Wednesday, July 8, 2015

1MDB probe gains momentum, a sensitive time for PM and Umno


PETALING JAYA: The probe into claims that funds were channelled into the personal accounts of Prime Minister Datuk Seri Najib Tun Razak heated up when the task force investigating the matter froze six bank accounts and said it was looking into 17 others.

The Wall Street Journal (WSJ) meanwhile revealed documents that it claimed were the basis of its controversial story.

The freeze on the six accounts was issued on Monday, according to a statement issued jointly by Attorney-General Tan Sri Abdul Gani Patail, Bank Negara Malaysia governor Tan Sri Zeti Akhtar Aziz, Inspector-General of Police Tan Sri Khalid Abu Bakar and Malaysian Anti-Corruption Commission chief commissioner Tan Sri Abu Kassim Mohamed.

“Several documents over the issue of non-compliance with Bank Negara’s rules and procedures have also been seized,” it read.

“As the investigations are still under way, we appeal to all parties to give their fullest cooperation to complete the probe.”

It is learnt that the 17 accounts belonged to various companies and individuals.



While neither the banks involved nor the holders of the accounts were named, several portals claimed they had received confirmation that three of the accounts belonged to Najib.

Hours after the statement was released, WSJ uploaded nine documents on its claim that US$700mil (RM2.6bil) were channelled into three personal accounts of Najib.

The nine documents comprised three flow charts, three remittance forms, two credit transfer notices and a letter of authorisation by Nik Faisal Ariff Kamil, the former chief investment officer of 1Malaysia Development Bhd (1MDB).

However, Najib’s name appeared only in the flow charts. It was not in any of the banking documents in which the last few digits of the account numbers were blanked out.

A banker said it was normal that entire bank account numbers were not made public for fear that the accounts could be hacked.

“What is important is the codes in the documents are correct,” said the banker.

The charts detail funds flowing from SRC International Sdn Bhd, a company that used to be under 1MDB but was subsequently taken over by the Finance Ministry in 2012, into personal accounts supposedly belonging to Najib.

According to the charts, the funds flowed into AmPrivate Banking in AmBank Islamic and the beneficiary, it claimed, was Najib.

Based on one chart, the funds flowed out of SRC International’s account in AmBank Islamic into Gandingan Mentari Sdn Bhd, also in Ambank Islamic.

Subsequently, the money was transferred to Ihsan Perdana Sdn Bhd, whose account is in Affin Bank. From there, the funds were moved to AmPrivate Banking in AmBank Islamic.

There were three accounts under AmPrivate Banking in AmBank Islamic supposedly belonging to Najib. The last few digits of the accounts were blanked out.

The Prime Minister’s name was not to be found in any remittance transfer forms from Affin Bank to AmBank Islamic.

The total amount transferred from Affin Bank to AmBank Islamic was RM42mil and the transactions were done in three tranches.

There were two transactions on Dec 26, 2014 and one on Feb 9, 2015. The reasons for the transfer of funds by Ihsan Perdana to the AmPrivate Banking account were stated as CSR programmes.

Najib’s name is also not visible in the two credit transfer notices from Wells Fargo Bank in the United States to the AmPrivate Banking account under AmBank Islamic.

But a banker said it was normal for the beneficiary’s name to be left out of remittance forms or credit transfer notices.
“The identity of the beneficiary does not need to appear if it is a familiar name. The banks only need the necessary codes and account numbers,” said the banker.

The funds from Well Fargo amounted to US$681mil and were transferred in two tranches, on March 21 and March 25, 2013, according to the documents.

The transaction order came from Tanore Finance Corp in British Virgin Island.

The funds were transferred to AmPrivate Banking account in AmBank Islamic under the Swift Output Code of Single Customer Credit Transfer.

“A Single Customer Credit Transfer means the account is held by an individual,” said the banker. - The Star

Sensitive time for PM and Umno



DATUK Seri Najib Tun Razak has been out and about every day since the start of the fasting month.

He has been seen at a number of Ramadan bazaars, he has been the VIP guest at various buka puasa functions and he has joined the congregation for evening prayers after the breaking of fast.

The fasting month is a test for all Muslims and even more so for the Prime Minister given the issues surrounding him.

The 1MDB issue has snowballed into a political monster for his administration and he is fighting what could be the biggest battle of his political career.

Allegations in The Wall Street Journal (WSJ) that billions of ringgit went into what is believed to be his personal bank account are still reverberating among the financial and political circles.

Najib has responded to the report, calling it wild allegations and insisting that he has never taken funds for personal gain. It was not quite the explanation or answer that people were expecting and it has raised more questions than provided answers.

But many in Umno are prepared to give him the benefit of the doubt even though they are unsure what to make of it.

Najib has a lot of support in his party and up until the recent allegations, he was said to have won over some 75% of the 191 Umno division heads.

They want to rally around him but they need clear answers in order to defend him.

Najib has made it very clear that he intends to sue WSJ and his lawyers are preparing a case to be filed soon against Dow Jones, the publisher of WSJ, in the United States. That is the way to go to clear his name.

The pressure mounted yesterday when four of the country’s top regulators and law enforcers issued a joint statement, saying that the special task force probing 1MDB had frozen six bank accounts related to the case.

The affected bank accounts were not identified but the signatories comprised the Attorney-General, Bank Negara Governor, Inspector-General of Police and the MACC chief.

It was unprecedented and it was a sign that the investigations had become more serious and complicated. The snowball has grown bigger.

Najib’s deputy Tan Sri Muhyiddin Yassin has added to the pressure. He had asked the authorities to look into the WSJ allegations and Umno vice-president Datuk Seri Shafie Apdal has joined in.

Their move confirms the political divide in the party that the Umno crowd has been talking about.

Umno politicians also noticed that Tun Dr Mahathir Mohamad has been rather restrained after months of relentless attacks and it could mean two things.

One, he feels that he has achieved his desired objective – he has got Najib up against the wall.

Two, Dr Mahathir might have realised that in his determination to remove the head of the house, the entire house may come down too.

His campaign against Pak Lah contributed to the 2008 political tsunami and his attacks against Najib has damaged Umno even more.

A group of Umno supreme council members met Najib at his official residence on Sunday night. It was very hush-hush and none of those who attended picked up or returned the calls of reporters, let alone spoke about what transpired.

The speculation is that the meeting was probably not about declaring support for the boss, otherwise they would not be so secretive.

The group was there to seek answers about what Najib plans to do and where he intends to go from here.

This is a very sensitive time for Umno and especially for Muhyiddin. He played a leading role in Tun Abdullah Ahmad Badawi’s exit and he is again in the spotlight.

It is doubly sensitive for Muhyiddin this time around because he is an interested party.

Muhyiddin is being extra cautious because he understands the powers of incumbency and is aware of what the Prime Minister could do to those who are not with him.

Moreover, Najib’s tentacles in the party go back a long way and whoever wants to take him on has to consider the repercussions from his hardcore supporters.

By Joceline  Tan Analysis The Star

Related stories:

Go out and explain 1MDB issue, Umno leaders told
Umno lawyers preparing lawsuit against WSJ
Call to probe how WSJ obtained private banking documents
Opposition Members of Parliament call for snap polls


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