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Showing posts with label 1Malaysia Development Bhd (1MDB) scandal. Show all posts
Showing posts with label 1Malaysia Development Bhd (1MDB) scandal. Show all posts

Tuesday, December 18, 2018

Malaysia files criminal charges against Goldman Sachs, ex-bankers in 1MDB probe

https://youtu.be/jNJU98b4lzI
Malaysia takes Goldman Sachs to court with AG Tommy Thomas saying that the bank’s dealings with 1MDB broke laws at the heart of the capital markets; MRT Corp will be looking for a new CEO; and Unisem’s offer is “not fair or reasonable”.

This is the first time Malaysian prosecutors have directly targeted Goldman Sachs for its alleged role in the 1MDB scandal © AP

PETALING JAYA: The Attorney-General Chambers has filed criminal charges against subsidiaries of investment bank Goldman Sachs and its key employees over the handling of bonds issued by 1Malaysia Development Bhd (1MDB) totalling USD6.5bil (RM27.2bil).

Attorney general Tommy Thomas said that charges were filed against Goldman Sachs' former Southeast Asia chairman Tim Leissner and former 1MDB employees Jasmine Loo Ai Swan and fugitive businessman Low Taek Jho, also known as Jho Low.

He added that banker Roger Ng Chong Hwa would be charged shortly.

Thomas said Leissner and Ng had conspired with Low, Loo and others to bribe Malaysian public officials in order to procure the selection, involvement and participation of Goldman Sachs in three Bond issuances.

He also said that the Goldman employees had not only received part of the misappropriated bond proceeds, but also received large bonuses and enhanced career prospects at the bank and in the overall investment banking industry.

"The charges arise from the commission and abetment of false or misleading statements by all the accused in order to dishonestly misappropriate USD2.7bil (RM11.3bil) from the proceeds of three bonds issued by subsidiaries of 1MDB, which were arranged and underwritten by Goldman Sachs," he said in a statement on Monday (Dec 17).

Thomas said the three bonds were the 10-year USD1.75bil (RM7.32bil) issued by 1MDB Energy Limited, the 10-year USD1.75bil (RM7.32bil) issued by 1MDB Energy (Langat) Limited and the 10-year USD3bil (RM12.6bil) issued by 1MDB Global Investments Limited.

Thomas added that the investment bank had benefited by receiving underwriting and arranging fees of approximately USD600mil (RM2.5bil), which was higher than market rates and industry norms.

Thomas also said the Offering Circulars and Private Placement Memorandum for the Bonds filed with the Labuan Financial Services Authority had also contained statements which were false, misleading, coupled with omissions of material.

"Offering Circulars and Private Placement Memorandum are serious documents, intended to be relied on, and, in fact, were relied on, by purchasers of the bonds.

"The scheme designed and crafted by the accused to fraudulently structure the bonds for ostensibly legitimate purposes when they knew that the proceeds thereof would be misappropriated and fraudulently diverted by the accused themselves was planned and executed in order to defraud the Government of Malaysia and the purchasers of the bonds," he said.

Thomas said their scheme had contravened Malaysia’s securities laws, particularly, Section 179 of the Capital Markets and Services Act, 2007 (Act 671).

"Malaysia considers the allegations in the charges against all the accused to be grave violations of our securities laws, and to reflect their severity, prosecutors will seek criminal fines against the accused well in excess of the USD2.7bil (RM11.3bil) misappropriated from the Bonds proceeds and USD600mil (RM2.5bil) in fees received by Goldman Sachs, and custodial sentences against each of the individual accused: the maximum term of imprisonment being 10 years," he said.

He said that if no criminal proceedings are instituted against the accused, their undermining of the financial system and market integrity will go unpunished.

“Having held themselves out as the pre-eminent global adviser / arranger for bonds, the highest standards are expected of Goldman Sachs. They have fallen far short of any standard. In consequence, they have to be held accountable,” he said. - The Star.


