Gulf Times Reports 1MDB Scam

Switzerland could turn the scales in 1MDB scam 

22 August 10:49 PM By Arno Maierbrugger/Gulf Times Correspondent/Bangkok

Report verbatim:

Although the Malaysian government is trying its best to return to a normal agenda after the scandal surrounding state-owned fund 1Malaysia Development Berhad has been calming down a bit, at least in the public, there is a lot going on behind the scenes.

First of all, Swiss financial regulator FINMA said on August 19 that it will check with some of the country’s banks on whether they carried out any business with 1MDB and whether fishy transactions were involved.

“We are contact with several banks in this matter,” a FINMA spokesman said, adding that the regulatory body is “clarifying whether and to what extent banks were involved and how the terms of Swiss regulatory law were implemented.”

While he did not name the banks, at least four are known to have dealt with 1MDB: Falcon Private Bank, a subsidiary of Abu Dhabi-based Aabar investment and Lugano, Switzerland -headquartered private bank BSI, both through their Singapore branches, as well as JP Morgan (Swiss), the house bank of Saudi oil company PetroSaudi, and Zurich-based bank Coutts & Co. Overall, according to Swiss media reports, there are at least “half a dozen” Swiss banks under scrutiny, and some of them have already been ordered to block accounts during investigations.

Secondly, the Swiss Attorney General’s Office confirmed on August 22 that it has opened criminal proceedings against two entities of 1MDB as well as against an unknown person and will investigate Swiss banks and businesses over their role in the scandal. The related complaint, alleging money laundering and other financial offenses, was filed by Basel, Switzerland-based Bruno Manser Fund, a non-governmental organisation and legacy of Swiss-born environmental activist Bruno Manser, who in the 1990s fought for rainforest preservation and against timber corruption in Malaysia’s state of Sarawak but disappeared in the Borneo jungle without a trace in 2000 and is presumed dead. Since then, the fund is at loggerheads with the Sarawak government in particular and the Malaysian government in general. Its representatives call on Swiss authorities in particular to investigate the legal compliance of the Singapore subsidiaries of Swiss banks Falcon Private Bank and BSI with Swiss banking laws. According to the Swiss penal code, Swiss banks and businesses are forbidden to get involved in money laundering or corruption anywhere in the world.

Particularly helpful for the investigation is data material including account details and payment receipts that have been brought into circulation by former PetroSaudi employee Xavier Justo. The Swiss national, acting from Thailand, confessed to stealing data from PetroSaudi and trying to blackmail his former employer. He was caught by Thai authorities and handed a three-year prison sentence on August 17 at a Bangkok criminal court. But the information made it to several whistleblowers, among them Khairuddin Abu Hassan, a former politician of Malaysia’s ruling UMNO party who was sacked earlier this year because of his criticism of 1MDB. Khairuddin said on his Facebook page that he personally submitted documents and evidence on 1MDB to the Swiss Attorney General’s Chambers in Bern, Switzerland, on August 18, saying he was “disappointed with law enforcement and monetary agencies in Malaysia.” Khairuddin also lodged a police report with French police last month against 1MDB and one with UK police on August 21.

In the 1MDB case, the whereabouts of $1.8bn of its funds are unknown. A probe found that around $680mn made their way on a private bank account of Malaysia Prime Minister Najib Razak, who denied any wrongdoing and claimed that the money was a “donor” from Saudi Arabia, meant as of appreciation to Malaysia for “championing Islam” and fighting militant group ISIS.

However, unease is growing in the Middle East over the issue. The Saudi government is reportedly not amused about making in into the headlines in the 1MDB case, and at Falcon Private Bank’s parent, Aabar Investment, which is a subsidiary of Abu Dhabi-government-owned  International Petroleum Investment Company, two top executives, Chairman Khadem al Qubassi and CEO Mohamed al Husseiny, have been shown the door.

PM Najib Donation to Help BN Against DAP Funded by Jews

News Update: World | Sun Aug 23, 2015 4:48am EDT

Malaysia's debt-laden 1MDB says not contacted by Swiss

Switzerland's Office of the Attorney General on Friday said it had opened criminal proceedings relating to 1MDB, which involved "suspected corruption of public foreign officials, dishonest management of public interests and money laundering".

1MDB's qualified statement:

1MDB ready to assist

We refer to media reports that Switzerland’s Office of the Attorney-General has opened an investigation relating to 1MDB.  

1MDB has not been contacted by any Swiss authorities but is ready to assist in any investigation if approached, subject to advice from the appropriate Malaysian authorities. 

We remain committed to fully cooperate with all lawful authorities that are currently investigating 1MDB.  

My comment:

All "appropriate Malaysian authorites" ultimately takes instructions from PM Najib. 

