Switzerland Asks Malaysia To Explain $4 Billion In Misused Money From Goldman Backed Slush Fund

Tyler Durden's picture

Earlier this week, Malaysia’s top prosecutor Attorney General Mohamed Apandi Ali cleared PM Najib Razak of any wrongdoing in connection with some $681 million that landed in his bank account back in 2013.

The money was “a personal donation” from the Saudis, the investigation found and no further information was necessary. That, we said, was unlikely to satisfy critics.

Critics like former PM Mahathir Mohamad, the “founding father” of modern Malaysia who has a series of questions about the alleged “donation” including the following:

  • "It seems there was a letter by a Saudi stating that a sum of US$681 million or RM2.08 billion was a donation for the PM’s contribution to the fight against Islamic terrorists. Who is this Arab?”
  • “How does he have the huge sum of money to give away?”
  • “What is his business?”
  • “What is his bank?”
  • “How was the money transferred?”
  • “What documents prove these?”
  • “Just a letter from a deceased person or some non-entity is enough for the A-G?"

All good questions and questions that we suggested will likely never be answered. 

As a reminder, all of this stems from multiple investigations into 1MDB, Malaysia's controversial development fund that many say functions as a slush fund for the PM and other corrupt politicians. 

1MDB was set up by Najib in 2009 and owes some $11 billion thanks in no small part to a series of bond deals arranged by Goldman banker Tim Leissner, whose wife Kimora Lee is close friends with Najib's wife Rosmah Manso. Those deals were quite lucrative for Goldman. Leissner effectively bought the bonds for the bank's own books at 90 cents on the dollar. That discount amounted to a hefty underwriting fee. 

This week, we learned that Leissner is taking a "personal leave" and will relocate from Singapore (through which the "donation" from the Saudis flowed) to Los Angeles. 

In the latest news out of the 1MDB saga, "Switzerland's chief prosecutor said on Friday a criminal investigation into state fund 1Malaysia Development Berhad (1MDB) had revealed that about $4 billion appeared to have been misappropriated from Malaysian state companies," Reuters reports.

The Swiss have been poking around 1MDB for months. Back in August of 2015, Swiss authorities started looking into the state entity for suspected corruption of public foreign officials, dishonest management of public interests and money laundering.

"The office of Swiss Attorney General Michael Lauber said it had formally asked Malaysia to help with its probes into possible violations of Swiss laws related to bribery of foreign officials, misconduct in public office, money laundering and criminal mismanagement at the fund," Reuters goes on to note, adding that "Lauber's office said a small portion of the apparently misappropriated money had been transferred to accounts held in Switzerland by former Malaysian public officials and current and former public officials from the United Arab Emirates."

That's not surprising. Recall that there's a convoluted series of transactions at issue with 1MDB including disputed collateral payments to a subsidiary of an Abu Dhabi sovereign wealth fund and an opaque relationship with PetroSaudi, an oil venture run by a Saudi prince.

"The four cases of suspected criminal conduct related to former 1MDB subsidiary SRC International, Petrosaudi, Genting/Tanjong and ADMIC between 2009 and 2013, it said," Reuters adds.

"The criminal investigation conducted by the Attorney General found serious evidence of embezzlement to the detriment of companies in the Malaysian state," a statement from the Swiss AG's office reads. "The amount of the allegedly misappropriated funds amounted to approximately $ 4 billion, whose purpose is the subject of further study."

Yes, the "purpose" of the $4 billion that apparently ended up in several Swiss bank accounts is "the purpose of further study," and you can be sure that the Najib government isn't likely to be especially helpful despite AG Apandi's contention that Malaysia is "keen to establish all the facts about 1MDB."

Recall that the Swiss proceedings are in connection with an investigation into "persons unknown." 

Those "persons" weren't named on Friday but we'll be interested to discover whether any of the accused work for the world's most influential financial institution and more importantly, which Malaysian authorities skimmed $4 billion from an entity designed to benefit the Malaysian public.

