Singapore to hang mentally disabled man next week, says family

SINGAPORE—A mentally disabled Malaysian man will be hanged in Singapore next week after losing a last-ditch appeal, his sister said Wednesday, despite an international outcry about his case. 

Nagaenthran K. Dharmalingam was arrested in 2009 for trafficking a small amount of heroin into the city-state, which has some of the world's toughest drugs laws, and handed a death sentence the following year.

But the plan to hang him sparked widespread criticism due to concerns about his intellectual disabilities, with the European Union and British billionaire Richard Branson among those condemning it.

After a years-long legal battle, the 34-year-old lost his final appeal last month, when judges rejected arguments that executing a man with mental disabilities contravenes international law.

His family has now been informed he will be executed on Wednesday next week, his sister Sarmila Dharmalingam told AFP. 

Family members, including his mother and three siblings, will travel to the city-state to see him beforehand, she said.

M. Ravi, a Singapore-based human rights lawyer assisting in the case, said the news of Nagaenthran's looming execution was "heartbreaking".

"The Singapore state will never be able to recover from the disgrace it's going to face internationally in hanging an intellectually disabled person," he said in a social media post.

Last month, the city-state conducted its first execution since 2019 when it hanged a drug trafficker, and fears are growing that several more people will be put to death in the coming months. 

As well as Nagaenthran, three other men convicted of drugs offenses have had their final appeals rejected. 

Nagaenthran was arrested at the age of 21 after a bundle of heroin weighing about 43 grams (one and a half ounces) -- equivalent to about three tablespoons -- was found strapped to his thigh as he sought to enter Singapore.

Supporters say he has an IQ of 69 -- a level recognized as a disability -- and was coerced into committing the crime.

Singapore maintains the death penalty for several offenses, including drug trafficking and murder, and insists it has helped to keep the city-state one of Asia's safest places.

Agence France-Presse

Ready for Chinese New Year

People look at Lunar New Year decorations at Fo Guang Shan Dong Zen Buddhist Temple in Jenjarom, Malaysia on Friday. Malaysia has eased COVID-19 restrictions for this year's celebrations with lion and dragon dances allowed subject to safety measures. 

-reuters-

Facial and music spa for melons

A farmer polishes a Japanese muskmelon with facial pads at Mono Farm in Putrajaya, Malaysia in this picure taken April 8, 2021. A trio of Malaysian farmers are applying the right concoction of nutrients and treatments to successfully grow Japanese muskmelons, one of the world's most expensive fruits. 

The farmers regularly rub the melons with a soft cloth or glove, a practice called "tama-fuki" said to enhance their flavor, and play classical music over speakers in the greenhouses, which is believed to stimulate growth. 

-reuters-

Malaysia to start COVID-19 vaccination drive early as first doses arrive

KUALA LUMPUR - Malaysia moved up its COVID-19 inoculation drive by two days as the first batch of vaccines arrived in the Southeast Asian nation on Sunday.

Malaysia aims to vaccinate at least 80% of its 32 million people within a year as it pushes to revive an economy that, slammed by coronavirus-related curbs, recorded its worst slump in over two decades in 2020.

It has imposed more lockdowns this year amid a fresh wave of coronavirus infections. The country has recorded 280,272 cases and 1,051 deaths.

A total of 312,390 doses of the Pfizer-BioNTech vaccine were delivered to Malaysia on Sunday morning, with more expected in coming weeks.

"The second delivery will be made on Feb. 26, and we will continue to receive (Pfizer) deliveries every two weeks until it is completed," Science Minister Khairy Jamaluddin said in a virtual news conference.

Malaysia has secured 32 million doses from Pfizer and BioNTech.

Vaccine doses from China's Sinovac Biotech are scheduled to be delivered in bulk on Feb. 27, pending approval from local regulators, Khairy said.

The national vaccine rollout will begin Wednesday, earlier than initially scheduled, with Prime Minister Muhyiddin Yassin and Health Ministry Director General Noor Hisham Abdullah set to receive the first doses, Khairy said.

