IGP says "arrest has been made on the basis of strong prima facie evidence which proves his role in the larger conspiracy".was charged with "criminal conspiracy, cheating and misappropriation as well as deriving undue financial benefits from 1MDB key member of Rosmah's inner circle — after questioning him in connection with 1MDB reportThe police launch an investigation into the report filed by an Umno division leader regarding the debt-ridden 1Malaysia Development Berhad (1MDB) and its board of directors.scam, triggering a demand from the opposition that the prime minister should be arrested next.police has documentary evidence, pictures, call details and statements of witnesses and arrested accused persons. "He was one of the faces seen with Rosmah meetings and was vocal about the schemes which ultimately looted people of their hard-earned money," said IGP.
Veteran newsman Datuk A. Kadir Jasin says the 1MDB saga has taken a sensational and potentially dangerous twisthas weighed in on the report lodged against 1Malaysia Development Berhad (1MDB) by an Umno leader, saying the scandal has now taken on a "sensational and potentially dangerous twist"He was commenting on the police report lodged by Penang's Umno Batu Kawan division leader Datuk Khairuddin Abu Hassan against 1MDB over the alleged mismanagement of its finances.
"The police report is the culmination of weeks of controversies surrounding the so-called sovereign fund," Kadir, the former editor-in-chief of New Straits Times, said in a blog posting today.
Earlier, DAP lawmaker Tony Pua had said that the fact that Khairuddin had lodged a report against his own party leaders, including Datuk Seri Najib Razak, who is 1MDB chairman, was proof that the company's finances were in shambles.
1MDB had responded to the police report, saying that it was confident it would have no legal basis.
"We welcome any investigation into our affairs and the opportunity to rebut malicious allegations,” it had said in a statement last night.
Kadir today revealed that prior to the report being lodged, Tun Dr Mahathir Mohamad – one of 1MDB's fiercest critics – had met up with the sovereign wealth fund's top management and "grilled" them on the company's modus operandi.
"On December 4, the company’s top-level delegation, led by its Chairman, (Tan Sri) Lodin Wok Kamaruddin, was said to have been grilled by Dr Mahathir.
"He is said to be curious about the way the company funds its businesses, bearing in mind that it has a paid-up capital of only US$1 million (about RM3.4 million)," Kadir added.
He said that the 1MDB people were also asked about the price of two pieces of land in Penang for which the company was said to have paid way over the market price – 1MDB bought the land for about RM1.4 billion from two Chinese tycoons last year.
"The source said Dr Mahathir feels obliged to take up the matter with 1MDB and to speak openly on the subject because many parties had come to see him to inform him about the goings-on in the company.
"He was disappointed that issues surrounding 1MDB was not seriously discussed by delegates at last month’s Umno General Assembly.
"How could they when the Umno president and prime minister is the man behind 1MDB and resolutions on the economy were drafted for the debaters?" Kadir wrote.
Besides Dr Mahathir, the 1MDB management team also had a meeting with Bank Negara governor Tan Sri Dr Zeti Akhtar Aziz about the company's borrowings and debts, Kadir said, adding that the meeting was being kept under wraps.
"The sources said 1MBD had requested Bank Negara to extend its non-performing loan (NPL) period from three to six months and was agreed to.
"It is understandable. No matter how unhappy Zeti might have been with 1MDB borrowing, an extension is needed.
"If it was not given, there would have been a massive default and Tier 1 banks that extended the loans would have to make huge provisions. This could lead to the downgrading of the local banking system," the veteran journalist said.
He said that "harsh words" and "frightening warnings" such as "somebody is going to jail" were said during the meeting, with a source revealing that Lodin even offered to resign in the meeting with Zeti.
"But that is not the concern of Bank Negara. Lodin was appointed by the PM. If it is true that he offered to resign, he should tell that to Najib," Kadir added.
1MDB is Malaysia's second sovereign wealth fund after Khazanah Nasional Bhd.
Critics have long questioned the fund's heavy debts, its use of money and its opaque operations.
In just five years of its operations, the fund was said to have accumulated RM38 billion in debts but concerns over its financial health were brushed aside by Lodin, who had said that its assets stood at RM51.4 billion, about RM2.5 billion more than its liabilities of RM48.9 billion, as of March 31 this year.
HE 1Malaysia Development Berhad’s saga took a sensational and potentially dangerous twist today when an Umno deputy divisional leader from Penang lodged a police report against it.
The Batu Kawan Umno deputy divisonal chief (Datuk Seri) Khairuddin Abu Hassan made the complaint at the Dang Wangi police station in Kuala Lumpur. Read at Apanama.
Khairuddin speaking to the Press after making the report.
Sources say a similar complaint with the Malaysian Anti-Corruption Commission may follow.
1MDB, in a statement, welcomes the police report. It says: “We are aware that a police report concerning 1MDB was filed earlier today by a politician in Penang. We have not seen any documentation related to this, so are unaware of the nature of the complaint.
