Azalina lied about not buying spyware, says blogger

Minister in the Prime Minister’s Department Datuk Seri Azalina Othman Said told the Dewan Rakyat that Putrajaya was not a Hacking Team client. – The Malaysian Insider file pic, December 31, 2015.A tech blogger has accused Minister in the Prime Minister’s Department Datuk Seri Azalina Othman Said of lying when she told Parliament that Putrajaya did not purchase spyware from Italian IT firm, Hacking Team.

Keith Rozario, who calls himself the insufferable tech evangelist on keithrozario.com, yesterday published bank receipts detailing two separate transactions between Shah Alam-based Miliserv Technologies (M) Sdn Bhd and Hacking Team in September 2013 and July 2014.

The payments from Miliserv to the Milan-based firm were £38,500 (RM170,270) and £210,000 (RM899,157) respectively.

Rozario said the receipts were evidence that Purtrajaya was involved in buying the spyware through Miliserv, a 100% Bumiputera firm registered with the Ministry of Finance Malaysia (MoF).

He said that Hacking Team’s company policy also stated that it only sold products to governments and government agencies instead of individuals or private businesses.

However, on its website, Miliserv does not state that it is a government agency but an organisation founded in 2005 to provide advanced digital technology products and solutions to various organisations in information technology, digital forensics, telecommunication, public security and intelligent gathering.

“If the government hasn’t procured spyware from Hacking Team, I strongly advise the minister (Azalina) to investigate this Malaysian company for making huge payments to an enemy of the Internet,” Rozario said on his blog.

In November, Azalina said “no such purchase” was made, despite an Internet leak by hacker Phineas Fisher in July detailing that Malaysia was among several countries, including the United States, Russia, United Arab Emirates, Singapore and Thailand, which were clients of Hacking Team.

She was replying to Tian Chua (PKR-Batu) in the Dewan Rakyat.

The information was released when Hacking Team itself becoming the victim of a hack in July, resulting in the leak of 415GM of its data, including information on its client list which was posted on Twitter.

The Prime Minister’s Office was named as client, according to a posting by Twitter user @OlivierFalcoz on the microblogging site. The Malaysian Anti-Corruption Commission (MACC) was also listed as a former client.

Rozario said he had the receipts in June, closer to the time the Hacking Team leak was released but chose not to expose them then.

He changed his mind after Azalina’s denial in Parliament.

“Next time, ask your PR guys to call me before you go setting your pants on fire,” he said on his blog.

He added that although the government might have had a legitimate reason to purchase the spyware, the manner in which it was being used raised questions.

“Is it used with a warrant? Is it used for catching criminals, or criminalising politicians (and their lawyers)?”

On December 1, Prime Minister Datuk Seri Najib Razak reportedly told the Dewan Rakyat that Putrajaya did not have any information related to the acquisition of a remote control system to spy on the people.

- TMI

Najib vows to build ‘safer, more prosperous and equitable society’

On the cusp of the new year, Prime Minister Datuk Seri Najib Razak today said his goal for 2016 is to increase safety, wealth and equanimity in Malaysia.

In a tweet this morning, Najib acknowledged that 2015 was a memorable year and his goal for next year is to “build a safer, more prosperous and equitable society.”

“2015 has been a memorable yr. My goal for the coming yr is to build a safer, more prosperous & equitable society. Looking forward to 2016!” he said.

Najib seems unfazed by a year that was beleaguered by political scandals and controversial policies that have raised questions about his leadership over the past year.

He has been at the centre of the scandal involving the operation and financial management of 1Malaysia Development Bhd (1MDB) which has accumulated RM42 billion in debt, when allegations surfaced that US$700 million (RM3 billion) was found in his bank accounts.

Investigations into 1MDB were initiated by various governmental agencies including Bank Negara, the Malaysian Anti-Corruption Commission (MACC), the Parliamentary Public Accounts Committee and Auditor-General’s department.

Vocal critics of 1MDB and the allegations involving Najib resulted in the reshuffling of the Cabinet, resulting in Tan Sri Muhyiddin Yassin losing his deputy prime minister post to former home minister Datuk Seri Zahid Hamidi.

Outspoken Public Accounts Committee head Datuk Seri Nur Jazlan, along with four other committee members, were promoted to the Cabinet as deputy ministers, resulting in the appointment of new Parliamentarians to member the committee.

It also precipitated the replacement of former Attorney General Tan Sri Abdul Ghani Patail, who vacated his post after Chief Secretary Tan Sri Ali Hamsa announced that Abdul Ghani’s service was discontinued on health reasons.

