billion in aggregate principal amount (the Notes);

·    upon the completion of the transfer of assets as described below, IPIC will directly assume liability for all payment obligations under the Notes (the Assumption of Debt) and forgive certain financial obligations of the 1MDB Group to the IPIC Group (the Debt Forgiveness); and

·    by 30 June 2016, IPIC is to have received a transfer of assets with an aggregate value of an amount which represents the sum of the Cash Payment, the Assumption of Debt and the Debt Forgiveness.

1MDB and MOF have agreed to perform the obligations contemplated in the binding term sheet and to indemnify IPIC and Aabar for any non-performance, and vice versa.

IPIC has met the Cash Payment and will meet the interim interest payments under the Notes from existing liquidity available to IPIC.

This information is provided by RNS
The company news service from the London Stock Exchange

From London Stock Exchange below.

Go to RNS link here and search "IPIC". Click "1MDB Debt Settlement Arrangements" from search window which links here.

 "This is a business transaction; not a loannot any kind of debt and not a bail out."

 "by 30 June 2016, IPIC is to have received a transfer of assets with an aggregate value of an amount which represents the sum of the Cash Payment, the Assumption of Debt and the Debt Forgiveness."

Loan a definite yes, kind of debt maybe not now, bailout a definite yes.

Are the above authentic? Are the debt settlement arrangements True or False?
Post Scriptum

The very next day of the debt settlement arrangement,
“On 29 May 2015, the Ministry of Finance announced 1MDB’s plan to repay a US$975 million (RM3.6 billion) loan to a syndicate of international banks. 
“Today, we are pleased to confirm that the loan has been fully repaid. This RM3.6 billion repayment reflects 1MDB’s commitment to reducing its debt levels, in line with the rationalisation plan approved by Cabinet,” 1MDB president Arul Kanda said in a statement today - MalayMail Online 8 June 2015

Thursday, June 18, 2015


PetroSaudi, via a subsidiary company, owned assets, comprising rights to oil fields in Turkmenistan and Argentina, worth approximately USD2.7 billion. These assets were sold by PetroSaudi to another subsidiary, “JV Co”, which at the time of the asset sale, was a company formed by and initially 100% owned by PetroSaudi for the purposes of a proposed joint venture with 1MDB. 
On 29 September 2009, 1MDB executed a joint-venture agreement with PetroSaudi.  

What exactly does  "rights to oil fields" mean? 

It is Production Sharing Agreements (PSA) that has true value.

I have searched and never found any  reference to Petrosaudi having any interest in the oil and gas industry of Turkmenistan or vice versa.

The US-Turkmenistan Business Council is a Washington, DC based non-profit organization that promotes commercial relations between the United States and Turkmenistan. A publication dated 3/10/2009 here does not mention any Saudi based company, onshore or offshore.

In fact Petronas is mentioned having a Production Sharing Agreement (PSA), 
The remaining three PSAs are offshore operations, including the Cheleken project operated by Dragon Oil of the United Arab Emirates, the Block-1 project operated by Petronas of Malaysia and the Blocks 11, 12 project operated jointly by Maersk Oil of Denmark and Wintershall of Germany.
More shockingly Petronas had signed a 25-year Production Sharing Agreement way back in 1996! with emphasis as "the first PSA to be awarded by the government of Turkmenistan" here,
In July 1996, Petronas and the government of Turkmenistan signed a 25-year Production Sharing Agreement for the exploration, development and production of offshore Block 1, including the Garagel-Deniz (Gubkin), Deyarbekir (Barinov) and Magtymguly (East Livanov) fields.[i] Block 1 is located approximately 80 km southwest of Turkmenbashi.[ii] This was the first PSA to be awarded by the government of Turkmenistan. That same year, the government of Turkmenistan announced that Petronas planned to invest more than $210 million in its operations.[iii]
Why would or rather why should 1MDB be a party in a joint-venture with Petrosaudi, whose presence in Turkmenistan is doubtful and which Petronas had already made inroads 13 years before?

U.S. Department of State in its Executive Summary on Turkmenistan in 2014 here (Note: the US-Turkmenistan Business Council publication above must have been the U.S. Dept of State Executive Summary 2009)  also does not mention any Petrosaudi presence.

By 2014, the offshore PSA had increased to six with Petronas still in the mix,
In addition, there are six PSAs for offshore operations: Block I operated by Petronas of Malaysia; Block II (Cheleken Contractual Territory) operated by Dragon Oil (UAE); Block III operated by Buried Hill (Canada); Blocks 11 and 12 operated jointly by Maersk Oil of Denmark and Wintershall of Germany; Block 23 operated by RWE of Germany; and Block 21 operated by Itera of Russia.
And still no mention of Petrosaudi or Saudi presence.

So what Petrosaudi "rights to oil fields" in Turkmenistan is 1MDB crowing about that is worth USD2.7 billion (together with Argentina) when it seems to be non-existent?

Wednesday, March 19, 2014

MH 370:Western Media and Assholes

With the greatest of respect to relatives of the passengers and crew of the fateful flight MH 370 no offense is intended, expressedly to them, for the use of explicit words for this post.