*  *  *

Full statement from Swiss AG office

As part of the proceedings initiated on 14 August 2015 criminal proceedings against two former directors and officers of the Malaysian sovereign wealth fund 1MDB (1Malaysia Development Berhad) and Unknown for bribery of foreign public officials (Art. 322septies Criminal Code), unfaithful administration (Article 314 of the Criminal Code.) , money laundering (Art. 305 bis of the Criminal Code) and unfaithful agency (Art. 158 of the Criminal Code) has asked the Malaysian authorities niches for mutual legal assistance the federal prosecutor. The cooperation of these two countries has already been discussed at the meeting in Zurich on 15 September 2015 between the Federal Public Prosecutor of Switzerland and the Malaysian Attorney General. Letters rogatory is now a concretization of the agreement in principle taken within the framework of this meeting.

The criminal investigation conducted by the Attorney General found serious evidence of embezzlement to the detriment of companies in the Malaysian state. The alleged embezzlement concerns funds which would have been determined for the economic and social development of Malaysia. So far, in this context, four criminally relevant facts (relating to Petro Audi, SRC, Genting / Tanjong and ADMIC) known in the between 2009 and 2013 there are in each case a systematic approach using a sophisticated financial construct.

The amount of the allegedly misappropriated funds amounted to approximately $ 4 billion, whose purpose is the subject of further study. So far, has already been determined that a small part of this money was transferred to accounts of various former Malaysian officials in Switzerland as well as to former or current officials of the United Arab Emirates UAE. So far, the affected Malaysian companies have, however, taken no position on the alleged damage suffered. The purpose of this request for judicial assistance is therefore to make these companies and the Malaysian government attention to the findings in the Swiss criminal proceedings to determine whether such damage has been suffered. Letters rogatory will be presented to the competent authorities in Malaysia niches the next few days.

*  *  *

Full statement from Malaysia AG office

1. I note the statement issued by the Office of the Attorney-General of Switzerland, and further remarks attributed to the Swiss Attorney-General by an American newspaper, concerning an investigation into two former officials of 1MDB.

2. I and the relevant Malaysian authorities are keen to establish all the facts about 1MDB that have led to recent allegations against the company. That is why a number of investigations - including by the Public Affairs Committee, the Royal Malaysian Police, and the Auditor General’s Department - are currently on-going.

3. The Malaysian authorities, including the Attorney-General's Chambers, are committed to working with all relevant foreign law enforcement entities through the applicable international conventions and agreements. Similarly, 1MDB has from the outset cooperated with the enquiries.

4. Regarding the recent public statement by the Office of the Attorney-General of Switzerland, my office intends to take all possible steps to follow up and collaborate with our Swiss counterparts, and we look forward to receiving the findings of their investigations and materials through the normal channels. These materials will then be reviewed, alongside the findings of other relevant authorities and our own investigations, to determine the appropriate course of action.‎

5. Contrary to recent media reports, the investigations into donations that were made to the Prime Minister are entirely separate to those into 1MDB. The Attorney-General's Chambers exhaustively reviewed the report provided by the Malaysian Anti-Corruption Commission and, as has been announced, found no evidence of wrong-doing and hence have instructed for the cases to be closed.‎ ‎

6. Any attempt by media organisations to conflate the two sets of investigations is irresponsible and prejudicial‎. 

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
sidiji's picture

since when did the Swiss have jurisdiction over Malaysia?

Croesus's picture

If the money was held in Swiss banks?? 

 

Stackers's picture

Welcome to the global banana republic

Took Red Pill's picture

gotta pay for all those missing planes

Omen IV's picture

There is a tie in between these huge slush funds, CIA, all the planes to include Ukraine flights, TPP and this Malayasian guy

847328_3527's picture

"The most transparent administration evar!"

 

 

"Yes we can!"

CheapBastard's picture

The Swiss can give the Looters a fair, but quick, trial then confiscate the $4 Billion Loot and add it to the $2,500 bucks they're handing out to each Swiss Citizen?

 

Or is that too xenophobic rayciss?

KesselRunin12Parsecs's picture

Well, I don't suppose the 'loot' is gold bricks anyway, so who really cares when everything is Monopoly money?

COSMOS's picture

Leissner never need fear, Israel never extradites.  Expect LA to be a stopoff on the way to Tel Aviv.

