1 SINGAPORE MAY 28, 2018 S1. RUN-UP TOMALAYSIA. THE EDGE GE14. INVESTIGATIVE REPORTS. ON. 1 MDB. Reporting the 1 MDB scandal : A LOOK BACK. This special pullout features some of the key news reports on the 1 MDB nancial scandal by The Edge weekly and The Edge Financial Daily in Malaysia n 2015. We hope it will refresh the memory of our readers and enlighten those who may not be familiar with what happened three years ago. We were suspended for three months (the suspension was cancelled by the Kuala Lumpur High Court after nine weeks) and investigators were removed. Two Cabinet ministers were sacked and many more people became collateral damage. In the past three years, Malaysia has gone through an unprecedented period of nancial and political turmoil that stunned the world and shocked the people nally spoke at the ballot box on May 9 and, at last, with a new government we now have a chance to get to know the full story of 1 MDB.
2 Ho Kay Tat, publisher & group CEO, The Edge Media Group Some KEY FIGURES. in the1 MDB NIK FAISAL. ARIFF KAMIL. scandal He is one of three key people that Jho Low planted in both 1 MDB and its subsidiary SRC. International Bhd. His claim LOW TAEK JHO (JHO LOW) to fame was his role as the DATUK SHAHROL. The 38-year-old is the mastermind behind person who operated the HALMI. what is the world's biggest financial fraud. bank accounts of Najib at He is identified as 1 MDB. Through his relationship with Riza Aziz AmIslamic Bank to which Officer 2 by the DoJ. He was DATUK SERI NAJIB RAZAK Datin Seri Rosmah Mansor's son from her US$700 million of 1 MDB CEO of 1 MDB from 2009. He gave the go-ahead to start 1 MDB in 2009, just a first marriage he got close to Najib and money was alleged by the to 2013, during which time few months after becoming prime minister. Although Rosmah. His connection to the royal houses DoJ to have been sent.
3 His all the major deals were he was not on the main board of 1 MDB, he was the of Saudi Arabia and Abu Dhabi so impressed current whereabouts is executed. The PAC report chair of the advisory panel. More importantly, as prime Najib and Rosmah that he was able to exert unknown but he was put recommended that he be minister and minister of finance, he and he alone had great influence over 1 MDB without having to on the wanted list by the investigated for decisions the final say in all investment decisions under Article hold any positions. The 137-page document Malaysian Anti-Corruption he made, a number of which 117 of 1 MDB's Memorandum & Articles of Association, filed by the US Department of Justice (DoJ) Commission (MACC) in 2015. were without board consent including to overrule board decisions. and court documents filed in Singapore and knowledge. A former reveals that Jho Low was the point man executive of Accenture, he who controlled the money that flowed out was attached to the Prime of 1 MDB to various bank accounts the world Minister's Department after over.
4 In the last two years, he is believed to leaving 1 MDB. have been living in Thailand, China and Taiwan. ARUL KANDA. SEET LI LIN KANDASAMY. Singaporean Seet Li Lin The 40-year-old was was at Wharton with RIZA AZIZ supposed to be the savvy Jho Low. The former The stepson of Najib financier who was going to CASEY TANG staff of the Monetary went to the same TAN SRI ISMEE fix 1 MDB's problems when ERIC TAN KIM. He is identified as 1 MDB Authority of Singapore boarding school as Jho JASMINE LOO ISMAIL he assumed the post of LOONG. Officer 1 by the DoJ. Tang was very involved in the Low and they became fast She is identified as He was the only original CEO in January 2015. An The mysterious Malaysian was executive director 1 MDB-PetroSaudi deals friends. Nearly US$300 1 MDB Officer 3 by non-executive director articulate speaker, Arul was named by both the of investments and was where US$ billion million of 1 MDB money was the DoJ.
5 She was of 1 MDB who stayed on spun and spun 1 MDB's DoJ and Singapore police accused by the Public was allegedly siphoned alleged by the DoJ to have general counsel and the board through what woes as nothing more as playing a central role in Accounts Committee off. On Sept 30, 2009 ended up with Riza and his executive director the DoJ has described as than a wrong business the laundering of billions (PAC) of misleading the when 1 MDB transferred Hollywood film company, of 1 MDB in charge the three main stages of model . But few were of dollars that belonged to board of 1 MDB with US$700 million to Good Red Granite, which produced of corporate and fraud the Good Star/ convinced, including the 1 MDB. Tan's role appears various presentations Star Ltd, a company The Wolf of Wall Street. legal matters. The PetroSaudi phase (US$ voters who went to listen to have been to open bank made to justify controlled by Jho Low and In March, Red Granite DoJ traced at least billion), the Aaabar-BVI to his country-wide talks to accounts, which were investments by 1 MDB.