-reuters-

Malaysian e-commerce startup iPrice gets $10-M from Asian investors

HANOI - Malaysian e-commerce aggregator iPrice Group Sdn. Bhd. has raised $10 million from four investors in a fundraising round led by Japan's ACA Investments Pte. Ltd. based in Singapore, aiming at becoming the largest online shopping platform in Southeast Asia.

The investment round, aimed at the Malaysian startup's business expansion, was joined by its existing investors, Korean Mirae Asset-Naver Asia Growth Fund and Line Ventures Corp., as well as ACA Investments, a Daiwa Securities Group Inc. affiliate, and Daiwa PI Partners Co., according to an iPrice statement released on Monday.

Daiwa PI Partners contributed $3 million, said its statement released the same day.

The Kuala Lumpur-based firm hopes to become the largest price comparison platform for online shopping in Southeast Asia and plans to reach out to more customers in partnership with communication tool app provider Line and others, said the iPrice statement.

iPrice has expanded its online platform to seven countries and regions, namely Malaysia, Singapore, Indonesia, Thailand, the Philippines, Vietnam and Hong Kong, after its establishment in 2014.

It saw five million deals struck in 2019, recording more than 20 million page views monthly. (NNA/Kyodo)

PepsiCo adopts stricter, greener rules for palm oil in products

KUALA LUMPUR - US food and drink giant PepsiCo Inc said on Tuesday it would introduce stricter rules for the palm oil used in its goods - including a retrospective ban on working with firms linked to deforestation - and enforce them for its business partners.

In a first for the consumer goods industry, the tighter policies would apply to companies in joint ventures with PepsiCo like Indonesian food maker Indofood, forest experts said.

Palm oil is the world's most widely used edible oil, found in everything from margarine to breakfast cereals and soap.

But its production has faced scrutiny in recent years from green activists and consumers who have blamed it for forest loss, fires and worker exploitation.

Under PepsiCo's new policy, the major international buyer of palm oil has strengthened its commitments to protect, restore and monitor forests and peatlands.

It has pledged not to purchase palm oil from any direct or indirect supplier involved in deforestation over the last four years.

The multinational will also launch initiatives to stop human rights abuses among plantation workers on the ground.

A 2019 investigation by green group Rainforest Action Network (RAN) revealed palm oil from an illegal plantation in an Indonesian rainforest home to endangered orangutans had found its way into the supply chains of major brands including PepsiCo.

Besides nurturing biodiversity, forests are regarded as key to efforts to curb climate change as they store planet-warming carbon.

RAN, which has highlighted issues with palm oil sourcing by major snack food companies since 2013, was involved in shaping PepsiCo's new policy.

While other consumer goods firms have applied similar pledges to their palm oil suppliers, PepsiCo is the first major brand to extend the policy to its business partners and all other firms in its partners' groups, said Robin Averbeck, RAN's agribusiness campaign director.

This means any company that makes PepsiCo products using palm oil, as well as plantation firms in the same group -anywhere in the world - must also comply, she said.

PepsiCo's new policy positions it as a "front-runner in the industry", said Averbeck.

PepsiCo said in an emailed statement its goal was to ensure that "all our palm oil is free from deforestation, new development on peatlands, and exploitation of people".

"These updates to our policy and approach reflect our ongoing determination to have a positive impact through additional actions that contribute to a sustainable palm oil system by working with peers, suppliers, civil society and others," it added.

Indofood did not respond to requests for comment.

After becoming a target of high-profile campaigns against tropical forest loss, global household brands that buy and use palm oil agreed in 2010 to ensure their supplies did not contribute to deforestation within a decade.

But backers of the non-binding commitment, which include PepsiCo, have struggled to meet it, as it left implementation to individual companies and lacked a clear reporting process, said a consumer goods body grouping those firms.

Brands and major buyers have also been criticized by industry officials and environmental activists for not buying larger amounts of palm oil certified as green and ethical.

PepsiCo's stipulation that its palm oil suppliers and business partners should have no link to deforestation since the end of 2015 could be retrospectively checked through satellite monitoring, Averbeck said.

She urged PepsiCo to disclose publicly all grievances linked to its agricultural supply chain, adding that the roll-out of the new rules should be verified independently.