Related posts:

Goldman Sachs staring at ‘significant penalties’, its system of accounting controls could be easily circumvented

Malaysia files criminal charges against Goldman Sachs, ex-bankers in 1MDB probe

https://youtu.be/jNJU98b4lzI
https://youtu.be/Jwer8mGvM-Q
https://youtu.be/dFnu-SP9mLU
Malaysia takes Goldman Sachs to court with AG Tommy Thomas saying that the bank’s dealings with 1MDB broke laws at the heart of the capital markets; MRT Corp will be looking for a new CEO; and Unisem’s offer is “not fair or reasonable”.

This is the first time Malaysian prosecutors have directly targeted Goldman Sachs for its alleged role in the 1MDB scandal © AP

PETALING JAYA: The Attorney-General Chambers has filed criminal charges against subsidiaries of investment bank Goldman Sachs and its key employees over the handling of bonds issued by 1Malaysia Development Bhd (1MDB) totalling USD6.5bil (RM27.2bil).

Attorney general Tommy Thomas said that charges were filed against Goldman Sachs' former Southeast Asia chairman Tim Leissner and former 1MDB employees Jasmine Loo Ai Swan and fugitive businessman Low Taek Jho, also known as Jho Low.

He added that banker Roger Ng Chong Hwa would be charged shortly.

Thomas said Leissner and Ng had conspired with Low, Loo and others to bribe Malaysian public officials in order to procure the selection, involvement and participation of Goldman Sachs in three Bond issuances.

He also said that the Goldman employees had not only received part of the misappropriated bond proceeds, but also received large bonuses and enhanced career prospects at the bank and in the overall investment banking industry.

"The charges arise from the commission and abetment of false or misleading statements by all the accused in order to dishonestly misappropriate USD2.7bil (RM11.3bil) from the proceeds of three bonds issued by subsidiaries of 1MDB, which were arranged and underwritten by Goldman Sachs," he said in a statement on Monday (Dec 17).

Thomas said the three bonds were the 10-year USD1.75bil (RM7.32bil) issued by 1MDB Energy Limited, the 10-year USD1.75bil (RM7.32bil) issued by 1MDB Energy (Langat) Limited and the 10-year USD3bil (RM12.6bil) issued by 1MDB Global Investments Limited.

Thomas added that the investment bank had benefited by receiving underwriting and arranging fees of approximately USD600mil (RM2.5bil), which was higher than market rates and industry norms.

Thomas also said the Offering Circulars and Private Placement Memorandum for the Bonds filed with the Labuan Financial Services Authority had also contained statements which were false, misleading, coupled with omissions of material.

"Offering Circulars and Private Placement Memorandum are serious documents, intended to be relied on, and, in fact, were relied on, by purchasers of the bonds.

"The scheme designed and crafted by the accused to fraudulently structure the bonds for ostensibly legitimate purposes when they knew that the proceeds thereof would be misappropriated and fraudulently diverted by the accused themselves was planned and executed in order to defraud the Government of Malaysia and the purchasers of the bonds," he said.

Thomas said their scheme had contravened Malaysia’s securities laws, particularly, Section 179 of the Capital Markets and Services Act, 2007 (Act 671).

"Malaysia considers the allegations in the charges against all the accused to be grave violations of our securities laws, and to reflect their severity, prosecutors will seek criminal fines against the accused well in excess of the USD2.7bil (RM11.3bil) misappropriated from the Bonds proceeds and USD600mil (RM2.5bil) in fees received by Goldman Sachs, and custodial sentences against each of the individual accused: the maximum term of imprisonment being 10 years," he said.

He said that if no criminal proceedings are instituted against the accused, their undermining of the financial system and market integrity will go unpunished.

“Having held themselves out as the pre-eminent global adviser / arranger for bonds, the highest standards are expected of Goldman Sachs. They have fallen far short of any standard. In consequence, they have to be held accountable,” he said. - The Star.


Related posts:

Goldman Sachs staring at ‘significant penalties’, its system of accounting controls could be easily circumvented

Wednesday, November 7, 2018

Goldman Sachs staring at ‘significant penalties’, its system of accounting controls could be easily circumvented

From left: Leissner, Ng and Low.

