Friday, November 13, 2015

Another WSJ set-up, but admitted "no allegations of wrongdoing"

In his posting here, Rocky "cautioned my friends against underestimating our friends. A storm is always preceded by calm."

What sort of issue could be the storm after rather scraping statements of Tun Mahathir reported by news portal on Wednesday to create a new controversy from any mistake in response? 

UMNO General Assembly in December is still long way to go. The nearest in the horizon will be Obama's visit for the 27th Asean Summit in November. The date is November 15-23 and that is only a matter of days.

The Bantah TPPA is expected to do something. Last week, there was an application for judicial review by a group of lawyers in collaboration with ABIM and Teras. Read in Aidil Khaid FB here, interesting angle.

Our stance has not changed. However, it is not time for games. The announced cost benefit analysis due in two weeks. Tunku blog here has links to download the various documents. Our regular contact is studying the materials.

While this is happening, the game to welcome Obama could be the 1MDB-DuSable solar power project in Kedah.

DuSable set-up

On October 28th, PKR MP for Kelana Jaya, Wong Chen raised concern in Parliament on the appearance of 1MDB name in a statements filed by US-based company, DuSable on the Justice Department website in September 2013 and April last year.

DuSable was supposed to partner 1MDB to develop, finance, and construct a 50MW solar project in Malaysia. He said since then, there have been no updates on the US Department Justice website. He tries to show concern by suggesting that Malaysia raise a complain. [Read TMI here.]

Dato Najib denied anything was signed between DuSable and 1MDB. Read Malaysian Digest here.

Must say we were impress then in the manner he raised his concern with politeness and humility. So unbecoming of opposition. However, it was a bait to more issues as Wong Chen claimed that 1MDB paid reimbursement of RM2.3 million to DuSable.

He pressed on for more explanation on DuSable. Words used were to come clean as though there was another hanky panky. [Reports by TMI here , FMT here, and back in action The Edge here dated November 2nd.]

If we had been PM, we would have yelled him to clearly state their concern because it is appearing to be another Tony Pua only-I-shall-ask-the-question debate. It is a bologna slice by slice tactic of raising issues and drawing attention.

One can not notice the typical media portal gangbang to intrude into confidential operational company matter. Unless it is a wrongdoing and they can lay out the proofs or better still, make a police report, WTF should 1MDB tell them?

Firm up their accusation before asking to come clean. Najib is no idiot would give them a rope for them to hang him.  


Taking account of weekend and Deepavali, 1MDB responded slightly more than a week later: 
Joint media statement by 1Malaysia Development Berhad and DuSable Capital Management LLC

Issued on 11 November 2015
For immediate publication

Factual Clarification on 50MW Solar Power Plant in Kedah, Malaysia

In 2013, 1MDB engaged DuSable to assist with project development of utility-scale grid connected solar power generation capability, for which DuSable Capital Management was remunerated US$506,000 for costs and expenses.

On 18 March 2014, 1MDB received a Letter of Award from the Ministry of Energy, Green Technology and Water, Malaysia (“KeTTHA”). Under the Letter of Award, 1MDB was granted the right to develop multiple utility scale solar photovoltaic power plants, with an aggregate capacity of up to 500MW. However, 1MDB was required, amongst others, to undertake detailed feasibility studies, execute a Power Purchase Agreement (“PPA”), source equity and debt financing and procure other requisite approvals for each individual solar power plant.

On 11 April 2014, 1MDB, (via its wholly owned subsidiary, 1MDB Synergy Sdn. Bhd.), (“1MDB Synergy”) and Yurus Private Equity Fund I, L.P. (“Yurus PE Fund”) entered into a Master Joint Venture Agreement (“Master JVA”), to jointly develop up to 500MW of solar power plants in Malaysia. DuSable Capital Management was appointed as the investment adviser to the Yurus PE Fund. The Master JVA shareholding was 49% Yurus PE Fund and 51% 1MDB Synergy.