"If they are implemented and it brings other actors along with them, it could have an enormous impact on the industry," she told the Thomson Reuters Foundation. 

(Reporting by Michael Taylor @MickSTaylor; Editing by Megan Rowling. Thomson Reuters Foundation)

American from Cambodia cruise ship tests positive for COVID-19

KUALA LUMPUR/SIHANOUKVILLE, Cambodia - An 83-year-old American passenger from a cruise ship that docked in Cambodia after being shunned by other countries has tested positive for the new coronavirus after being tested in Malaysia, health authorities said on Saturday.

The woman was the first passenger from the MS Westerdam, operated by Carnival Corp unit Holland America Inc, to test positive for the virus.

The ship docked in the Cambodian port of Sihanoukville on Thursday carrying 1,455 passengers and 802 crew. It had spent two weeks at sea after being turned away by Japan, Taiwan, Guam, the Philippines and Thailand.

The passengers were tested regularly on board and Cambodia also tested 20 once it docked. None was found to have the new coronavirus that has killed more than 1,500 people, the vast majority in China.

The American woman flew to Malaysia on Friday from Cambodia along with 144 others from the ship, the Malaysian health ministry said in a statement, adding that she was in stable condition.

The woman's husband had shown symptoms but tested negative, it said. The couple were the only ones of the 145 to show symptoms, the ministry said.

A spokesman for Holland America declined to comment.

Fewer than 300 people were still on board the Westerdam, according to a company official, who declined to be identified as he was not authorized to speak to the media.

Company officials have said passengers had been routed through Phnom Penh and Kuala Lumpur to fly back to their home countries, but they have not said that all passengers had taken that route.

Or Vandine, Secretary of State at Cambodia's Health Ministry, declined to comment.

U.S. President Donald Trump has thanked Cambodia for taking in the ship in a rare message to a country that is one of China's closest allies and has often been at odds with Washington.

Cruise ships around Asia face widespread fears they may be spreading the virus. The biggest cluster outside China has been on the Diamond Princess, quarantined off Japan's Yokohama. Out of about 3,700 passengers and crew on board, 285 people have tested positive and have been sent to hospital.

Vietnam turned back two ships on Friday.

The American woman's case brings the total number of confirmed coronavirus cases in Malaysia to 22.

An 80-year-old Chinese tourist infected with the coronavirus has died in France, the first fatality in Europe and the fourth outside mainland China.

Most of the deaths so far have been in the central Chinese province of Hubei, where the virus is believed to have originated at a wildlife market.

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‘Not true’: Coronavirus won’t turn you into ‘zombies’, says Malaysian gov’t

The deadly coronavirus will not cause victims to act like zombies, Malaysia's government said on social media, as officials act to correct the spread of misinformation surrounding the outbreak.

As medical authorities seek to contain the virus, some social media users in Malaysia made a connection between the disease and the walking dead.

Malaysia's health ministry dismissed the rumor in a tweet, however, saying: "The claim that individuals infected with this virus will behave like zombies is not true... Patients can recover."

A number of posts in Malaysia on social media have wrongly claimed the number of deaths or infected people in the country.

Police have arrested six people for spreading misinformation about the virus, a Malaysian Communications and Multimedia statement said.

In the latest arrest, last Thursday, a 28-year-old woman was investigated for "improper use of network facilities".

If convicted, she can be fined up to 50,000 ringgit or be jailed for a year, or both.

The virus has killed more than 300 people in China and infected thousands. Eight people in Malaysia have been found with the virus -- all Chinese nationals.

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Malaysia confirms 3 new cases of 2019-nCov infection, now at 7

KUALA LUMPUR - Malaysia's Health Ministry said on Wednesday three more people had been infected with the new coronavirus, taking the total to seven, all of whom are Chinese citizens.

The new cases involve a 4-year-old girl, a 52-year-old man and the mother of two children confirmed infected earlier, the ministry said in a statement.

Authorities said the mother had initially tested negative and had stayed in Malaysia to take care of her children - grandsons of a 66-year-old man who tested positive in Singapore for the coronavirus last week.

