SERVES AUSTRALIA RIGHT FOR NOT HAVING THE ETHICS TO PROBE 1MDB: NOW ITS CHIEF REGULATOR JAMES SHIPTON, WHO OVERSAW DEALS FOR NAJIB & CO WHEN IN GOLDMAN, WILL COME UNDER SINGAPORE’S LATEST 1MDB INVESTIGATION

The matter of James Shipton,the newly appointed ASIC chief has been reported on this blog in this story:

Australia appoints Goldman man who oversaw 1MDB deals head of corporate regulator ASIC: James Shipton looked the other way to allow Goldman to profit from the 1MDB theft

Now Shipton is going to have to contend with having his conduct investigated by the relevant authorities of the Government Of Singapore.

Report: Singapore police examine Goldman’s Role in 1MDB deals – BloombergPublished: Today 11:06 am Modified: Today 12:15 pm

Singaporean prosecutors and police are looking at Goldman Sachs Group’s relationship with the scandal-hit Malaysian state investment fund 1MDB, Bloomberg
reported, citing people familiar with the matter.

Singapore’s economic crime unit and city prosecutors have interviewed current and former Goldman Sachs executives who worked on bond offerings from 1MDB, Bloomberg reported.

1MDB, founded by Prime Minister Najib Abdul Razak, is facing money laundering probes in at least six countries including the United States, Switzerland and Singapore.

ASIC’s new chair, James Shipton

Najib has denied any wrongdoing.

A Goldman Sachs spokesman in Hong Kong declined to comment.

Officials at the Singaporean police and 1MDB were not immediately available for comment.

The Monetary Authority of Singapore (MAS) had earlier in the week barred two individuals involved in breaches related to the 1MDB fund from taking part in financial services management and advisory activities.

In March, the MAS issued a 10-year prohibition order against Tim Leissner, former Southeast Asia chairman at Goldman Sachs, who it said had made false statements on behalf of his bank without its knowledge or consent.

Leissner was responsible for managing the relationship with 1MDB when Goldman Sachs was engaged to arrange three bond issues from 2012 to 2013. MAS had flagged its intention to ban Leissner last December. -Reuters

References 

Appointment of the Australian Securities and Investments Commission Chair

I am pleased to announce that the Government intends to recommend to the Governor-General in Council that Mr James Shipton be appointed as the full-time Chair to the Australian Securities and Investments Commission (ASIC) for a five-year period from 1 February 2018.
Mr Shipton brings wide regulatory and financial market knowledge to the position, as well as international experience. 
He is currently the Executive Director of the Program on International Financial Systems at Harvard Law School. From 2013 to 2016 he was the Executive Director, Intermediaries Supervision and Licensing Division at the Hong Kong Securities and Futures Commission. Prior to that he had extensive experience in various roles in investment banking in Asia and Europe and commenced his professional career as a solicitor in Australia. 
I look forward to Mr Shipton making a significant contribution to the important work of ASIC in promoting confidence in Australia’s financial system and protecting consumer interests as the incoming Chair.
I would also like to express my appreciation to Mr Greg Medcraft for his commitment over the past years to ASIC both as the Chair and as a member.
Mr Medcraft has overseen significant changes in ASIC’s role during his tenure, including reforms to improve the quality of financial advice and financial literacy, and the establishment of a national business names register.
Mr Peter Kell, the current Deputy Chair, will be the Acting Chair from the time Mr Medcraft’s term ends on 12 November 2017 to when Mr Shipton commences in February.
ASIC is the independent Australian Government body with responsibility for regulating Australian companies, financial markets, financial services organisations and professionals which deals with and advises on investments, superannuation, insurance, deposit taking and credit.

James Shipton Biography

James Shipton is currently leading a research centre at Harvard Law School where he is the Executive Director of the Program on International Financial Systems.
For the three years prior to his appointment in 2016, he was Executive Director and Commission Member at the Securities and Futures Commission in Hong Kong – the equivalent of a Commissioner at ASIC. Whilst at the SFC he was Head of the Intermediaries Supervision and Licensing Division and had 250 staff report to him.
Prior to that he spent nine years at Goldman Sachs – five years as Head of Hedge Fund Consultancy and four years as Head of Government and Regulatory Affairs in the Asia Pacific.
Before that he was a Director of Eurekahedge Advisers and Managing Director of Compliance Asia, based in Singapore, and Vice President at Dresdner Kleinwort Wasserstein in both Hong Kong and London.
He started his career as a lawyer at Linklaters and Blake Dawson Waldron, and holds a Bachelor of Arts and a Bachelor of Laws (Hons) from the University of Melbourne and Monash University respectively.
Mr Shipton’s experience cuts across academia, regulation, the financial industry, and the law, spanning over 20 years. He brings wide regulatory and market knowledge, as well as international experience in London, Hong Kong, Singapore, and the United States. 

