End of the Beginning

The settlement on disputes reached between 1MDB and IPIC which was announcement on the London Stock Exchange very much ended the Opposition’ strategy to demonise and the nation is set to move for a more tangible future.

Straits Times story:

1MDB-Abu Dhabi deal irons out funds’ tangled transactions

PUBLISHED

APR 28, 2017, 5:00 AM SGT

More details have emerged of the deal struck between Kuala Lumpur and Abu Dhabi to avoid a messy arbitration that could have revealed serious mismanagement at their respective state-owned investment corporations, 1Malaysia Development Bhd (1MDB) and International Petroleum Investment Co (IPIC).

According to senior financial and legal executives, the main hurdle was fund units amounting to US$2.43 billion (S$3.4 billion) held by two 1MDB subsidiaries, Brazen Sky and 1MDB Global Investments, that were guaranteed by IPIC subsidiary Aabar Investments PJS. Aabar had disputed the guarantee.

To overcome the hurdle, 1MDB agreed to waive its right to claim from Aabar the US$2.43 billion guarantee. In return, Abu Dhabi arranged for an undisclosed entity domiciled in the Seychelles to buy the units from 1MDB at the guaranteed value, to be settled by deferred payments from this month to October 2022, said a senior financial executive familiar with the matter.

The agreement on the fund units, concluded sometime last week, paved the way for the main settlement, said the executives.

As reported by The Straits Times last week, settlement calls for Malaysia to repay Abu Dhabi the US$1.2 billion it owes under a financial assistance package. Payment will be made in two equal instalments before the year end.

Malaysia will also honour its obligations under 1MDB’s US$3.5 billion bond issue guaranteed by IPIC.

Under the settlement, Malaysia and IPIC will enter into negotiations to resolve roughly US$3.5 billion in cash advances and payments 1MDB made to several Abu Dhabi entities. Should IPIC fail to make full settlement before the deadline of end-December 2020, the Malaysian government can pursue legal claims against IPIC.

These payments were due from 1MDB to IPIC and Aabar under a 1MDB bond issue. However, both IPIC and Aabar said in April last year that they had not received the funds as the money had been wrongly channelled to a different firm. It was sent to a shell company in the British Virgin Island set up to appear like an IPIC unit by two key Abu Dhabi state representatives, including Khadem Al Qubaishi, who was then IPIC chairman.

1MDB never denied the destination of the payments, but has insisted that instructions for the payments were based on agreements executed by senior IPIC and Aabar executives, including Qubaishi.

The United States Department of Justice filed civil suits in July last year alleging money laundering offences involving funds at 1MDB and entities tied to Qubaishi. He was arrested in Abu Dhabi but has yet to be charged with a crime.

*******************

This is the icing on the cake which exonerate Prime Minister Dato’ Sri Mohd. Najib Tun Razak from the fallacy of “Stealing money from 1MDB funds”, of a huge amount of cash was transacted through his personal account in 2013.

Last year Saudi Foreign Minister Adel Al Jubair confirmed the “Donation case in close”, despite monies passed through Prime Minister Najib’s personal account and nothing was expected in return, verified Attorney General Tan Sri Apandi Ali thoroughly studied the matter and that “No crimes was committed”.

The question of “Kleptocracy” is naturally dead, which the Opposition particularly being incessantly harped by Tun Dr. Mahathir Mohamad & Co. as per the drama raised by former US Attorney General Loretta Lynch on the platform of DoJ and FBI announced on 20 July 2016.

Practically, despite promising  “to identify and return these stolen assets to their legitimate owners, the Malaysian people” in the media conference meant to be ‘shocking and awed’, no progress were made to make good of the promises.

Instead, the consultation and negotiation methods undertaken by Malaysian Government and 1MDB is making the progress and the investments are being monetised and on its way back home.

This is a poetic end to Dr. Mahathir’s beginning act of his ultimate downfall, since openly attacked Prime Minister Najib for “Unfit to be the Prime Minister” twenty months ago with several excuses, all failed to hold water.

Dr. Mahathir manipulated and fabricated points pertaining to 1MDB commercial issues due to the liquidity problems due to ‘mismatch of assets, investments and financial commitments’ and made it scandalous in his own slanderous ways.

He broke ranks with UMNO, a party he formed after the one he lead was deregistered by Kuala Lumpur High Court on 8 Feb 1988.

There on, he tried all sorts of circus stunts to derail Prime Minister Najib’s leadership. First it was attempt to get the 1MDB  scandal be a contentious matter in UMNO through Divisions and 2015 annual assembly. It failed miserably.

Then his summary  resignation. That did not cause ripple too. In fact, the continuous attacks caused Deputy President Tan Sri Muhyiddin Mohd. Yassin and one time Vice President aspirant Dato’ Seri Mukhriz Mahathir to be sacked from the party.

Then, he also tried taking Prime Minister Najib to court when he started his rebellion with the excuse of “saving UMNO”.

The Kuala Lumpur High Court decision this afternoon is a landmark judgment, where it is interpreted that the Prime Minister is not a public servant but a member of the administration (Executive, which is one of the three branches of power and authority on behalf of His Majesty Seri Paduka Baginda Yang DiPertuan Agong).

