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

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

Malaysia's Najib pushes to outlaw 'fake news' before election

KUALA LUMPUR - Malaysian Prime Minister Najib Razak's scandal-haunted government pushed plans for legislation outlawing "fake news" on Monday as parliament convened for the last time before an election due by August.

During the coming election campaign, Najib's foes are expected to fan suspicions of corruption over billions of dollars that have gone missing from 1Malaysia Development Berhad (1MDB), the state fund founded by the prime minister, and whose advisory board he had chaired until mid-2016.

Malaysia's King, Sultan Muhammad V, told parliament at the opening sitting on Monday that he "greatly supported" the government's efforts to introduce a law to deal with "the spread of fake news and lies on social media".

"Currently social media is very influential in forming the values and culture of a society," the King said in a traditional royal address at the opening of parliament.

The final draft of the bill is expected to be presented for cabinet approval "in a couple of weeks time" before being tabled in parliament, state rub Bernama news agency quoted Azalina Othman Said, the minister in charge of law and parliament, as saying.

However, Azalina said cabinet will consider if there would be enough time to table the bill in the month-long parliamentary meeting, which would predominantly debate the King's address.

First exposed in 2015 by foreign media and news blogs, the 1MDB scandal has refused to die down despite Najib's consistent denials of any wrongdoing and his government's firm grip on the mainstream media in the country.

At least 6 countries are investigating transactions related to 1MDB, including the United States, where the Department of Justice has mounted its biggest investigation under an anti-kleptocracy initiative, and has launched civil cases to recover assets linked to the fund.

But the government has cowed independent media inside the country. In the early stages of the 1MDB saga, the authorities suspended one newspaper, The Edge, and blocked other websites for publishing stories critical of Najib's role, including widely read local news website The Malaysian Insider, which was later closed due to lack of funds.

Governments elsewhere in Southeast Asia, including Singapore and the Philippines, have proposed laws aimed at clamping down on the spread of 'fake news', while media rights advocates have decried the trend in the region.

Opposition lawmakers questioned the need for such a law in Malaysia, arguing that the government already had broad powers.

"There are many other laws that are already in existence which can deal with these issues, so the only reason for a new law to come in is to make the severity (of punishments) even higher," said Tony Pua, a member of parliament from the Democratic Action Party (DAP).

Abdul Rahman Dahlan, minister in charge of economic planning, said the bill could be broad enough to cover anything that could potentially damage the country.

"Even spreading (bad) news about the economy is bad. (Fake news would be) anything that is not substantive, and dangerous to the economy and security of the nation," Abdul Rahman told Reuters outside parliament. 

source: news.abs-cbn.com

Saudi King Salman embraces 'selfie' on tour across Asia

JAKARTA - Saudi Arabia's King Salman has embraced the "selfie", taking part in a number of light-hearted self-shot pictures and videos during his tour of Asia that contrast with the pomp and formality of most of the octogenarian monarch's trips abroad.

In the first days of a lengthy regional tour, the king has appeared with top-ranking officials in Indonesia and Malaysia in pictures and clips that have been shared online millions of times.

Indonesian President Joko Widodo shared on Facebook a video of himself dining with the king at the presidential palace in Bogor, near the capital Jakarta.

In the video, both men comment on the visit, the first to Indonesia by a Saudi king in nearly five decades, and give viewers a rare peek into a state event.

As Widodo holds what appears to be a phone camera, the king is seen dining on soup and using gold-colored cutlery before commenting in Arabic on his 12-day visit to Indonesia, the longest leg of his month-long tour of Asia.

"I'm very happy to be here in Indonesia and with the Indonesian people," King Salman says to the camera, as an interpreter sitting behind him translates into Bahasa Indonesia.

The king was also photographed posing for a selfie with former president Megawati Sukarnoputri and her daughter Puan Maharani, who is a member of Widodo's cabinet.

Indonesia has a high concentration of Facebook and Twitter users, and selfies are a mainstay of social media in the world's fourth most populous country.

Earlier this week, Salman was seen in a selfie posted on Twitter with Prime Minister Najib Razak of Malaysia, during the first stop on his sweep across Asia.

Though rare, Salman has made occasional appearances on social media before, including when he posed last year for a selfie in Qatar with a teen who survived cancer.

The king is travelling with an entourage of several hundred people and nearly 500 tonnes of luggage, including two gold-coloured escalators.

After Jakarta, the delegation is set to take a break in the resort island of Bali, where up to four hotels and 300 luxury cars have been booked for more than a week, according to local police and a tour agency association.

Salman is also set to visit Brunei, China, Japan, the Maldives and Jordan.

source: news.abs-cbn.com

More than $1-B transferred into Malaysia PM's accounts: WSJ

KUALA LUMPUR - Deposits into Malaysian Prime Minister Najib Razak's bank accounts ran to hundreds of millions of dollars more than previously identified by probes into state fund 1Malaysia Development Berhad, the Wall Street Journal reported on Monday.

Citing two unnamed people familiar with flows into Najib's accounts and a person familiar with one overseas investigation, the report said that more than $1 billion was deposited from 2011 to 2013, far more than the $681 million earlier identified.