Early Retirement's picture

Doesn't he have to murder before he proves himself worthy of that protected status?

junction's picture

In the posting there is a mention of "Genting," which no doubt refers to Genting Malaysia Berhad, which owns the Resort World Casino in Queens, New York.  Genting got the New York State gambling license to operate this casino in 2010, based on a rigged bidding system introduced after Genting initially was denied the license.  Had Eliot Spitzer still been governor, Genting would not have had a second bite of the apple.  But Spitzer was forced to resign in 2008, thanks to then U.S. Attorney Michael Garcia using both criminally obtained wiretap information and the services of a call-girl who wanted Garcia to fix her brother's drug dealing arrest in New Jersey (which Garcia did).  The Resort World Casino is a gold mine, the most profitable casino in the United States.  As a bonus, Governor Andy Cuomo has now nominated Garcia to be an associate justice on the Court of Appeals.  The Chief Judge's job will be Garcia's soon enough.  And Genting, with the billions it made at Resort World, still watches its nickels and dimes.  The food court in the casino has only a few fast food takeout counters and the "resort" buffet was closed after the workers voted to unionize.  Don't lose anything in the casino, Genting only holds lost personal items for a week before throwing them in the garbage.   

philipat's picture

Probably since the US took jurisdiction over Switzerland?

Early Retirement's picture

So much I could say here. Let's just say you are on to something big.

williambanzai7's picture

Is Switzerland a Muslim country yet?

COSMOS's picture

No but the USA will make sure it is.

Macon Richardson's picture

The Swiss have never had jurisdiction over Malaysia, moron. But the Swiss do have jurisdiction over Switzerland. The Swiss inquiry is to determine if Malaysian citizens, officials, corporations or government have violated either Swiss civil or criminal law. In the ordinary course of business, the Swiss would assume that the Malaysian government would cooperate with their inquiry. That has not happened. The Swiss also might expect cooperation from the Malaysian government because without it, the remedy for Switzerland is to impound all the  Malaysian funds banked in Switzerland that the Swiss governement suspects are tainted.

Monetas's picture

Under Shariah law .... what is the punishment .... for stealing $4 billion .... nothing, it is not a crime to steal from non-Mudslimes ?

Arnold's picture

It is not a sin to lie to infidels.

Croesus's picture

It is also not a sin to lie to goyim. 

Cautiously Pessimistic's picture

It is sort of like the money that just keeps showing up in The Clinton Foundation accounts.  Don't Ask, Don't Tell is their motto.

 

Edit: Because snitches get stitches.... or dead.....

Slomotrainwreck's picture
... just sayin

 

Slush (pronounced sl oo sh) = SLO + Kush
Name for marijuana that is smoked in San Luis Obispo, California. Most commonly smoked by Cal Poly students. Very potent weed that will get you really, really high.

 

Bruce, stop being selfish and let me hit that slush!

 

sombudy stole the slush
bugs_'s picture

1MDB - million dollar bonus....AGAIN ??

it wasn't stolen it was misused

_ConanTheLibertarian_'s picture

He was converted: Muslim Dollar Bonus

stant's picture

Ha ha MDB + a 1000 for that one

ISEEIT's picture

El bozo is the most fraudulent 'president' in American history.

Until the next one.

nathan1234's picture

No wonder Leissner has taken 'Personal Leave'. Guess he got a tip off

Wonder how MAS ( Monetary Authority of Singapore) is allowing him to get away. Wonder if Singapore was used as a conduit in the transfer of funds,

 

COSMOS's picture

Expect govt officials in Singapore to have gotten paid off a while back.  Face it Singapore wants to be the money laundering of Asia and they need to turn a blind eye to stuff if they expect to do as well as London.

rogerrabbithole's picture

Laws are for serfs, and don't you forget it.

MANvsMACHINE's picture

I'm calling this group Al Mezher in honor of the murdered girl.  No relation to Al Qaeda.

I need more asshats's picture

"Alexandra Mezher, 22, a Swedish social worker"

joo lies.

