Tuesday, October 13, 2015

AG: What Bank Negara should have done in the 1MDB case

"Before you accuse me, take a look at yourself". - Bo Diddley

NO, the Attorney-General did not sing this legendary blues number to Bank Negara Governor but he might as well have. In his first ever press conference since replacing Gani Patail on July 28, Apandi Ali explained why the AG Chamber could not heed to Zeti Akhtar Aziz's recommendation last month for criminal proceedings to be filed against 1MDB over some inaccurate declarations made in 2009-2011. Because the only crime back then, if there was one, had not been committed by 1MDB.

p.s I think Apandi is a, er, very brave man. And he probably doesn't know Zeti that well.

"If Bank Negara does not request for certain or specific information, how could 1MDB be faulted as it has filled up the form as required and responded to the queries made?" - Apandi Ali

Bank Negara did not seek clarification on 1MDB remittances, says A-G

Published: 13 October 2015 3:41 PM | Updated: 13 October 2015 4:25 PM 
Attorney-General's Chambers (AGC) today explained its decision to clear 1Malaysia Development Bhd (1MDB) of making inaccurate declarations related to overseas investments, saying that Bank Negara Malaysia had not sought enough information from the firm to show that it had broken the law. 
Neither did Bank Negara direct Deutsche Bank Malaysia Bhd to advise 1MDB to revert to the central bank for a review of the remittance permission granted, Attorney-General Tan Sri Mohamed Apandi Ali said today. 
Speaking at a press conference, the A-G said this clearly showed that there was no further information requested by Bank Negara at the material time. 
"1MDB rightfully furnished the information required for the purpose of the remittance," he said. 
Apandi was referring to three permissions obtained by 1MDB from Bank Negara to make remittances on September 29, 2009, September 6, 2010 and May 20, 2011. 
Bank Negara did not take more than three days to grant the said permissions on all three occasions, he said, reading from a press statement. 
He added that the relevant forms for the remittances in this case had not required the applicant to state the bank account number and beneficiary. 
As far as 1MDB was concerned, it needed to fill up the relevant forms and respond to the queries by the central bank. 
"If Bank Negara does not request for certain or specific information, how could 1MDB be faulted as it has filled up the form as required and responded to the queries made," Apandi said. 
He added that the 1MDB officials at the material time during the process of obtaining the permissions had complied with the directions given, and so the central bank's approvals were granted. 
Apandi said that until and unless it could be shown that the officials had deliberately or recklessly provided false information in material particulars, they had committed no offence under the Exchange Control Act. 
"Since there is no requirement, the omission on 1MDB's officials' part to disclose is not an offence under the Exchange Control Act. 
"It is further noted that the relevant ECM forms, namely 09A and 06B do not require the applicant to supply the names of the beneficiary owners, or the bank accounts numbers of the recipients, or the manner as to how the funds were to be channelled." 
He said that when 1MDB requested Deutsche Bank to make the remittances to a different account, the bank had sought clarification from Bank Negara. 
The central bank then told Deutsche Bank that the remittances were a business decision and there was no deviation from the purpose intended, Apandi said. 
The central bank did not make any further query at that particular time, he added.
"In this respect and the fact that there is no new evidence made available, we do not see the necessity to review (our decision)," said Apandi, who did not take any questions from the press. 
Last Thursday, Apandi announced the AGC's decision not to take further action against 1MDB with regards to making inaccurate disclosures to obtain permissions. 
He said the decision was made despite the central bank's appeal for a review, because there had been no additional evidence. 
Bank Negara the following day revealed that it had revoked three permissions granted to 1MDB between 2009 and 2011 because of inaccurate disclosures. 
Apandi's announcement last week drew criticism, with chief 1MDB critic Tun Dr Mahathir Mohamad even accusing the A-G of now behaving like a judge.– October 13, 2015. 

- See more at: http://www.themalaysianinsider.com/malaysia/article/bank-negara-did-not-seek-clarification-on-1mdb-remittances-says-a-g#sthash.LPNRC8M8.dpuf

For context, read my Oct 11 posting,
Is Zeti just doing her job or was she that scorned by the AG?  
or Malaysiakini's Now the main event: Bank Negara vs AG's Chamber, 11 Oct
Zeti continuously slept on the job - A Voice, 11 Oct


  1. Anonymous6:18 pm


    This Gelabah Bugis-born 24-Hour Boy is serving his master well. (I understand the kinship you feel with him.)