Goldman Sachs Group has acknowledged that it may receive “significant penalties” resulting from its deals with 1Malaysia Development Bhd (1MDB).

It also recognised that it had weaknesses in its compliance controls, The Wall Street Journal (WSJ) reported.

In its third-quarter earnings filing to regulators, the investment management firm made citations about the indictment against its former employees for bribery and money laundering involving 1MDB, WSJ said.

Although it had acknowledged that it could face “significant penalties resulting from 1MDB”, Goldman Sachs said it was also cooperating with investigators, the report on Monday said.

According to WSJ, Goldman Sachs wrote in the filing that the indictment alleged the firm’s “system of internal accounting controls could be easily circumvented and that the firm’s business culture, particularly in South-East Asia, at times prioritised consummation of deals ahead of the proper operation of its compliance functions”.

The filing also mentioned that former Goldman Sachs bankers Tim Leissner and Roger Ng had “circumvented the firm’s internal accounting controls in part by intentionally deceiving control personnel and internal committees”.

Goldman Sachs is said to have received nearly RM2.5bil (US$600mil) in fees from the 1MDB deal.

Previously, the Financial Times reported that Goldman Sachs had helped 1MDB sell about RM27bil (US$6.5bil) of bonds between 2012 and 2013, two years before the authorities raided 1MDB’s offices to investigate allegations of massive fraud.

In a filing to the Securities and Exchange Commission on Friday, Goldman Sachs estimated that possible losses related to litigation proceedings could run as high as US$1.8bil (RM7.49bil) above its total reserves for such matters.

Previously, Goldman Sachs estimated litigation losses to be in excess of US$1.5bil (RM6.24 bil).

The Financial Times also reported that almost 30 people from Goldman Sachs had reviewed 1MDB deal’s approval process.

Meanwhile, in a 2016 indictment, the US Department of Justice (DoJ) alleged that most of the money raised with Goldman Sachs’ help was siphoned off by Low Taek Jho, also known as Jho Low.

The fugitive businessman together with bankers Ng and Leissner were indicted by the DoJ on Thursday for conspiring to launder money and violating the Foreign Corrupt Practices Act in relation to 1MDB.

Leissner pleaded guilty to conspiring to launder money and to violating anti-bribery laws. He has been ordered to forfeit US$43.7mil (RM182.27mil) as a result of his crimes.

The criminal charges relating to 1MDB are the first by DoJ.

In 2016, the DOJ reportedly recovered over US$1bil (RM4.17bil being the current conversion rate) that was allegedly stolen, and sought the forfeiture of property, including a Bombardier private jet, Manhattan penthouse, Beverly Hills mansion and paintings by Vincent Van Gogh and Claude Monet.

Low is currently wanted in Malaysia and Singa­pore and other countries over investigations into 1MDB.

In a separate report by the Associated Press, PKR incoming president Datuk Seri Anwar Ibrahim said that Low would be given a fair trial.

Anwar said he was “quite pleased” with developments in the case so far and that investigations in the United States, Malaysia and Singapore and other places were “progressing very well”.

The report also said Anwar had hinted that more former officials could be tried on corruption charges.

Malaysia has applied for a Red Notice to seek assistance from countries such as the United Arab Emirates, Indonesia, India, Myanmar, China and Hong Kong via Interpol, and Taiwan via diplomatic channels to arrest Low.- The Star

Related posts:

Goldman Sachs CEO: I feel horrible ex-bankers broke law in 1MDB case


https://youtu.be/L0XbbbqTHYw

SINGAPORE (Reuters): Goldman Sachs chief executive officer David Solomon said on Wednesday he felt "horrible" that two former employees "blatantly broke the law" in their dealings with 1Malaysia Development Berhad.

US prosecutors filed criminal charges against the two former Goldman bankers and a Malaysian financier linked to the alleged theft of billions of dollars from the fund.

