Document trove shows how 'Africa's richest woman' stole fortune: ICIJ

LONDRES — An award-winning investigative team published a trove of files Sunday allegedly showing how the daughter of Angola's former president -- dubbed Africa's richest woman -- siphoned hundreds of millions of dollars of public money into offshore accounts.

The New York-based International Consortium of Investigative Journalists (ICIJ) worked with newspapers such as Munich's Suddeutsche Zeitung to reveal the "Panama Papers" tax haven scandal in 2016.

Its latest series called "Luanda Leaks" zeros in on Isabel dos Santos, the former Angola president's daughter.

Angola's prosecutors last month froze the bank accounts and assets owned by the 46-year-old businesswoman and her Congolese husband Sindika Dokolo.

Dos Santos called it a groundless political vendetta at the time.

"Based on a trove of more than 715,000 files, our investigation highlights a broken international regulatory system that allows professional services firms to serve the powerful with almost no questions asked," the ICIJ wrote.

The group said its team of 120 reporters in 20 countries was able to trace "how an army of Western financial firms, lawyers, accountants, government officials and management companies helped (dos Santos and Dokolo) hide assets from tax authorities".

Dos Santos's lawyer dismissed the ICIJ findings as a "highly coordinated attack" orchestrated by Angola's current rulers.

"It is obvious that our client is the subject of a highly coordinated attack on both her reputation and business," the lawyer said in a statement quoted by The Guardian newspaper.

Dos Santos herself told BBC Africa the file dump was part of a "witch hunt" meant to discredit her and her father Jose Eduardo dos Santos.

The former president's daughter headed Angola's national oil company Sonangol. Forbes magazine last year estimated her net worth at $2.2 billion.

Her father's successor Joao Lourenco forced her out of the oil company after becoming president in 2017.

Dos Santos said on Wednesday that she would consider running for president in the next election in 2022.

WESTERN CONSULTANTS 

The ICIJ investigation said Western consulting firms such as PwC and Boston Consulting Group were "apparently ignoring red flags" while helping her stash away public assets.

"Regulators around the globe have virtually ignored the key role Western professionals play in maintaining an offshore industry that drives money laundering and drains trillions from public coffers," the report said.

Its document trove included redacted letters allegedly showing how consultants sought out ways to open non-transparent bank accounts.

One confidential document allegedly drafted by Boston Consulting in September 2015 outlined a complex scheme for the oil company to move its money offshore.

It published a similar 99-page presentation from KPMG.

None of the companies named issued immediate statements in response to the investigation.

Agence France-Presse 

Samsung heir's corruption retrial hangs over phonemaker

SEOUL — The heir to the Samsung empire returns to court this week for a retrial over a sprawling corruption scandal that could see him return to prison and deprive the world's largest smartphone and chip manufacturer of its top decision-maker.

Lee Jae-yong is vice chairman of Samsung Electronics -- where profits have been falling for months -- and was jailed for 5 years in 2017 for bribery, embezzlement and other offences in connection with the scandal that brought down South Korean president Park Geun-hye.

The 51-year-old was freed a year later after an appeals court dismissed most of his bribery convictions, but that decision was set aside by the Supreme Court in August, which ordered a retrial.

The new proceedings begin Friday and are likely to last for months.

At the same time, Samsung Electronics is battling challenges from the US-China trade war and tough export restrictions imposed by Tokyo on key supplies amid a dispute with Seoul over wartime history.

While the firm's daily business is managed by a board of directors, a leadership vacuum would greatly hamper its ability to make major decisions, KB Securities said in a report.

The retrial added to uncertainty for the company, said a source with direct knowledge, adding: "There are things that only Lee Jae-yong can do."

Samsung Electronics is the flagship subsidiary of the Samsung group, by far the biggest of the family-controlled conglomerates, or chaebols, that dominate business in the world's 11th-largest economy. 

Its overall turnover is equivalent to a fifth of the national gross domestic product and it is crucial to South Korea's economic health.

"It's a huge burden for Samsung Electronics and will have negative ripple effects on the Korean economy," said Kim Dae-jong, a business professor at Sejong University.

The phone maker has flagged a profit drop of more than 50 percent in the third quarter -- its fourth consecutive earnings fall -- faced with a long-running slump in the global chip market.

It has also had to contend with glitches with its top smartphones, delaying the release of the Galaxy Fold and warning users of other devices about a fingerprint identification vulnerability.

MOON MEETINGS 

The trials of Lee and Park highlighted shady links between big business and politics in South Korea, with the ousted president and her close friend, Choi Soon-sil, accused of taking bribes from corporate bigwigs in exchange for preferential treatment.

Lee's case centered on millions of dollars his group paid Choi, allegedly for government favors such as ensuring a smooth transition for him to succeed his ailing father.

He has effectively been at the helm of the sprawling Samsung group since his father and group chairman Lee Kun-hee was left bedridden by a heart attack in 2014.

In July he flew to Japan in a high-profile trip to secure chip materials following Tokyo's restrictions, and this month he announced a plan to invest more than 13 trillion won ($11 billion) in developing next-generation displays.

South Korean President Moon Jae-in stood next to Lee as he made the announcement at a Samsung plant in Asan, south of Seoul -- their ninth official meeting since the Samsung heir was freed.

Moon -- who took office after a sweeping election victory with promises of weeding out deep-rooted, corrupt ties between chaebols and regulators -- has increasingly been warming to the country's largest conglomerates.

"I thank Samsung for... leading the South Korean economy," Moon said. "I thank Vice Chairman Lee Jae-yong for delivering such good news to the people."

South Korea is seeing growth at around 2 percent and, like his predecessors, Moon was looking to Samsung to prop up the economy through his recurring meetings, said Professor Kim.

Noh Dong-ill, a law professor at Korea University, said the judiciary tended to have a "fixed-rate system" for verdicts against chaebol leaders, giving them lighter punishments citing their "contribution to national economy".

Both Lee's father and grandfather -- Samsung founder Lee Byung-chull -- had brushes with the law themselves, but never served time behind bars.

"The judges could reach a similar ruling this time," Noh said.

source: news.abs-cbn.com

8 killed, 15 wounded in new clashes in Iraq

BAGHDAD - At least 8 people were killed and 25 wounded in new clashes between protesters and police in eastern Baghdad on Sunday, police and medical sources said.