Abdul Ghani was heading a multi-agency taskforce investigating the claims of misappropriations of funds involving Najib and 1MDB.

However, Second Finance Minister Datuk Seri Ahmad Husni Hanadzlah announced in July this year that a preliminary report by the Auditor-General’s department found no evidence of wrongdoing by 1MDB or that US$700 million was transferred to the bank account of the Prime Minister.

Bank Negara had also concluded its investigations, and the recommendations for action to be taken was submitted to the new Attorney General Tan Sri Apandi Ali, who later cleared 1MDB of any wrongdoing, rendering the recommended actions to be taken unnecessary.

The ringgit was also the worst performing currency in the region, declining 18.5% on low crude oil prices, political turbulence and the Federal Reserve rate hike among others.

Najib’s leadership had also instituted several controversial policies, such as the National Security Council Bill 2015 which provides for the National Security Council (NSC) – chaired by the prime minister – to take command of the country’s security forces and impose strict policing of areas deemed to face security risks.

It was widely criticised for its wide powers on security provided to the prime minister.

His leadership has also been ridden by increasing racially-tinged propaganda by Malay-rights groups.  – The Edge Markets

Documents from Justo with AG's Chambers

The Attorney-General's (AG) Chambers has received from its Thai counterpart documents belonging to former PetroSaudi International executive Xavier Justo, including information he gave to Sarawak Report editor Clare Rewcastle-Brown.

Inspector-general of police Khalid Abu Bakar said this also includes the transcript of the police's interview with Justo in Thailand.

"They just received it yesterday [...] we are waiting for the AG's Chambers to go through it before they hand it to us," Khalid said at a press conference in Bukit Aman today.

A Malaysian police team headed by Bukit Aman CID deputy director (investigation/legal) Amar Singh Ishar Singh had met Justo in a Thai prison two weeks ago, to get his statement.

Justo is serving a three-year jail sentence after having been found guilty by a Thai court on Aug 17 of attempting to extort his former employer, PetroSaudi.

His case drew interest in Malaysia due to the cooperation between PetroSaudi and 1MDB, as well as allegations of tampered documents.

Justo claims to have been promised US$2 million (RM7.6 million then) in exchange for the documents, in a deal involving Rewcastle-Brown.

Meanwhile Khalid today reiterated that the police's probe on 1MDB's sale of land from the Tun Razak Exchange, as well as documents leaked from the firm, will be carried out after the Auditor-General and Public Accounts Committee complete their investigations.

"We don't want any overlap," he said. -Mkini

Remaining 40pct Bandar M'sia stake may go to Finance Ministry

The remaining 40 percent stake of the Bandar Malaysia Sdn Bhd that still belongs to 1MDB may be transferred to the Finance Ministry, according to 1MDB president Arul Kanda Kandasamy.

Transferring the stake to the Finance Ministry is just one of the options they are considering, he clarified, speaking at a press conference at a hotel in Kuala Lumpur today.

"At the moment, no final decision has been made.

"It is an option as envisaged under the rationalisation plan, as announced in June 2015," Arul Kanda said.

He stressed that for now, no decision has been made on what to do with the remaining 40 percent stake.

Earlier today, 1MDB announced it was selling 60 percent stake of Bandar Malaysia worth RM7.41 billion to a consortium consisting of Iskandar Waterfront Holdings and China Railway Engineering Corporation Sdn Bhd.

1MDB, which is 100 percent owned by the Finance Ministry, has been plagued with controversies, including a debt of RM42 billion.

The state fund devised a rationalisation plan, which was announced in June this year, with the promise that it will solve its woes by the end of the year.

One of the goals in the rationalisation plan was for their subsidiaries to eventually become standalone companies.

Today, on the last day of the year, Arul Kanda said the 60 percent stake sale was the final piece of the puzzle of their rationalisation plan.

During the press conference, reporters were told to focus on questions related to the agreement between 1MDB and the consortium.

Arul Kanda was queried on other matters, but sidestepped several questions related to problems faced by the state funds. -Mkini

Cops summon PPIM chief for slamming the force

Police have summoned Malaysian Muslim Consumers Association (PPIM) chief activist Nadzim Johan for accusing the cops of being in cahoots with con men in Kota Raya.

Kuala Lumpur police chief Tajudin Md Isa said Nadzim should have allowed police to complete their investigation into the incident, including the one involving a member of the Muslim consumer group.