An investigation into where 1MDB's money went became the largest carried out by the Department of Justice under its anti-kleptocracy programme, and the scandal was a major reason why Malaysian voters rejected Datuk Seri Najib Tun Razak, their prime minister for nearly a decade, in the May 9 general election.

"It is obviously very distressing to see two former Goldman Sachs employees went so blatantly around our policies and so blatantly broke the law," Solomon said in an interview with Bloomberg TV in Singapore.

"I feel horrible about the fact that people who worked at Goldman Sachs, and it doesn't matter whether it's a partner or it's an entry level employee, would go around our policies and break the law," Solomon said.

US prosecutors announced last week that Tim Leissner, former partner for Goldman Sachs in Asia, had pleaded guilty to conspiracy to launder money and conspiracy to violate the Foreign Corrupt Practices Act, and agreed to forfeit US$43.7mil (RM181.8mil).

Roger Ng, the other charged former Goldman banker, was arrested in Malaysia and is expected to be extradited.

Reuters was not immediately able to contact Ng's lawyer on Wednesday. His lawyer did not immediately respond to a request for comment after US prosecutors unveiled the charges last Thursday.

Goldman has also placed its former co-head of Asia investment banking, Andrea Vella, on leave over his role in the firm's involvement with the case, pending a review of allegations, according to a person familiar with the decision.

The Wall Street bank said in a securities filing on Friday that it may also face penalties from dealings with 1MDB.

Asked if he could provide assurances that neither he, former CEO Lloyd Blankfein or any of the senior management team suspected illegality or compliance breaches in dealings with 1MDB, Solomon said:

"We take compliance and control in our firm extremely seriously, we always have...We are going to continue to cooperate with the authorities and there's a process in place and that process will proceed." According to prosecutors, the investment bank generated about US$600mil (RM2.49bil) in fees for its work with 1MDB, which included three bond offerings in 2012 and 2013 that raised US$6.5bil (RM23.29bil). Leissner, Ng and others received large bonuses in connection with that revenue.

Finance Minister Lim Guan Eng told Reuters in June that the government will be looking at the possibility of seeking claims from Goldman Sachs.

Prime Minister Tun Dr Mahathir Mohamad said Malaysia will look into why Goldman was paid around US$600mil in fees, an amount that critics say exceeds normal levels.

Goldman has maintained that the outsized fees related to the additional risks it took on after it bought the un-rated bonds while it sought investors and, in the case of the 2013 deal which raised US$2.7bil (RM11.24bil), 1MDB wanted the funds in a hurry for a planned investment.

The new Malaysian government has barred Najib and his wife from leaving the country, and the former premier faces multiple charges of corruption, money laundering and abuse of power, though he has consistently denied any wrongdoing related to 1MDB.

In another interview with Bloomberg on Tuesday, Malaysia's prime minister-in-waiting Anwar Ibrahim said it would be "inexcusable" if Goldman Sachs was complicit in the scandal. – Reuters

Guan Eng: Goldman Sachs should return RM2.4bil fees - Nation

American investment bank Goldman Sachs should return the US$588mil (RM2.4bil) in it was paid for 1MDB-related matters, says Lim Guan Eng.

The Finance Minister said the fees were for raising bonds totalling US$6.5 billion (RM23.29 billion) for the Malaysian state investment firm back in 2012 and 2013.

"They must pay us back this money, not only the US$588mil but much more than that," he said during a briefing on Budget 2019 at Hotel Equatorial Penang on Wednesday (Nov 7).

He said there were consequential losses due to the fees paid as it had cost Malaysia big losses.
This was in respond to Goldman Sachs chief executive officer David Solomon, who admitted that their employees had broken the law over 1MDB matters.

