August 16, 2015 – 5:02 am

On August 10, 2015, former Malaysian PM, Dr Mahathir Mohamad, blogged that the RM2.6 billion deposited into Prime Minister Najib Razak’s personal account as a “donation” was “bullshit” and that democracy in the country was dead.

1. I used to enjoy being asked about Malaysia when I am abroad. But not now.

2. The foreigners and Malaysians living abroad ask, “What is happening to Malaysia?”

3. “It seems to be like one of those African or Arab countries.”

4. “It is totally corrupt. The currency has depreciated”. Etc. Etc. [Ed: On August 12, the ringgit had breached the 4.0000 mark and traded at 4.0060 to the US dollar. It was in 1998 when the ringgit last traded at 4.7125.]

5. I cannot answer truthfully. I cannot lie either. It is embarrassing. And all this is because of the 1MDB (1Malaysia Development Berhad) and Najib.

6. I began to feel there was something wrong with the 1MDB when The Edge published that it had bought power plants above market price and borrowed money paying commissions of 10 per cent and interest rate of 5.9 per cent.

7. I waited for the Government to deny that what was published by The Edge was correct. The Government did not. Then I know there was something very wrong.

8. Subsequently came the stories about a JV (joint venture) with PetroSaudi. It was too quick. Obviously no due diligence was done. Yet 1MDB paid US$1 billion (RM3.8 billion) for its 40 per cent share.

9. Then 1MDB paid another US$700 million to settle debts incurred by PetroSaudi to PetroSaudi International. Why should 1MDB pay. The JV should pay.

10. But within six months of setting up the JV, it was dissolved. Had a good due diligence been done, this JV would not have been set up. Clearly it was not a viable proposition!

11. The US$1.7 billion should now be returned to 1MDB. But No! It was converted into a loan (Murabahah) to PetroSaudi. This is extremely unusual. If you could not work with PetroSaudi as a JV partner how could you give it such a huge loan.

12. Then the money seems to have disappeared. It was previously reported to be deposited in banks in Hong Kong and Seychelles, invested in something or other and was supposed to end up in the Cayman Islands.

13. Concerned Malaysians demanded that the money be returned to Malaysia. An announcement was made that a portion had been returned to Malaysia but was used to pay debts and other expenses. Malaysia wanted more information especially as a RM2 billion interest on loans could not be paid. 1MDB just had no money. So where is the money from the Caymans? Why should Ananda Krishnan [businessman and, according to Forbes, second richest man in Malaysia with a net worth of US$8.3 billion] offer RM2 billion to help pay the interest? Government had to provide a stand-by loan of RM900 million.

14. Things did not look right. Then 1MDB announced that the rest of the money from Cayman Islands had been received in cash. Arul Kanda Kandasamy, the CEO, claimed he saw the money. The PM said the money was deposited in a $ingapore Bank. It was not brought back to Malaysia because Bank Negara would ask too many questions.

15. That seems to be an admission that something was not right with the money.

16. But $ingapore is a financial centre. As such it must be even more careful that money brought in and deposited in its banks should be investigated, especially if the sum is large, running into billions.

17. And sure enough the Monetary Authority of $ingapore stated publicly that no 1MDB Malaysian money came into the country. The Swiss Bank which was named as the bank where the money was deposited denied 1MDB had deposited money with it.

18. So where were the billions of Ringgit or Dollars that 1MDB claimed it had brought back from the Caymans? Arul Kandasamy had openly claimed he saw the money.

19. Now the PM declared that it was not money. It was units. The bank where it was deposited was not named.

20. What units were these. Not units in Unit Trust Funds certainly. No explanation is forth coming. The billions of dollars have again disappeared.

21. Then the Wall Street Journal reported that Dato Sri Najib has US$700 million in his account in the Arab Malaysian Bank in Kuala Lumpur. That is about RM2.6 billion. How did this huge sum of money get into Najib’s Private Account? Where did the money come from? How can the PM of Malaysia, whose pay is only RM20,000 per month, have so much money in his private account?

22. Unable to deny the Wall Street Journal report which included the account number and other details, Najib claimed that it was a donation.

23. Who in the world would donate US$700 million to the Malaysian Prime Minister? Even Obama could not raise this amount for his Presidential bid. It was suggested it was an Arab.

24. Arabs are generous, but not that generous. I could not raise even a single dollar from them for the Malaysian International Islamic University or for the Oxford Islamic Centre. This claim that Arabs donated billions is what people describe as hogwash or bullshit. Certainly I don’t believe it and neither can the majority of Malaysians if we go by the comments on the social media. The world had a good laugh.

25. When asked, the PM said wait for the report on 1MDB by the Auditor–General and the Public Accounts Committee.

26. To the UMNO divisional leaders and assorted bedfellows the PM, in close-door meetings, claimed the billions were for the elections.

27. The RM2 billion-plus for elections is absurd. I needed less than RM10 million for each of the five elections I presided over and I won them all with more than 2/3 majority. Why do you need RM2.6 billion-plus or RM2,600 million? Is it to bribe politicians and civil servants, or to rig the elections? That would not be right , much less legal.

28. Whatever, to me RM2 billion-plus for elections in Malaysia by any party is wrong even if no limit is put on election expenses.

Dr Mahathir talking to reporters in Kuala Lumpur, July 31, 2015.

29. Then there is this lavish life-style which no Malaysian Prime Minister would be able to afford on the RM20,000 per month he receives. Engagement and weddings lavishness far surpassed those of the Rulers even. Several ceremonies were held in Malaysia and also in Kazakhstan. Guests were loaded with gifts from the host. Clearly millions, tens of millions were spent, far beyond what a Malaysian PM can afford.