"I have summoned Nadzim after reading his interview carried out by Utusan Malaysia, in which he said there were wolves in sheep’s clothing in the force.

"I would like to know who he meant by this.

"He can pass the information to me or go make a complaint with the Police's Integrity and Standard Compliance Department," Tajudin told reporters at Bukit Aman today.

In the Utusan report published today, Nadzim expressed concern that there might be dirty cops working with those embroiled in illegal activities such as gambling dens.

He also questioned why some traders in Kota Raya could brazenly cheat customers, as though they were being protected.

Meanwhile, Tajudin said the recent arrest of a PPIM member was also part of police investigations.

"The arrest was made to facilitate the investigation. Let us complete ours and please do not go around commenting on the case," he said.

He added that a man will be charged at Kuala Lumpur court today with cheating in connection with the Kota Raya brawl.

"He will be charged under Section 415/417 of the Penal Code for cheating.

"We are looking for another suspect," he said.

Kota Raya was the scene of a brawl on Dec 20, when purported victims confronted a mobile phone shop that had supposedly cheated them. Two were left with light injuries following the incident.

Earlier, a mobile phone shop in the same shopping complex had also locked up a customer for several hours, after the latter changed his mind about purchasing several phones at an inflated price.

A consumer’s tribunal has ruled in favour of the customer on Dec 15. -Mkini

1MDB sells off 60pct stake in Bandar Malaysia

1MDB is selling 60 percent of its stake in Bandar Malaysia Sdn Bhd to a consortium consisting of Iskandar Waterfront Holdings (IWH) Sdn Bhd and China Railway Engineering Corporation (CREC) Sdn Bhd.

They held a signing ceremony at the Royale Chulan Hotel in Kuala Lumpur today with their two new partners.

The 60 percent stake sold to the consortium is worth RM7.41 billion, said 1MDB chief Arul Kanda Kandasamy, while the current evaluation of Bandar Malaysia places its total value at RM12.35 billion.

Upon execution of the share sale and purchase agreement, he said 1MDB will receive a deposit of 10 percent, which is RM741 million.

They will then discuss the payment option for the balance with the consortium, whether it will be upfront cash or a different payment option, he said.

He also stressed that the consortium will be taking up the promises made by 1MDB in the development of Bandar Malaysia such as affordable housing.

On concerns that 1MDB is selling yet another one of its assets to a foreign company, he pointed out that within the consortium, it is a 60:40 joint venture between IWH and CREC.

This means that CREC only has 40 percent ownership in the consortium, and once 1MDB's remaining stake of Bandar Malaysia is taken into account, the total ownership is only 24 percent foreign, he said.

"It's a win-win partnership, with the majority of it Malaysian-owned," Arul Kanda explained.

This deal is the final major milestone in 1MDB's rationalisation plan, he said, following the execution of the binding term sheet with International Petroleum Investment Co (IPIC) and the sale of Edra Global Energy to China General Nuclear Power Corporation (CGN).

The rationalisation plan was to help turn the troubled state fund around, which had previously reported a debt of RM42 billion.

Asked what 1MDB plans to do with the RM7.41 billion from the deal, he said it is a "nice position" to be in given the challenges 1MDB is facing.

"I'm going to take the weekend to think about that," he said. -Mkini

'Shame of shames' - M'sia among six of world’s worst corruption scandals

Malaysia has been named among the world’s six “worst corruption scandals of 2015”.

The unenviable honour was bestowed by foreignpolicy.com – a division under the Washigton Post Company – in its report two days ago.

The report stated how massive corruption scandals had embroiled world leaders, high court judges as well as the men who run the world’s soccer industry, among others.

Malaysia was placed at number three, however, behind the Federation Internationale de Football Association (Fifa) and Nigeria for corruption scandals.

Honduras and Guatemala took fourth place, while Ghanian judges and the UN General Assembly were at fifth and sixth places.

The report pointed out how US President Barack Obama had arrived in the middle of an “awkward corruption scandal” when he visited Malaysia last month.

This is because four months prior, The Wall Street Journal had reported that US$700 million (about RM3 billion) was deposited into Prime Minister Najib Abdul Razak’s personal bank accounts.

The US$700 million, claimed to be from state funds, had tied Najib directly to a probe into his brainchild – 1MDB.

Commenting on this report, DAP veteran Lim Kit Siang exclaimed how this was definitely a “shame of shames”.

“Can Malaysians expect the prime minister, who has brought such unprecedented dishonour at the global level to Malaysia, fully defend himself in his 2016 New Year message tonight?” asked Lim in his statement today. -Mkini