The clashes were in Sadr city, a sprawling residential district of the Iraqi capital, and added to a death toll of more than 100 people killed in less than a week of protests over corruption and unemployment.

Police, backed by the army, used live rounds and tear gas to disperse the crowds at two separate locations in Sadr City, police said.

The protests pose the biggest security and political challenge for Prime Minister Adel Abdul Mahdi's government since it took power a year ago, and have revived fears of a new spiral of violence that could suck in influential militia groups.

Two years after oil-producing Iraq declared the defeat of Islamic State, security has improved but corruption is rampant, wrecked infrastructure has not been rebuilt and jobs are scarce. 

source: news.abs-cbn.com

S. Korea Supreme Court orders retrial for Samsung heir

SEOUL - South Korea's top court on Thursday ordered a new trial for Samsung heir Lee Jae-yong, who was convicted of offenses including bribery and embezzlement in connection with the scandal that brought down former president Park Geun-hye.

The de facto head of the world's biggest smartphone and memory chip maker, Lee was jailed for 5 years in 2017 but freed a year later after an appeals court dismissed most of his bribery convictions and gave him a suspended sentence. 

The Supreme Court set aside that decision Thursday and sent his case back for new proceedings.

The decision is a blow to the company, which is by far the biggest of the family-controlled conglomerates that dominate business in the world's 11th-largest economy, and crucial to the country's financial health.

It already faces a weak global chip market and fresh challenges from export restrictions imposed by Tokyo over key chipmaking chemicals amid a long-running dispute between the neighbors over wartime history.

Japan's move threatens to disrupt memory chip production and Lee has called it a "crisis", visiting Tokyo to seek to secure materials.

His court case centered on millions of dollars his firm paid to Park's secret confidante Choi Soon-sil, allegedly for government favors such as ensuring a smooth succession for Lee to take over the leadership of the sprawling conglomerate from his ailing father.

Chief Justice Kim Myeong-su said Thursday that Lee's case would be sent back for new proceedings to readdress multiple allegations, including bribery convictions that had been overturned by the appeals court.

That decision "misunderstood the law on bribery... which is at fault for influencing the ruling", Kim said.

In a key section of the ruling, the court said three horses worth 3.4 billion won (US$2.8 million) that Samsung Group donated for the equestrian training of Choi's daughter did amount to bribes.

Samsung Electronics, where Lee is vice-chairman, said in a statement that it "deeply regrets" causing concern.

"We will renew our commitment to carrying out the role of a responsible corporate citizen and will avoid a recurrence of past mistakes," it said, without directly addressing the verdict or its possible consequences.

Samsung Electronics reported a 53 percent drop in profits in the second quarter citing a weakening chip market and the intensifying trade row between Seoul and Tokyo.

source: news.abs-cbn.com

US begins return of $200 million in 1MDB funds to Malaysia

KUALA LUMPUR -- The US government has begun returning to Malaysia some $200 million recovered from asset seizures linked to state fund 1MDB, with about a quarter of the amount already repatriated, the two countries said on Tuesday.

Malaysian and US authorities say about $4.5 billion were allegedly siphoned from 1Malaysia Development Berhad (1MDB), a state fund founded in 2009 by then Malaysian prime minister Najib Razak.

Since losing a general election last year, Najib has been charged with more than 40 criminal offences linked to losses at 1MDB and other state entities. He has pleaded not guilty.

Since 2016, the US Department of Justice, in the biggest ever case in its anti-kleptocracy program, has filed civil lawsuits seeking to seize about $1.7 billion in assets allegedly bought with stolen 1MDB funds, including a private jet, luxury real estate, artwork, and jewelry.

The United States will return to Malaysia about $196 million in the first installment of funds recovered from the asset seizures, US ambassador to Malaysia, Kamala Shirin Lahkdhir, said in a statement.

“We are extremely pleased that this first tranche of assets from this Justice Department investigation is being transferred back to Malaysia, demonstrating the U.S. commitment to return these assets for the benefit of the people of Malaysia,” she said.

So far, $57 million has been returned to Malaysia following a settlement reached with Hollywood film production company Red Granite Pictures, which is linked to Najib's stepson Riza Aziz, Malaysia's Attorney General Tommy Thomas said in a statement.

Red Granite had paid the US government $60 million in September 2017 to settle a civil forfeiture claim over the rights to the 2013 Oscar-nominated film The Wolf of Wall Street, which the DoJ says was financed with 1MDB funds.

A deduction of $3 million from the settlement was made to reimburse costs incurred by US authorities in "investigating, seizing, litigating and securing settlement of the Red Granite funds," Thomas said.

The DoJ is also in the process of remitting another $139 million, pending the sale of a Manhattan property linked to fugitive Malaysian financier, Low Taek Jho or Jho Low, Thomas said.

Low is facing criminal charges in Malaysia and the United States over his alleged central role in the 1MDB case. He has consistently denied wrongdoing and his whereabouts is unknown.

The latest money returned by the United States brings the total amount recovered by Malaysia to $322 million. This includes $126 million from the sale of a 300-foot luxury yacht allegedly bought by Low with 1MDB funds, Thomas said.

Singapore authorities have also ordered a separate return of S$50 million ($36.70 million) in 1MDB-linked funds to Malaysia, he added.

At least six countries, including the United States, Singapore and Switzerland, are investigating alleged graft and money laundering at 1MDB.

source: news.abs-cbn.com

Former Maldives president makes comeback with landslide win

The exiled former leader of the Maldives has led his party to a landslide victory only 5 months after returning to the country, preliminary results showed Sunday.

Ex-president Mohamed Nasheed, 51, was set for a dramatic return to the top of the national parliament, with his Maldivian Democratic Party headed for a two-thirds majority in the 87-member assembly.

Saturday's poll was the first test of public opinion since autocratic former president and Nasheed's arch-rival Abdulla Yameen was forced to stand down after his five-year term, facing charges of money laundering and embezzlement.

Nasheed returned to the country after his former deputy President Ibrahim Mohamed Solih won an unexpected victory in September presidential elections for the MDP. Yameen had barred Nasheed from contesting.

