Diu terminus bona fide

The preservation of long term relationship and ‘big picture’ was the basis of 1MDB and IPIC reaching a settlement decision, which as per announced by the latter at London Stock Exchange on Monday.

The Malay Mail Online story publishing an earlier Bernama.com report:

Wednesday April 26, 2017
10:18 PM GMT+8

Second Finance Minister Datuk Johari Abdul Ghani said the government had opted to resolve the issue outside of the London Court of International Arbitration (LCIA) despite having enough evidence to continue to fight in the court. — Bernama pic

Second Finance Minister Datuk Johari Abdul Ghani said the government had opted to resolve the issue outside of the London Court of International Arbitration (LCIA) despite having enough evidence to continue to fight in the court. — Bernama pic

KUALA LUMPUR, April 26 — The arbitration settlement between 1Malaysia Development Bhd (1MDB) and International Petroleum Investment Company (IPIC) was made to preserve the relationship between Putrajaya and Abu Dhabi.

Second Finance Minister Datuk Seri Johari Abdul Ghani said the government had opted to resolve the issue outside of the London Court of International Arbitration (LCIA) despite having enough evidence to continue to fight in the court.

“The government is looking at the bigger picture, in terms of relationship between Malaysia and Abu Dhabi. The Prime Minister has made the decision for the country,” he told reporters after officiating the CIMB Labour Day 2017 celebration here today.

He said although he was involved in the decision to take the case to the LCIA, he, however, was not involved in the negotiation of the settlement.

“The negotiation for the settlement has been made between 1MDB and the Prime Minister’s office,” he said.

Meanwhile, Johari said the settlement would not involve taxpayers money as 1MDB would fork out the fund from monetising its investment.

“Let 1MDB monetised their asset. 1MDB has already made an announcement that they will monetise all these US$2.4 billion (RM10.4 billion), let’s see these money back to the country,” he added. — Bernama

– See more at: http://www.themalaymailonline.com/malaysia/article/minister-bilateral-ties-a-factor-in-1mdb-ipic-settlement#sthash.zMVP6R1z.dpuf

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Second Minister of Finance Dato’ Sri Mohd. Johari Abd. Ghani also confirmed that he had evidence that Aabar BVI is a subsidiary of IPIC, as per his answer to DAP MP for Petaling Jaya Utara Tony Pua in November 2016.

FMT story:

Johari: Letter confirms Aabar BVI is IPIC subsidiary

| April 26, 2017

The Registrar of Corporate Affairs of the British Virgin Islands had confirmed Aabar Investments PJS Ltd (BVI) is an IPIC subsidiary says the minister.

johari-abdul-ghaniPETALING JAYA: Second Finance Minister Johari Abdul Ghani has revealed the existence of a letter confirming that Aabar Investments PJS Ltd (BVI) is a subsidiary of International Petroleum Investment Company (IPIC) even though the Abu Dhabi state-owned firm denies this.

The minister told Malaysiakini that based on records provided by 1MDB to the Public Accounts Committee (PAC), prior to the settlement agreement, Aabar Investments PJS Ltd (BVI) was a subsidiary of IPIC.

He said this was confirmed by the Registrar of Corporate Affairs of the British Virgin Islands through its letter dated Aug 11, 2016.

“It was on this basis that the finance ministry decided to go ahead with the arbitration proceedings,” Johari told the news portal.

Johari, who is overseeing the 1MDB rationalisation plan, had in August last year expressed confidence that 1MDB could win its arbitration dispute against IPIC, based on the documents he had but did not reveal what the document was at that time.

The portal reported that between 2012 and 2014, 1MDB had made various payments totalling US$3.51 billion to Aabar Investments PJS Ltd (BVI) (Aabar BVI), which carried a similar name to IPIC’s subsidiary Aabar Investment PJS (Aabar)

However, the actual ownership of Aabar BVI has not been properly ascertained apart from IPIC denying that it was related to the group.

This week, IPIC and 1MDB announced they had resolved the debt dispute with a conditional US$1.2 billion deal.