To them have always been my prayers and hopes.

Someone commented on radio, in relation to the missing jet liner, Malaysians always come together in times of crisis that affects the nation.

This is absolutely true.

The Asian financial crisis, man made without a doubt, Malaysians rallied with and together under the able stewardship of then Prime Minister Tun Mahathir weathered that stormy times.

Another person at the center of that storm was Anwar Ibrahim.

Which brings me to that first asshole, the same Anwar Ibrahim.

CNN reports and quotes the asshole, what else? Condemning the Government and its agencies in this widely acknowledged as unprecedented and difficult moment in time.

Only Anwar Ibrahim and the Western media have seen fit to be critical of our Government in handling the situation.

But what else is new? The asshole never change.

From the day I was made aware of missing flight MH 370, as one who has followed the events unfolding and listened to numerous statements made by all relevant agencies involved in the SAR and now search for the missing aircraft, I have never been confused or misunderstood all that is being said and done.

It is only the media, especially the Western media, who have twisted words and actions of those charged in handling this situation.

Again, we are the natives living in trees, the white man is always the master, of any situation.

Lest we forget, the white man has been the cause of more dire situations in the world, in recent time - wars and distabilisation of nations.

And yes, the first asshole like the white man of the west, jumps at every opportunity to deride our Govt, for cheap political mileage.

As, acting transport minister, Hishamuddin Hussein, rightly said, Malaysia too have sons and daughters on flight MH 370.

Even if there were no Malaysians on board our Govt would be doing the same - doing its very best in any crisis.

Thats why we are proud to be Malaysians.

Friday, March 7, 2014

Anwar Ibrahim Guilty of Sodomy

Opposition leader Anwar Ibrahim is sentenced to 5 years imprisonment.

Reuters reports,

"A Malaysian court convicted opposition leader Anwar Ibrahim of sodomy and sentenced him to five years in prison on Friday"

Ending his career as wannabe Mentri Besar kot.

Never mind, this vid is dedicated to Anwar's hardcore, and I mean hardcore, supporters.

The Reuter's report also had HRW deputy head, Phil Robertson, saying,

"It's truly a dark day for the Malaysia judiciary which has shown itself incapable of standing up straight when national political issues are in play in cases before them"

Yep, when the shoe fits.

This is what Phil Robertson also had to say,

Sunday, June 30, 2013

Post Election Talk - A Tom and Gerry Story

Free Malaysia Today's article, "PR could have won more in Sabah" has the following,
"Jannie Lasimbang, the Jaringan Orang Asli secretariat director, said the 13th general election outcome for the Tawau, Beaufort, Batu Sapi and Kota Marudu parliamentary constituencies would have been different, if the dubious voters were vetted."
Jannie Lasimbang was speaking at a Bar Council’s forum themed “Electoral Offences- Righting The Wrongs”.

We then have the "venerable" Karpal Singh, also at FMT, "Jusuf must apologise to Anwar" reported to have said,
“It can hurt Pakatan Rakyat,”
"rebuked Jusuf Kalla for issuing statements with racial innuendoes by publicly claiming that the 505 rallies only benefited enemies of Islam and Malays"
That just about says it all. Its not about dignity or ethics.

Its about the DAP and who would be the enemies of Islam and Malays.

Other than the Malay/Muslim based PAS and PKR, the subject of which Bapak Jusuf Kalla is critical of their de facto leader Anwar Ibrahim in an interview "Wawancara Penuh Jusuf Kalla", the DAP is the only predominanly and chauvinistic Chinese non-Muslim party.

Blogger Hantu Laut nails Karpal on the head for "Rebuking Jusuf Kalla: Birds Of A Feather Flock Together" and also is of askance "BN Will Lose The Next Elections?"

Excerpts from the Bapak Jusuf interview and Hantu Laut from his latter article, which could not have been said better, relevant to my posting -
"Kemudian Anwar bangkitkan pengundi Bangladesh. Saya bilang sama Anwar, tak kan orang Malaysia tidak boleh membezakan percakapan, bahasa, budaya dan gaya orang Bangladesh. Tidak mungkin berpuluh ribu orang Bangladesh boleh dibawa masuk ke Malaysia dan menjadi pengundi. Ini tidak masuk akal" - Jusuf Kalla

"Gerrymandering is not an election offence. The electoral boundaries need to be redrawn every eight years and Malaysia's population in rural areas are sparsely distributed making equitable distribution of voters per constituency the same as urban areas impractical and a logistical nightmare." - Hantu Laut
Coming back to the Bar Council forum speaker Jannie Lasimbang together with Bapak Jusuf's remarks, I will refer this instances as phantoms or Tom.

With regards to Hantu Laut's comments on gerrymandering, I will call it Gerry.

Hence a Tom and Gerry story.

Up next, for Tom -
"The recorded data once again indicate a higher percentage of unidentifiable voters at urban areas and mostly around Kuala Lumpur" - National Voter Registration Audit Malaysia 2011

and Gerry - Gerrymandering in the US and UK.