Preliminary results from Saturday's election showed the MDP winning 50 out of the 87 seats, while private media reports projected the party eventually getting up to 68 seats.

"The Maldives is about to welcome a new dawn, a golden yellow dawn,” Nasheed told his supporters in Male on Saturday. Yellow is the color of his party.

Election officials estimated the final turnout to be between 70 and 80 percent, down from the 89 percent recorded at the September presidential election which unexpectedly toppled Yameen.

Nasheed, now set to take over the leadership of the legislature, has promised to turn the country into a parliamentary democracy by scrapping the executive presidential system adopted under political reforms in 2008.

President Solih said in a statement that the MDP had "secured a huge majority in Majlis (parliament)".

"While we celebrate, we must also not forget the immense challenges that lie ahead of us," he said.

Solih campaigned for the MDP asking voters to return a parliament that could work with him to deliver on his election promises in September to investigate corruption under Yameen.

While Yameen was not a candidate, his Progressive Party of Maldives was seen as the main challenger to the MDP -- but ended up with a poor showing, and is projected to get only four seats.

Nasheed was jailed for 13 years on a controversial terrorism charge when Yameen was in power. However, the conviction was overturned last year after the presidency changed.

Election commissioner Ahmed Shareef told reporters there had been no complaints of irregularities in the runup to the vote, during balloting or at the count.

The Maldives was on the verge of being slapped with Western-led sanctions before Solih won the presidential election on a pledge to end corruption in the country best known for its luxury tourism.

source: news.abs-cbn.com

Trump's World Bank pick, an ally for the lender's critics?

WASHINGTON - President Donald Trump's choice to lead the World Bank is a firebrand critic of the world's largest anti-poverty lender -- an institution he has called wasteful, corrupt and overly generous to China.

Those complaints are similar to those voiced by others in the development community. But that does not mean they have found a new ally in David Malpass, the senior US Treasury official who has pledged to reform the bank.

Nancy Pelosi, the newly reinstalled Democratic speaker of the US House of Representatives, says Trump's choice threatens to "undermine the institution's mission."

And Liberia's former minister of public works W. Gyude Moore tweeted that "an incorrigible arsonist will now be our fire chief."

Malpass' many criticisms of the Washington-based lender certainly echo familiar refrains.

Many activists have long called for reforms at the World Bank, citing a litany of alleged human rights failures and scandals, and saying projects all too often left the world's poorest even worse off, harmed the environment or entrenched the power of oligarchies and despots.

Those critics might well have nodded their heads in accord in 2017 when Malpass said international financial institutions such as the World Bank "spend a lot of money" but are "not very efficient."

"They are often corrupt in their lending practices and they don't get the benefit to the actual people in the countries," he said in congressional testimony.

When pressed for examples, he cited situations in Venezuela and South Africa, countries that do not have programs with the World Bank.

Internal audits and outside reports have, however, tied World Bank funds to forced labor in Uzbekistan, death squads in Honduras and a Chadian oil pipeline that enriched the undemocratic local government all while child mortality rose, to name just a few examples.

So is Malpass a kindred spirit?

Analysts and activists say probably not.

'FUNDAMENTALLY OPPOSED'

David Pred, head of Inclusive Development International, which has accused the World Bank of back-door financing for coal-fired energy in Asia that is likely to spur global warming, strongly questioned Trump's choice.

"While some of Malpass' past critiques of the World Bank may be valid, the former chief economist of a financial institution whose recklessness helped blow up the global economy in 2008 is one of the last people we can count on to make the bank more accountable," he told AFP.

Malpass served as chief economist at the former investment bank Bear Stearns, whose collapse marked the start of the global financial crisis.

To be sure, Malpass' nomination has delighted some observers, including the World Bank's conservative critics.

A Wall Street Journal editorial called Malpass, himself a long-time contributor, "the best man to run" an institution whose operations he well understands.

With a long career in development economics, Malpass has worked to "wean" the increasingly wealthy and ambitious China off World Bank financing as it pursued its ambitious "Belt and Road" infrastructure initiative across multiple continents, the newspaper said.

The Economist likewise said US allies could be "relieved" that Trump had chosen one of his administration's "few remaining grown-ups" to be its next president, calling his reform efforts "mostly unobjectionable and reassuringly unoriginal."

But elsewhere Malpass is not viewed simply as a critic.

Moore, the former Liberian minister, told AFP that Malpass' opposition to lending to China could be incompatible with the bank's very business model.

Returns from those loans provide helps to fund for assistance to low-income countries, many of which are now concentrated in Africa, he said.

"He's never put forth an alternative about how the bank is going to grow its reserves," Moore said.

"To have a person who is fundamentally opposed to the way the bank does business raises questions for me and is alarming."

'DROP IN THE BUCKET'

The bank did not respond to Malpass' criticism in 2017, but it touts the precipitous drop in extreme global poverty -- which it says fell to 10 percent from 36 percent between 1990 and 2015 -- as evidence of its success.

The global lender also routinely blacklists corrupt companies and says it scrutinizes projects for corruption risk.

Malpass told reporters last week that the bank had changed since his 2017 testimony.

"There were criticisms that I had that were addressed in the reform package" of 2018, he said, adding that he wanted to focus on the bank's "core mission" of poverty eradication.

Yet Elana Berger, executive director of the Bank Information Center, which scrutinizes World Bank lending and shares some of Malpass' concerns, remains dubious.

"I agree that the World Bank frequently falls short of achieving its mission because its projects are very often not well targeted" towards the goal of poverty reduction, she told AFP.

But she said it was unclear whether Malpass shares the bank's goals.

For instance, in accepting Trump's nomination last week, Malpass hailed the bank's new Saudi-supported Women Entrepreneurs Finance Initiative, spearheaded by the president's daughter and advisor Ivanka Trump.

Berger said that $1 billion fund represented "a drop in the bucket" compared to the billions the bank spends in a given year.

The bank's board will accept nominations for through mid-March, but under an unwritten rule Washington has anointed the World Bank's president since its creation following World War II -- a custom that faces mounting opposition.

source: news.abs-cbn.com

Malaysia files criminal charges against Goldman Sachs in 1MDB probe

KUALA LUMPUR, Malaysia -- Malaysia said on Monday it has filed criminal charges against Goldman Sachs and two of the US bank's former employees in connection with a corruption and money laundering probe at state fund 1MDB.

