Sarawak Report DOJ - Continuing Analysis Of The Deceit And Duplicity Of 1MDB's Top Officials On Behalf of Jho Low and Najib

13 September 2017

At the weekend Sarawak Report detailed some of the examples given in the US Department of Justice’s court filing showing the deliberate conspiracy to commit fraud participated in by top 1MDB officials in order to help siphon billions from the fund.

All their actions were orchestrated by Najib’s appointed advisor Jho Low and were signed off by Najib himself.  These actions included providing different signed versions of the same formal agreements to different parties, primarily in order to get one set of bankers to release the stolen funds (on the grounds they were merely ‘repayments of loans’ or ‘refundable deposits’) and other sets of bankers to accept the stolen funds (as ‘payments’ or ‘loans’).

The 251 page document goes on to detail several more such instances of blatant fraud, forgery and deception, all sanctioned by today’s guest at the White House, Najib Razak, who together with his family was the major beneficiary of the missing billions.

Fraudulent Cover-Ups

One such further manoeuvre is described by the FBI investigators as they detail how the collaborators sought to inflate the value of the original PetroSaudi Joint Venture with 1MDB after most of the money had been stolen out of the venture from the very beginning.

LOW AND OTHERS TRIED TO COVER UP THE MISAPPROPRATION OF MORE THAN $1 BILLION FROM THE JOINT VENTURE

is the headline for this section, which explains how at least $1.03 billion of the $1.83 billion invested in the joint venture was stolen but 1MDB officials tried to alter the nature of its relationship with PetroSaudi several times (from a joint venture, to a loan, to a sell out in return for an investment in the company that was disguised as a ‘balanced portfolio’ but hidden off-shore).  In summary the DOL says:

“Paragraph 131:”…… LOW and 1MDB officials attempted to inflate the reported value of 1MDB’s investment in the Joint Venture several times…the co-conspirators tried to achieve this end by restructuring 1MDB’s investment in the Joint Venture several times, ultimately converting that interest into an opaque and illiquid asset, the value of which could not be easily verified by auditors and others. Thereafter, the co-conspirators orchestrated a fraudulent valuation of the assets underlying the investment to massively inflate their value and to create the false impression that 1MDB’s investment in the Joint Venture had generated a profit, when in fact it had been diminished significantly through misappropriation.

Ouch!  It means all the sceptisim of critics like Tony Pua, who questioned the real value of the Cayman Islands portfolio that claimed to be worth $2.2 billion, representing over a stunning $400 million in profits, has been born out. Exactly how Jho Low and 1MDB officials pulled off this fraudulent con to hide their thefts from the 1MDB auditors are detailed here:

133. In June 2012, 1MDB exchanged those Islamic debt notes for (i) a 49% stake in PetroSaudi Oil Services Limited (“PSOSL”), a subsidiary of PetroSaudi, and (ii) a call option to acquire the remaining equity stake in PSOSL. In its financial statements for the 2013 fiscal year, 1MDB represented that the stake it had acquired in PSOSL was of a “value equivalent to” the value of the Islamic debt notes, or approximately $2.22 billion.

134. At the time of this debt-equity swap, PSOSL’s primary assets consisted of two drillships, which had contracts with state-owned Petróleos de Venezuela, S.A. (“PDVSA”) to extract oil in Venezuela. At no point has 1MDB received payments or profits from these contracts, and in fact, PSOSL reported losses in both 2012 and 2013. PSOSL’s financial statements for the fiscal year ending December 31, 2012 disclose “adverse financial performance,” because, among other things, PDVSA failed to make timely payments to PSOSL under the contracts and because one of the ship’s contracts with PDVSA had expired in June 2012. PSOSL’s net assets were valued in those 2012 financial statements at $93,621,000, and PSOSL reported a net operating loss of $111,644,000. Upon information and belief, the value of PSOSL’s contracts with PDVSA, as well as the overall value of the company, has declined further in recent years as a result of developments in Venezuela.

c. Third Restructuring: PSOSL Equity to “Fund Units”
135. Not long after 1MDB acquired an interest in PSOSL in exchange for its supposed investment in the Joint Venture, 1MDB sought to restructure its holdings yet again. By restructuring its holdings, 1MDB further obscured the value of its holdings, which were not worth anywhere near their stated value or the amount that 1MDB had purportedly spent to acquire them.1MDB officials accomplished this restructuring with assistance from bankers at BSI Bank in Singapore, with whom LOW had a close relationship, and employees of Bridge Partners Investment Management Ltd. (“Bridge Partners”), an investment advisory firm with fund managers based in Hong Kong.