6 Where Seet was chief agreed to a US$234 million US$ million of phase (US$ ) explain 1 MDB at the just- then operated by Jho Low. Bank Negara put him on investment officer, Seet settlement with the DoJ. 1 MDB money that and the Tanore phase concluded general election. At one stage, there was its wanted list in 2015. His posted on his Facebook Riza is said to have been went to an overseas (US$ billion). He is They voted out the Barisan speculation that Tan was current whereabouts is account: I feel the earth living in Malaysia for the bank account held currently chairman of Nasional government led actually Jho Low using a unknown. move under my feet . past two years . by her. Media Prima Bhd. by Najib. false identity. S2 SINGAPORE. MAL AYSIA MAY 28, 2018. THE EDGE MALAYSIA. INVESTIGATIVE REPORTS AS REPORTED IN THE EDGE (ISSUE 1056, MARCH 2, 2015). ON. 1 MDB. 1 Sept 28, 2009. The initial equity investment of US$ billion 1 MDB and PetroSaudi Holdings (Cayman) Ltd signed a joint- venture agreement on Sept 28, 2009.
7 1 MDB issued a press release on Sept 30 touting the US$ billion JV as a new era of THE TWISTS. & TURNS. economic cooperation between Malaysia and Saudi Arabia. The impression given was that PetroSaudi Holdings is a company owned by the government of the Kingdom of Saudi Arabia. It is not although one of its two shareholders is Prince Turki, one of the many sons of King Abdullah, who passed away recently. The main shareholder is a Saudi businessman, Tarek of 1 MDB's first US$1 bil Obaid. What was also not made clear at the time was that 1 MDB's JV partner was not putting any cash into the JV, and that PetroSaudi Holdings' 60% equity was via an injection of assets valued at US$ billion. More important was the fact that it was NEVER DISCLOSED. On Sept 29, 2009, the local foreign exchange incorporated in the Cayman Islands. that from the US$ billion that 1 MDB would put in, US$700. million was to be immediately used to pay a debt that was put market was stirred by two unusually large The JV was called off six months later, but it into the JV company.
8 In short, from the word go, the JV only had transactions of US$700 million and US$300 million has been five years and the US$ billion plus an US$300 million left from the US$ billion 1 MDB had remitted on each. The money was remitted out of the country additional US$800 million has not come back to Sept 29, 2009. by Deutsche Bank Malaysia on behalf of its client Malaysia. It may never, despite the fact that newly The Edge has learnt that the JV company was incorporated on Sept 18, 2009, and seven days later on Sept 25, it had 1 Malaysia Development Bhd (1 MDB). minted 1 MDB CEO Arul Kanda Kandasamy had said incurred a debt of US$700 million, being a sum owed to its JV It was cash for 1 MDB's then highly touted joint recently that it has made gains of US$488 million. partner PetroSaudi Holdings. The JV was signed on Sept 28 and venture with PetroSaudi Holdings (Caymans) Ltd, The Edge has spent months investigating the mystery on Sept 29, PetroSaudi Holdings wrote to the JV company to which was owned by a company incorporated in of the initial US$ billion and the subsequent demand repayment of the US$700 million loan.
9 Why was there a need for PetroSaudi Holdings to provide the Saudi Arabia called PetroSaudi International Ltd . US$800 million that went to PetroSaudi Holdings. loan a mere three days before the JV was signed, and a mere 1 MDB put in US$ billion ( billion Here is a timeline of the twists and turns of the four days before US$ billion was to be remitted by 1 MDB? at the exchange rate then) for a 40% stake in money trail and an explanation on what happened What transaction was so urgent that required PetroSaudi the JV called 1 MDB PetroSaudi Ltd, which was and why. Holdings to extend an interim loan to a JV company that had not even started operations? Did the management and board of 1 MDB verify that there was indeed a loan given by PetroSaudi Holdings to the JV 3 2010. company and cash was actually put in? Did 1 MDB's lawyers . Wong & Partners do a thorough check of the loan agreement 1 MDB lends another US$800 million that was signed on Sept 25?
10 Instead of being a JV partner, 1 MDB became a 1. As for the US$ billion valuation given to the PetroSaudi lender that bankrolled PetroSaudi Holdings by Holdings assets, who did the valuation, and when? Did 1 MDB do subscribing to more Murabaha notes US$500. an independent valuation of its own? Did the board of 1 MDB million in 2010 and another US$300 million in review and approve the valuation? May, 2011. And why was it that when they announced the JV in 2009, Why 1 MDB became a lender of US$ billion 1 MDB did not make it clear that PetroSaudi Holdings was not Sept 28, 2009 to PetroSaudi Holdings was something its putting any cash into the JV? management and board of directors have never explained. Certainly, its mandate was never to act as a lender of cash, especially since its own funds are all borrowed and at high costs. Why didn't 1 MDB ask for its money back TIMELINE OF and part ways with PetroSaudi after the JV.