Malaysia this week imposed a temporary ban on Chinese nationals arriving from Wuhan, the epicenter of the outbreak, and surrounding Hubei province. The country said on Wednesday it was in talks with China to evacuate its 78 citizens from Wuhan.

Separately, Malaysia's communications regulator said it has detained a person accused of spreading fake news on the coronavirus.

The person was arrested over a Facebook post that contained false information on the outbreak, the Malaysian Communications and Multimedia Commission said. 

As of Wednesday, the 2019 novel coronavirus, which originated from Wuhan, China, has killed at least 132 people and infected some 6,000. 

Confirmed cases of the virus have been reported in several countries, including parts of Asia, Europe and North America. 

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Malaysian PM says Hong Kong leader Carrie Lam should quit

KUALA LUMPUR - Malaysia's prime minister said Friday Hong Kong's embattled leader should resign over the city's increasingly violent pro-democracy protests and warned China would take "harsh action" to end the demonstrations.

Hong Kong has been rocked by unprecedented protests for nearly four months, with millions taking to the streets angered by what they see as Beijing's authoritarian rule of the semi-autonomous city.

Malaysian Prime Minister Mahathir Mohamad -- who at 94 is the world's oldest leader -- said Hong Kong leader Carrie Lam "is in a dilemma".

"She has to obey the masters, at the same time she has to ask her conscience," he told a press conference.

"Her conscience says that the people of Hong Kong are right in rejecting the (extradition) law.

"But on the other hand, she knows the consequence of rejecting the law."

The protests were sparked by opposition to a now-scrapped law that would have allowed extraditions to mainland China but have morphed into a wider movement calling for democratic freedoms.

"For the administrator (Lam), I think (the) best thing is to resign," Mahathir added.

Referring to the bloody 1989 Tiananmen Square crackdown in Beijing, Mahathir said eventually China sent the military in and "took action, harsh action to put an end to the demonstration.

"I think in the end, that is what China will do (in Hong Kong)."

On Friday, thousands of masked protesters took to the streets of Hong Kong again as the government readied to use emergency powers to ban face coverings in a bid to end the demonstrations.

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Malaysia threatens ride-hailing firm Grab with $21-million fine

KUALA LUMPUR - Malaysia's competition watchdog on Thursday threatened to hit Grab with a $21-million fine for practices that allegedly reduce competition, the latest problem for the ride-hailing giant.

Grab is the biggest ride-hailing firm in Southeast Asia, and has strengthened its hold on the market since buying US rival Uber's operations in the region last year. 

But the Singapore-headquartered firm has come under scrutiny from regulators in several countries due to concerns about its dominant position. 

The Malaysia Competition Commission proposed fining Grab almost 87 million ringgit ($21 million) for preventing its drivers from providing advertising services for the company's competitors.

This had the effect of "distorting competition" by creating barriers to Grab's rivals, it said.

"It is important that barriers to entry for new players remain low, and for existing players to have the ability to grow and compete on merits to ensure that competition can remain healthy," said Iskandar Ismail, the watchdog's chief executive.

In addition, a daily penalty of 15,000 ringgit will be imposed should Grab fail to take action to address the competition concerns.

Grab has 30 days to respond to the watchdog, after which a final decision will be made.

The company said they had complied fully with competition laws and were "surprised" by the proposed fine.

"We believe that it is common practice for businesses to decide upon the availability and type of third-party advertising on their respective platforms," a Grab statement said.

Last year, Singapore fined Grab and Uber $9.5 million for breaking competition rules when they merged. 

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Debt-choked Malaysia dithers on $1-B train project with Singapore

KUALA LUMPUR - Malaysia and Singapore have agreed to delay by another month a decision on whether to go ahead with a billion-dollar train project connecting the city-state with Malaysia's southern state of Johor, Malaysia said on Sunday.

The countries agreed to extend the deadline to decide on the RTS Link project by a month to Oct. 31 without any additional cost, Malaysia's Ministry of Transport said in a statement.

Malaysia will have to pay Singapore abortive costs if the Rapid Transit System Link is not taken forward.

