Malaysia's 1MDB says not contacted by foreign investigators

KUALA LUMPUR: Malaysia's troubled strategic investment fund 1Malaysia Development Bhd (1MDB) has not been contacted by any foreign investigators over allegations of mismanagement and corruption, its president Arul Kanda told Reuters on Tuesday (Sep 29).

"In terms of the Swiss investigations or the Singaporean investigations or the FBI investigations, 1MDB has not been contacted by any of those authorities," said Kanda, who was hired from Abu Dhabi Commercial Bank in January to conduct a strategic review of the state-owned fund, which owns mostly power and property assets.

The fund, which has Prime Minister Najib Razak as chairman of its advisory board, has amassed debt of more than US$11 billion, engulfing Najib in a political storm amid allegations at home and abroad of graft and financial mismanagement at the fund. 1MDB has denied all the allegations.

Singapore's police said in July they had frozen two bank accounts as part of an investigation linked to 1MDB.

"As far as I am aware, none of our accounts have been frozen," Kanda, 39, said at his office when asked about its Singapore accounts.

Swiss authorities said at the end of August they had opened criminal proceedings against two 1MDB executives for suspected corruption and money laundering. The Swiss froze several tens of millions of dollars at Swiss banks in conjunction to the probe.

The growing controversy has battered Malaysian markets; the ringgit has lost a quarter of its value against the dollar this year, making it Asia's worst performing currency, and Malaysia's bonds have also fallen.

Ratings agencies have said they would be concerned if there were signs of broader policymaking being affected by the crisis, with Fitch warning it could downgrade the outlook on Malaysia's sovereign debt.

ASSET SALES ON TRACK

Kanda said some media reports had been politically motivated to undermine Najib.

"Clearly there are other agendas being pushed forward; it's clear on the political front, of course, and I think that's now very apparent what each different group is trying to achieve," he said.

Najib has faced criticism from the public and within his party after the Wall Street Journal reported in July that local investigators looking into allegations of graft and financial mismanagement at 1MDB found that about $670 million was deposited in Najib's private bank accounts.

Reuters has not verified the report.

Najib has denied taking any money for personal gain, and Malaysia's anti-graft unit said the amount was given by a donor from the Middle East. It would not name the donor. 1MDB has denied transferring funds to Najib, and an interim government report said it found nothing suspicious.

Kanda, a trained barrister who has experience in restructuring and corporate finance, concluded early in his tenure that 1MDB should sell many of its assets to cut debt. He said on Tuesday that process was on track.

The selling of assets in power unit Edna Global Energy Bhd is a major plank of those efforts.

Kanda said asset sales planned in the coming weeks would put 1MDB in a positive cash position from early 2016.

1MDB was established in 2008 as the Terengganu Investment Authority with 10 billion ringgit to manage oil royalty payments to the resources-rich northern state of Terengganu.

When Najib came to power in 2009 he renamed it 1MDB and turned it into a fully fledged investment fund. 1MDB expanded by purchasing power assets and large plots of land in the capital and other local regions, racking up debt until it plunged to a loss last year.

Abu Dhabi's International Petroleum Investment Company (IPIC) agreed in May to provide 1MDB with US$1 billion in cash, allowing the fund to repay a US$975 million loan to a global banking syndicate.

The Abu Dhabi firm also agreed to assume US$3.5 billion of 1MDB debt and forgive an undisclosed amount of debt owed to IPIC by 1MDB, in exchange for assets that have not been named.

1MDB plans to use a US$1.4 billion deposit it placed with IPIC as collateral for the deal, Kanda said.

(Reporting by Yantoultra Ngui and John Chalmers; Additional reporting by Anshuman Daga in SINGAPORE; Editing by Will Waterman)
- Reuters

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RINGGIT DI BUKA TINGGI,4.3060 BERBANDING DOLAR AS.

KUALA LUMPUR: Ringgit meneruskan arah aliran peningkatan minggu lalu untuk dibuka tinggi berbanding dolar AS hari ini didorong minat belian terhadap mata wang tempatan itu, kata peniaga. Pada jam 9 pagi, ringgit disebut harga pada 4.3060/3150 berbanding dolar AS daripada 4.3150/3200 pada penutupan Jumaat lalu. Peniaga itu berkata, keputusan Bank Negara Malaysia (BNM) mengekalkan kadar dasar semalaman pada 3.25 peratus membantu menyemarakkan sentimen positif di pasaran tempatan. Katanya, ketidaktentuan berhubung kemungkinan peningkatan kadar faedah di AS serta data mengenai kelembapan ekonomi China mendorong pelabur mengalih perhatian kepada ringgit. Dalam pada itu, ringgit diniagakan bercampur-campur dengan mata wang utama lain. Ia naik berbanding yen kepada 3.5681/5771 daripada penutupan Jumaat pada 3.5812/5868 dan naik berbanding pound British kepada 6.6549/6706 daripada 6.6576/6679. Ringgit bagaimanapun jatuh berbanding dolar Singapura kepada 3.0565/0646 daripada 3.0510/0569 pada Jumaat dan turun berbanding euro kepada 4.8847/8954 daripada 4.8716/8781 sebelumnya. - BERNAMA

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PERDANA MENTERI TETAP BERTAHAN DI SEBALIK KEKECOHAN POLITIK.