30. Then there is the son’s investment of hundreds of millions in producing the film The Wolf Of Wall Street. It is so pornographic that it cannot be shown in Malaysia. Where did the money come from?

31. The shopping in London, Paris and elsewhere is known to be enormous.

32. Clearly the PM and his wife have more money than the salaries and allowances paid to the PM.

33. After the Wall Street Journal reported on Najib’s RM2.6 billion in his private account, it was closed. You cannot take all that money to keep with you. It had to be transferred. Apparently it was transferred to a $ingapore bank. Then the $ingapore authorities froze it.

34. Public clamour about the origin of the money in Najib’s account was so loud that a task force comprising the head of four government institutions was set up. The Attorney General headed this task force and the members were the IGP, the Head of Bank Negara and the Head of MACC, the Malaysian Anti-Corruption Commission.

35. Najib was clearly uncomfortable with the investigations carried out by the task force. The members seemed to be too independent. Najib could not control them. The task force was apparently determined to seek the truth about the 1MDB and the RM2.6 billion in Najib’s account. Najib’s claim that it was a donation was not convincing.

36. Then Najib decided to take action to stop all the investigations on 1MDB and his private account.

37. First, he announced that people should stop talking about 1MDB. It was not just a hint but an open statement that such talk would be regarded as undermining democracy and an attempt to overthrow an elected leader. This would attract police attention and investigation.

38. Immediately following that, the AG (Attorney General) was sacked. In Malaysia’s legal system, the AG determines whether a case would be heard in a court or not. The AG, who seemed to be heading the task force, would be in a position to take to the courts if there was evidence of criminality in Najib’s possession of the billions in his account.

39. The AG’s removal means that he could no longer make any decision over the unprecedented wealth of Najib. A judge was made AG and clearly he is not interested in the task force and its investigations. He seemed determined to clear Najib.

40. Then the DPM (Deputy Prime Minister) was dismissed and replaced by the Minister of Home Affairs who, unlike Muhyiddin, had never questioned Najib about 1MDB.

41. In the cabinet reshuffle four members of the Public Accounts Committee including its chairman were made deputy ministers. Effectively, the PAC was paralysed and the work of investigating 1MDB stopped.

42. Then the chief and deputy chief of MACC, a member of the task force of four were asked to go on leave. When some members of the staff of MACC continued their investigations and wanted to query Najib on the source of the money in his account, they were harassed by the police who accused them of leaking information. Then they were transferred to the PM’s department. That shut them up.

43. The Governor of the Central Bank, a member of the four-strong Task Force, is now rumoured to be investigated for corruption.

44. With the PAC, and the Task Force paralysed and the AG sacked, investigation work on the 1MDB and the RM2.6 billion in Najib’s private account grounds to a complete halt.

45. Najib is now safe from being charged with illegally amassing funds. His claim that it is to be used for the coming elections is half-true. He had always said that cash is king. With the huge funds at his disposal he would be in a position to bribe his way to victory. He may also use the money to rig the election.

46. What Najib is doing is unprecedented in Malaysia. The people are at a loss as to what to do. The prospect of Najib continuing to rule this country is utterly depressing. The Malaysia where elections can even see opposition parties winning whole states will be no more.

47. Democracy is dead. It is dead because an elected leader chooses to subvert the institutions of Government and make them his instruments for sustaining himself. There is no more democracy for anyone to undermine. Certainly talking about 1MDB will not undermine something that no longer exist. If anyone should be questioned by the police, it is Najib.

Note: The above article was posted at chedet.cc.

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July 2, 2015: Wall Street Journal and Sarawak Report tying Malaysian Prime Minister Najib Tun Razak to the diversion of nearly US$700 million from the state-backed 1Malaysia Development Bhd (1MDB) into his own accounts

July 28: Najib Razak sacks his deputy, Muhyiddin Yassin, in a cabinet reshuffle.

July 28: Attorney-General Abdul Gani Patail had his tenure terminated with immediate effect.

July 28: Four key members of the Malaysian Parliament’s Public Accounts Committee (PAC) promoted to cabinet ministers.

July 29: Fire on the 10th floor of the police headquarters at Bukit Aman.

August 1: Police arrest DPP Ahmad Sazilee Abdul Khairi (of the Malaysian Anti-Corruption Commission); former MACC advisory board member Rashpal Singh and Attorney-General’s Chambers finance and anti-money laundering secretariat member Jessica Gurmeet Kaur.

August 3: Najib Razak cleared of corruption by the MACC - RM2.6 billion (US$700 million) came from donors.

August 3: Police officers were at the MACC headquarters to record a statement from MACC special operations division director Bahri Mohamad Zin. Police had earlier questioned other MACC officials - forensic division’s IG Chandran and Senior Assistant Commissioner Tuan Ruslan Tuan Mat.

August 3: Malaysian Parliament stops all scheduled hearings on the 1MDB scandal by the Public Accounts Committee (PAC) for the entire month of August.

August 4: Arrest warrant for Sarawak Report editor Clare Rewcastle-Brown.

August 7: MACC’s Bahri Mohamad Zin and MACC director of strategic communications Rohaizad Yaakob transferred to the Prime Minister’s Department with immediate effect.

August 10: Bahri Mohamad Zin and Rohaizad Yaakob reinstated at the MACC.

August 10: MACC to continue 1MDB probes after officers’ reinstatement.

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  2. Malaysia is just another corrupt muslim country. The banking system is nothing but a money launder for international tax cheats. Anyone that is not muslim and visits that shit hole is a moron.
    Someone should investigate Lotus and Proton, two corrupt, incompetent companies that launder billions.

    By nobsartist on Aug 17, 2015

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