Nov
01
https://www.facebook.com/sstv.my/videos/1994239030820908/
a. Although this resolution was approved on Nov 26, 2015 it was only presented to the JAN [AG enquiry] on Feb 2016. This important information was not raised during (JAN’s) discussions with 1MDB’s management held on Dec 16, 2015. This raises doubts on the veracity of the information and documents which were presented.It gets worse, thundered the AG in his addendum to his report, explaining why he had rejected the belated material from his enquiry, on the grounds that it was simply too suspicous:
b. This also showed that the 1MDB management had made payments without prior knowledge or approval from the Board. The information is also in conflict with information that was given by the 1MDB management during the Board meeting on Dec 20, 2014 – that USD1.392 billion from the redeeming of SPC funds had been used to pay for Aabar’s Termination of Options amounting to USD993 million and the USD399 million used for interest payments for the USD Note(s). However, JAN was unable to verify both payments. [Addendum Document to AG’s Report]
Although the agreement was signed on Oct 6, 2014, the document was only presented to JAN on Feb 2016 and this important information was not acknowledged or raised during meetings with 1MDB’s management on Dec 16, 2015. This raises doubts on the veracity of the information and documents that were presented.
4. Remittance Slip regarding payments to Aabar and Aabar Ltd
There are 9 remittance slips regarding payments to Aabar (1) and to Aabar Limited (8) which were presented to JAN on Feb 2016. This important information was not acknowledged or raised during meetings with 1MDB’s management on Dec 16, 2015. The veracity of the format of documents was suspicious as it does not include written instructions to the bank nor bank statements as supporting documents.[Addendum Document to AG’s Report]
5. Funds from the Duetsche Bank loan (USD250 mil and USD975 mil), a total of USD855 mil was used for Aabar’s termination of option from May to Sept 2014. According to the Board’s minutes on Dec 20, 2014, a total of USD993 mil was also paid between Sept and Dec 2014. This means that the total amount paid for the termination of option was USD1.848 billion. The total termination of options payment amounting to USD855 million was only changed to Top Up Collateral (Security Deposit) a year later through the Ratification of IPO Variation Payment Made to IPIC on Nov 26, 2015. This demonstrated that the original intention of 1MDB was to pay a total of USD1.848 billion to Aabar Ltd, in contrast with the total stated in the Agreement Relating to Option Agreement (Settlement Agreement) amounting to USD300 mil (refer to Chapter 5, para 7.3.3.4. Pg 189). [Addendum Document to AG’s Report]
Apart from this, the USD1.848 billion amount exceeded the 49% equity value in 1MDB Energy Sdn Bhd (1MESB), which amounts to RM1.225 billion, and RM862.40 million in 1MDB Energy Langat Sdn Bhd (1MELSB) which amounts to RM2.09 billion in total (refer to Chap 5, para 7.3.2. Pg 182).
“8.9 The Board of Directors [of 1MDB] were informed on Dec 20, 2014 that Deutsche Bank AG, Singapore had agreed that the USD993 million be used to pay for Aabar’s termination of options from redeeming the SPC funds amounting to USD1.392 billion. Tthe balance of USD399 million were to be used to pay interest off loans in USD Notes.
8.10 However, details about the payment of USD993 million to Aabar for the termination of options and the interest payments on the USD Notes amounting to USD399 could not be verified by JAN. The Board of Directors had also sought details on the payments on Dec 20, 2014, but checks by JAN have established that the matter was not raised again during subsequent Board of Directors meetings. During their meeting on Feb 23, 2015, the Board of Directors had raised the issue of payments for Aabar’s termination of options, and that they were informed only after the payment was made. This showed that the payment for Aabar’s termination of options was made without the Board of Director’s approval.”
Chap 5 – Energy Sector.
Item 7 “Funding for 1MDB Group’s Energy Sector”
7.3.2.2. Collaboration Agreement for Credit Enhancement
7.3.2.2. (f) Checks by JAN [AG Department] found that the security deposit amounting to USD1.367 billion (RM4.468 billion) was paid by 1MEL (1MDB Energy Ltd) and 1MELL (1MDB Energy [Langat] Ltd) to Aabar Ltd and was recorded as a security deposit in the financial statements of 1MEHL (1MDB Energy Holdings Ltd) for the year ending May 31 2013 and 2014. However, the security deposit payments were made without the approval of the Board of Directors. The responsibility of payment for the security deposit for the issuance of the first USD Notes was transferred to 1MEHL because 1MEHL had acquired 1MEL from 1MDB. This is based on the Assumption for Obligations Agreement dated Nov 1, 2012 between 1MEHL and 1MEL. Details are as follows:
Table 5.27 – Security Deposit Payments to Aabar Ltd [pg 184]
Source: Agreement and Deloitte papers
Date Payee Total USD mil Total RM mil 22/05/2012 1MEL 576.94 1,885.73 19/10/2012 1MELL 790.35 2,583.63 TOTAL 1,367.29 4,468.99
Note: BNM exchange rates = May 2012 (RM3.18) and Oct 2012 (RM3.06)
INVESTMENTS WHICH COULD NOT BE VERIFIEDThe culpability and deliberate deceit behind all this mismanagement is summed up by the Auditor in his addendum document about the bogus ‘Top-Up Security Deposit’. His final paragraph states that the then CEO and present Board Member Shahrol Halmi, knew perfectly well there were no payments owing to Aabar for its guarantees on the loan. This was because the AG had a copy of the original agreement signed between Halmi and IPIC/Aabar in May 2012. IPIC was happy to rely on the promise of a Malaysian Ministry of Finance obligation to 1MDB (ie the taxpayer was liable).
[GRAND TOTAL $6.87 bn]
IPIC and 1MDB had signed another agreement known as Interguarantor Agreement on May 21, 2012. This agreement was signed by Shahrol Azral on behalf of 1MDB and Khadem Al-Qubaisy for IPIC. Checks by JAN showed that the agreement did not state a need for 1MDB or its subsidiaries to issue USD Notes to implement the “option and credit enhancement” to Aabar Ltd in return for a guarantee from IPIC. (emphasis theirs).Following the AG’s report and parallel Public Accounts Committee report the Inspector General of Police publicly notified that he would be investigating this former CEO and Board Member of 1MDB over suspected criminal behaviour.
According to the main condition of this agreement, 1MDB must continue to be wholly owned by MKD (Finance Ministry Inc). 1MDB also needs to receive sufficient support and funds from MKD to repay IPIC, should 1MDB fail to repay all the cost, expenditure and all obligations regarding this note [USD Notes?]. Although a guarantee was given by IPIC, 1MDB still bears all the risks should there be any failure to pay for all the cost regarding the servicing of the USD Note.
” Zeal’s speciality is what we call Customized Information Delivery OR CID systems. CID systems allows you to customize and deliver the information you want to your target audience, knowing full well that that you are delivering the exact information your target audience needs.”A number of politicians pop up in the list as receiving cheques here and there. Sarawak’s Jacob Sagan received a standard hand out of RM200,000, whereas Richard Riot got RM100,000. Ahmad Maslan on the other hand got a handsome RM1 million.