On 12 April 2014, 1MDB, (via its wholly-owned subsidiary 1MDB Solar Sdn. Bhd (“1MDB Solar”) entered into a PPA with Tenaga Nasional Berhad for the construction of a 50MW solar power plant in the state of Kedah, Malaysia. It is important to highlight that Yurus PE Fund and DuSable Capital Management were not and never were, signatories to this PPA, nor did either party, at any time, have ownership of 1MDB Solar.

1MDB and DuSable Capital Management subsequently engaged in discussions for a partnership to develop, finance and construct the proposed 50MW solar power plant in Kedah. However, no project level joint venture agreement was reached between the parties for this solar power project or any other individual solar power project.

On 2 October 2014, as part of the IPO plans of Edra Global Energy Berhad (“Edra”), 1MDB acquired the entire 49% interest of Yurus PE Fund in the Master JVA, for a final amount of US$69 million. This acquisition ensured that 1MDB and Edra would own 100% of the rights to develop up to 500MW of solar power plants, prior to the launch of a proposed IPO of Edra.

We trust the above clarification will address the unsubstantiated allegations being made by certain opposition politicians in Malaysia, who have selectively extracted and misrepresented information relating to 1MDB, in order to mislead the public for their political purposes.
That should be sufficient.

Attention grabbing

But since Wong Chen could be selected as replacement to Tony Pua on 1MDB issues, he pursued it further with a more attention grabbing headline.

TMI report:
Did firm earn RM300 million for paperwork in 1MDB solar project, asks PKR lawmaker

Published: 12 November 2015 6:44 PM

PKR federal lawmaker Wong Chen has urged the prime minister to explain to clarify if a private equity fund made RM300 million doing paperwork for six months in a 1MDB-linked deal. – The Malaysian Insider filepic, November 12, 2015.

PKR federal lawmaker Wong Chen wants Prime Minister Datuk Seri Najib Razak to clarify if a private equity fund earned RM300 million for six months of paperwork in a deal linked to 1Malaysia Development Berhad (1MDB).

The private equity fund was Yurus Private Equity I, LP, which in April 2014, entered a master joint venture agreement with 1MDB Synergy Sdn Bhd on the proposed development of solar power plants that could generated up to 500MW in Malaysia.

Six months later, on October 2, 2014, 1MDB announced that it had brought from Yurus a 49% rights under the master joint venture agreement for US$69 million (RM300 million).

But following denials by 1MDB and Najib recently about any joint venture with Yurus, Wong today asked if this meant that private equity firm had made RM300 million just for doing paperwork.

"I, therefore, urge the prime minister to again come clean on the matter and disclose more to the public about the owners of Yurus so that we all can assess whether it had handsomely profited RM300 million after a mere six months of paperwork.

"To avoid embarrassment to all parties, the disclosure must be urgent and complete before US President (Barack) Obama arrives in Malaysia," he said in a statement today.

Yurus is linked to American firm DuSable Capital Management LLC, which earlier in 2013 had assisted 1MDB in project development of utility-scale, grid-connected solar power generation.

After 1MDB, via its wholly-owned unit 1MDB Synergy, entered into the master joint venture agreement with Yurus on development of solar power plants in Malaysia, DuSable was appointed as investment adviser to Yurus.

1MDB's links to DuSable was first raised last month by Wong, who demanded that Najib, the finance minister and chairman of 1MDB's advisory board, state the latest status of 1MDB's solar power plant project with DuSable in Kedah and the key conditions of the agreement.

The question was in relation to a report in an English daily on the joint venture project last year, which said that DuSable would be the investment adviser to a private equity fund in which 1MDB would be a limited partner.

In a parliamentary written reply to Wong, Najib said 1MDB had never signed any joint venture agreement with DuSable.

1MDB also issued a joint statement with DuSable last night, saying that while the two entities had discussed working together to develop a 50MW solar power plant in Kedah, no definitive agreement was ever reached about the project or any other solar power project.

Instead, 1MDB Synergy, entered into a master joint venture agreement with Yurus on April 11, 2014 to jointly develop solar power plants in Malaysia, and DuSable was appointed Yurus' investment adviser.