Read more at https://www.thestar.com.my/news/nation/2018/11/08/guan-eng-goldman-sachs-should-return-rm2_4bil-fees/#wqMtc2F6O1jC35UJ.99

 

Goldman Lunch at Taste Paradise Sets Table for 1MDB Money Probe

 

Goldman Sachs banker's obscene commissions netted 11% from 1MDB believed to be most compelling evidence of rogue behaviour

 

Here is how 1MDB money was used to buy Equanimity

 

1MDB scandalous Bombardier Global 500 Jet parking fees of RM3.5mil to be paid if govt wants it back

 

Goldman Sachs staring at ‘significant penalties’, its system of accounting controls could be easily circumvented

From left: Leissner, Ng and Low.

Goldman Sachs Group has acknowledged that it may receive “significant penalties” resulting from its deals with 1Malaysia Development Bhd (1MDB).

It also recognised that it had weaknesses in its compliance controls, The Wall Street Journal (WSJ) reported.

In its third-quarter earnings filing to regulators, the investment management firm made citations about the indictment against its former employees for bribery and money laundering involving 1MDB, WSJ said.

Although it had acknowledged that it could face “significant penalties resulting from 1MDB”, Goldman Sachs said it was also cooperating with investigators, the report on Monday said.

According to WSJ, Goldman Sachs wrote in the filing that the indictment alleged the firm’s “system of internal accounting controls could be easily circumvented and that the firm’s business culture, particularly in South-East Asia, at times prioritised consummation of deals ahead of the proper operation of its compliance functions”.

The filing also mentioned that former Goldman Sachs bankers Tim Leissner and Roger Ng had “circumvented the firm’s internal accounting controls in part by intentionally deceiving control personnel and internal committees”.

Goldman Sachs is said to have received nearly RM2.5bil (US$600mil) in fees from the 1MDB deal.

Previously, the Financial Times reported that Goldman Sachs had helped 1MDB sell about RM27bil (US$6.5bil) of bonds between 2012 and 2013, two years before the authorities raided 1MDB’s offices to investigate allegations of massive fraud.

In a filing to the Securities and Exchange Commission on Friday, Goldman Sachs estimated that possible losses related to litigation proceedings could run as high as US$1.8bil (RM7.49bil) above its total reserves for such matters.

Previously, Goldman Sachs estimated litigation losses to be in excess of US$1.5bil (RM6.24 bil).

The Financial Times also reported that almost 30 people from Goldman Sachs had reviewed 1MDB deal’s approval process.

Meanwhile, in a 2016 indictment, the US Department of Justice (DoJ) alleged that most of the money raised with Goldman Sachs’ help was siphoned off by Low Taek Jho, also known as Jho Low.

The fugitive businessman together with bankers Ng and Leissner were indicted by the DoJ on Thursday for conspiring to launder money and violating the Foreign Corrupt Practices Act in relation to 1MDB.

Leissner pleaded guilty to conspiring to launder money and to violating anti-bribery laws. He has been ordered to forfeit US$43.7mil (RM182.27mil) as a result of his crimes.

The criminal charges relating to 1MDB are the first by DoJ.

In 2016, the DOJ reportedly recovered over US$1bil (RM4.17bil being the current conversion rate) that was allegedly stolen, and sought the forfeiture of property, including a Bombardier private jet, Manhattan penthouse, Beverly Hills mansion and paintings by Vincent Van Gogh and Claude Monet.

Low is currently wanted in Malaysia and Singa­pore and other countries over investigations into 1MDB.

In a separate report by the Associated Press, PKR incoming president Datuk Seri Anwar Ibrahim said that Low would be given a fair trial.

Anwar said he was “quite pleased” with developments in the case so far and that investigations in the United States, Malaysia and Singapore and other places were “progressing very well”.

The report also said Anwar had hinted that more former officials could be tried on corruption charges.

Malaysia has applied for a Red Notice to seek assistance from countries such as the United Arab Emirates, Indonesia, India, Myanmar, China and Hong Kong via Interpol, and Taiwan via diplomatic channels to arrest Low. - The Star

Related posts:

Goldman Sachs CEO: I feel horrible ex-bankers broke law in 1MDB case


https://youtu.be/L0XbbbqTHYw

SINGAPORE (Reuters): Goldman Sachs chief executive officer David Solomon said on Wednesday he felt "horrible" that two former employees "blatantly broke the law" in their dealings with 1Malaysia Development Berhad.