NST story:

High Court strikes out suit by Dr M against Najib over public misfeasance

By KHAIRAH N. KARIM – April 28, 2017 @ 5:54pm

KUALA LUMPUR: The High Court today struck out a suit by Tun Dr Mahathir Mohamad and two others against Prime Minister Datuk Seri Najib Razak over tort of misfeasance in public office pertaining to the 1Malaysia Development Bhd’s (1MDB) funds.

Judge Abu Bakar Jais allowed Najib’s striking out application in chambers after finding that the Prime Minister is not a public officer in public office but a member of the administration.

He ordered for Dr Mahathir, former Batu Kawan MP Datuk Seri Khairuddin Abu Hassan, and former Langkawi Wanita Umno member Anina Saadudin to pay RM30,000 in cost to Najib.

Datuk Mohd Hafarizam Harun who acted for Najib said the application was allowed on the basis that there was no reasonable cause of action and the claim was frivolous and vexatious.

“The court agreed with our argument that the Prime Minster, Deputy Prime Minister and political secretaries are not in public services but they are a member of administration as defined in the Federal Constitution.

“Because they are not public officers in public office, therefore the causes of action that they have filed which is for breach of fiduciary duties or tort of misfeasance in public office cannot stand,” he said.

Meanwhile, counsel Mohamed Haniff Khatri Abdulla, who represented Dr Mahathir, Khairuddin and Anina, told reporters that they will be filing an appeal against the decision.

Najib filed the application to strike out the lawsuit brought against him by the three on grounds that there is no element of tort of misfeasance, as claimed by them.

On March 23, last year, Dr Mahathir, Khairuddin and Anina filed the suit against Najib over alleged abuse of power to obstruct investigation into the 1MDB issue, involving the remittance of RM2.6 billion and RM42 million into Najib’s personal accounts, among others.

They are seeking exemplary and aggravated damages of RM2.6 billion and RM42 million, respectively, among others.

http://www.nst.com.my/news/crime-courts/2017/04/234615/high-court-strikes-out-suit-dr-m-against-najib-over-public

************

In slightly over a year, Dr. Mahathir has been making grave mistakes and these are very glaring. First it was the co-operation with a nemesis of over half a century Lim Kit Siang and the Chinese chauvinist DAP.

Quickly followed suit is the humiliating failure of the ‘Deklarasi Rakyat’, launched hand in hand with Opposition leaders such as Lim Kit Siang, Theresa Kok, Anthony Loke, Tony Pua, Mat Sabu and the whole works on 6 March 2016.

Titah Murka Tuanku Sultan Johor bertujuan untuk membedal Dr Mahathir kerana memanipulasi dan bersdusta menegnai program-program pembangunan ekonomi yang wajar disifatkan sebagai ‘Sabotaj Ekonomi’

Then the attempt to ridicule the rakyat further by selling the good name of His Majesty Seri Paduka Baginda Yang Dipertuan Agong XVI, when he quipped “Under house arrest” referring to delay of being granted an audience.

Forming an all Malay splinter party of UMNO dubbed Parti Pribumi Bersatu Malaysia (PPBM) eight months ago to play the UMNO role and corner the Malay in the hinterland votes for the Pakatan Harapan, is seen as nothing but ultimate treachery against the Agenda Melayu.

The desperation in trying to cross HRH Malay Rulers such as Sultan Johor is reflective when for the first time, the invitation to a former Prime Minister and holder of both SMN and SSM highest order for Tun-ship for the installation ceremony of a King was rescinded.

So many who spent decades believing and supporting Dr. Mahathir are turning their back for continuous contradiction, flip-flopping and abandonment of his own policies and crossing the lines he drew many times over in many position.

It is obvious that this is the end of the beginning. The next act would be about beginning of the end of a leader once revered by so many for too many things he built and now glaringly trying to destroy, now looking at his with an aghast perspective.

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Published in: on April 28, 2017 at 18:45  Comments (5)  

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5 CommentsLeave a comment

  1. Dear BD,

    I believe you have erred in the 5th last paragraph.
    Shouldn’t it be “… Agong XIV” i.e. the 14th? You typed “XVI”.

    Incorrect usage of Roman numerals should not happen to a guy who frequently uses Latin phrases as the title of his posts. Just saying.

    Keep up the good work though. Cheers.

    -FM

  2. […] and PM Najib’s advantage, with its own merits and many politically challenging issues such as 1MDB is no longer as prickly as what it was exactly a year […]

  3. […] The announcement in Beijing is two weeks short of the second anniversary of Arul presenting the ‘Rationalisation Plan’ of 1MDB to the Cabinet and approved. 1MDB financial woes have been resolved with the successful decoupling of Edra Energy Bhd from its portfolio and disputes with IPIC is solved with amicable solution. […]

  4. […] 1MDB is proven to be a commercial cock up more than the scandal in their contentious overtones, especially one by one of its woes are being resolved in the usual commercial practices and fashion. […]

  5. […] 1MDB is about a commercial entity facing the usual commercial issues and being resolved, the commercial way. […]


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