PETALING JAYA: Nampaknya, penguasaan Datuk Seri Najib Tun Razak ke atas UMNO tetap bertahan di sebalik kekecohan politik semasa mesyuarat bahagian yang dijangka berakhir hujung minggu ini. Meskipun ada kawasan panas dan gangguan di beberapa mesyuarat perwakilan UMNO bahagian sejak sebulan lalu, namun sebahagian besar daripada 188 bahagian meluluskan resolusi menyokong Najib dan Timbalan Perdana Menteri yang juga Naib Presiden UMNO, Datuk Seri Dr. Ahmad Zahid Hamidi. Hanya Gelang Patah di Johor secara rasmi meluluskan resolusi menggesa Presiden UMNO yang juga Perdana Menteri supaya bercuti. Gelang Patah telah menjadi lubuk tidak puas hati hingga menyaksikan kerusi Parlimen Gelang Patah jatuh kepada Lim Kit Siang. Bahagian ini diketuai oleh Mohamad Khairi Malik yang juga setiausaha politik kepada Menteri Besar Johor. Bagaimanapun terdapat kekeliruan dalam mesyuarat perwakilan UMNO bahagian Langkawi yang menyaksikan salah seorang perwakilannya, Anina Saadudin menjadi tajuk berita apabila menyerang Najib, sama ada telah meluluskan usul menyokong dua pemimpin atasan UMNO itu atau meminda resolusi meminta Najib untuk bercuti. Beberapa bahagian juga meluluskan resolusi mengenai isu 1MDB.Naib Presiden UMNO yang juga Ketua UMNO bBahagian Semporna, Datuk Seri Shafie Apdal menafikan bahawa bahagiannya meluluskan resolusi mengecam Najib.Shafie, yang digugurkan dari Kabinet, berkata, bahagiannya menentang penangguhan pemilihan UMNO dan meluluskan usul meminta pemilihan itu diadakan seperti yang dijadualkan. Bahagian itu juga mahu siasatan menyeluruh ke atas urusan kewangan 1MDB. Beliau berkata, punca kenapa jemputan ke atas Najib ditarik balik bukan disebabkan beliau marah dengan presiden tetapi beliau mahu mengelak sebarang insiden pada mesyuarat perwakilan bahagian itu. “Kira-kira 70% daripada ahli UMNO di Sem­porna adalah saudara mara saya. Mereka sangat kecewa dan saya bimbang mereka akan menunjukkan kekecewaan terhadap presiden,” kata Shafie.Usul utama di Pagoh, yang diketuai oleh Timbalan Presiden Tan Sri Muhyiddin Yassin, adalah berhubung kekecewaan kerana Muhyiddin digugurkan daripada jawatan Timbalan Perdana Menteri dan Menteri Pendidikan. Sementara usul lain adalah mengenai 1MDB yang turut diluluskan. Ketua UMNO Bahagian Kampar, Datuk Radzi Manan mengakui ahli UMNO amat bimbang dengan isu yang boleh memberi kesan kepada parti tetapi apa pun lembaga disiplin jua yang akan membuat keputusan akhirnya. Tiga bahagian terakhir yang akan mengadakan mesyuarat adalah Pasir Salak pada Sabtu ini dan Pekan serta Masjid Tanah pada Ahad. Pasir Salak diketuai oleh Timbalan Menteri Pertanian dan Industri Asas Tani, Datuk Seri Tajuddin Rahman, Ketua UMNO Bahagian Pekan adalah Najib dan Masjid Tanah oleh Datuk Rauf Yusoh. Shafie juga mengesahkan beliau akan menghadiri mesyuarat Majlis Tertinggi UMNO minggu depan. Shafie berkata beliau tidak terjejas dengan mesej melalui SMS yang mendakwa beberapa pemimpin UMNO termasuk beliau, Muhyiddin dan Datuk Seri Muhkriz Mahathir akan dipecat dari parti. Turut serta dalam senarai hitam itu adalah bekas Menteri Besar Terengganu, Datuk Seri Ahmad Said, Ketua UMNO Kulim Bandar Baru, Datuk Seri Aziz Sheikh Fadzir dan bekas Ahli Dewan Undangan Negeri (Adun) Perak, Datuk Hamidah Osman.

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