Related news report:

Swiss open criminal proceedings linked to 1MDB

The Swiss Office of the Attorney General has opened criminal proceedings relating to Malaysia's troubled state investment fund 1Malaysia Development Berhad (1MDB). 

"The Office of the Attorney General confirms that, on August 14, 2015, it opened a criminal procedure against two entities of 1MDB as well as against an unknown person," a spokesman said in an email quoted on Reuters. 

The case involved "suspected corruption of public foreign officials, dishonest management of public interests and money laundering", he said. 

The criminal proceedings follow two communications from the Money Laundering Reporting Office Switzerland (MROS), the spokesman added. 

News of the investigation was first reported by Swiss newspaper Le Temps. 

Swiss financial regulator FINMA said on Wednesday that it was checking with some of the country's banks whether they carried out business with 1MDB. 

1MDB, whose advisory board is chaired by Prime Minister Najib Razak, was the subject of a probe by Malaysia's central bank which was completed earlier this month. The fund has been dogged by controversy over its $11 billion (CHF10.4 billion) debt and alleged financial mismanagement

Original Post

According to news reported online by Straits Times Singapore attributed to Malaysiakini,  DPM Zahid explained at the Sri Gading Umno division annual meeting about the "US$700 million (S$983 million) to Prime Minister Najib Razak and they told him the money was to ensure that Barisan Nasional (BN) win the 13th general election."

What is interesting in the same report, "Speaking at the same event, Sri Gading Umno chief Abdul Aziz Kaprawi said the Arab donor made the contribution so that the Umno party could fight the Democratic Action Party (DAP), which is funded by the Jews, during the 2013 general election."

Kaprawi further embellished that statement by saying the "donor feared that through DAP, Jewish influences would permeate Malaysia and destroy the Islamic government led by the Barisan Nasional (BN) coalition", the Straits Times quoting the Malaysian Insider.

Until DPM Zahid, who is also the Home Minister, denies having any knowledge that the DAP is funded by Jews or distances himself from Kaprawi's statements, we can accept that those particular statements were actually said and Zahid stands by those statements.

The Star online on the same subject did not have any references to those "Jew" statements. It should have. For one reason only - it would put to bed and refute what blogger Helen Ang had always advocated i.e. the DAP Evangelistas Christian support and derisions of The Star, in this respect.

The DAP will also be happy that Helen Ang has been shooting the wrong target. It was the Jews who have supported the DAP all along and not the Christian Evangelistas with their Christian agenda.

The Arab donor must have been convinced that Jew funds and support for the DAP to be considerable. Hence, the handsome donation of US$ 700 million into the personal account of PM Najib.

Or the Arab donor could have been misled. The Arab donor might not have known that PM Najib's buddy is non other than US President Obama, "a president who has stood with Israel in times of crisis and has strengthened the Jewish state’s security in concrete ways, ensuring it maintains a qualitative military edge.

Maybe the Arab donor found out PM Najib betrayed their trust, demanded its donation back and could the reason why any balance of the donation was transferred out when the Najib personal account was closed. 

Jews supporting DAP could be true - the Anwar Ibrahim factor.

BN supporters myself included, had attacked DSAI feverishly for his infamous association with Jewish neo-cons. Remember DSAI's very close relationship with Paul Wolfowitz? 

Then again that cannot be. The Jewish connection with DSAI cannot be true because if it were, surely the Islamist party PAS would not want anything to do with PKR in the Pakatan Rakyat coalition. DSAI was and still is PKR's de facto leader.

To be sure, DPM Zahid can enlighten us. 

As Home Minister, he is privy to all PDRM Special Branch dossier on every DSAI Jewish connections.

Zahid notwithstanding as Home Minister was, as UMNO Youth Chief at the height of the Reformasi, the No 1 stooge for DSAI. Zahid, on DSAI's instructions had accused Tun Mahathir of "kronisme and nepotisme", got slapped in the face and subsequently expelled from UMNO.

Being close and comfort with DSAI, Zahid can on a personal level attest to any DSAI Jewish support and by extension Jewish influence permeating Malaysia, as Kaprawi said.

Sources:
Straits Times, "Malaysia DPM says Arab donation to Najib meant to keep BN in rule" 
The Star, "Zahid: I have met donor" 
Helen Ang, "Finally, The Star admits giving DAP evangelistas the VIP treatment"  "Palestinians and Israel" (Comments number 29 and 30) 
Najib, "My selfie with President Obama" 
Haaretz, "Obama Has a Stronger Record on Israel Than You Might Have Been Led to Think"
Utusan"Zahid Admits Being Told By Anwar To Raise Issues On Nepotism"  
Utusan, "Senarai kroni Anwar -- Rustam Sani yang hebat mengecam kerajaan juga mendapat projek"  

Related reading:
Sinar Harian online, "Bukan Malaysia sahaja terima sumbangan"