Red Alert - More Transparency Needed Over US$3 Billion Raised By 1MDB!
9 Aug 2015
(Reproduced with permission)
“What is happening is that they [UMNO rank and file] keep quiet when they get the money but when I’m being attacked, everyone keeps quiet,” [Najib Razak 8th August]
Time for Transparency
The ‘donor’, for a start, will need to confirm that he was indeed the account holder for Tanore Finance Corporation (BVI) at Falcon Bank in Singapore in March 2013.
If the relevant banks, including Wells Fargo, failed to obtain and register this information they will have transgressed money laundering regulations – for a very serious amount of money indeed.
The Aabar Connection
After all, it was Aabar’s own Chief Executive (and then Chairman of Falcon Bank) Mohammed Al-Husseiny, who was earlier brought out of the shadows, after many months of speculation, to acknowledge that it was he who stumped up the US$100 million investment in the production of Wolf of Wall Street for Najib’s step-son Riza.
1MDB’s 2014 accounts and problems for Goldman Sachs
Najib ought to be anxious to put any concerns to rest that some of this vast leakage could have ended up funding his anonymous Middle Eastern ‘donor’, for example.
What was Aabar’s role in the strategic partnership at TRX?
Isn’t it time the deal that was signed between Aabar and 1MDB that day was therefore made public, in order that Malaysians can understand exactly what it is that the boys from Abu Dhabi brought to the party?
The Edge has calculated that Aabar could have extracted up to a billion dollars out of the deal, thanks to the options it acquired in its unexplained capacity as co-guarantor.
It was from Falcon Bank, of course, that the very generous donor sent Najib Razak that US$680 million just two days after Goldman delivered on the bond money.
Just give us the facts
The scandal is exactly the sort of thing Goldman has been trying to avoid since overhauling its approval process for transactions in the wake of the 2008-09 financial crisis.
Banks typically put increased scrutiny on deals where there may be reputational risk as well as financial risk, such as when dealing with governments and tycoons.
“Goldman should be the first to realize that if something seems to be too good to be true and the fees are that high, they should look for a problem,” said Nell Minow, vice chair of ValueEdge Advisors, which provides corporate governance advice to institutional investors. “They have some real risk here.” [Reuters 9th August 2015]