The two countries first suspended the transit system in May as Malaysia's new government - hit with 1.087 trillion ringgit ($259.7 billion) of debt and liabilities as of end-2017 - reassessed projects announced by the previous administration.

It successfully persuaded China to cut the cost of another train project by nearly a third to about $11 billion.

The RTS Link, due to have been completed in 2026, is designed to carry up to 10,000 passengers every hour in each direction, more than 30 times more than the existing train service can accommodate.

The Southeast Asian neighbors last year also suspended a high-speed rail project linking Singapore to the Malaysian capital Kuala Lumpur, which analysts estimated to cost around $17 billion.

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Indonesian haze shuts down schools, sparks fears for Singapore F1

LUMPUR - Toxic haze from Indonesian forest fires closed thousands of schools across the country and in neighboring Malaysia Wednesday, while air quality worsened in Singapore just days before the city's Formula One motor race.

Illegal fires to clear land for agriculture are blazing out of control on Sumatra and Borneo islands, with Jakarta deploying thousands of security forces and water-bombing aircraft to tackle them. 

The Indonesian blazes are an annual problem, but this year's are the worst since 2015 and have added to concerns about wildfire outbreaks worldwide exacerbating global warming.

On Wednesday, air quality deteriorated to "very unhealthy" levels on an official index in many parts of peninsular Malaysia, to the east of Sumatra, with the Kuala Lumpur skyline shrouded by dense smog. 

Nearly 1,500 schools were closed across Malaysia due to the air pollution, with over 1 million pupils affected, according to the education ministry.

The two worst-affected states were Selangor, outside Kuala Lumpur, where 538 schools were closed, and Sarawak on Borneo, with 337 closures. Hundreds of schools in several other states in peninsular Malaysia were also affected. 

Borneo island is divided between Indonesia, Malaysia and Brunei. 

A growing number of Malaysians were suffering health problems due to the haze, with authorities saying there had been a sharp increase in outpatients at government hospitals -- many suffering dry and itchy eyes.

Indonesian authorities said hundreds of schools in hard-hit Riau province on Sumatra were shut, without providing a precise number, while about 1,300 were closed in Central Kalimantan province on Borneo. 

Poor visibility also caused the cancellation Tuesday of about 40 flights at three airports in Indonesian Borneo. 

SINGAPORE SMOG RACE? 

Air quality in Singapore worsened to unhealthy levels and a white smog obscured the striking waterfront skyline, featuring the Marina Bay Sands casino resort with its 3 towers and boat-shaped top level. 

The worsening pollution increased fears that this weekend's Formula One race may be affected. Organizers say the possibility of haze is one of the issues in their contingency plan for Sunday's showpiece night race, but have not given further details.

The city-state's tourism board said spectators would be able to buy masks as protection from the haze if conditions would not improve.

Assistance would also be provided on-site for spectators who feel unwell, the board's executive director of sports, Jean Ng, told the Today news portal.

"Various Singapore government agencies have been working closely with (the) race organizer... to ensure the delivery of the best race and entertainment experience possible while keeping a watchful eye on the health and well-being of everyone involved," she said.

The Indonesian government has insisted it is doing all it can to fight the fires, with President Joko Widodo saying during a visit to a hard-hit area on Sumatra on Tuesday that "we have made every effort."

But this year's fires have been worsened by dry weather and experts believe there is little chance of them being extinguished until the onset of the rainy season in October.

Indonesia's meteorology, climate and geophysics agency said Wednesday that over 1,000 hotspots -- areas of intense heat detected by satellite that indicate a likely fire -- had been sighted, most of them on Sumatra. 

The smog is also affecting endangered orangutans on Borneo, with dozens of the young apes at rescue centers contracting respiratory infections, according to the Borneo Orangutan Survival Foundation.

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Mahathir says Malaysia will use Huawei 'as much as possible'

TOKYO - Malaysia will continue using Huawei products "as much as possible," bucking a global trend prompted by security concerns and a US ban on the Chinese firm, the country's prime minister said Thursday.

Mahathir Mohamad, speaking at a conference in Tokyo, acknowledged the security concerns but said they would not deter Malaysia.