US prosecutors filed criminal charges against the two former Goldman bankers and a Malaysian financier linked to the alleged theft of billions of dollars from the fund.

An investigation into where 1MDB's money went became the largest carried out by the Department of Justice under its anti-kleptocracy programme, and the scandal was a major reason why Malaysian voters rejected Datuk Seri Najib Tun Razak, their prime minister for nearly a decade, in the May 9 general election.

"It is obviously very distressing to see two former Goldman Sachs employees went so blatantly around our policies and so blatantly broke the law," Solomon said in an interview with Bloomberg TV in Singapore.

"I feel horrible about the fact that people who worked at Goldman Sachs, and it doesn't matter whether it's a partner or it's an entry level employee, would go around our policies and break the law," Solomon said.

US prosecutors announced last week that Tim Leissner, former partner for Goldman Sachs in Asia, had pleaded guilty to conspiracy to launder money and conspiracy to violate the Foreign Corrupt Practices Act, and agreed to forfeit US$43.7mil (RM181.8mil).

Roger Ng, the other charged former Goldman banker, was arrested in Malaysia and is expected to be extradited.

Reuters was not immediately able to contact Ng's lawyer on Wednesday. His lawyer did not immediately respond to a request for comment after US prosecutors unveiled the charges last Thursday.

Goldman has also placed its former co-head of Asia investment banking, Andrea Vella, on leave over his role in the firm's involvement with the case, pending a review of allegations, according to a person familiar with the decision.

The Wall Street bank said in a securities filing on Friday that it may also face penalties from dealings with 1MDB.

Asked if he could provide assurances that neither he, former CEO Lloyd Blankfein or any of the senior management team suspected illegality or compliance breaches in dealings with 1MDB, Solomon said:

"We take compliance and control in our firm extremely seriously, we always have...We are going to continue to cooperate with the authorities and there's a process in place and that process will proceed." According to prosecutors, the investment bank generated about US$600mil (RM2.49bil) in fees for its work with 1MDB, which included three bond offerings in 2012 and 2013 that raised US$6.5bil (RM23.29bil). Leissner, Ng and others received large bonuses in connection with that revenue.

Finance Minister Lim Guan Eng told Reuters in June that the government will be looking at the possibility of seeking claims from Goldman Sachs.

Prime Minister Tun Dr Mahathir Mohamad said Malaysia will look into why Goldman was paid around US$600mil in fees, an amount that critics say exceeds normal levels.

Goldman has maintained that the outsized fees related to the additional risks it took on after it bought the un-rated bonds while it sought investors and, in the case of the 2013 deal which raised US$2.7bil (RM11.24bil), 1MDB wanted the funds in a hurry for a planned investment.

The new Malaysian government has barred Najib and his wife from leaving the country, and the former premier faces multiple charges of corruption, money laundering and abuse of power, though he has consistently denied any wrongdoing related to 1MDB.

In another interview with Bloomberg on Tuesday, Malaysia's prime minister-in-waiting Anwar Ibrahim said it would be "inexcusable" if Goldman Sachs was complicit in the scandal. – Reuters

Guan Eng: Goldman Sachs should return RM2.4bil fees - Nation

American investment bank Goldman Sachs should return the US$588mil (RM2.4bil) in it was paid for 1MDB-related matters, says Lim Guan Eng.

The Finance Minister said the fees were for raising bonds totalling US$6.5 billion (RM23.29 billion) for the Malaysian state investment firm back in 2012 and 2013.

"They must pay us back this money, not only the US$588mil but much more than that," he said during a briefing on Budget 2019 at Hotel Equatorial Penang on Wednesday (Nov 7).

He said there were consequential losses due to the fees paid as it had cost Malaysia big losses.
This was in respond to Goldman Sachs chief executive officer David Solomon, who admitted that their employees had broken the law over 1MDB matters.