Goldman Sachs has been under scrutiny for its role in helping raise funds through bond offerings for 1Malaysia Development Bhd (1MDB), which is the subject of investigations in at least six countries.

Malaysia's Attorney General Tommy Thomas said criminal charges under the country's securities laws were filed on Monday against Goldman Sachs, its former bankers Tim Leissner and Roger Ng, former 1MDB employee Jasmine Loo and financier Jho Low in connection with the bond offerings.

"The charges arise from the commission and abetment of false or misleading statements by all the accused in order to dishonestly misappropriate $2.7 billion from the proceeds of three bonds issued by the subsidiaries of 1MDB, which were arranged and underwritten by Goldman Sachs," Thomas said in a statement. 

source: news.abs-cbn.com

Goldman Sachs bankers 'cheated' Malaysia over 1MDB, Mahathir says

SINGAPORE - Malaysian Prime Minister Mahathir Mohamad said Wednesday bankers at Goldman Sachs Group Inc "cheated" the country in dealings with state fund 1MDB and that US authorities have promised to help return the fees the Wall Street bank earned from the fund.

The US investment bank has been under scrutiny for its role in helping raise funds through bond offerings for 1Malaysia Development Bhd (1MDB), which is the subject of corruption and money-laundering investigations in at least 6 countries.

Goldman's stock fell to a near 2-year low on Monday after Malaysian Finance Minister Lim Guan Eng said his country would seek a "full refund" of the around $600 million in fees the bank earned from raising $6.5 billion for the fund. The stock eased 0.5 percent on Tuesday.

A Goldman Sachs spokesman on Monday said in an email to Reuters that the bank denied any wrongdoing.

The US Department of Justice (DOJ) has said about $4.5 billion was misappropriated from 1MDB, including some money that Goldman Sachs helped raise, by high-level officials of the fund and their associates from 2009 through 2014.

US prosecutors filed criminal charges against 2 former Goldman Sachs bankers earlier this month. One of them, Tim Leissner, pleaded guilty to conspiracy to launder money and conspiracy to violate the Foreign Corrupt Practices Act.

"There is evidence that Goldman Sachs has done things that are wrong," Mahathir said in an interview with US news channel CNBC aired on Tuesday.

"Obviously we have been cheated through the compliance by Goldman Sachs people," he said, without specifying details.

The bank's compliance controls "don't work very well", he added.

A second Goldman Sachs spokesman in Hong Kong declined to comment on Mahathir's comments in the interview.

Asked by reporters later in Singapore if he had officially requested the DOJ to help return money that Goldman earned from 1MDB, Mahathir said: "It takes a little bit of time but they (DOJ) have promised that they will give back the money." He was speaking on the sidelines of a summit in Singapore.

A DOJ spokeswoman said the United States continued to pursue justice with respect to its 1MDB investigations. Whenever possible, recovered assets would be used to "benefit the people" harmed by corruption and abuse of office, she added.

Anwar Ibrahim, appointed successor to 93-year-old Mahathir, told parliament on Tuesday that Malaysia needed to take "more aggressive measures" to reclaim the fees and losses due to the harm the scandal had done to the country's image.

Finance Minister Lim told reporters the country would seek consequential losses as well as the return of fees.

"The Malaysian government will want to reclaim all the fees paid, as well as all the losses including the interest rate differential," Lim told reporters. He said the rate Malaysia had paid was about 100 basis points higher than the market rate.

Critics have said the fees earned by Goldman Sachs were far in excess of the normal 1-2 percent a bank could expect for helping sell bonds.

Goldman has said the outsized fees related to additional risks: it bought the unrated bonds while it sought investors and, in the case of a 2013 bond deal which raised $2.7 billion, 1MDB wanted the funds quickly.

Citing sources, Reuters reported in June that Malaysia was considering asking the DOJ to get Goldman Sachs to return the fees it had earned from the 1MDB deals.

The 1MDB scandal was a major reason for former premier Najib Razak's shock election loss in May. He has been charged with corruption over the scandal and has pleaded not guilty.

Malaysian financier Low Taek Jho, described by US and Malaysian authorities as central to the 1MDB fraud, was charged by US prosecutors this month. He remains at large.

source: news.abs-cbn.com

Brazilian ex-billionaire sentenced to 30 years prison

RIO DE JANEIRO, Brazil - Eike Batista, once the richest man in Brazil, was on Tuesday sentenced to 30 years in prison for corruption and money laundering over the massive corruption scandal at state oil giant Petrobras.

The 61-year-old was also fined 53 million reis ($13.6 million, 11.7 million euros) after he was found guilty by a Rio de Janeiro court of paying a $16.5 million bribe to the ex-governor of Rio, Sergio Cabral, allegedly through the fictitious sale of a gold mine.

Cabral is currently serving a prison sentence of more than 100 years following five convictions for graft.

Batista's lawyers have already said they will appeal.

He was arrested in January 2017 but released under house arrest three months later.

An emblem of Brazil's boom years, Batista amassed a fortune with investments in mining and oil that in 2012 put him in seventh place on Forbes's list of the world's wealthiest.

But by 2013 a downturn in the commodities market wiped out a fortune that had been estimated at $30 billion.

He later came under scrutiny by investigators in the vast "Car Wash" operation that revealed mass corruption by public officials linked to Petrobras.

source: news.abs-cbn.com

Malaysian police: $28.6 million in cash, luxury bags found in apartment of ex-PM's kin

KUALA LUMPUR - Malaysian police said Friday that cash worth 114 million ringgit ($28.6 million) and over 400 luxury handbags were seized from several apartments as part of an anti-graft probe into a state fund founded by former premier Najib Razak.

Najib's home and the apartments of a son and a daughter were among a dozen properties searched since May 18, Amar Singh, the head of the Malaysian police commercial crime division, told a news conference.

Since his defeat in an election on May 9, Najib has been barred from leaving the country by the new government, which has relaunched an investigation into billions of dollars missing from 1Malaysia Development Berhad (1MDB).

At one empty apartment, officers found 35 bags stuffed with cash valued at 114 million ringgit. The banknotes were in 26 currencies, though the largest amounts were in ringgit and Singapore dollars.