SARAWAK REPORT

 

Scrutiny Centres On Tun Razak Exchange's US$3 Billion Bond Issue - 1MDB SCANDAL

Scrutiny Centres On Tun Razak Exchange’s US$3 Billion Bond Issue – 1MDB SCANDAL

Najib Razak faced a unanimously hostile cabinet on Friday am

Najib Razak faced a unanimously hostile cabinet on Friday am
In a carefully worded statement last night the Prime Minister announced that he has “never taken money for personal gain”.
This was not an allegation that has specifically been made against him.
What Sarawak Report has reported is that investigators into the money missing from 1MDB have identified over US$700 million, which flowed into his private accounts from the government company SRC International Sdn Bhd and the Aabar owned Falcon Bank.
The Prime Minister specifically did not deny that he owned the bank accounts named nor the sums specified and dates of the transactions:
“The latest allegation is that I have taken state-linked funds for personal gain. I believe Tun, working hand in glove with foreign nationals, including the now discredited political attack blog Sarawak Report, is behind this latest lie.
Let me be very clear: I have never taken funds for personal gain as alleged by my political opponents” [Najib Razak Facebook Statement]
By making this denial in the way he did the Prime Minister has focused interest and attention on the dates and connections around the transfer of the main body of this money from Falcon Bank in 2013.
This sum totalling US$681,999,976 (RM2.6 billion) was transferred into his private account just days before the calling of the GE13 election in March 2013.

Election kitty?

Musa Aman with his bag man Michael Chia, caught laundering tens of millions in timber kickbacks.

Musa Aman with his bag man Michael Chia, caught laundering tens of millions in timber kickbacks.
Najib’s reference to no “personal gain” bears a marked resemblance to the grounds on which his government exonerated the Sabah Chief Minister Musa Aman.
This was after Sarawak Report published a series of exposes about the tens of millions that arrived in Musa’s own bank accounts, which were proceeds of massive timber corruption in the state.
We produced so much definitive evidence of Musa’s layers of shell companies, which passed these timber kickbacks eventually to his own Zurich bank accounts (all still being examined by Swiss prosecutors) that it was impossible for the government to deny.
Instead, the Attorney General and his boss Najib dropped the case put together by prosecutors, on the basis that Musa had “assured” them that none of this money in his accounts was being used for “private” purposes, only to pay for his party’s election expenses.
This, opined the Attorney General and the ministers from Najib’s office back in 2012, made it all OK!
“The funds were contributions to the Sabah Umno liaison body and not for the personal use of the chief minister.  No element of corruption was proven in this case”[Mohd Nazri Abdul Aziz]
Presumably, the ‘interim report’ due from the Auditor General (who also works under Najib) due next week on the 1MDB crisis was also planned to reach a similar conclusion, in order to close this inconvenient matter down?

Where the evidence points….

With the signals so strong that this is about election finance. it makes sense to analyse the dates and key indicators in this case.
After all, the investigators who have presented this evidence about Najib’s personal accounts were looking into malfeasance at the development fund 1MDB.

Posing at the photo shoot to promote the "RM18 billion deal" three weeks before parliament was dissolved, were the Malaysian Prime Minister Najib Razak, the CEO of 1MDB (Shahrol Halmi), the Chairman of 1MDB (Lodin Wok Kamaruddin), the Chairman of Falcon Bank and CEO of Aabar (Mohamed Badawy al-Husseiny) as well the Chairman of Aabar (Khaddem Al Qubassi) who has been closely linked to numerous deals with 1MDB and to the controversial business friend of the Prime Minister, Jho Low.

