In a latest cat-and-mouse, or rather cop-and-thief game, Arul Kanda (President and Group Executive Director of 1MDB) has admitted the authentication of copies of 1MDB Board minutes dated Jan 12 published by UK-based whistleblower Sarawak Report (SR). Perhaps Mr. Arul was puzzled on how could the documents landed on Clare Rewcastle Brown’s lap.

Considering how his big boss – Prime Minister Najib Razak – has supposedly transferred and terminated “leakers” on the shameful 1MDB scandal involving the pink lips, Arul must have thought it would be wise to admit than to search for more lids to cover more lies. He plays innocent and ignorant games saying that it was his first meeting since joining the company on January 5 this year.

 

However, he denied SR’s claim that he had lied to the board about cash in the state investment firm’s BSI Singapore bank account. Amusingly, Mr. Arul updated the Board that the balance of US$939,874,085 had been redeemed and had been held as cash since 31st December 2014, based on the minutes exposed by SR.

On March 11th, the Minister of Finance (PM Najib Razak) had issued a Parliamentary reply to questions from the opposition DAP MP Tony Pua, confirming that the remaining US$1.103 billion had already been “redeemed” from Brazen Sky’s alleged off shore fund in the Cayman Islands and stating that it was now being “kept in US currency” at BSI Bank Limited, Singapore.

 

But on April 22nd, roughly 3-months after Arul joined 1MDB and his update (or rather lie) to the Board to which PM Najib confidently relied on, telling the Parliament about the cash existence, SR dropped a bombshell – documents supplied by 1MDB relating to its Brazen Sky Limited account in Singapore were false bank statements. And there’s no actual CASH.

Caught with his pants down, Arul Kanda made a series of retractions before clarified that the assets held by BSI were in the form of “units” instead of “cash”, blaming “miscommunication”. Now, with the Board minutes exposed to all and sundry, the same 1MDB boss denies he was a liar as accused by SR, conveniently call it “miscommunication, again.

 

Well, as the big boss of 1MDB who has been trumpeting about the company owning assets worth RM50 billion versus RM42 billion in liabilities, he surely has done a great job creating tons of “miscommunication”. But the minutes also exposed the real reason why it couldn’t be repatriated back to Malaysia, even if there were cash to begin with.

Word-for-word, the minutes reveals – “Mr. Arul said that, in compliance with the covenants of the US$975 million loan from the Deutsche Bank (‘DB’), the redemption proceeds had been pledged to DB until repayment of the loan”. There you have it, the (non-existent) US$1.103 billion cash was supposed to guarantee another loan by Deutsche Bank.

 

Clearly, the German bank should buy Clare Rewcastle Brown a fine dinner because without her exposure, the bank could have been cheated and conned into believing 1MDB has actual money to guarantee its loan. So first, Arul had lied about a bank account having cash. Then he lied again about the untouchable money to guarantee another bank loan.

What about Bank Negara (Central Bank) governor Zeti Akhtar Aziz? Right after a decree issued by Council of Rulers whereby sultans of nine of Malaysia’s states have called for a swift and transparent investigation into 1MDB political-cum-financial scandal involving the country’s prime minister, Zeti sprung into action.

 

Last Friday, the governor bravely revoked three permissions given to 1MDB for investments abroad totalling US$1.83 billion (RM7.58 billion) under the Exchange Control Act 1953 (ECA), because 1MDB’s investments abroad were obtained based on inaccurate or without complete disclosure of material information relevant to the Bank’s assessment of 1MDB’s applications.

It also issued a directive under the Financial Services Act 2013 to 1MDB to return the US$1.83 billion to Malaysia and submit a plan to the Bank for this purpose. Instantly, Zeti was seen as a heroine for fighting back because one day earlier, the Attorney-General’s Chambers (AGC) has cleared 1MDB of any wrongdoing in relation to an investigation initiated by Bank Negara into its investments overseas.

 

Laughably, about 2-months ago, the same courageous and heroine Zeti had told all and sundry of the following:

1. She said the investigation papers and the “appropriate enforcement action” were submitted to the new A.G. Apandi Ali.
2. She said Bank Negara was not an enforcement body and could not take action against any alleged wrongdoing.
3. She said it was the responsibility of financial institution (Najib’s private account was with Ambank) to conduct due diligence, not the central bank.
4. She said will sue those spreading rumours about her over issues surrounding 1Malaysia Development Berhad (1MDB) Scandal.

So, suddenly she found out her institution actually has “enforcement power” by revoking permissions to stop 1MDB from investments abroad? Didn’t she say her lame duck Bank Negara could not take action against any alleged wrongdoing 2-months ago? Has she just found out the central bank 101 cook book eating dust hidden under her chair?

 

She had also claimed the investigation papers were submitted to A.G. Apandi Ali so that appropriate enforcement action could be taken. It was merely “enforcement” action recommended so why Zeti is bitching about “prosecution” action now if Apandi doesn’t think 1MDB was naughty enough to be prosecuted?

Zeti had also declared it was the responsibility of financial institution to conduct due diligence (presumably Ambank) with their client (obviously PM Najib Razak), not her central bank. She had washed her hands clean from the scandal. What transpired between Ambank and PM Najib was none of Zeti’s business. Doesn’t Zeti want to play “tai-chi” anymore?

 

Here’s the funniest part. After months of rubbishing 1MDB as a contributing factor for the plunging ringgit, she now says her central bank had to take action against 1MDB to protect the integrity of the local financial system because an improvement in the country’s political situation would help the ringgit. What happens to the country’s “strong fundamental” she trumpeted earlier?

Doesn’t she scare anymore of getting arrested by Emperor Najib’s Special Branch? Or she dares to act only after a royal decree by 9 Sultans? What if the sultans suddenly say their decree was misinterpreted due to “miscommunication”? Will brave heart Zeti make another huge U-turn and denies ever revoking permission for 1MDB?

 

From A-to-Z, Both Arul and Zeti are great liars. And Zeti knew about 1MDB since 2009. Now, do you understand why we wrote that Najib’s supporters are so freaking panic after the royal decree? That’s because the decree is a WMD (weapon of mass destruction) whereby its chain of impact is unimaginable.

 

Other Articles That May Interest You …

• Najib Supporters Are Panic, But Insult Sultans At Your Own Peril
• Before Slapping Chinese, Tajuddin Should First Slap Najib – Here’s Why
• Thanks, “Taichi Queen” Zeti – Now Everyone Can Do Money Laundering
• A Remaking Of 1997 Asian Financial Crisis By Najib Razak In 2015
• Cleared & Innocent!! Now The World Must Apologise To PM Najib
• Congrats Najib, You’ve Just Lost Johor & Inches From Fulfilling “RAHMAN” Prophecy
• Congrats Najib, You’re Now In The Forbes Malaysia’s 50 Richest
• 1MDB Scandal – An Ali-Baba “Scam” Partnership Goes Bust

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October 12th, 2015 by financetwitter

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