Thursday, March 24, 2016

Zeti's spoiler to CREC's confidence boost for 1MDB

It is a deja vu similar to the July 23rd 2015 event at Tan Sri Gani Patail's home. Our source claimed Tan Sri Abu Kassim convinced Gani to pursue Najib "since he is retiring, charging will be one way to get public to remember him by. It clears his name from past misdeeds."

Tan Sri Zeti Akhtar seemed to want to be remembered with a farewell to pursue 1MDB for the repatriation of the US$1.83 billion investment abroad for the rest of her tenure as Bank Negara Malaysia (BNM) Governor. [Read the past posting here, here and here.]
The timing of Zeti's statement is uncanny and seem to compliment Bar Council's motion to demand AG's resignation, Bar Council's filing of judicial review, Tun Dr Mahathir's lawsuit against Najib, and Dato Zaid Ibrahim's "Citizens' Declaration" March 27th gathering. With many media and news portal playing up Lim Guan Eng's house purchase issue, it like extending assistance to relief the Penang CM of the pressure.

This surprise is a party pooper to 1MDB confidence boasting move by CREC for Bandar Malaysia.

She alleged 1MDB have not provided the requested document as proof. In fact, this was the request for criminal action against 1MDB that was rejected for prosecution by Attorney General, Tan Sri Mohamed Apandi Ali in September 2015 last year.

1MDB said then that the money was allocated for their restructuring, presumably the IPIC's asset to debt swap. However, 1MDB denied and have cooperated with the authorities.

Pursuing 1MDB

The Edge was the first with the news:
Zeti: We are pursuing actions against 1MDB

By Tan Choe Choe & Gho Chee Yuan / The Edge Financial Daily   | March 24, 2016 : 8:53 AM MYT 

Zeti: It will not result in a court action; it is for breaches under the rules and regulations under the bank’s purview. Photo by Suhaimi Yusuf

KUALA LUMPUR: The central bank is in the midst of pursuing appropriate “administrative enforcement actions” against 1Malaysia Development Bhd (1MDB) for failing to substantiate the reasons it gave as to why it could not repatriate a sum of US$1.83 billion (RM7.34 billion) it invested overseas.

Bank Negara Malaysia (BNM) Governor Tan Sri Dr Zeti Akhtar Aziz said this yesterday after revealing that the bank had requested for the controversial state-owned strategic investment fund to submit documentary evidence in October last year to substantiate its claim that the remainder of the sum not spent by the fund had been earmarked for a debt asset swap arrangement.

“At this stage, we have yet to receive that. The date [for the submission] has expired. As a result, we are now in the process of pursuing appropriate administrative enforcement actions that are allowed under the laws,” she told a media briefing on the bank’s 2015 annual report. However, she did not say when the deadline is.

The move could possibly result in a penalty or compound, she added. However, the proposed administrative enforcement actions, which will be submitted to the Attorney-General’s Chambers (AGC) before Zeti’s tenure ends, are subject to endorsement by the AGC.

“This is different from criminal action. It will not result in a court action; it is for breaches under the rules and regulations under the bank’s purview,” she said, referring to the bank’s earlier recommendation to the AGC to initiate criminal prosecution against 1MDB for breaches under the Exchange Control Act 1953 (ECA), which was turned down by the AGC despite the bank’s appeal for a review.

Zeti also promised to resolve this issue with 1MDB before she hands over the reins to her successor. “It happened during my term in office and I would like to hand over a clean slate to the next governor.”

Asked if 1MDB’s issue would be one of the regrets that mar her term with the central bank if it is not resolved, she said: “I would like to have a high degree of confidence that the matter would be resolved.”

The AGC in September last year cleared 1MDB officials of any wrongdoing with regard to the investigation carried out by BNM, and directed that no further action should be taken. Following that, BNM had requested for a review of its decision, but the AGC held firm on the grounds that there was no new evidence.