"Yes, there may be some spying. But what is there to spy (on) exactly in Malaysia? We are an open book," the 93-year-old said at the Future of Asia forum.

Mahathir said Huawei had access to research "far bigger than the whole of Malaysia's research equivalent."

"So we try to make use of their technology as much as possible."

"Everybody knows, if any country wants to invade Malaysia, they can walk through, and we will not resist because it's a waste of time," he added.

His comment came after a wave of controversy over the Chinese telecommunications firm, which has been hit by allegations of espionage and faces a US ban.

A number of countries have blocked Huawei from working on their mobile networks and companies have stepped back from the firm after the US ban, citing legal requirements.

The spat comes as the United States and China raise tariffs in tit-for-tat moves along with blistering rhetoric accusing each other of unfair trade practices.

Mahathir warned about the heated exchanges between Beijing and Washington, which come as the powers and their allies lock horns in the hotly contested South China Sea.

Mahathir said the United States and "the West" must accept that Asian nations now produce competitive products, and should not "threaten" business rivals.

"Yes, I understand Huawei has tremendous advance(s) over American technology even," he said.

"The US must compete with China. At times China will win, other times the US will win," he said.

He warned that the tense relations between the US and China might impact the situation in the South China Sea, where China claims sovereignty despite rival claims from other regional nations.

And he urged calm in the area, warning that small incidents could easily escalate into violence.

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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.

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Malaysia to sell 1MDB-linked luxury yacht for $126-M

KUALA LUMPUR - Malaysia will sell a superyacht allegedly bought with stolen funds from state fund 1MDB to casino operator Genting Malaysia Bhd for $126 million, in the first major asset sale by Kuala Lumpur to recover billions lost from the fund.

The superyacht Equanimity is among assets allegedly bought by fugitive financier Low Taek Jho and his associates with money taken from the fund, U.S. and Malaysian investigators have said.

Jho Low, as he is known, allegedly paid $250 million for the 300-ft (91-m) yacht, which has an interior clad in marble and gold leaf, a spa and sauna, a 20-metre swimming pool, a movie theatre and helipad.

Malaysia set a minimum price tag of $130 million when it put the yacht up for sale in October, but had struggled to find a buyer.

"Many offers were received...and a few were over $100 million," Attorney General Tommy Thomas said in a statement on Wednesday, adding that Genting would pay the $126 million by the end of April.

The government would save $4.4 million in agent's commission since it negotiated directly with Genting Malaysia, he added.

A spokesman for Low called the sale "a failed PR stunt", saying Malaysia had accepted a "bargain basement sale price".

In a statement, Genting said the acquisition would give it "a unique and competitive edge for its premium customers business." The purchase will not affect 2019 earnings, it said.

1MDB, founded by former prime minister Najib Razak, is being investigated by at least six countries for money laundering and corruption.

The U.S. Department of Justice has said about $4.5 billion siphoned from 1MDB was used by Low and his associates to buy the yacht, a private jet, as well as Picasso paintings, jewellery, and real estate.

Prime Minister Mahathir Mohamad, after his stunning victory in last year's election, has vowed to recover the money allegedly stolen from 1MDB.

Malaysian police have issued an arrest warrant and filed criminal charges against Low, but his whereabouts are unknown.

Low has repeatedly denied wrongdoing. 

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Goldman Sachs CEO apologizes to Malaysia over 1MDB

NEW YORK -- The head of Goldman Sachs on Wednesday apologized to Malaysia for a Goldman partner's role in the 1MDB scandal even as he defended the firm as a whole.

Goldman Chief Executive David Solomon reiterated during an earnings conference call that the investment bank was cooperating with authorities on the probe of the Malaysian sovereign wealth fund as he expressed regret over a scandal that has roiled the Asian country.

In November, the Justice Department announced that former Goldman partner Tim Leissner had pleaded guilty to violating US anti-bribery and money laundering laws and agreed to pay $43.7 million in restitution.

"It's very clear that the people of Malaysia were defrauded by many individuals including the highest members of the prior government," said. "Per Leissner's role in that fraud, we apologize for the Malaysian people."