    Sadly, the questions don't go away, do they?

    And there is nothing in the ECA that says it applies only to the initial forms filled in. Subsequent information can invalidate that. Ditto if I give false info on a bank application form - you think I am immune if I say "bank officer tu tak mintak bukti pun?"

    BNM has had the full facts only since July 2015.

    Those facts show that 1MDB's false info:

    a) The joint venture will have combined equity funds of US$2.5 billion to be used for investment in various sectors;
    b) The US$2.5 billion of funds will be deposited with BSI while waiting for the prospective investments to be identified; and
    c) The funds will be transferred in tranches to ensure an orderly foreign exchange market

    were all faked.

    Based on publicly available information today, 1MDB clearly misled BNM in its application to transfer the US$1 billion in funds overseas. The joint venture never raised US$2.5 billion in funds as Petrosaudi did not inject any cash into the joint venture for its 60 percent stake. Instead, Petrosaudi injected assets allegedly worth more than US$1.5 billion, which was subsequently proven to be fraudulent or non-existent.

    Secondly, the US$1 billion invested by 1MDB was never deposited with BSI at all. Which is why the MAS reported it to BNM.

    Gelabah Bugis-born 24-Hour Boy is showing his cards a little too clearly.

    Maybe he should just write an unconvincing blog instead?

    Just sayin'.

  2. Anonymous6:19 pm

    The really much bigger question is why 1MDB is so special, that it can ignore orders from the country's central bank, when the bank has made it clear that rules were broken?

    Why is 1MDB above the law?

    Their excuse is:

    "Oh sorry, I've already spent it. Too bad."

    If someone tells me, "my mother is dying, I need RM2,000 for her operation", and I lend it to him, then the next day I find out it's a lie, can the guy say: "Oh sorry, I've already spent it. Too bad"?

    The world doesn't work that way, nor does the law.

    Why is 1MDB above the law?

    Zeti should go public with everything she knows - including what she passed to MACC & PRDM.

  3. Anonymous6:46 pm

    Let's wait for Zeti reply. In the mean time, when will your boss going to sue Ling Liong Sik?

  4. Anonymous8:18 pm

    What the AG should do is follow BNM recommendation and charge the tyrant who stole billions from 1MDB.

  5. Anonymous8:22 pm

    Ok so this is pretty cool - the gist of the AG's argument is that while 1MDB did give false, inaccurate and misleading statements (funds weren't used for the purposes upon which approvals were sought)that's ok because BNM did not ask further questions then. So I have this income tax thing that I want his advice on because IRB is saying that I made false and inaccurate statements in my tax returns for 2013 and wants to take me to court. Grr ... salam

  6. Anonymous9:19 pm

    Ye la tu, Najib & 1MDB tu maksum. Tak mungkin ada kesalahan. Orang yang tak sependapat tu semuanya dengki & bodoh.

  7. Anonymous9:29 pm

    I guess this buy Najib another few months .... panjangnya cerita macam mana Najib kena tangkap ........

  8. Anonymous11:26 pm

    does two wrongs make it all right?


    and this statement coming from the AG!

    ha ha ha

    kind regards,

  9. Najib is a role model of a Prime Minister for all in Asean to follow. Thanks to supporters like you. Better take off your sunglasses, you can see better.

  10. damansaraman2:22 am

    Read this in one of the blog. Is this what BNM vs AGC saga is all about? Is there any truth in this? Anybody?


    Who is telling the truth?

    1. Anonymous3:05 pm

      Rocky is under The Delusional Presidential Blogger group bro.

      they so called 'truth' is distorted.

      of course everything seems legal. but bila dah buta duit. dah biasa kasi anak bini makan duit haram..

      what can u do right?

  11. It's the purpose! Not the account no or who you pay to. Purpose bro...purpose!

  12. Anonymous10:21 am

    Hahaha rocky..u failed the malaymail and now you are failing the pm. Get lost bro.

  13. Anonymous11:02 am

    Dato Rocky
    It best that you counter back the above comments esp that qouted Din turtle blog
    Either most of them lazy to read the AGs statements or they just do not care facts or presumptions,as long as it is 1 MDB,it must be always on the wrong side
    Human being is not perfect and this goes to Zeti too
    Most of the facts delivered by AG involved legal aspects and they should rebutt AGs points not hantam 1 MDB.