"We have sat together with bank officials to tally and estimate the total cash seized," Singh said.

Singh said the empty apartment in Pavillion Residences in the Bukit Bintang neighborhood of Kuala Lumpur did not belong to any of Najib's family members. He declined to name the owner.

Police also found 284 boxes of handbags in the apartment, and 150 more handbags were seized from the daughter's home, along with various shoes. Singh said most of the bags appeared to be from the Hermes brand. 

"We have had discussions with Hermes, and we will take pictures and send them to Paris to verify their authenticity and their value," Singh said.

Experts were being brought in to value the jewelry, watches and other luxury items seized during the raid.

Singh said half a million ringgit, excluding foreign currency, was found at Najib's home.

Najib concluded giving a statement to anti-graft agents on Thursday that was related to transactions of $10.6 million into his bank account that investigators had traced to a former unit of 1MDB.

Najib, who led the country for almost a decade, has consistently denied any wrongdoing.

PARTY WANTS ITS MONEY BACK

Late on Thursday, Najib's defeated United Malays National Organisation (UMNO) asked police to return to the party money seized during the raids, describing it as campaign contributions and party funding left over after the election.

UMNO said the funds were in the process of being transferred to the party's new leadership when they were seized.

"As such, UMNO seeks to recover these funds and requests the police to release these funds and return them to the party after completion of all due process and investigations by the relevant authorities," the party said.

Out of power for the first time since independence six decades ago, UMNO said it needed the money to recover from its defeat.

"UMNO is in the process of rebuilding and the return of our party funds will help in this process," the statement said.

Najib quit as president of UMNO a day after the election, and was replaced by his deputy Ahmad Zahid Hamidi.

The new government is led by 92-year-old Mahathir Mohamad, a former prime minister and UMNO leader who joined the opposition to defeat his erstwhile protege after becoming convinced of his corruption.

UMNO has long been known for its 'money politics', as the party has built its support among ethnic Malays through a system of patronage.

The UMNO statement noted that Mahathir had handed back 1.2 billion ringgit ($301 million) to the party and its 3 million members when he stepped down as party president in 2003.

source: news.abs-cbn.com

Zimbabweans relish bribe-free roads after Mugabe's fall

As Robert Mugabe's regime tottered and fell, one immediate benefit that Zimbabweans celebrated with glee was the sudden absence of bribe-extracting police who were a symbol of life under his rule.

Endless police roadblocks were a notorious feature of every journey in Zimbabwe, with drivers reluctantly paying frequent bribes to evade long questioning over minor alleged offences.

But across Harare and along major national routes, barely a single police officer has been spotted since the military took over on November 14 and forced Mugabe to step down after 37 years in power.

During the turmoil, the absence of police -- and the presence of the occasional armoured military vehicle on the streets -- shed light on the dramatic political struggle that was fought behind closed doors.

Police Commissioner Augustine Chihuri remained a key supporter of Mugabe and his wife Grace until the end -- while army chief General Constantino Chiwenga led the military effort to unseat the president.

For ordinary Zimbabweans, the future under incoming president Emmerson Mnangagwa may be uncertain, but the disappearance of corrupt traffic officers has been a daily cause to relish Mugabe's exit.

"I was paying bribes two or three times a week," Norman Manzini, 35, a self-employed brokerage dealer who drives a 2004 Nissan March hatchback, told AFP.

"It is amazing, now my route is clear every day.

"Even when everything about your car was perfect, they could pull you over about some silly thing and claim there was a fine to pay. To get away, you had to pay $5 (4.20 euros) or even $10."

- 'All about cash' -

Manzini dismissed fears that crime might rise with the police apparently confined to their stations.

"The army are not dangerous or corrupt," he said. "They let people go about their daily lives."

For everyday transport, many Zimbabweans rely on privately-run "kombi" mini-bus taxis -- favoured targets for bribe-hungry police.

"There used to be so many police roadblocks, with the driver having to pay $1 or $2," said kombi passenger Spiwe Azvigumi, 31, an unemployed mother of three.

"It was never about speeding or whatever, it was about them collecting cash. It was impossible to escape. Some kombi owners even arranged to pay their fines in advance.

"With the police off the roads, crime is actually down -- they were so corrupt and now we are living free."

- Faster commute -

Encounters with the police were often polite but lengthy, and anyone who tried to swerve around a checkpoint faced having their tyres deflated by spikes thrown across the road.

In recent days, traffic flow at key junctions in Harare where officers normally lurked has been smooth.

Many Zimbabweans say the police were under pressure from their seniors to bring in bribe money -- and were set monthly targets.

Zimbabwe's political crisis has so far been peaceful ahead of Mnangagwa's inauguration on Friday.

Whether the police will soon return to streets under his new adminstration is unclear.

The political upheaval could also worsen the dire economy that has left Zimbabwe often unable to pay army and police salaries on time.

For Paddington Chichiri, 24, the historic developments for his country have also meant a much easier 18-kilometre (11 mile) commute by kombi bus from the suburb of Glen View.

"Even if you weren't always pulled over, it used to take over 40 minutes to get through six or seven roadblocks," he said.

"The police have just disappeared and now it takes less the 20 minutes.

"We don't mind the army for now. They're ok."

source: news.abs-cbn.com

Purge of Saudi princes, businessmen widens

RIYADH - An anti-corruption probe that has purged Saudi Arabian royals, ministers and businessmen appeared to be widening on Monday after the founder of one of the kingdom's biggest travel companies was reportedly detained.

The Saudi stock index was down 1.1 percent in early trade, and Al Tayyar Travel plunged 10 percent in the opening minutes after the company quoted media reports as saying board member Nasser bin Aqeel al-Tayyar had been held by authorities.

The company gave no details but online economic news service SABQ, which is close to the government, reported Tayyar had been detained in an investigation by a new anti-corruption body headed by Crown Prince Mohammed bin Salman.

Dozens of people have been detained in the crackdown, which has consolidated Prince Mohammed's power while alarming much of the traditional business establishment. Billionaire Prince Alwaleed bin Talal, Saudi Arabia's best-known international investor, is also being held, officials said at the weekend.

The front page of leading Saudi newspaper Okaz challenged businessmen on Monday to reveal the sources of their assets, asking: "Where did you get this?" in bright red text.