136. LOW was himself also involved in the restructuring process. For example, in a June 13, 2012 email exchange, two BSI bankers discussed the restructuring deal and an upcoming meeting with 1MDB on the matter at the Mandarin Oriental in Singapore. The exchange closed, in relevant part, with the phrase, “1MDB all aligned to JL’s plan,” using Jho LOW’s initials.

137. The restructuring involved a series of complicated and commercially unnecessary transactions, resulting in the conversion of 1MDB’s stake in PSOSL into securities in a purportedly legitimate investment fund. To accomplish this end, 1MDB “sold” its equity stake in PSOSL to an affiliate of Bridge Partners in exchange for promissory notes, and then 1MDB used those promissory notes to subscribe to “fund units” in the Bridge Global Absolute Return Fund SPC (“Bridge Global Fund” or “Bridge Global”), a Cayman-registered corporate vehicle managed by Bridge Partners. The Bridge Global Fund held only one asset, however – the very same equity stake in PSOSL that 1MDB had conveyed to Bridge Partners. The transactions had no economic substance, amounting to a round trip of various securities and commercial paper that were designed to, and did, have a specific and false accounting effect—namely, the fraudulent inflation of the value of 1MDB’s assets. 1MDB created a new wholly-owned subsidiary called Brazen Sky Limited (“Brazen Sky”) for the express purpose of holding these fund units.

138. Notwithstanding this restructuring, the value of Brazen Sky’s holdings remained linked to the value of the drillships and drilling contracts held by PSOSL, because the fund units were solely backed by shares in PSOSL. But the restructuring obscured this fact from third parties, including 1MDB’s auditors, because it interposed several additional entities between 1MDB and its holdings in PSOSL, including an ostensibly independent investment fund. Given the opaque nature of the Bridge Global Fund, it was difficult for third parties to independently verify the nature and value of the assets underlying the fund units. In this way, certain 1MDB officials and others were able to conceal the true value of 1MDB’s original investment in the Joint Venture, which had been significantly diminished by the diversion of more than $1 billion to Good Star.

Remember that Najib’s cheerleaders are fond of repeating that the DOJ have “no proof” to substantiate their accusations. They clearly have chosen not to read this detective novel of a court filing available free online!

Lying Bankers

The excuse of many of the banks caught up in 1MDB is that they were lied to by Jho Low, PetroSaudi, Aabar and 1MDB officials.  However, as the DOJ makes clear, a number of bankers colluded also in these lies, which has been backed up by trials in Singapore that resulted in prison sentences for a number of them.

For example, this is how 1MDB officials and their cronies at BSI (specifically Yak Yew Chee and Yeo Jiawei) helped mislead 1MDB’s accountants by providing false valuations and claiming there was cash in the Brazen Sky account belonging to 1MDB:

145. At the December 12, 2012 meeting with KPMG, which was held at BSI’s offices in Singapore, 1MDB and BSI officials misled KPMG about the nature of the Bridge Global assets held by Brazen Sky. Minutes from the meeting show that 1MDB OFFICER 4 [Terence Geh the Executive Director of Finance] and the BSI bankers present at the meeting (SINGAPORE BANKER 2 and SINGAPORE BANKER 3) withheld from KPMG the fact that the assets underlying the Bridge Global investment consisted of two drillships and instead conveyed the impression that the fund units were backed by cash.

146. 1MDB’s audited financial statements for the fiscal year ending March 31, 2012, were signed off by KPMG on or about December 27, 2012. In the section of those financial statements devoted to “subsequent events,” 1MDB represented that it had invested $2.318 billion in the Bridge Global Fund. This disclosure was the direct result of the fraudulent valuation discussed above.