Under the terms of the agreement reported to the London Stock Exchange, 1MDB will pay the US$1.2 billion in two instalments in July and December to IPIC after proceedings before the London Court of International Arbitration.

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Prime Minister Dato’ Sri Mohd. Najib Tun Razak decided that the strategy of long term business through good faith between Malaysia and Abu Dhabi, was prevalent and continuous good relations would resolve the remaining issues on financial commitment of 1MDB through IPIC.

Abu Dhabi is part of United Arab Emirates, which contributed to 35% of USD507 billion of projects awarded in the GCC region between 2006-2015. The potential and opportunity for business is enormous in the UAE.

One interesting fact is Abu Dhabi sits on a 9% world oil reserve and 5% of world gas reserve. These are 95% and 92% of UAE hydrocarbon produce, respectively.

Abu Dhabi is the wealthiest emirate of the UAE in terms of GDP and per capita income. More than USD1 trillion is invested worldwide in this city alone. In 2010, the GDP per capita also reached USD49,600, which ranks ninth in the world after Qatar, Liechtenstein and Luxembourg and many others

The facts of the settlement reach with IPIC is interesting. They say, the devil is in the details.

The Opposition especially Tun Dr. Mahathir Mohamad and Tan Sri Muhyiddin Mohd. Yassin, who formed PPBM from the failed rebellion against Prime Minister Najib and UMNO based on falsely scandalising an array of  complicated 1MDB commercial problem, are running out of grounds for chagrin.

Another important confirmation by MOF II Johari is that no taxpayers’ funds are utilised for the settlement 1MDB issues and the most important bit is the monetisation of the USD1.2 billion in units, would be brought back.

That is by far more tangible and practical compared to US Attorney General Loretta Lynch’s announcement of DoJ and FBI investigations on 20 July 2016 which was the much needed ‘bomb’ for Dr. Mahathir & Co. to continue their rebellion.

Let us refresh on the ‘Embezzlement and kleptocracy practices of state funds through 1MDB’ and AG Lynch’s promises to “Public corruption, no matter where it occurs, is a threat to a fair and competitive global economy.  The FBI is committed to working with our foreign and domestic partners to identify and return these stolen assets to their legitimate owners, the Malaysian people”.

It has been over nine months since the ‘shocking announcement’. However, there had been no practical progress as far as ‘recovery of money to Malaysians’ is concerned.

This is also taking into consideration the ‘high and mighty involvement’ US law enforcement agencies and their ability to twist arm and impose themselves indiscriminately onto any nation.

By far, the RM5 billion that is expected to be back in 1MDB coffers in the form cash is very practical for Malaysians to chew against the proof of  ghastly stories ‘Kleptocracy’.

What is more paramount than “Cash is King” is the going concern of doing business, not only with Abu Dhabi but the strategic importance of the emirate in global trade and business community.

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Published in: on April 26, 2017 at 23:30  Comments (2)  

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2 CommentsLeave a comment

  1. Where are the “fund units” that were deposited in the Singapore branch of BSI Bank?

    That branch has been shut down by Singapore regulators. Were the “fund units” and other deposits in the branch “frozen” by the Singapore authorities or were these “units” and deposits returned to their owners?

    Up to now, BSI Bank HQ in Switzerland has been silent on this.

    So, how can the “fund units” be “monetised” if they are (a) “frozen” in Singapore or (b) if no one knows their current whereabouts?

    With me so far?

    Next, in the Singapore court cases, the prosecution referred to large amounts of funds whose movements were suspicious. Where did these funds come from and where did they land up?

    1MDB has consistently claimed that no funds went missing. So where did the funds mentioned in the Singapore court proceedings come from? Out of thin air? That would be a miracle indeed!

    Btw, the amount of funds mentioned in the Singapore court cases and reported by the Singapore media was US$1.265 billion. You can look it up.

  2. […] the consultation and negotiation methods undertaken by Malaysian Government and 1MDB is making the progr…and the investments are being monetised and on its way back […]


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