Subsequently, the central bank revoked three permissions granted to 1MDB under the ECA for investments abroad totalling US$1.83 billion, saying that the fund had obtained permission required under the ECA for 1MDB’s investments abroad based on inaccurate or incomplete disclosure of information.

It also issued a directive to 1MDB to repatriate the sum to Malaysia and to submit a plan for that. 1MDB then said the sum had been spent or earmarked for debt settlement arrangements. The money was originally for equity and loan investments in a joint venture with oil company PetroSaudi International Ltd between 2009 and 2011.

BNM was previously part of a joint special task force headed by former attorney-general Tan Sri Abdul Gani Patail, which was probing allegations made by The Wall Street Journal that funds originating from 1MDB amounting to RM2.6 billion had made their way into Prime Minister Datuk Seri Najib Razak’s personal accounts.

In an immediate response, 1MDB issued a statement yesterday saying that it had yet to receive any official correspondence or confirmation from BNM “on the specific matters attributed to the governor today (yesterday)”.

“We are therefore unable to comment further. However, we highlight that 1MDB has in the course of the past 12 months fully cooperated to the extent possible with BNM investigations, including providing documentary evidence where available,” it said.

It added that 1MDB is committed to continued cooperation with BNM and will provide any further information that may be required by the central bank if it possesses such information, and if it is possible under the law.

Meanwhile, when asked if she had confirmed to former deputy prime minister Tan Sri Muhyiddin Yassin that the US$1.103 billion, which 1MDB invested in the Cayman Islands fund, did not actually go into 1MDB’s accounts in BSI Bank Ltd Singapore, Zeti said she has had many meetings with Muhyiddin in her official capacity, but could not recall the specifics of what was discussed.

“I never had a meeting specifically to discuss that...If I did discuss it with him (Muhyiddin), it should be more broadly and [about] what was happening. That was quite some time ago.

“As far as 1MDB is concerned, what we are doing now is relating to the three approvals that we gave. That is the follow-up action we have taken and it is not related to what you are referring to. What you are referring to, the AGC has concluded the case already,” she added.

Najib, who is also finance minister, told Parliament last March the US$1.103 billion was brought back, but kept in BSI Bank, Singapore. But two months later, the finance ministry issued a correction to its March written reply, saying the US$1.103 billion transferred by 1MDB from Cayman Islands to Singapore was money “redeemed” in the form of assets in US dollars.

Later, Second Finance Minister Datuk Seri Ahmad Husni Hanadzlah clarified that the assets were in fact in the form of “units”, but the explanation added to the confusion when he refused to explain what it meant.

Muhyiddin told a news portal on Tuesday he had asked Zeti if it was true that the money had not gone into the BSI account, adding that Zeti had confirmed that to him.
The Star report takes a different angle to ally suspicion against Zeti:

Thursday, 24 March 2016

‘I will resolve 1MDB issue’

by Cecilia Kok

KUALA LUMPUR: Bank Negara’s outgoing governor Tan Sri Dr Zeti Akhtar Aziz has promised to use her remaining 38 days in office to resolve the 1Malaysia Development Bhd (1MDB) issue before handing over the reins to her successor.

“I want closure on the 1MDB case, as I want the new governor to start with a clean slate ... and not have to deal with the matter that happened during my time,” Zeti said.

Read in full with the video of the press conference here.
Pointed out during the PC, Zeti said she is not raising legal issue as it is the prerogative of the AG, but merely, in her term, a "proposed administrative enforcement actions". It will be in the form of penalty or compound.

If there is no legal wrongdoing, how is AG to agree to any action to be taken. 1MDB should be legally proven wrong. For whatever excuses, Zeti could not furnish any details to convince the attending media.

She conceded that it still require AG's endorsement.

1MDB has responded:
1MDB yet to receive official notification
1MDB notes media reports this evening on certain statements in relation to 1MDB, attributed to the Governor of Bank Negara Malaysia (BNM).

