1MDB officials can be charged if BNM letter genuine, says DAP

DAP has urged 1Malaysia Development Berhad (1MDB) to confirm if it breached Bank Negara Malaysia's (BNM) overseas funds transfer regulations, following the company's confirmation that minutes of a board meeting revealed by whistleblower site Sarawak Report were authentic. DAP national publicity chief Tony Pua said that Sarawak Report has since published BNM's letter of authorisation to 1MDB dated September 29, 2009, to transfer and invest US$1 billion in a joint venture with PetroSaudi Development Limited. He said the letter granted permission for 1MDB to acquire 40% of 1MDB-PetroSaudi Limited on the basis of particular information provided by 1MDB in its application, which included: that the joint venture will have combined equity funds of US$2.5 billion to be used for investment in various sectors that the US$2.5 billion of funds will be deposited with Banca della Svizzera Italiana SA, Geneva while waiting for the prospective investments to be identified that the funds will be transferred in tranches to ensure an orderly foreign exchange market. Pua today said 1MDB had clearly misled the central bank in its application to transfer the US$1 billion in funds overseas. The Petaling Jaya Utara MP added the joint venture never raised US$2.5 billion in funds as PetroSaudi did not inject any cash into the joint venture for its 60% stake. He added that instead, PetroSaudi injected assets allegedly worth more than US$1.5 billion, subsequently proven to be fraudulent or non-existent. "Even the US$1 billion invested by 1MDB was never deposited with Banca della Svizera Italiana SA. "Instead US$700 million was misappropriated directly to Good Star Limited’s account with Coutts Bank, Switzerland, which is in turn controlled by Low Taek Jho, or better known as Jho Low," the lawmaker said. Pua (pic, left) said in addition, the funds were never transferred in tranches but at one go into two different accounts, within days of receiving the BNM letter. He urged 1MDB president Arul Kanda Kandasamy to confirm if the BNM letter was also genuine, adding that it would provide clear evidence for the investigating authorities so that the attorney-general can charge officials for criminal breach of trust, misappropriation and embezzlement and other crimes under the Financial Services Act. Pua said that at the very least, 1MDB's former executive director Tang Keng Chee, to whom the letter was addressed, and Datuk Shahrol Halmi who authorised the payments to Good Star Limited, must be immediately investigated and charged for the said crimes. "The question is, will the newly appointed Attorney-General, Tan Sri Apandi Ali take the necessary actions, or is his paramount duty to cover up all crimes relating to 1MDB to ensure that none of it will see the light of day in our court of law," Pua asked. – October 13, 2015.