20 questions 1MDB investigators should ask, says veteran journalist

Former journalist Datuk A. Kadir Jasin says elements of fraud, collusion, abuse of power, corruption, negligence and corporate breach of responsibility must be looked into. – The Malaysian Insider file pic, May 17, 2015.

With the auditor-general now scrutinising 1Malaysia Development Berhad's (1MDB) accounts and Public Accounts Committee (PAC) set to conduct an inquiry into the debt-laden company, Datuk A. Kadir Jasin had listed down 20 questions that the investigators should ask.

Writing in his blog, the veteran newsman said the Malaysian Anti-Corruption Commission (MACC) and police who were also supposed to investigate the state investment vehicle, should  ask the questions, too.

The questions started from 1MDB's predecessor, Terengganu Investment Authority (TIA) to the alleged involvement of several prominent personalities in the operations of the debt-laden 1MDB.

"Elements of fraud, collusion, abuse of power, corruption, negligence and corporate breach of responsibility are among the issues that should be uncovered by the investigators so that the guilty can be brought to justice and the money and national assets used on 1MDB can be recovered.

"The systemic effect of 1MDB's scandal must be blocked and restricted to protect the nation's economy," he said in his blog yesterday, adding that the investigators should also track down more people to find out how 1MDB's financial crisis can take place for so long and was only uncovered recently.

The former group editor-in-chief of New Straits Times started off by asking the role of Terengganu's oil royalties in TIA's business transactions when it was set up in 2008 and if it was true that a billion ringgit of oil royalty was banked into a local bank.

He said these two questions should be specifically asked of former Employees Provident Fund CEO Tan Sri Azlan Zainol, President and CEO of Sime Darby Tan Sri Mohd Bakke Salleh, 1MDB's chairman Tan Sri Lodin Wok Kamaruddin and Lembaga Tabung Haji CEO Tan Sri Ismee Ismail, as the quartet were founding directors of TIA.

Kadir also said the investigators should ask if it is true Bakke withdrew or was dropped from 1MDB's board of directors because he disagreed with the deal involving PetroSaudi.

"It is imperative that Bakke and other board of directors, namely Lodin and Ismee are asked about the existence of Jho Low as 1MDB's agent," he said in referring to businessman Low Taek Jho who has been linked to the company, despite the latter's repeated denials.

He said the question of 1MDB's power subsidiary Edra Global Energy Sdn Bhd should also be asked, noting that will 1MDB face a chronic cashflow problem and be unable to resolve its debts by September if Edra fails to go for an IPO.

Apart from that, Kadir also has three questions concerning tycoon T. Ananda Krishnan's alleged involvement in 1MDB.

"Is it true Ananda has given a RM2 billion loan to 1MDB to repay back its debts to Maybank and RHB Capital? Maybe Ananda was used to divert attention? Or was his name used to hide the fact that the RM2 billion actually came from either the Treasury or from other government sources?

"An investigation into Ananda's involvement in selling his Indepdenent Power Producer company to Edra, should take place. From the latest information I received, the assumption that Ananda gave the RM2 billion to 1MDB might not be true. He is too crafty and smart to take such a big risk. This has something to do with Edra's valuation which is said to be very different.

"Is it true as a result of Ananda's insistence, the valuation done on Edra's assets in November/December last year by Macquarie banking group was at around RM5 billion?" he asked.

If this is true, Kadir queried how did Goldman Sachs, who arranged the sales of 1MDB's bond in the 2012/2013 period, place a valuation of RM8.5 billion.

As such, he said the investigators should probe why in such a short time, Edra assets value has plunged by RM3.5 billion and inquired if it is due to changes to accounting methods or as alleged by former prime minister Tun Dr Mahathir Mohamad, it was due to 1MDB's RM27 billion debts, which cannot be traced.

He also questioned the role of Deutsche Bank country manager Yusof Annuar Yaacob, who were previously Goldman Sachs Malaysia’s chairman and managing director, asking if there were any serious conflict of interest.

Kadir noted that when Goldman Sachs arranged for the sale of RM17.1 billion bonds  in two tranches in 2012/2013, Yusof Annuar was the chairman and managing director of its Malaysian operations.

 "Why are the fees paid to Goldman Sachs so high?" he asked.

1MDB also had lendings from a consortium of six foreign banks led by Deutsche Bank which had been reported to mull calling in the loan early before the September due date.

"Is Deutche Bank under Yusof Annuar trying to use the 'force majeure' excuse to force 1MDB to repay the loan earlier because the situation has changed and the loan to 1MDB has become riskier?".

He then turned his guns to Low, asking if the businessman and another businessman linked to prime minister Datuk Seri Najib Razak's wife, knew and helped each other.

"What is Jho Low's relationship with Felda. The investigators should look into the incestuous relationship between 1MDB, Tabung Haji and Felda as well as Pemandu's role in these three entities," he said.

He also touched on Bank Negara governor Tan Sri Zeti Akhtar Aziz, asking about her role and stand in matters involving debts and 1MDB's finances which has contributed to the fall of the ringgit.

"Is it true there are individuals who keep RM200 million to RM300 million in a financial institution that is not controlled by Bank Negara?" he asked.

- TMI