1MDB has not yet received any official correspondence or confirmation from BNM on the specific matters attributed to the Governor today. We are, therefore, unable to comment further.

However, we highlight that 1MDB has in the course of the past 12 months, fully cooperated to the extent possible with BNM investigations, including providing documentary evidence where available.

1MDB is committed to continued cooperation with BNM and will provide any further information that may be required by BNM, to the extent that 1MDB has in its possession or is possible under the law.

1MDB earlier today completed the sale of its Edra energy assets sale to CGN Group. We trust that this significant milestone and the associated debt reduction will not be overshadowed by the comments attributed to the Governor of BNM.

We further highlight that 1MDB remains focused on its rationalisation plan, the positive benefit of which was commented on by the ratings agency Moody’s today.

This success has been achieved in spite of the calculated efforts of detractors, to generate negative headlines in the face of positive developments.
CREC regional centre

This must be something frustrating for 1MDB having announced that China Railways Group Limited (CREC) will establish their regional centre in Bandar Malaysia. leted the sales of Bandar Malaysia

CREC is one of the world’s largest engineering and construction firms, and also has businesses, amongst others, in industrial manufacturing, real estate development, and resources and mineral products. As of 2015, it is ranked number 71 in the Fortune 500, with a turnover exceeding US$100 billion per annum.

CREC regional centre represents the physical manifestation of CREC’s commitment to Bandar Malaysia, giving  triple boost to the project and the nation with CREC’s confidence in Bandar Malaysia.

Their confidence in Bandar Malaysia will strengthen a wide range of support from local and international banks. CREC will be an impressive first mover in Bandar Malaysia and that will attract further international players, many of whom have already expressed interest in the development.

The announcement underlies the PM’s focus on successfully making KL a top global city and Malaysia a global destination of choice for international investors. It also highlights the importance of regional ties in an era of Asean ascendancy where Malaysia will continue to be a major player.  

Other news on CREC establishment of regional centre:

This investment has wideranging implication. Farah Hanim Ismail wrote:

Diplomatic relations between China and Malaysia are now in their 40th year, and both governments have said they regard their mutual friendship as special. In 1974, Malaysia became the first country in the Association of Southeast Asian Nations (ASEAN) to establish diplomatic relations with China.

Last October, China and Malaysia agreed to raise bilateral ties to a “comprehensive strategic partnership”, with a focus on boosting the economic.

Although Malaysia is China’s largest Asean trading partner, While Malaysian exports to China remain dominated by agricultural products, such as palm oil, Chinese firms are strengthening their presence in the technological sector as well as in cultural initiatives.

In Kuala Lumpur’s view, China’s path to become the world’s largest economy is inevitable within the next two decades, and it is in Malaysia’s best interest to cement strong business ties with China early.

The Chinese government has indicated its desire to move away from its current economic model of fast growth at any cost to more “smart” economic growth, which seeks to reduce reliance on energy-intensive and high-polluting industries and rely more on high technology, green energy, and services.

Fortunately, China Railway Group Ltd. announced Monday it plans to open a $2 billion regional center in a transport hub in Kuala Lumpur that it hopes will give it an edge over rivals for a coveted contract for a high-speed rail linking the Malaysian capital and Singapore.

The president, Zhang Zong Yan, said China’s state-owned company, a Global Fortune 500 company which was ranked 71st in 2015, would consolidate all its current regional businesses and operations once its new headquarters in Bandar Malaysia was completed. Bandar Malaysia would serve as the country’s gateway to the world through the planned high-speed rail (HSR) to Singapore and the Pan Asean Rail Transit to Bangkok.

The Prime Minister of Malaysia said CREC’s plan to build its regional centre in Malaysia would be a major boost to the domestic economy, and would attract more international players to relocate their headquarters here. It would create the demand for high-powered talent and effectively help stem Malaysia’s brain drain to other countries as well.