Another headline from Saudi-owned al-Hayat warned: "After the launch (of the anti-corruption drive), the noose tightens, whomever you are!"

A no-fly list has been drawn up and security forces in some Saudi airports were barring owners of private jets from taking off without a permit, pan-Arab daily Al-Asharq Al-Awsat reported.

Among those detained are 11 princes, four ministers and tens of former ministers, according to Saudi officials.

The allegations against the men include money laundering, bribery, extorting officials and taking advantage of public office for personal gain, a Saudi official told Reuters. Those accusations could not be independently verified and family members of those detained could not be reached.

A royal decree on Saturday said the crackdown came in response to "exploitation by some of the weak souls who have put their own interests above the public interest, in order to, illicitly, accrue money".

The new anti-corruption committee has the power to seize assets at home and abroad before the results of its investigations are known. Investors worry that the crackdown could ultimately result in forced sales of equities, but the extent of the authorities' intentions was not immediately clear.

"OVERKILL"

Analysts said the arrests were also a pre-emptive measure by the 32-year-old crown prince to remove powerful figures as he seeks to reshape the economy and society of the world's leading oil exporter.

Prince Miteb bin Abdullah was detained and replaced as minister of the powerful National Guard, a pivotal power base rooted in the kingdom's tribes. That recalled a palace coup in June which ousted his elder cousin, Mohammed bin Nayef, as heir to the throne and interior minister.

The moves consolidate Prince Mohammed’s control of the kingdom's internal security and military institutions, which had long been headed by separate powerful branches of the ruling family.

Yet many analysts were puzzled by the targeting of technocrats like ousted Economy Minister Adel Faqieh and prominent businessmen on whom the kingdom is counting to boost the private sector and wean the economy off oil.

"It seems to run so counter to the long-term goal of foreign investment and more domestic investment and a strengthened private sector," said Greg Gause, a Gulf expert at Texas A&M University.

"If your goal really is anti-corruption, then you bring some cases. You don’t just arrest a bunch of really high-ranking people and emphasise that the rule of law is not really what guides your actions. It just runs so counter to what he seems to have staked quite a lot of his whole plan to."

Over the past year, Prince Mohammed has become the ultimate decision-maker for the kingdom's military, foreign, economic and social policies, championing his "Vision 2030" plan which includes subsidy cuts, tax rises, sales of state assets, a government efficiency drive and efforts to spur foreign investment.

The reforms have been well-received by much of Saudi's overwhelmingly young population, but caused resentment among some of the more conservative old guard, including parts of the Al Saud dynasty frustrated by Prince Mohammed's meteoric rise.

"It's overkill - and overkill in a way that makes it harder to achieve his long-term objectives," said Gause.

LONG-AWAITED

The line between public funds and royal money is not always clear in Saudi Arabia, an absolute monarchy ruled by an Islamic system in which most law is not systematically codified and no elected parliament exists.

WikiLeaks cables have detailed the huge monthly stipends that every Saudi royal receives as well as various money-making schemes some have used to finance lavish lifestyles.

Many ordinary Saudis have praised the round-up of princes and ministers as long-awaited and necessary to modernise the economy.

In September, King Salman announced that a ban on women driving would be lifted, while Prince Mohammed is trying to break decades of conservative tradition by promoting public entertainment and visits by foreign tourists.

He has also slashed state spending in some areas and plans a $300 billion sale of state assets, including floating part of state oil giant Saudi Aramco on international markets.

But the prince has also led Saudi Arabia into a two-year-old war in Yemen, where the government says it is fighting Iran-aligned militants, and into a dispute with Qatar, which it accuses of backing terrorists, a charge Doha denies. Detractors of the crown prince say both moves are dangerous adventurism.

The Saudi-led military coalition said on Monday it would temporarily close all air, land and sea ports to Yemen to stem the flow of arms from Iran to Houthi rebels after a missile fired towards Riyadh was intercepted over the weekend.

source: news.abs-cbn.com

Akbayan awards 'People's Medal of Valor' award to Ombudsman Morales

MANILA - Akbayan Partylist has conferred a symbolic “People’s Medal of Valor” on Ombudsman Conchita Carpio Morales for pursuing the probe on the wealth of President Rodrigo Duterte and his family. 

The group lauded Morales for remaining headstrong in the face of the President's statements against her, including allegations of corruption in her agency.

 “Kung si President Duterte ay sinasabi na he hates corruption, hindi siya dapat ma-threaten sa Ombudsman,” Akbayan Communications Officer Justine Balane said.

Akbayan also assailed administrative complaints filed by former lawmakers Jacinto Paras and Glenn Chong, and lawyers Manuelito Luna and Eligio Mallari, against Overall Deputy Ombudsman Melchor Carandang in relation the anti-graft agency's investigation of the Duterte case. 

Akbayan also called on the public to support the Ombudsman's anti-corruption efforts.

“The Ombudsman is just doing her job. Why crucify her for that?," Akbayan Secretary General Kit Melgar said in a statement.

Morales earlier inhibited in the case as her nephew Manases Carpio is married to Duterte's daughter, Davao City Mayor Sara Duterte. But she said her office would pursue the investigation, citing the Ombudsman's constitutional duty.

source: news.abs-cbn.com

Vice chair of S. Korea's Lotte Group found dead in apparent suicide

The vice chairman of South Korea's troubled Lotte Group was found dead Friday, police said, in an apparent suicide amid a widening corruption probe into the country's fifth largest business conglomerate.

The body of Lee In-Won was found hanging from a tree near a hiking trail in the eastern town of Yangpyeong.

A four-page letter -- apparently a suicide note -- was found in his car, expressing loyalty to the group's chairman Shin Dong-Bin and denying allegations that the firm had avoided huge sums of tax and created slush funds.

Lee was a key suspect in an alleged tax evasion scam worth hundreds of millions of dollars.

An official probe into the retail and hotel giant widened in June when prosecutors raided the offices of 15 subsidiaries, before issuing summons to a number of executives.

In South Korea, it is not unusual for a high-profile suspect to commit suicide when he is the subject of an investigation.