147. In August 2013, 1MDB officials and others again attempted to secure a market-based valuation of the PSOSL assets to bolster BSI’s earlier valuation of the Bridge Global fund units at more than $2 billion. SINGAPORE BANKER 2 coordinated the procurement of that valuation, with the specific aim of securing a valuation of the assets at $2.4 billion. A Singapore-based equity research company, NRA Capital Pte. (“NRA Capital”), agreed to value the PSOSL assets at $2.4 billion on the basis of PSOSL’s 2012 financial statements showing less than $100 million in net assets and a net operating loss of more than $100 million. In exchange for producing, on an urgent basis, a valuation report that met the target value, NRA Capital was paid $300,000by an entity called Affinity Equity International Partners Limited (“Affinity Equity”). As described in Paragraph 396 below, Affinity Equity was a shell entity nominally affiliated with TAN, which was used to funnel misappropriated 1MDB funds to LOW. The NRA Capital research analyst responsible for the valuation report was also personally bribed to produce the report on an urgent basis, with the understanding that the resulting valuation would meet the client’s target value.

Redeeming The Money!

The next piece of deception in which this team of lying officials all colluded was the nonsense farce of 2014 when Najib Razak and his Finance Ministry team and 1MDB repeatedly told the world that they were ‘redeeming’ the money ‘invested in PetroSaudi’ and then the ‘Cayman Island Portfolio’ back into 1MDB’s bank accounts.

No one sensible believed them at the time and quite rightly so.  The DOJ has lifted the veil over what they were up to and sure enough the money they had flowing through various bank accounts that they claimed were being returned from the Bridge Global Investment Fund based in the Caymans was in fact money 1MDB had just borrowed from Deutsche Bank, based on the lie that the Bridge Global money was sitting as collateral in the bank!

150. In 2014, officials at 1MDB and others engaged in further fraudulent conduct…In late 2014, 1MDB claimed publicly and in its financial statements that Brazen Sky had “redeemed” more than $1.2 billion-worth of Bridge Global fund units in cash. ..this “redeemed” cash did not originate from the Bridge Global Fund, however, but rather from money that 1MDB borrowed from Deutsche Bank in 2014. Deutsche Bank loan proceeds were passed through the Bridge Global and Brazen Sky Accounts multiple times to give the appearance that Brazen Sky was redeeming fund units. In fact, Brazen Sky’s investments in the Bridge Global Fund were not capable of producing $1.2 billion in cash.

In other words, a perfect example of what is known in the business as ’round-tripping’ or more colloquially as cooking the books.  One wonders why Najib still bothers to declare the far milder Auditor General’s version of the same events an ‘Official Secret’ when the DOJ’s damning evidence is out there to back it up?

Low Forged Fake Documents

Dear Readers – we are still only one of the way through this DOJ page turner of a crime thriller and the word ‘fraud/fraudulent’ has come up two dozen times and the word ‘false’ a dozen times, as in:

Low Made False Representations and Provided False Documentation to Conceal His Role in the Misappropriation

In this section the DOJ details how Low tried to lie and pretend on the one hand he didn’t own Good Star and then to another bank the following month that he did in order to be able to move the money.  And there is plenty in the DOJ report to show exactly how Low was using this stolen money – for example the millions he splashed gambling in Las Vegas:

293. The Venetian Casino used customer account number XXX4296 to identify LOW. On or about July 10, 2012, $11,000,000 was deposited into LOW’s account at theVenetian Casino, and records show that LOW gambled there for approximately seven days beginning on or about that date.

294. On or about July 11, 2012, an additional wire of $2,000,000 was sent from the Alsen Chance Account to Las Vegas Sands LLC. The payment details on that wire read: “TAN KIM LOONG PLAYER NO [XXX]8710.” The Venetian Casino Resort used customer account number XXX8710 to identify TAN.