"However, we are confident that it will have no legal basis. We welcome any investigation into our affairs and the opportunity to rebut malicious allegations.”
The Implications
A veteran lawyer who represented Umno and the government in many legal and constitutional cases said such a complaint is likely to be investigated under the purview of criminal breach of trust (CBT).
I am not sure how the “bangang” bloggers would react to the report. “Bangang” (stupid) was the term used by Umno President and Prime Minister, Mohd Najib Abdul Razak, to describe Umno-sponsored bloggers who attacked Umno leaders instead of the opposition.
The police report is the culmination of weeks of controversies surrounding the so-called sovereign fund.
Batu Kawan Umno's Khairuddin created a furore when he lodged the police report against 1MDB
On Dec 4, the company’s top-level delegation led by its Chairman, (Tan Sri) Lodin Wok Kamaruddin was said to have been grilled by (Tun) Dr Mahathir Mohamad. Others in the delegation were board member (Tan Sri) Ismee Ismail and Chief Operating Officer, Mohd Hazem Abdul Rahman. Ismee is also Executive Director and CEO of Tabung Haji.
Just over a week later, on Dec 10, the cabinet in its weekly meeting chaired by Deputy Prime Minister, (Tan Sri) Muhyiddin Mohd Yassin, also discuss the 1MDB issue. Mohd Najib was away on official visit to South Korea..
Sources said Dr Mahathir grilled the 1MDB team on the company’s modus operandi. He is said to be curious about the way the company funds its businesses, bearing in mind that it has a paid-up capital of only US$1 million (about RM3.4 million).
As of March this year, it has amassed assets worth RM51.4 billion and in the process piled up liabilities – mostly borrowings – totalling RM49.1 billion.
It registered a loss of RM665.3 million for the same period mainly due to staggering finance costs of RM2.4 billion compared with RM1.6 billion the previous financial year.
The Overpriced Penang Purchases & the JJ-scripted Umno speeches
They were also asked about the price of two pieces of land in Penang for which the company was said to have paid way over the market price. Six days before last year’s General Elections, 1MDB bought the land for about RM1.4 billion from two Chinese tycoons.
Reports say, the land they purchased for RM400 million from Farlim Berhad are currently occupied by squatters and may be costly to resettle.
Penang Chief Minister, Lim Guan Eng, was quoted as saying that 1MDB paid way above market rate. He asked: “Why was the purchase price at RM1.38 billion – 95pc higher than what some of the land was valued at, just two years earlier in December 2011?”
The company is also said to have purchased a third and final piece of land on September 23.
Jamaluddin Jarjis or JJ, the former special envoy to US, is said to have 'ghost-written' Najib's racially-tinged speeches at Umno assembly
The source said Dr Mahathir feels obliged to take up the matter with 1MDB and to speak openly on the subject because many parties had come to see him to inform him about the goings-on in the company.
He was disappointed that issues surrounding 1MDB was not seriously discussed by delegates at last month’s Umno General Assembly.
How could they when Umno President and Prime Minister is the man behind 1MDB and resolutions on the economy were drafted for the debaters?
Prime Minister’s right hand man, (Tan Sri) Jamaluddin Jarjis inspired the speeches. The debaters were literally ordered to read the texts he and his team - including key officers from Khazanah Nasional Berhad – wrote.
A Meeting With The Governor: Banking sector will be hit if 1MDB defaults
Other sources told me that the 1MDB team also had a meeting with the Bank Negara Governor, (Tan Sri) Zeti Aktar Aziz) about the company’s borrowings.
But when my reporter asked an officer in the bank’s strategic communication department, she said they do not have a clue about the meeting, insisting that they do not know anything.
The sources said 1MBD had requested Bank Negara to extend it non-performing loan (NPL) period from three to six months and was agreed to.
Lodin Wok was also embroiled in Najib's controversial purchase of 2 Scorpene submarines
It is understandable. No matter how unhappy Zeti might have been with 1MDB borrowing, an extension is needed. If it was not given, there would have been a massive default and Tier 1 banks that extended the loans would have to make huge provisions. This could lead to the downgrading of the local banking system.
1MDB’s ability to keep to the extended period, according to one source, depends largely on whether it will or can bring home the RM7 billion it parked in the Cayman Islands before the last GE.
The New Straits Times today reported that 1MDB has postponed the sale of up to RM8.4 billion sukuk (Islamic) bonds to next year. It said the delay came as the company is seeking an extension of two months on the construction of the US$3.2 billion (RM11.2 billion) power plant it won with partner, Mitsui & Co. earlier in the year.
Sources said some very harsh words and frightening warnings like “somebody is going to jail” were uttered at the meetings. One source said at the meeting with Bank Negara, Lodin had offered to resign immediately. But that is not the concern of Bank Negara. Lodin was appointed by the PM. If it is true that he offered to resign, he should tell that to Mohd Najib. - http://kadirjasin.blogspot.com/
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