Chinese Ambassador to Malaysia Dr Huang Huikang,  also applauded the Prime Minister’s vision and determination to attract prominent global partners to set up regional offices in Bandar Malaysia. He believed that there will be more Chinese investments and iconic projects in cooperation with China in the years to come under the leadership of Dato’ Sri Najib Razak.

CREC’s announcement comes three months after its successful bid, with its Malaysian partner Iskandar Waterfront Holdings, to acquire a 60% stake in the Bandar Malaysia project from 1MDB Real Estate at the cost of RM7.41bil. CREC's faith and confidence in the Malaysian economy remain strong and both the World Bank and the IMF have applauded Malaysia’s approach in the last few months.

Dear Malaysians, instead of condemning the leadership of our prime minister, let us be grateful and enjoy the dedicated space for financial and commercial centres, tourism and shopping facilities, high-end corporate offices, theme park and themed theatres in future because we can expect a modern metropolis with high quality living and good connectivity.

Thank you .
Farah Hanim Ismail

Real spoiler this Zeti.

If there is so many she cannot do and tell, furthermore the administrative enforcement actions still need AG's endorsement, why does she need to say it in a PC?

Sure no politics ah ...


Anonymous said...
This comment has been removed by a blog administrator.
Anonymous said...

I've yet to hear the bitch speak in our National Language...Bahasa Malaysia.

So what's next for the bitch? Geroup of 25?

Tebing Tinggi II said...

Wow - so, it's ok, by your reasoning, for 1MDB to monetise it's key assets?

Let's recap - RM10 billion sale of it's power assets to CGN, sale of the Bandar Malaysia project to a CREC-IWH JV company.

Let's not even ask if there were open international tenders called for the sale of these assets.

Or is there some overriding national interest that resulted in CGN and CREC-IWH being chosen as the buyers of said assets?

Refer, if you please, to the Singapore Business Times report "The 1MDB monster...and the banks that fed 1MDB's borrowing" (March 24, 2016).

Specifically mentioned are Goldman Sachs, AMBank Group, Deutsche Bank, Maybank and BSI Singapore.

Can we expect howls of outrage from 1MDB or the financial institutions mentioned in the report?

The same paper also carried a report "Retiring Zeti hopes for closure on 1MDB with administrative action" (

Biased reporting?

Why don't you tell us?

Anonymous said...

That statement is political in nature. Probably it is OK to play a bit of politic before saying good bye? Or maybe an indication of what is the next venture gonna be: POLITIC.

Anonymous said...

As a world class central banker, which nobody can deny, she did the right thing.

A Voice said...

Tebing Tinggi II

We do not want it to be monetaise. Ask Tun M, BNM and many others calling for it's liquidation!

The train has left the station. No need to return back to DISCUSSED issue. Stay updated please in order to comment.

A Voice said...


How we wish to write our blog is none of your goddamn business; grammar and all. Just like we have no goddamn business to allow or disallow you to read.

It is our goddamn business when commentators' comments are intelligently inadequate for release and mere trolling.

Anonymous said...

Gabenor Bank Negara Malaysia (BNM), Tan Sri Dr. Zeti Akhtar Aziz menegaskan tiada ‘tangan ajaib’ yang memaksanya untuk menamatkan perkhidmatan dengan bank pusat itu setelah memegang jawatan itu selama 16 tahun.

Sebaliknya, beliau berkata, pilihan untuk bersara adalah keputusannya sendiri setelah bertugas di BNM sejak 35 tahun lalu.

Zeti, yang kini berusia 68 tahun merupakan antara tokoh penting di peringkat pembuat dasar sehingga berjaya mengeluarkan Malaysia daripada menerima kesan paling buruk akibat Krisis Kewangan Asia pada 1997 dan 1998.

Apa benda merepek si zeti? Tak payah ada tangan ghaib nak paksa, kontrak dah habis dan kamu dah 68 ... pencenlah.

Suami pun kaya raya dari projek2 BNM dan jadi broker seperti suami bekas pengerusi SC ...

My Say