295. On or about July 15, 2012, LOW withdrew an aggregate cash amount of $1,150,090 at the Venetian Casino: $500,000 as a withdrawal of deposit, and $650,090 as redemption of casino chips and other gaming instruments. Several individuals gambled with LOW on this occasion, using his account. These individuals included AZIZ; Red Granite Pictures co-founder McFarland; DiCaprio; and the 1MDB-SRC OFFICER, who was the former Chief Investment Officer of 1MDB and was at the time the CEO of another Ministry of Finance vehicle called SRC International (“1MDB-SRC OFFICER”).12

It has already been detailed many times how these same conspirators colluded on a number of ridiculous letters to banks, accountants and auction houses to pretend that the monies they had stolen were gifts either from Saudi Royals or each other (Hussein to Riza, Tan to Low, Low’s Dad to Low) or just no strings-attached investments from SRC to companies controlled by Low (Nik Faisal Arif Kamil of SRC signed off such monies to BSI Bank for companies like the bogus Affinity Capital and the bogus Pacific Harbour off-shore shell companies, bothowned by Tan/Low).

All of the above involved forgeries, lies and nonsense now lie revealed for all to read about and under the relentless spotlight of the DOJ investigation.

These conspirators didn’t just plot together. The bent officials from 1MDB partied and gambled the money away together with Low and Najib’s son, whilst ordering diamonds for The Boss.

So, when their successors pompously release 1MDB statements and press releases condemning critics and telling the world that their ‘restructuring programmes’ are underway and that there is no evidence of wrong doing, the rest of us should remember it is all still just lies and the lot of them will meet their eventual judgement time in a US court of law.

Q: How will Najib utilise your daily GST contribution? A: He is strengthening the US economy with it.

Dogeng si Najib!

Chief Th_ef Meets Trump For 5 Minutes 58 seconds, Bayar Ufti RM60 Billion Then Goes To Tandas For 10 Minutes.

The meeting lasted 5 minutes and 58 seconds. 

In 5 minutes 58 seconds he pledged RM60 Billion worth of Malaysian investments in the US !!  

This is what the moron said :

Number one, we want to help you in terms of strengthening the U.S. economy.  I come with three specific proposals.  Number one, we intend to increase the number of Boeing planes to be purchased by MAS.  We are committed to 25 planes of the 737 MAX 10, plus eight 787 Dreamliners.  And there is a strong probability -- not possibility – probability that we will add 25 more 737 MAX 10 in the near future.  So within five years, the deal will be worth beyond $10 billion.  That’s one.  We will also try to persuade AirAsia to purchase GE engines.
PRESIDENT TRUMP:  Great.

Notice that he said "Number one"  twice. 

"Number one, we want to help you in terms of strengthening the U.S. economy"

Banyak cantik. At home there is no money to pay the civil servants without GST. Without GST the gomen is bankrupt. Moron said so himself. There is no money for PTPTN, no money for hospitals, no  money for so many things. Gomen debt is at a maximum.      Yet moron tells the world's No 1 superpower and the largest economy in the world    :   "we want to help you in terms of strengthening the US economy"

increase number of Boeing planes to be purchased by MAS.  

25 of the 737 MAX 10, plus eight 787 Dreamliners.  

25 more 737 MAX 10 in the near future.  

in five years, deal worth beyond US$10 billion.  That’s one.  

try to persuade AirAsia to purchase GE engines

EPF have invested US$7 billion 

intend to invest three to four additional billion dollars

Khazanah have invested about US$400 million

It adds up to more than RM60 Billion.   That was the cost of meeting Donald Trump for 5 minutes and 58 seconds.  After the meeting he went to the tandas for 10 minutes. 

Meaning it was a really short meeting. 5 minutes and 58 seconds.  RM60 billion. 

Conclusion :  I dont think all that money saved his hide.

Ketuanan Economists : I Hope You Can Understand This, Ceteris Not Paribus

About two weeks ago the following went viral via WhatsApp. 
The writer carries the name Arianto Husani. 
I do not know if this person is real or it is a made up name. 

But Arianto Husani's  list of "corruptions" and "racist policies" is worth a close look. 
I have corrected some spelling and grammar. 
As usual my own comments are in blue.  
(Please do read my Closing Comments too. Thank you.)

I am 60 years old, I have seen during Tungku Abdul Rahman times, we had one of the best Government service, one of the best police, one of the best military officers, it is because we had a  multi racial workforce in all Government sectors. 

Why is it the BN government removed  non muslims  through "Operasi isi Penuh" (Fill in full) Muslim population in all government Departments ? 