847328_3527's picture

The MSM twist:

 

Defenders of their country = "hooligans" "thugs" "xenophobes"

Rapifugees = "asylum seekers" "women and children" "doctors engineers, lawyers"

 

Most people see thru this MSM propaganda now; it's another reason Trump soars in the polls.

shovelhead's picture

Did they beat up a 28 y.o. "unaccompanied minor"?

Croesus's picture

@ Dr. Bonzo: 

It's about goddamned time. 

Quote from the leaflet: 

'All over the country, reports are pouring in that the police can no longer cope with preventing and investigating the crimes which strike the Swedish people,' reads the leaflet. 

'In some cases, for example, in the latest murder of a woman employed at a home for so called ‘unaccompanied minor refugees’ in Molndal, it goes as far as the National Police Commissioner choosing to show more sympathy for the perpetrator than the victim,' it continues. 

'But we refuse to accept the repeated assaults and harrassment against Swedish women.'

'We refuse to accept the destruction of our once to safe society. When our political leadership and police show more sympathy for murderers than for their victims, there are no longer any excuses to let it happen without protest.'

'This is why, today, 200 Swedish men gathered to take a stand against the north African ‘street children’ who are running rampage in and around the capital’s central station.' 'When Swedish streets are no longer safe to walk on for normal Swedes, it is our DUTY to fix the problem,' the leaflet reads.

'Police have clearly showed that they lack the means to stop their progress and we se no other way than to hand down the punishment they deserve ourselves.'

 'The justice system has walked out and the contract of society is therefore broken  – it is now every Swedish man’s duty to defend out public spaced against the imported criminality.' 

'Those who gathered today are neither your politician, your journalist or your policeman. We are your father, your brother, your husband, your colleague, your friend and your neighbour.

'Swedish men and women deserve safety in their everyday life and we are therefore calling on all others who also see the problem to follow in our footsteps, both in Stockholm and in other places around the country. For a better future together."

Hardly sounds "rayciss" or "xenophobic" to me; It sounds more like a bunch of reasonable people who are pissed off at the perpetrators, the government which created the problems, and an illusory "justice" system that is unwilling, or unable to do anything about the problems. 

Now we just need to get the rest of Europe on the same page as those 200 Swedes are. 

 

 

 

12357111317's picture

Amendment 2, USA Constitution: "A well regulated Militia being necessary to the security of a free State, the right of the people to keep and bear arms shall not be infringed".

(By the way, Amendment 2 does not say who should regulate Militias.  I think the Founding Fathers believed that every Militia should regulate itself.  To do that, a Militia need merely require that every member pledge to uphold the USA Constitution, and exorcise any member who the Militia finds to have, in any act, failed to uphold the USA Constitution.)

StychoKiller's picture

Regulation has more than one meaning.  In the case of the 2nd Amendment, it means "well-trained."

22winmag's picture

Is mob justice really any worse than what passes for "rule of law" nowadays?

Croesus's picture

@ 22winmag: 

IMO, the "Rule of Law" protects the criminal, not the victim. 

The way the laws are codified, the police have limited ability to actually prevent crimes, and the bulk of their duties are centered around what happens after a crime was committed. 

I'd rather not be a statistic, so a mob justice ounce of prevention, is worth a pound of the Justice System's cure

Boxed Merlot's picture

...When our political leadership and police show more sympathy for murderers than for their victims,...

 

From the article, the picture of the "15 year old" accused of murdering the 22 year old worker appears to be 15 in dog years.

 

jmo.

22winmag's picture

This is funny until it's your wife or child getting groped or penetrated.

 

Still, these mystery men should be pounding on the adults, Unless of course, unaccompanied violent teenage males are the norm over there. Then pound away.

SoDamnMad's picture

And Tim Leissner's name appears on Trust just opened in a Las Vegas attorney's office. A BIIIIIIG Trust with lots of zeros.

But, but, but. It's not mine it's my wife's trust.

Arnold's picture

You are a lucky husband.

shovelhead's picture

Those darned Consultant Fees.

Ya gotta read the fine print.

Donald J. Trump's picture

Goldman's $61 million fees for facilitating the crime?

847328_3527's picture

Criminal Defense lawyers ain't cheap. Swaying the prosecutor to look the other is even more expensive.