  14. Anonymous11:13 am

    I like the new AG..straight to the point and no bullshit..

  15. Anonymous12:32 pm

    Why the AG have first PC but dare not take Q&A? Let's speculate.. Bad English? Dare not faceup to grilling?another half past six appointment by the PM?...but one thing is for sure.. He is just another yes man to the PM like Rocky... Defend at all cost

  16. Anonymous12:59 pm

    No wonder the ringgit plumed low......AG acting as the Bank's Governor!!! Rational behind Malay rulers worries!

  17. Anonymous1:39 pm

    Latest post on Zamkata:

    "Saudara Zam

    Giving false information to any institution for that matter constitutes a crime. Those giving false information, filling in wrong information in forms or has any intention to cheat to obtain or to get things done have obviously committed a crime. And action can be taken against the offender. There is no clause in law to say that those who have cheated by falsifying information have not committed a crime.

    Take for instance, a person falsifies his documents and state wrong information in his application form to get a job or enter university, he is committing a crime. And thus he can be charged for a crime committed. Even a first year law student knows this.

    In this matter, BNM has done the right thing. Reportedly, they discovered after perusing the information given by 1MDB and coming to know to where the money actually flowed to, there was a case against the latter. I'm sure BNM has been furnished with more information and evidence from foreign monetary bodies to this effect that they have no disclosed to the public.
    And what is more crucial here is that the rakyat wants to know what actually happened to the money that flowed to the foreign entities. Allegedly, it went into other bank accounts. And this must be made known to the public.

    Just be truthful. This is not a small amount of money. It involves the rakyat's money - the taxpayers."

  18. Anonymous3:13 pm

    yeah...why BNM allow the remittances in the first place?
    same governor isnt it?
    Are they not doing their job then?
    How many more remittances allowed by BNM?
    zeti is the one who keep saying the economy is doing well...can we even trust her now?

  19. Anonymous6:18 pm

    Good piece bro .
    Now it seems that Zeti is in the leaque with Tun M , the man who brought her up .
    She is trying to repay the favour .

    Now , who is next in wanting to repay Tun M favour .

    It is time PM Nagib set up his own team in the administration .

    An appropriate things to do , as what the Ultrakiasu DAPig did with Penang n Pakatan Harapan .


  20. Anonymous8:35 pm

    I think apandi set precedent for you to file false personal tax return and later if get caught can claim government never as you submit supporting document.

  21. Anonymous10:14 pm

    Is the AG one am dee bee's defense attorney ? He sure acts like one.
    BTW keep your articles coming as i need a good laugh once in a while.

  22. Anonymous7:56 am

    Poorah la latuk. Tiap tiap hari kipas najib dan 'spin' cerita. Lu sudah jadi macam rpk la. Bikin malu saja org lama Malay Mail! Puiiiiii

  23. Anonymous10:25 am

    If there are loopholes here and there, instead of laying and pointing fingers, BNM will do itself some favor by strengthening its SOP. Forget the past, concentrate on the future.

  24. Anonymous11:13 am

    How do you sleep at night Rocky??...and please don't say soundly....sebab sepatah haram kau cakap aku tak percaya...

  25. Anonymous12:37 pm

    Under the circumstances, 1MDB should not only be charged for presenting false information under the Control Exchange Act, as repeatedly recommended by Bank Negara, but Jho Low and key personnel in 1MDB ought to have been arrested by the Malaysian Anti-Corruption Commission (MACC), police and the attorney-general (AG) and nailed for embezzlement and criminal breach of trust.

    The US$1 billion ‘investment’ in 2009 is a hoax. And the so-called 1MDB-PetroSaudi International ‘US$2.5 billion joint venture’ appeared to be a scam as PSI injected no cash into the joint venture, resulting in the latter being abandoned months later.

    In fact, out of the US$1 billion remitted by 1MDB, US$700 million allegedly went straight to Jho Low’s Good Star instead of the joint venture, as stipulated in Bank Negara’s approval letter dated Sept 29, 2009.

    1MDB’S subsequent remittances of US$500 million in 2010 and US$300 million in 2011 were similarly fraudulent, as these alss ended up in Jho Low’s Good Star account.

    The fact that these culprits have not only remained scot free but none has even been interrogated speaks volume of the abject failure of our law-enforcing institutions, and the utter state of shambles of Malaysia’s rule of law.

  26. Anonymous2:15 pm

    You just don't get it? do you?