(My comments : It would have been best to have the national racial demographics represented at all levels of the government service ie 70% bumiputra, 30% non bumiputra. Especially in the government school system.  I believe the practical exclusion of non Malays in the teaching profession has cost the country very dearly).  


During Tungku Abdul Rahman we didnt come across a single mosque or surau in all government departments  or military or police department, we didnt come across any corruptions. 

(My comments : The spread of the religious cancer in the government began after Dr Mahathir's 'Penerapan Nilai-Nilai Islam' was hijacked after the entry of Anwar Ibrahim and his ABIM cohorts into government. The process was hijacked further by the Ikhwan Muslimin or Muslim Brotherhood  influence in Malaysia.  It has been downhill ever since.  To make it even worse the Salafis have thoroughly infiltrated the government system.  This is the single largest mistake made by the Malays and it will make them stupid,  violent and poor. They will also become far removed from the real Islam.) 

WHY WITH ALL MOSQUES, SURAU, UNIVERSITY ISLAM AND UITM  we are facing the worst  corruption scandals in the world today. 

(My comments : It will only get worse.  From my own personal observation and personal experience, the religious people can be the worst cheats, liars and kuffar. They are the spawn of satan. The more religious they claim to be, the worse satans many, many of them are. Note how in our country the religious party is now sleeping with same people they labelled syaitan and kafir before.) 

Then  here is a "list of corruption in Malaysia" prepared by Arianto Husani.  

Some of his points here can be debated but thank you Arianto. 
You have done a lot of research to prepare this list. 

LIST OF CORRUPTION IN MALAYSIA :
 

1. PKFZ RM12 billion
2. Submarine Commission RM500 million
3. Sime Darby RM964 million
4. Paya Indah Wetlands  RM88 million
5. Pos Malaysia (Transmile) RM230 million lost
6. Eurocopter deal RM1 billion wasted
7. Terengganu Stadium collapse RM292 million
8. MRR2 repair cost RM70 million
9. Maybank overpaid BII RM4 billion
10. Tourism - NYY kickback RM10 million
11. 3 paintings bought by MAS RM1.5 million
12. Overpayment by Sports Ministry RM8.4 million
13. London’s white elephant sports complex RM70 million
14. MATRADE repairs RM120 million
15. Cost of new plane used by PM RM200 million
16. InventQ irrecoverable debt RM228 million
17. Compensation for killing crooked bridge RM257 million
18. Loss in selling Augusta RM 510 million
19. Worth of APs given out in a year RM1.8 billion
20. Submarines (future Muzium Negara artifacts) RM4.1 billion
21. PSC Naval dockyard RM6.75 billion
22. The Bank Bumiputra twin scandals in the early 1980s saw US$1 billion losses (RM3.2 billion in 2008)
23. The Maminco attempt to corner the World Tin Market in the 1980s is believed to have cost some US$500 million (RM1.6 billion)
24. Betting in foreign exchange futures cost Bank Negara Malaysia RM30 billion in the 1990s
25. Perwaja Steel’s US$800 million (RM2.56 billion) losses
26. Use of RM10 billion public funds in the Valuecap Sdn Bhd operation to shore up the stock market
27. Banking scandal of RM700 million losses in Bank Islam
28. The sale of M.V. Agusta by Proton for one Euro making a loss of €75.99 million (RM348 million) Same as No.18.

29. Wang Ehsan from oil royalty on Terengganu RM7.4 billion from 2004 – 2007

30. For the past 10 years since Petronas Philharmonic Orchestra  was established, this orchestra has swallowed a total of RM500 million. Hiring a Kwai-Lo CEO with a salary of more than RM1 million per annum! 

31. In Advisors Fees, Mahathir was paid RM180,000, Shahrizat Abdul RM404,726 and Abdul Hamid Othman (religious) RM549,675 per annum   

(My comments : Dr Mahathir the cleverest of the entire lot was paid the least. Hamid Othman the stupidest dumb ass ever was paid the highest - by Slumberjack.)

32. The government has spent a total of RM3.2 billion in teaching Maths and Science in English over the past five years. (Wow ??) 

Of the amount, the government paid a whopping RM2.21 billion for the purchase of information and computer technology (ICT) equipment which it is unable to give a breakdown. 