Posing at the photo shoot to promote the “RM18 billion deal” three weeks before parliament was dissolved, were the Malaysian Prime Minister Najib Razak, the CEO of 1MDB (Shahrol Halmi), the Chairman of 1MDB (Lodin Wok Kamaruddin), the Chairman of Falcon Bank and CEO of Aabar (Mohamed Badawy al-Husseiny) as well the Chairman of Aabar (Khaddem Al Qubassi) who has been closely linked to numerous deals with 1MDB and to the controversial business friend of the Prime Minister, Jho Low.
Indeed, the events and dates surrounding the initial enormous payments into Najib Razak’s personal account from the Aabar owned Falcon Bank are highly noteworthy.
Najib himself kicked off the sequence events, by hosting a much publicised ‘signing ceremony’ in KL of a so-called “Strategic Partnership” between Malaysia and Abu Dhabi on 12th March 2013.

The PR image for TRX

The PR image for TRX
Gushing press releasesfrom 1MDB explained that this represented the promise of mass investment of Arab money in Malaysian development, much in the same way that the PetroSaudi deal was advertised as an ‘injection of cash’ and massive ‘job creation’ for Malaysians, thanks to Arab money.
According to all this propaganda a key initial agreement under this ‘partnership’ was an alleged 50:50 ‘joint investment’ of RM18 billion by Malaysia’s state owned 1MDB and Abu Dhabi’s state owned Aabar fund in the development of the Tun Razak Exchange – a planned new business district named after the Prime Minister’s father:
HE Khadem Al Qubaisi said: “TRX is estimated to generate a gross development value of RM26 billion and attract 250 of the world’s leading companies, creating 40,000 new job opportunities for knowledge workers.
The multiplier effect generated will produce up to 500,000 new jobs, directly and indirectly throughout Malaysia, by the time it is fully completed.
The RM18 billion strategic partnership will separately invest, via a 50:50 joint venture between 1MDB and Aabar, in strategic high-impact long-term sustainable economic and social projects for the benefit of Malaysia and Abu Dhabi, to be identified by both parties under the advice of their respective governments.
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RM18 billion strategic partnership – Malaysia and Abu Dhabi sealed RM18 billion strategic partnership to promote new economic initiatives in Malaysia
In fact, no money has ever been raised from the Abu Dhabi side to invest in this development.
The only money that has been raised was US$3 billion in borrowings from 1MDB, which was backed by a letter of support from the Malaysian Ministry of Finance, run by Najib.
This letter of support was signed by Najib just two days after the signing ceremony on March 14th 2013, according to the 1MDB Global Investments prospectus, the company under which the bond was raised.
It was two and a half weeks later on April 3rd that Najib dissolved Parliament and called the General Election.
And on April 15th, during the campaign that an official announcement was made confirming that the US$3 billion bond had already been raised:
“KUALA LUMPUR, 15 April 2013: 1MDB (1Malaysia Development Berhad) has raised the required capital for its new strategic economic initiatives between Malaysia and Abu Dhabi.
This capital is an integral part of the Government-to-Government collaboration between Malaysia and Abu Dhabi on a strategic partnership sealed on 12 March 2013… Through the 50:50 joint venture company, Abu Dhabi Malaysia Investment Company (ADMIC), 1MDB and its partner Aabar Investments PJS will leverage on their global resources to drive these initiatives.”[1MDB press release]
Expand text
This gushing press release made no mention of the fact that the executives at the signing of the ‘Strategic Partnership’ from Aabar, namely the Chairman Khadem al Qubassi and his CEO Mohammed Al-Husseiny had made no moves to raise money from their own side for the ‘joint venture’.

Two years later, the reality of TRX

Two years later, the reality of TRX
Abu Dhabi has still failed to inject any cash.
Yet it is notable that these two executives were also in control of Aabar’s newly acquired Swiss private banking institution Falcon Bank, whose Singapore branch has now been identified as the institution which passed nearly US$700 million into Najib’s private account at AmPrivate Banking a few days later.

Look at the dates!

The actual bond had in fact been raised several days before the above April 15th announcement.
1MDB’s Annual Reports for 2013 and 2014 show that the US$3 billion bond was raised for 1MDB Global Investments by 19th March 2013, being specified as “seed capital” for the ‘joint venture’ firm ADMIC (Abu Dhabi Malaysia Investment Corporation) to develop Tun Razak Exchange.
What lightening speed – just one week after the ‘Strategic Agreement’ was signed!
We are told only that this money arrived at “a licensed financial institution”.  It did so just two days before the first transfer of US$619,999,988 was made to Najib Razak’s AmPrivate Banking account in KL on 21st March 2013, which itself was just ten days before the election was called.