The paper said global investigators believe much of the $1 billion originated with the state fund, known as 1MDB, but did not specify where the extra money came from or what happened to it.

The report contradicts a conclusion reached recently by Malaysia's chief law officer.

Attorney-General Mohamed Apandi Ali cleared Najib in January of any corruption or criminal offences, saying the $681 million transferred into Najib's account was a gift from a member of Saudi Arabia's royal family and that most of it was returned.

A government spokesman said Malaysian authorities had gone to Saudi Arabia to "examine documentation" and interviewed members of the royal family and officials who handled the donations.

"As stated by the attorney-general of Malaysia, the funds received were a donation from Saudi Arabia," the spokesman said in a statement in response to the latest report.

Najib has been buffeted for months by allegations of graft and financial mismanagement at debt-burdened 1MDB and in particular by revelations of the transfer of around $681 million into his account in 2013.

He has denied wrongdoing, saying the funds were a legal political donation and he did not take any money for personal gain.

The Wall Street Journal report said money beyond the $681 million arrived in Najib's account in 2011 and 2012.

It said investigators in two countries believed funds originated from 1MDB and moved through a complex web of transactions. Najib is chairman of the board of advisors to IMDB, a fund set up in 2009, when he came to office, to invest in projects of national importance.

In response to the WSJ report, 1MDB said it has consistently maintained that it has not paid any funds to the personal accounts of the Prime Minister.

"This has been reiterated by multiple lawful authorities including the Malaysian Anti-Corruption Commission, the Malaysian Attorney General, and various reputable international publications, who have confirmed that these funds came from Saudi Arabia," it said in an email response.

Probes into the fund's finances have been opened in Malaysia, the United States, Switzerland, Hong Kong, Singapore and Abu Dhabi, the Wall Street Journal said. (Reporting by Rozanna Latiff; Editing by John Chalmers and Alex Richardson)

source: www.abs-cbnnews.com

Malaysia's jet crash announcement draws criticism

KUALA LUMPUR - Malaysia drew criticism at home and abroad on Tuesday for announcing that a missing passenger jet with 239 people aboard had been lost at sea, even before any wreckage was found.

The country's flag carrier also received ire for informing some relatives of the plane's loss by text message, although it insisted this had been a "last resort".

A sombre Prime Minister Najib Razak said Monday that Malaysia Airlines Flight MH370, which vanished more than two weeks ago, had "ended in the southern Indian Ocean".

He cited fresh analysis of satellite tracking data and said the information was being shared "out of a commitment to openness and respect for the families".

Malaysian authorities have come in for repeated criticism for perceived secretiveness and contradictory information since the plane fell off air traffic control screens on March 8 on a flight from Kuala Lumpur to Beijing.

Najib's announcement drew further criticism.

Scores of Chinese relatives marched on Malaysia's embassy in Beijing on Tuesday, shouting slogans including "The Malaysian government are murderers".

And China's government demanded authorities in Kuala Lumpur hand over the new satellite data.

Malaysia Airlines insisted that it was doing best to handle relatives with care and dignity, and had tried to spread Najib's message with tact before the prime minister spoke.

"Wherever humanly possible, we did so in person with the families or by telephone, using SMS only as an additional means of ensuring fully that the nearly 1,000 family members heard the news from us and not from the media," said airline chief executive officer Ahmad Jauhari Yahya.

The carrier added that it had deployed more than 700 "dedicated caregivers" to support the next-of-kin, who have been given hotel accommodation as well as initial financial assistance of $5,000 per passenger with more on the way.

"Our sole motivation last night... was that the families heard the tragic news before the world did," Ahmad Jauhari said at a news conference, which featured pointed questioning from Chinese journalists.

"There are no words which can ease that pain."

- 'Damned' either way -

Bridget Welsh, an expert on Malaysian politics at the Singapore Management University, said the authorities' intentions were good but the means of breaking the news could have been improved.

"The use of SMS messages even for additional communication could have been rethought. I imagine every time a person looks at their phone they will be reminded of their loss," she told AFP.

Paul Yap, an aviation lecturer at Temasek Polytechnic in Singapore, said Najib should have delayed his announcement until debris confirmed as coming from the plane had been found.

Online criticism abounded, together with messages of condolences for the victims -- two-thirds of them from China.

"How can Malaysian government declare flight 'ended' in Indian Ocean but with no physical evidence?? #MH370 #dontbelieveit," one user posted.

"Malaysian airlines and government concealed and delayed information then tells news of dead relatives by text. #disgusting #MH370," another said.

The Malaysian government, which has held daily press briefings, has insisted it is passing on information as promptly as it can.

"The government has never stopped information from reaching the families," Najib said in parliament on Tuesday, adding it was his "responsibility" to keep them updated.

Gerry Soejatman, an independent aviation consultant based in Jakarta, said Najib's announcement marked a "sad day, but at the end of it, we have to be realistic".

"It was the right thing to do to go ahead and announce, but I understand the frustration of the people. Sadly, the Malaysian government is in a 'damned if you do, damned if you don't' kind of situation," Soejatman said.