Government paid more than RM6,000 per notebook vs per market price of less than RM3,000 through some new consortiums that was setup just to transact the notebook deal. There was no Maths and Science Content for the teachers and the notebooks are all with the teachers' children now.

33. The commission paid for purchase of jets and submarines to two private companies - Perimeker Sdn Bhd and I_T Defence Sdn Bhd amounted to RM910 million. Expanding on No. 2.

37. RM300 million to compensate Gerbang Perdana for the RM1.1 billion "Crooked Scenic Half-Bridge"
 
38. RM1.3 billion has been wasted building the white elephant Customs, Immigration and Quarantine (CIQ) facilities on cancellation of the Malaysia-Singapore Scenic Bridge
 
39. RM100 million on renovation of Parliament building which leaks
40. National Astronaut (actually tourist) Programme – RM70 million
41. National Service Training Programme – yearly an estimate of RM 500 million
42. Eye of Malaysia - RM30 million and another RM5.7 million of free tickets
43. RM2.4 million on indelible ink
 
44. Samy Vellu announced in September 2006 that the government paid compensation amounting to RM38.5 billion to 20 highway companies. RM380 million windfalls for 9 toll concessionaires earned solely from the toll hike in 2008 alone
 
45. RM32 million timber export kickbacks involving companies connected to Sarawak Chief M___ster and his family.
 
46. Two bailouts of Malaysia Airline System RM7.9 billion. At a time when MAS is incurring losses every year, RM1.55 million used to buy three paintings to decorate its Chairman’s  office. Expanding on No.11
 
47. Putra transport system bailout which cost RM4.486 billion.
48. STAR-LRT bailout costing RM3.256 billion.
49. National Sewerage System bailout costing RM192.54 million.
50. Seremban-Port Dickson Highway bailout costing RM142 million
51. Kuching Prison bailout costing RM135 million
52. Kajian Makanan dan Gunaan Orang Islam bailout costing RM8.3 million
53. Le Tour de Langkawi bailout costing RM3.5 Million
 
54. Wholesale distribution of tens of millions of shares in Bursa Malaysia under the guise of NEP to cronies, children and relatives of BN leaders and ministers worth billions of ringgit.

55. Alienation of tens of thousands of hectares of commercial lands and forestry concessions to children and relatives of BN leaders and Ministers worth tens of billions of ringgits.
 
56. Since 1997, Petronas has handed out a staggering RM30 billion in natural gas subsidies to IPPs who were reaping huge profits. In addition, there were much wastages and forward trading of Petronas oil in the 1990s based on the low price of oil then. Since the accounts of Petronas are for the eyes of the Prime Minister only, we have absolutely no idea of the amount.
 
57. RM5,700 for a car jack worth only RM50
58. Government-owned vehicle consumed a tank of petrol worth RM113 within a few minutes
59 A pole platform that cost RM990 was bought for RM30,000
60. A thumb drive that cost RM90 was bought for RM480
61. A cabinet that cost RM1,500 was bought for RM13,500
62. A flashlight that cost RM35 was bought for RM143
63. Expenses for 1Malaysia campaign paid to APCO?
64. RM17 billion subsidy to IPP
65. US$24 million Diamond Ring for Ro$_ah - Cancellation of Order - how much compensation ?
66. CowGate . . . RM250 Million
67. Monsoon Cup . . . RM800 million per year
68. Illicit Fund Transfers out of Malaysia ( 2000 - 2009) : RM 1,077,000,000,000!
69. Taj__in-Danaharta settlement
70. Billions of ringgit toll concessions that disadvantage the government and taxpayers”
71. With 1MDB RM42 billion missing.
72. MAIKA  120,000,000 SHARES IN TELEKOM
73. ABU SAYYAP TERRORIST 12 MILLION DOLLARS.

 
My comments :  Wow! If you add up all those millions and billions above it totals hundreds of billions of Ringgit  -  spent over past decades.  All of it involves taxpayers' money. Remember this folks : taxpayer's money.  This was the dishing out free money policy.

There are two more important things.  A very huge portion of that money was used to shield the Malays / bumiputras from competition. Look at the list again - all that money was either a grant of a monopoly project,  overpriced projects, cheating or outright theft.  It was purely a 'dishing out free money' exercise.  