The money trail from the BVI company account at Falcon Bank (Tanore Finance) to Najib's personal AmPrivate Bank account days before the calling of the 2013 General Election

The money trail from the BVI company account at Falcon Bank (Tanore Finance) to Najib’s personal AmPrivate Bank account days before the calling of the 2013 General Election
It is surely now a legitimate question to ask whether this “licensed financial institution” was in fact none other than Falcon Bank, which belongs to the partners in this ADMIC deal, i.e. the Aabar fund?
The Chairman of the Board of Falcon at that time was Mohammed Al-Husseiny, the CEO of Aabar, who had attended the signing ceremony in KL the previous week.

Why the hurry? – “client wanted the money quickly”

Who financed BN's hugely expensive election campaign? Was it public borrowing by 1MDB?

Who financed BN’s hugely expensive election campaign? Was it public borrowing by 1MDB?
Research of the limited facts made available by 1MDB’s opaque auditing point ever more strongly to the relevance of the impending election to raising of vast funds by ADMIC (not to be confused with the Jho Low owned company ADKMIC, which received over US$530 million from Good Star, according to the Singapore authorities).
One of the most controversial aspects of the deal was the huge commission paid to the bank Goldman Sachs International, which underwrote the entire bond issue.
Goldman’s fee was US$300 million for this transaction alone (the bank claimed similar enormous fees from the other two bonds it helped raise for 1MDB in order to fund the purchase of power plants).
When asked by business journals as to why it had seen fit to charge such an enormous fee for its services in the raising of this bond, Goldman replied that:
“the client wanted the money quickly” [Bloomberg]
Indeed cannot the assumption be made that Goldman were able to justify this inflated commission, because the bank in fact had forwarded the money and taken on the burden of the subsequent bond sale at its own risk?
Given that just two days after US$2.7 billion was paid into ADMIC (19th March 2013) the first of two enormous transactions for nearly US$700 million was paid from Falcon Bank into the Prime Minister’s account, it is surely fair to ask if the two sums were related?
If not, from where did this money come?

Mohamed Badawy al-Husseiny CEO of Aabar was also Chair of Falcon Bank at the time of the multi-million dollar transactions into Najib's account and he remains a current Board Member at the Aabar/IPIC owned bank.

Mohamed Badawy al-Husseiny CEO of Aabar was also Chair of Falcon Bank at the time of the multi-million dollar transactions into Najib’s account and he remains a current Board Member at the Aabar/IPIC owned bank.
Najib Razak called the election just two weeks later (after another US$60,999,988 had been received into his account on 25th March).
The Prime Minister has denied that this money received by him from Aabar’s Falcon Bank was for “personal gain”, but he has not denied it was paid.
Was it therefore for “political gain” and to secretly finance the personal gains of others, who benefited from the enormous handouts that characterised the GE 13 election campaign?
Investigators plainly believe that this was public money derived from 1MDB, so these questions are rightfully put and ought to be answered.

Where is the money now?

Finally, if the money was not used in the election and not used by the Prime Minister himself,where did it go, since the AmPrivate Banking account where the money had been sent was closed at the end of August after the election had taken place?
Meanwhile, it has been widely remarked that very little development seems to have successfully taken place at the Tun Razak Exchange site from the US$3 billion raised over two years ago.
While not much appears to remain of the money that was raised.

The Accounts

According to the 1MDB Annual Report of 2013, ADMIC received US$2.7 billion on 19th March 2013 of which US$1.58 billion was “placed in various investment portfolios under the custody of a licensed financial institution”.
The US$1.42 balance, says the same report, was placed in “time deposits and cash accounts with the same financial institution for the purposes of cash management”.
By the Annual Report of 2014 it seems that rather a lot of this had gone, but not on the development of the Tun Razak Exchange:
USD$1.56 remained in the investment portfolios ($200 million less than before).
However, the “remaining net proceeds” had been “utilised by the working capital and debt repayment purposes” of the company.
This leaves glaring questions over why so much money raised for development should have been used to repay debts.
Also, if the company is desperate for cash to service the rest of its debts, why it has not dipped into the US$1.56 billion, which is supposed to remain in those investment portfolios?
Finally, are we now to assume that a chunk of this money was sent to the Prime Minister Najib Razak’s personal accounts to cover the GE 13 election expenses?

http://realpolitikasia.blogspot.my/2017/11/singapore-investigating-goldman-for.html

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