But Solomon also defended the bank as a whole, saying it had been misled by Leissner and senior officials in the Malaysian government about the role of a key intermediary in the scandal, Low Taek Jho.

Goldman helped arrange $6.5 billion in bonds for 1MDB. Kuala Lampur has filed criminal charges against Goldman and two former employees for alleged theft.

A Justice Department indictment of Low Taek Jho and Ng Chong Hwa, another ex-Goldman banker, that identified Goldman as "Financial Institution #1" said the firm's business culture at times emphasized dealmaking "ahead of the proper operation of its compliance functions."

Solomon said employees at Goldman were "extremely angry" about Leissner's role but that morale was good on the whole due to the bank's strong financial performance. 

Goldman has suffered a "reputation dent" tied to the scandal, Solomon acknowledged, but added that the effect on clients had been "de minimus."

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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. 

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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

Anger as MH370 report offers no new clues to aviation's greatest mystery

PUTRAJAYA, Malaysia- A long-awaited official report into the disappearance of Flight MH370 gave no new clues Monday about why the Malaysian plane vanished, sparking anger and disappointment among relatives of those on board.

The report from the official investigation team pointed to failings by air traffic controllers and suggested the Malaysia Airlines plane was likely diverted from its flight path manually, rather than due to a mechanical fault. 

But it said the Boeing 777 jet, which vanished over four years ago as it flew from Kuala Lumpur to Beijing with 239 people on board, was airworthy and the pilots were in a fit state to fly.

After years of fruitless searching in the world's most enduring aviation mystery, the report offered nothing concrete to grieving relatives of passengers -- most of whom were Chinese -- and crew hoping for some sort of closure.

"The team is unable to determine the real cause for the disappearance of MH370," concluded the largely technical 400-page report.

Relatives who were briefed at the transport ministry before the report's public release expressed anger that there was nothing new in the document, with some storming out of the briefing as frustration boiled over. 

"It is so disappointing," said Intan Maizura Othman, whose husband was a steward on MH370. "I am frustrated. There is nothing new in the report.

"Those who gave the briefing from the ministry of transport were not able to give answers as they were not (the ones) who wrote the report."

She said the meeting between relatives and officials descended into a "shouting match" as family members' frustration boiled over. 

"Many asked questions," said G. Subramaniam, who lost a son on the flight, but added that "unsatisfactory responses left many angry".

LARGEST HUNT IN HISTORY

The disappearance of MH370 triggered the largest hunt in aviation history. But no sign of the jet was found in a 120,000-square kilometer (46,000-square mile) Indian Ocean search zone and the Australian-led hunt was suspended in January last year.

US exploration firm Ocean Infinity resumed the search in a different location at the start of this year on a "no find, no fee" basis, using high-tech drones to scour the seabed. But that search was also called off after failing to find anything.

Only three confirmed fragments of MH370 have been found, all of them on western Indian Ocean shores, including a two-meter wing part known as a flaperon.

Malaysia's new government, which took power in May, has said the hunt could be resumed but only if new evidence comes to light and officials have seemed keen to draw under a line the tragedy.

One area that came in for criticism in the report by the 19-member investigation team, which included foreign investigators, was air traffic control. 

It said both Malaysian air traffic control and their Vietnamese counterparts failed to act properly when the Boeing jet passed from Malaysian to Vietnamese airspace and disappeared from radars. 

Air traffic controllers did not initiate emergency procedures in a timely fashion, delaying the start of the search and rescue operation, it said.

However, it played down concerns about the pilot and first officer, saying neither appeared to have suffered difficulties in their personal lives that could have affected their ability to fly.

It also said the plane was airworthy and did not have major technical issues. This, however, meant that the plane's change of course "was likely made while the aircraft was under manual control and not the autopilot", the report said. 

Intervention by a third party could not be ruled out, it said, but also added there was no evidence to suggest the plane was flown by anyone other than the pilots.

The report also dismissed one conspiracy theory about the plane's disappearance -- that it was taken over remotely to foil a hijacking, saying there was no evidence to support this.

source: news.abs-cbn.com