The master joint venture agreement shareholding was 49% Yurus and 51% 1MDB Synergy.

On April 12, 2014, however, 1MDB, via its wholly-owned subsidiary 1MDB Solar Sdn Bhd, entered into a power purchase agreement (PPA) with Tenaga Nasional Berhad for the construction of a 50MW solar power plant in Kedah, Malaysia.

"It is important to highlight that Yurus and DuSable were not and never were, signatories to this PPA, nor did either party, at any time, have ownership of 1MDB Solar," 1MDB said. – November 12, 2015.
Same game

In the meanwhile, Rupert Murdoch interframe:

It is available here.

Note the sub-headline "There are no allegations of wrongdoing, but the deal has generated controversy in Malaysia." Generated controversy?

It was only raised in Parliament on October 27th, one or two PC and the public is hardly aware of it. The public is still grasping to understand the complex 1MDB deal. There were only carried away by Tun M's unproven accusation that RM2.3 billion was swindeled into Najib's private account.

Some useful background information in the report:
DuSable was founded in May 2013 by Frank White Jr., a member of Mr. Obama’s 2008 national finance committee and a fundraiser for Hillary Clinton; Shomik Dutta, a former special assistant at the White House who worked previously as an investment banker; and Pras Michel, one of the original members of the band the Fugees and the artist behind the song “Ghetto Supastar (That Is What You Are).”
More ...
Mr. White and his wife, Sylvia, are listed as members of Hillary Clinton’s National Finance Committee, also known as Hillblazers, who have raised $100,000 or more in contributions since the start of the campaign in April 2015. Mr. Dutta was also a national finance consultant to Mr. Obama’s re-election campaign in 2011 and 2012.

They founded DuSable “to encourage emerging markets to adopt utility-scale renewable energy and utilize U.S. renewable energy technology,” the firm told The Wall Street Journal Wednesday. Another DuSable joint venture is developing 1,200 megawatts of solar power in Nigeria, the company says on its website.

Shortly after it was founded, DuSable announced it had raised a $505 million fund called Yurus Private Equity I, LP. An investor in Yurus was Aabar Investments PJS, an arm of the Abu Dhabi sovereign-wealth fund, International Petroleum Investment Co., according to people familiar with the matter. IPIC has been heavily involved with 1MDB. A spokesman for Aabar couldn’t immediately be reached.

Over the two years DuSable was involved with 1MDB, it helped the Malaysian fund develop power purchase agreements, plan financing and find a suitable site for a solar project, the firm said. It had a full-time employee in Kuala Lumpur for the length of the project, it said.

DuSable also invested its own capital in the project, it said without providing details. The firm agreed to sell its equity stake after 1MDB began preparing for an initial public offering of its energy assets, according to the companies.

It isn’t clear where the solar-power project stands.
There is nothing as WSJ acknowledged:
There are no allegations of wrongdoing, but the deal has already generated controversy in Malaysia. Opposition parliamentarian Wong Chen has held news conferences recently questioning 1MDB’s relationship with DuSable.
Najib's detractor tried to play the DuSable script before on Lembaga Tabung Haji as though a decision was made to invest in Detroit redevelopment. Tabung Haji sources contacted denied such claim. 

The source approached us but could not provide details. Only leak parts of investment proposal paper. The argument used to pitch the issues are "Takkanlah tidak ada apa-apa" and "mesti ada sesuatu." 

The initial stage on the DuSable game looks to be of similar Modus Operandi but only through a different spokesman. 

In the meanwhile, Sarawak Report and The Edge may have ceased to be the anti-Najib mouthpiece now.

It seemed one anonymous blog is now quoting, giving credence and defending information originally coming from Sarawak Report, The Edge and Xavier Justo's manipulated stolen data, even claiming Good Star is owned by Jho Loh.  

Interesting ....


Anonymous said...

manusia hanya mampu merancang....

Anonymous said...

Good write up Sir. Wish the Edge would be as objective, penetrative and, most importantly, patriotic.


Anonymous said...

Could you differentiate the original and manipulated justo docs?

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