In 2003, Chung Mong-Hun, then chairman of the country's No. 2 conglomerate Hyundai Group, jumped to his death from his office building after being interrogated over the group's secret transfer of $500 million to North Korea to secure business deals.

A year later, an executive of Daewoo business group Nam Sang-Guk jumped off a bridge into the Han River in Seoul after being questioned over corruption allegations.

Last year, businessman Sung Wan-Jong hanged himself, leaving a note suggesting he had offered bribes to powerful elite players including former Prime Minister Lee Wan-Woo.

source: www.abs-cbnnews.com

Spain's Princess Cristina to stand trial in landmark corruption case

Spain's Princess Cristina and her husband go on trial Monday under intense global media scrutiny in a landmark corruption case that has outraged the country and sullied the monarchy's reputation.

Cristina, a 50-year-old mother-of-four with a master's degree from New York University, will be the first Spanish royal to face criminal charges in court since the monarchy was reinstated following the 1975 death of dictator General Francisco Franco.

The trial of the princess and the 17 other accused, including her husband, former Olympic handball player Inaki Urdangarin, will get underway at 9:15 am (0815 GMT) at a court in Palma on the Mediterranean island of Mallorca, where the Spanish royals have a holiday home.

Hundreds of journalists from around the world have flocked to cover the arrival of the princess for the start of the legal proceedings and a crowd of protesters is expected to fill the streets outside the courthouse.

The trial comes as Spain seethes over repeated corruption scandals that have exposed politicians, trade unions, bankers and footballers, eroding Spaniards' faith in their institutions and elites after a major economic crisis and a government austerity drive.

- Harry Potter books -

The case is centred on the shady business deals of the Noos Institute, a charitable organisation based in Palma which Urdangarin, 47, chaired from 2004 to 2006.

He and his former business partner Diego Torres are suspected of embezzling 6.2 million euros ($6.7 million) in public funds paid by two regional governments to the organisation to stage sporting and other types of events.

Urdangarin is accused of using his royal connections to secure inflated contracts without competing bids and siphoning off some of the money into Aizoon, a firm he jointly ran with his wife Cristina to fund a lavish lifestyle.

Urdangarin and Cristina are suspected of using Aizoon for personal expenses including work on the couple's mansion in Barcelona, trips to South Africa's Kruger National Park, dance lessons and even Harry Potter books, which reduced the firm's taxable profits, according to court filings.

Cristina has been charged with tax evasion while her husband is accused of the more serious crimes of embezzlement, influence peddling, document falsification, money laundering and tax fraud.

If convicted Cristina -- who has denied wrongdoing -- faces a jail term of up to eight years. Urdangarin faces more than 19 years in prison.

During a preliminary hearing in February 2014 she told the court that she loved her husband and trusted him to manage their finances. She repeatedly answered "I don't know" to questions.

- New royal rules -

The corruption scandal and health woes prompted Cristina's father Juan Carlos -- who helped smooth Spain's transition to democracy in the 1970s after the Franco dictatorship -- to abdicate in 2014 in favour of his son Felipe to try to revive the scandal-hit monarchy.

King Felipe VI swiftly adopted new rules banning members of the royal family from working for private firms and ordered palace accounts to be subject to an external audit.

Last year he stripped Cristina and her husband of their titles as Duke and Duchess of Palma, which Juan Carlos had given the couple when they had their glitzy wedding in 1997.

Torres, Urdangarin's former business partner, has insisted that Juan Carlos and his advisers monitored the Noos Institute's dealings closely and offered advice.

The royal palace supervised "what we did, they would say 'that's very good, that seems very well done, go ahead', and they would guide us," Torres said during an interview that aired on television channel La Sexta on Sunday night.

source: www.abs-cbnnews.com

Obama challenges Kenya on gay rights, corruption

NAIROBI, Kenya -- US President Barack Obama on Saturday called for gay rights in Africa during his landmark visit to Kenya, comparing homophobia to racial discrimination he had encountered in the United States.

In a joint press conference after talks with Kenyan President Uhuru Kenyatta, Obama also pushed a tough message on Kenyan corruption, the civil war in South Sudan, controversial elections in Burundi and the fight against Somalia's Al-Qaeda-affiliated Shebab militants.

Obama arrived in Kenya on Friday, his first visit as president to his father's birthplace and the first to the East African nation by a serving US leader.

"I've been consistent all across Africa on this. When you start treating people differently, because they're different, that's the path whereby freedoms begin to erode. And bad things happen," he said after talks with the Kenyan leader, in response to a question on gay rights.

"As an African-America in the United States I am painfully aware of what happens when people are treated differently under the law. I am unequivocal on this," Obama told a joint news conference, openly disagreeing with Kenyatta.

He said that the notion "a law-abiding citizen... will be treated differently or abused because of who they love is wrong, full stop."

Homophobia is on the rise in Africa, and espousing evangelical Christian values is a major vote winner in many countries. Kenyatta replied by repeating the view that gay rights were "a non-issue."

"There are some things that we must admit we don't share. It's very difficult for us to impose on people that which they themselves do not accept. This is why I say for Kenyans today the issue of gay rights is really a non-issue," Kenyatta said.

A presidential visit to Kenya had been delayed while Kenyatta faced charges of crimes against humanity for his role in post-election violence seven years ago. The International Criminal Court has since dropped the case, citing a lack of evidence and accusing Kenya of bribing or intimidating witnesses.

- 'Get tough on corruption' -

Kenyan Vice President William Ruto, whose ICC trial continues, is also vocally homophobic and recently described gays as "dirty". Obama nevertheless shook his hand on arrival at State House.

Obama also had firm words for Kenya on civil rights and corruption, describing endemic graft as "the single biggest impediment to Kenya growing even faster," and saying people were being "consistently sapped by corruption at a high level and at a low level."

Obama said there was a need for "visible prosecutions" to show citizens action was being taken.

"They don't have to be a forensic accountant to know what is going on," Obama said, giving the example of officials driving expensive cars or building houses far above what their salaries would allow.

The two leaders also pledged greater cooperation against Somalia's Shebab, who have also been at the top of the list of security concerns during the visit.

Nairobi has witnessed massive security operations involving at least 10,000 police officers, with parts of the usually traffic-clogged capital locked down until Obama's scheduled departure late Sunday for neighbouring Ethiopia.