"They were criticised for waiting for verification because it meant delays in disseminating information, and now they are being criticised for releasing information as soon as they can."

source: www.abs-cbnnews.com

Malaysia seeks hotline with Philippines on Sabah

MANILA, Philippines - Malaysia wants to establish a “hotline” between its security forces and that of the Philippines to prevent a repeat of the standoff in Lahad Datu, Sabah last year between over 200 Filipino militants and Malaysian troops.

The Filipino militants, who called themselves the royal security forces of the sultanate of Sulu and North Borneo, went to Lahad Datu to assert the Philippines’ territorial claim to eastern Sabah.

Scores of people were hurt when Malaysian authorities cracked down on undocumented aliens following the standoff.

While President Aquino did not want to raise the Philippines’ claim to Sabah during his two-day state visit to Kuala Lumpur last week, Prime Minister Abdul Najib Razak brought up the topic in a meeting at the latter’s office in Putrajaya Friday.

“We are looking at the possibility of establishing a hotline between our security forces in the event of any incident,” Najib told Filipino and Malaysian journalists Friday. “We need to ensure immediate interdiction on our Malaysian side as well as the Philippine side, so that is a very important facet.”

Najib said police and security officials from both countries should exchange information to enhance security matters.

He said once there is peace and security, trade and investment will flow in southern Philippines as well as in Sabah.

Sabah is an island strip that Manila previously claimed as its own, but is disputed by Malaysia. Muslims, led by the late Sulu sultan Jamalul Kiram III, have claimed ownership of the island, but until now, the government is still weighing its options.

For his part, Aquino was thankful that the Malaysian government did not send home the hundreds of thousands of Filipinos there which could have worsened the country’s unemployment problem.

“We are thankful that they were very conscious about the possible negative effects if they sent all the Filipinos back home at the same time,” Aquino told Filipino reporters.

He admitted that the Sabah issue was raised, but said Manila wants to be sure about its claim on the island.

“We want to be able to tell our people the real score, and in that sense, come up with a consensus based on what is right. If you ask me exactly what the longitude and the latitude of the territory, I didn’t memorize that, I’m sorry. That has to be again verified by historians, by lawyers,” Aquino said, explaining the government’s inaction on the matter.

The Malaysian government wants the Philippines to set up a consulate in Kota Kinabalu – the capital of Sabah – but Aquino said the Department of Foreign Affairs is “re-examining” the territorial and diplomatic issue.

Several sectors have expressed opposition to the idea, saying it would mean that the Philippines had given up its claim over the disputed territory since consulates are established only in foreign countries.

source: www.abs-cbnnews.com

Malaysia to take all-out action vs Sabah 'intruders' - report

An all-out action will be taken against the supporters of the Sultanate of Sulu occupying part of Sabah following a shootout on Friday that left 14 people dead, Malaysia's The Star reported.

Malaysian Prime Minister Najib Razak announced he has already given orders to the police chief to "take whatever action is deemed necessary" as the deadline for the Filipinos to leave has already transpired.

"They have been given full powers. It is up to them and the ground commanders can take action," Najib said in a press conference.

"There will be no compromise; either they surrender or face the consequences," he continued.

In a separate

report

, Najib said he had spoken to President Benigno Aquino III Friday night regarding the matter.


He said the window for negotiations is already closed, given the hostile stand taken by the Sulu Royal Army.

On Friday, tensions at the coveted Sabah led to a shootout that left two Malaysian police and 12 Filipinos dead, Malaysian officials reported. The spokesperson of the Sultanate of Sulu, however, claimed only 10 of their men died in the bloody encounter.

Najib has expressed sadness amid the deaths of Malaysian police and said security in the area has been tightened.

He also stressed the supporters of the Sultanate of Sulu have already been surrounded with navy vessels also patrolling the area to prevent them from escaping.

"What is important now is that whatever means must be used to cripple the group," Najib said.

'Drastic action'

Malaysian Police also said the remaining members of the Royal Army of Sulu holed up in Kampung Tanduo, Lahad Datu town must surrender or risk facing "drastic action."

Inspector General of Police Tan Sri Ismail Omar said the group, led by the brother of Sulu Sultan Jamalul Kiram III, must immediately lay down their arms and surrender.

''We have no other options but to take the necessary action to detain them,'' he said in a report in the Malaysian news portal The Star.

He added that the sultanate's followers are now "trapped" since the police are in complete control of the situation.

"The intruders have been cordoned off in Kampung Tanduo by the security forces... The group is trapped in Kampung Tanduo," Ismail said in a report by state news agency

Bernama
.
"I again ask them to lay down arms and surrender. Otherwise, I will have to resort to drastic and necessary measures to end the situation," he added.

Omar also said that those who surrender would face action under Malaysian law, noting that they have committed a

serious offense
.

Meanwhile, Minister Datuk Seri Hishamuddin Tun Hussein said he would be staying in Sabah until the standoff is resolved.

Malaysian officials claim 12 members of the armed group were killed in a shootout with the police commandos Friday morning. The spokesman of the Kirams, however, claim only 10 died in the encounter while four others were wounded.

Two police commandos were also killed and three others injured in the firefight.

source: abs-cbnnews.com