Read more at https://www.thestar.com.my/news/nation/2018/11/08/guan-eng-goldman-sachs-should-return-rm2_4bil-fees/#wqMtc2F6O1jC35UJ.99
 

Goldman Lunch at Taste Paradise Sets Table for 1MDB Money Probe

 

Goldman Sachs banker's obscene commissions netted 11% from 1MDB believed to be most compelling evidence of rogue behaviour

 

Here is how 1MDB money was used to buy Equanimity

 

1MDB scandalous Bombardier Global 500 Jet parking fees of RM3.5mil to be paid if govt wants it back

 

Wednesday, October 31, 2018

Malaysia goes to UK court to challenge IPIC-1MDB consent award US$5.78bil (RM24.16bil)


Malaysia legally challenges a consent award granted in 2017 to Abu Dhabi's sovereign wealth fund, International Petroleum Investment Company (IPIC), following a debt dispute with its state investment fund, 1Malaysia Development Bhd.

Under the consent award, Malaysia is obliged to pay US$5.78 billion to IPIC and the bond trustee over five years. The country has paid US$1.46 billion so far.


Below is the full media statement from Malaysia's attorney-general, Tommy Thomas, explaining why the country is filing the legal challenge.

https://youtu.be/q_hewkxdyp8


CHALLENGING THE IPIC ARBITRATION CONSENT AWARD

1. The Government of Malaysia will apply to the Courts of England for an order to set aside a Consent Award recorded on 9th May 2017 by an Arbitration Tribunal sitting in London. We are confident that we have a strong case. The Arbitration, conducted under the Rules of the London Court of International Arbitration, was between International Petroleum Investment Company (“IPIC”) and Aabar Investments PJS, as Claimants, and 1MDB and our Minister of Finance Inc., as Respondents.

2. Under the Consent Award, Malaysia is obliged to pay US$5.78 billion to IPIC and the Bond Trustee over a five year period. So far, US$1.46 billion has been paid, leaving a balance of US$4.32 billion, with the next interest payment of US$50 million due on 11th November 2018. Similar interest payments are payable periodically until April 2022. The final bullet payments, representing principal and interest of US$1.8 billion each, are due and payable in May and October 2022.

3. The basis of Malaysia’s legal challenge in the High Court in London is that the Consent Award was procured by fraud or in a manner contrary to public policy. The Court application relates to the knowledge of IPIC and Aabar of the serious allegations made by the United States Department of Justice (DOJ) against former Prime Minister and Finance Minister Najib Razak, who was also the moving spirit and ultimate decision maker in 1MDB. Such knowledge on their part was acquired, “inter alia”, no later than the time when the DOJ’s Press Conference was held by the Attorney General of the United States, Loretta Lynch, in July 2016 when she announced the filing by by DOJ of several civil suits for the freezing of assets purchased by fraudsters from stolen proceeds, and popularly described as the greatest kleptocracy in modern history.

4. The grave, detailed allegations in those DOJ court documents were given tremendous global publicity, particularly in the political and business media. They had certainly entered the global public domain by July 2016. Najib Razak is identified as “MO1” in the DOJ pleadings. Any reasonable reader reading these court documents would immediately become aware of his central role in defrauding 1MDB to the benefit of himself, his stepson and Jho Low.

5. In such circumstances, Malaysia takes the position that IPIC and Aabar were aware of the fraud of Najib Razak. He was principally responsible for 1MDB and Minister of Finance Inc. consenting to the Award. Every system of law would hold that he could not possibly have acted in the best interests of his country and his company. Indeed, he did not. Fraud is an established ground to challenge the consent award for public policy reasons.

6. We are pleased to report that the application will be filed today in the High Court in London. Malaysia will claim that as a result of the fraud, we are relieved from any obligation to pay the balance of the US$4.32 billion to IPIC or Aabar under the Consent Award, and additionally have a right to recover the US$1.46 billion already paid.

Tommy Thomas Attorney General 30th October 2018  

Related:



Tun M Hired The Right Man A.G. : Tommy Thomas To Recover RM24 ...



