A great talent leaves (Part 5): Forgiven sins

Abrar Corporation is under receivership. That is the notice found on the Internet. It is a tombstone to remind of the failure of Tan Sri Nor Mohamed Yakcop's first "legitimate" attempt in business in 1994 to 1998. Despite his strings of failure, he still rose up to high position.

Abrar was started by two Malaysian student Islamicsts activist in the US back in the late 80s. Both of them were doing their Phd - Ex Malay College, Dr Wan Hasni and ex MRSM Pengkalan Chepa Dr Rahim Ghouse. It was believed then that they were managing Arab funds in Connecticut before returning to Malaysia. 

Nor Yakcop was with Abrar and was cordial with Anwar. When Anwar won the 2010 by-election, a former staff said he called Anwar's office to congratulate. Nor Yakcop may have been identified with Anwar for letting him go. 

Some felt Nor Yakcop may have got away because charging him would have would have implicated a lot of big names, especially Anwar.

There was some element of collective decision that would have saved Nor Yakcop from prison like other rouge traders. But, the curious part is who saved and forgiven Nor Yakcop for his bigger sin at Abrar?


At that time, Anwar was DPM and Minister of Finance. He was looking for an Islamic financier when Abrar came into the picture. Through Rahim Ghouse, Abrar received Anwar's political patronage. 

Another was Al Baraka group led by Dato Kamaruddin Mohd Nor.


Today Anwar is pointing fingers to Tun Daim and Tun Dr Mahathir for the loss of foreign reserve but many people are aware that Bank Negara was under the auspices of the Ministry of Finance. So these days he would use ex-Bank Negara Manager but sold as former Adviser, Dr Rosli of PAS to raise the issue.

Do not discount Tun Abdullah because in his last term as Prime Minister, Tun Dr Mahathir appointed him as Home Minister and he handled the reformasi.

Criminal Breach of Trust

In August and September 1998, there were two police reports made against Nor Yakcop who was the then Executive Chairman of Abrar Corporation Berhad (ACB), 

As Chairman, Nor Yakcop had made several infringement. He had used the ACB's money to settle his personal loan to Bank.  

In Part 3, it was mentioned, below:

When Nor Mohd joined Abrar he was offered a chance to own 5% of Mun Loong Bhd. He thought it was a great deal. Since Anwar was the Finance Minister, a RM30 million loan was arranged from Bank of Commerce for Nor Mohd to buy shares in Mun Loong (later Abrar Corp).

There was still remaining loan of RM13 million. He had funneled the money of a public listed company in which is partly owned by the public, to Abrar Group International Sdn Bhd (AGI) and subsequently to himself to settle the Bank of Commerce loan (today it is CIMB Bank). AGI is the 25% owner of ACB.

That is a criminal breach of trust and breach the statutory and fiduciary duties of a Director of a Company. The Company Act clearly stated that Company Director cannot borrow money from their own company, what more for a public company.

Reckless Investments

In the same manner as he deals in foreign exchange, Nor Yakcop was reckless in his brief attempt to be a corporate player. As Director, Nor Yakcop had conspired with several other individuals in ACB to authorise the use of company funds for wrongful purpose. 

Perhaps for lack of any profitable investment opportunities or lack of experiance in doing investment, Abrar was once scrambling in desperation to undertake investment for their shady Arab clients, suspected to be linked to Al Qaeda. 

Nor Yakcop had placed ACB's fund of RM44 million to the group's license fund manager, Abrar Global Asset Managers Sdn Bhd. (AGAM).

Nor Yakcop may have requested a ridiculous return of 15% but it was never meant for investment in portfolio but only as conduit for ACB's investments. The money never returned back to the public listed outfit, ACB. The liquidator sure would like to know where.

They had used it to buy shares in ACB or in other words, illegally buy back their own shares. At that time, it was illegal to do so under Section 67 of the Company Act 1965.

The Board of Directors of ACB including Nor Yakcop had approved investment by AGAM for US$5.4 million investment in China, acquisition of one company called Platinum Avenue Sdn Bhd for RM16 million, and acquisition of Silicon Vision Corporation for C$3.95 million. 

No proper evaluation was done and it was made despite full knowledge that the investments have low possibility of recovery.

With Nor Yakcop as Executive Chairman, he had ACB purchased an overpriced land in Gelang Patah for RM16 million which was later sold at a substantial loss. 

Cover-up

Basically, the Abrar people including Nor Yakcop know nuts what they are investing in. 

Not only that, he may have misrepresented hmself and the company to their investors and various parties. He guaranteed the recoverability of the invested funds despite knowing well that it is not recoverable.

As public company, Nor Yakcop was supposed to disclose any losses to the authorities; namely the Kuala Lumpur Stock Exchange then and the Securities Commission but he did not. Strangely enough, despite knowing and aware of such irregularities, they was no investigation done by them.

This is basically leaving the public and government bodies holding shares in the company of being cheated. 

It was believed that the police had commenced investigation into the irregularities but nothing happened from there on. There are those that believed police had completed investigation and there was a case but was instructed to stop from taking action.

At one time, now Senator Ezam Mohd Nor used to make a big issue of Nor Yakcop, in particular the case of ACB, AGAM and AGI when he headed the anti-corruption NGO, GERAK. 

Ezam and the former Parti Keadilan Nasional used to claim that they have 16 boxes of documents of wrongdoing in high places. One of them and it is believed that he made a police report against Nor Yakcop. 

Is there truth that Exam had been bought and the figure said was RM10 million to stay quiet? 

The figure RM10 million was sheer guesswork because for sure, Nor Yakcop paid RM10 million blackmail money to Dato Sharif Omar to stop him from sabotaging his campaign for Tasek Gelugor at the 2004 general election.There was a tape going around....

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Having him to help as a Special Adviser at Bank Negara to solve the currency is like using "a thief to catch a thief." Do we have to make him as a Minister? Do we have to decorate him as Tan Sri and such?

It is mind boggling that someone so reckless in his decisions, indifferent to law and rules, dishonest and corrupt be allowed to still continue to hold high positions.

Nor Yakcop with his reckless psyche at Bank Negara in foreign exchange and his amateurish attempt to being a corporate player at Abrar was allowed to be involved in many major decisions that affect Bumiputera, UMNO, and the country at large.

Continued to Part 6

Part 1: A great talent leaves
Part 2: Continued presence
Part 3: Bounty to Hunt
Part 4: Rogue trader