Shebab fighters have staged a string of suicide attacks and bombings on Kenyan soil, including the April massacre at Garissa university, in which 148 people died, and the 2013 assault on the Westgate shopping mall in central Nairobi that killed 67.

"We have systematically reduced the territory that Al-Shebab controls. We have been able to decrease their effective control within Somalia and have weakened those networks operating here in East Africa. That doesn't mean the problem is solved," Obama said.

Earlier Obama laid a wreath at the memorial site of the former US embassy destroyed in an Al-Qaeda attack in 1998, standing in silence in memory of the 224 killed in the twin bombings in Nairobi and Tanzania.

He wrapped up the evening with a state dinner with Kenyatta, with the atmosphere lively and friendly.

- 'Africa on the move' -

Obama also called for an end to the 19-month-old civil war in South Sudan, urging the country's warring leaders to "put their country first." The conflict there is set to be high on the agenda for the next stage of his visit to Ethiopia, also the seat of the African Union.

This week's elections in the central African nation of Burundi, which delivered a controversial third term to President Pierre Nkurunziza, "weren't credible," Obama said.

Despite the areas of disagreement, the president said he was delighted to be back and praised Africa's entrepreneurship at a business summit earlier Saturday.

"It is wonderful to be back in Kenya," Obama said. "Obviously this is personal for me. My father came from these parts."

Barack Obama Sr was a pipe-smoking economist who the US leader has admitted he "never truly" knew. He walked out when Obama was just two and died in a car crash in Nairobi in 1982, aged 46. Obama still has extended family in western Kenya, who he dined with on Friday evening.

"I wanted to be here, because Africa is on the move, Africa is one of the fastest growing regions in the world," he said, drawing cheers and applause from delegates.

"People are being lifted out of poverty, incomes are up, the middle class is growing and young people like you are harnessing technology to change the way Africa is doing business."

He also vowed to return, sketching plans for philanthropic work once he leaves office.

"The next time I'm back, I may not be wearing a suit," he joked.

source: www.abs-cbnnews.com

Fil-Am INC members urged to air grievances

REDWOOD CITY, California – Some Filipino-American former members of Iglesia Ni Cristo (INC), an influential religious group in the Philippines, are asking other US-based INC members to make their grievances.

The church made headlines recently after a brother of the current leader of the INC alleged rampant corruption in the religious organization.

INC has over three million followers and its churches are spread in over 100 countries. There are at least 39 churches in the United States alone.

Balitang America has been contacted by US members of the INC who claim that they were excommunicated for speaking up about supposed anomalies in the church. Others said they voluntarily cut ties with the INC.

An alleged excommunicated INC member forwarded a message to Balitang America with a call for help from the international media to expose human rights violations reportedly happening in the church. This allegedly involves the kidnapping of 10 church ministers.

Balitang America is still to get in touch with the alleged ex-INC members.

Read more on Balitang America.

source: www.abs-cbnnews.com

LISTEN: Ex-INC member weeps, urges Manalo to talk to his mom

MANILA - A former Iglesia ni Cristo member wept and pleaded with INC leader Eduardo Manalo to speak with his mother, Cristina "Tenny" Manalo, widow of the late INC Executive Minister Eraño Manalo, after the INC expelled her from the church.

Speaking to radio DZMM, former Gem Net administrative coordinator Joy Yuson made an impassioned plea for the INC leader to speak to his own mother.

"Kausapin niyo po ang inyong ina na anim na taon na niyong hindi kinakausap. May sakit, hindi niyo ipinapagamot. Ninanakaw ang abuloy ng Iglesia, sariling ina hindi niyo ipinapagamot. Napakarami na pong ministrong namamatay ng walang sariling gamot. Ninanakaw ang abuloy ng Iglesia. Ayusin niyo po ito, kayo lang po ang makapag-aayos," he said.

He also urged Manalo to remove INC auditor general Jun Santos and the other members of the Sanggunian for alleged corruption.

He accused Santos of withdrawing INC funds from various bank accounts and channeling these to the Felix Y. Manalo Foundation.

The INC leadership earlier expelled Tenny Manalo and Angel Manalo, younger brother of the INC leader, for making a YouTube video that said Angel's family was receiving threats and is in danger.

The expulsion of Angel and Tenny means they can no longer attend worship services of the church. The expulsion of the Manalo matriarch and son comes days before the INC celebrates the 101st year of its founding.

INC General Evangelist Bienvenido Santiago said the Manalo matriarch and son were trying to gain sympathy so they could interfere in the leadership of the church. He denied the threats as well as reports of alleged abductions of INC ministers.

In a separate interview, INC spokesperson Edwill Zabala said Yuson must show proof of his allegations of corruption inside the church.

"There must be proof given. Madali pong umiyak. Madali pong habang umiiyak, sabihin: 'tanggalin si ganito, tanggalin si ganoon.' Pero since he claims na naniniwala pa rin siya sa sinasabi sa bibliya, I would like to simply remind him and anyone else listening 1 Timothy 5:19 requires the church not to accept any accusation against an elder in the church except by the witness of two or three persons," he said.

He also dared Yuson to file a case and present his evidence in a court of law.

He said the church will present more evidence that will debunk Yuson's claims on Monday.

RADIO DZMM, July 24, 2015

source: www.abs-cbnnews.com

Brazil hands down first sentences against Petrobras scandal businessmen

BRAZIL - A Brazilian judge on Monday handed down the first sentences against businessmen caught up in a huge corruption scandal centered around state oil company Petrobras.

Judge Sergio Moro sentenced former Camargo Correa construction company CEO Dalton Avancini and another top former executive, Eduardo Leite, to 15 years and 10 months prison.

They had been found guilty on charges including corruption and money laundering linked to a sprawling bribes-and-kickbacks scheme at Petrobras and major Brazilian construction businesses.

Previously, Petrobras executives have been sentenced in the case, which has also seen prosecutors investigating dozens of high-profile business executives and politicians.

Both Avancini and Leite could see their sentences converted into house arrest in exchange for having cooperated as state's witnesses.

Camargo Correa chairman Joao Auler was sentenced to nine years and six months in prison for corruption. Camargo recorded a turnover of $8.15 billion in 2014.

source: www.abs-cbnnews.com