1MDB and IPIC settle arbitration proceedings


https://youtu.be/ooyrdnnGtsc


Govt to appeal consent award - Nation | The Star Online



Malaysia to appeal for order to set aside RM24.16bil consent award in ...

 

AG says Malaysia doesn't have to pay US$4.32b to IPIC as 1MDB defrauded 

 

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Najib is guilty of incompetence, he says: board to be blamed for 1MDB debacle, not me, I don't know !

 

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Najib & his strong wife Rosmah with 17 charges in Court over money laundering 

 

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Najib's US top lawyers, hiccup to choice of new AG as 1Malaysia Development Bhd (1MDB) probe widens

Malaysia goes to UK court to challenge IPIC-1MDB consent award US$5.78bil (RM24.16bil)


Malaysia legally challenges a consent award granted in 2017 to Abu Dhabi's sovereign wealth fund, International Petroleum Investment Company (IPIC), following a debt dispute with its state investment fund, 1Malaysia Development Bhd.

Under the consent award, Malaysia is obliged to pay US$5.78 billion to IPIC and the bond trustee over five years. The country has paid US$1.46 billion so far.


Below is the full media statement from Malaysia's attorney-general, Tommy Thomas, explaining why the country is filing the legal challenge.

https://youtu.be/q_hewkxdyp8


CHALLENGING THE IPIC ARBITRATION CONSENT AWARD

1. The Government of Malaysia will apply to the Courts of England for an order to set aside a Consent Award recorded on 9th May 2017 by an Arbitration Tribunal sitting in London. We are confident that we have a strong case. The Arbitration, conducted under the Rules of the London Court of International Arbitration, was between International Petroleum Investment Company (“IPIC”) and Aabar Investments PJS, as Claimants, and 1MDB and our Minister of Finance Inc., as Respondents.

2. Under the Consent Award, Malaysia is obliged to pay US$5.78 billion to IPIC and the Bond Trustee over a five year period. So far, US$1.46 billion has been paid, leaving a balance of US$4.32 billion, with the next interest payment of US$50 million due on 11th November 2018. Similar interest payments are payable periodically until April 2022. The final bullet payments, representing principal and interest of US$1.8 billion each, are due and payable in May and October 2022.

3. The basis of Malaysia’s legal challenge in the High Court in London is that the Consent Award was procured by fraud or in a manner contrary to public policy. The Court application relates to the knowledge of IPIC and Aabar of the serious allegations made by the United States Department of Justice (DOJ) against former Prime Minister and Finance Minister Najib Razak, who was also the moving spirit and ultimate decision maker in 1MDB. Such knowledge on their part was acquired, “inter alia”, no later than the time when the DOJ’s Press Conference was held by the Attorney General of the United States, Loretta Lynch, in July 2016 when she announced the filing by by DOJ of several civil suits for the freezing of assets purchased by fraudsters from stolen proceeds, and popularly described as the greatest kleptocracy in modern history.

4. The grave, detailed allegations in those DOJ court documents were given tremendous global publicity, particularly in the political and business media. They had certainly entered the global public domain by July 2016. Najib Razak is identified as “MO1” in the DOJ pleadings. Any reasonable reader reading these court documents would immediately become aware of his central role in defrauding 1MDB to the benefit of himself, his stepson and Jho Low.

5. In such circumstances, Malaysia takes the position that IPIC and Aabar were aware of the fraud of Najib Razak. He was principally responsible for 1MDB and Minister of Finance Inc. consenting to the Award. Every system of law would hold that he could not possibly have acted in the best interests of his country and his company. Indeed, he did not. Fraud is an established ground to challenge the consent award for public policy reasons.

6. We are pleased to report that the application will be filed today in the High Court in London. Malaysia will claim that as a result of the fraud, we are relieved from any obligation to pay the balance of the US$4.32 billion to IPIC or Aabar under the Consent Award, and additionally have a right to recover the US$1.46 billion already paid.

Tommy Thomas Attorney General 30th October 2018  

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