Worse than any quantifiable monetary losses was the destruction in the abilities and capacities of all those hundreds of thousands if not millions of Malays and bumiputras from learning how to work hard, compete and become a  self sufficient community.

Instead the hundreds of billions spent over the decades has made the Malays / bumiputras less competitive than the non Malays and (more importantly) vis a vis the rest of the world.  Without the shielding, without the wall papering with money they just cannot compete.

The second point to note is that  all those billions were derived from oil revenues. The long list above represents our squandering our oil wealth. The Age of Oil Money. 

So our oil money was used to shield the Malays / bumiputras from operating at the same level in the market place. They were shielded from competition. 

After so many decades, many have also acquired false hopes.  Many of them (who became rich) were actually duped into believing that they could now succeed in business on their own.  This is very far from the truth.  

Here is more from Arianto.

I am 60 years old. 

NEP supposed to end in 1999. 

Now NEP being used as an excuse to implement Islamic values in all schools, Universities, Police Departments, Government Departments. 

WHY ARE INDIANS TREATED LIKE GANGSTERS BY PM AND DEPUTY PM? 

WHY ALWAYS NON MUSLIMS ARE BRANDED KAIFR  (JAHIL - LOW CLASS HUMANS) 

Malaysia is possibly the most racist country in the world with the following segregation. Have a look and judge for yourself.
 

"List of racial discrimination"  in Malaysia:
 

(1) Of the five major banks, only one is multi-racial, the rest are controlled by Malays.

(My comments : The ketuanan felt that a banking system  based on race could best serve the consumer and the Malaysian economy, even without having any prior experience in banking or  in business.  This policy was and still is bereft of any good book learning (education)  or simple common sense. Needless to say, it has failed miserably. And now the Islamic banks are stealing (yes stealing) the Malay peoples' money and making them poor.  Melayu miskin dulu. The shares of Public Bank Bhd (Chinese owned) are selling at over RM22 per share. Maybanks shares are forever below RM10 per share. The way to create a great banking sector is to have intense competition among banks, this can be achieved by having as many banks as the economy can sustain by itself, strict banking rules and  regulation and close monitoring. There is no other way.  We will need hundreds and thousands of bank CEOs, finance company CEOs populating our economy to create a successful financial ecosystem. Right now there are only six anchor banks with six CEOs to serve a nation of 32 million people. This is as stupid as stupid can be.)

(2) 99% of Petronas directors are Malays.
 

(3) 3% of Petronas employees are Chinese.
 

(4) 99% of 2000 Petronas gasoline stations are owned by Malays.
 

(5) 100% all contractors working under Petronas projects must be of Bumis status.
 

(6) 0% of non-Malay staff are legally required in Malay companies. But there must be 

30% Malay staffs in Chinese companies.
 

(7) 5% of all new intake for government police, nurses, army, are non-Malays.
 

(8) 2% is the present Chinese staff in Royal Malaysian Air Force (RMAF), a drop from 40% in 1960.
 

(9) 2% is the percentage of non-Malay government servants in Putrajaya, but Malays make up 98%.
 

(10) 7% is the percentage of Chinese government servants in the entire government (in 2004); a drop from 30% in 1960.
 

(11) 95% of government contracts are given to Malays.
 

(12) 100% of  all business licensees are controlled by Malay government, e.g. Taxi permits, Approved Permits, etc.
 

(13) 80% of the Chinese rice millers in Kedah had to be sold to Malay controlled Bernas in 1980s. Otherwise, life is made difficult for Chinese rice millers.
 

(14) 100 big companies set up, owned and managed by Chinese Malaysians were taken over by government, and later managed by Malays since 1970s, e.g. UTC, UMBC, MISC, etc.
 

(15) At least 10 Chinese owned bus companies (throughout Malaysia in the past 40 years) had to be sold to MARA or other Malay transport companies due to rejection by Malay authorities to Chinese applications for bus routes and rejection for their applications for new buses.
 

(16) Two Chinese taxi drivers were barred from driving in Johor Larkin bus station. There are about 30 taxi drivers and three were Chinese in Oct. 2004. Spoiling taxi club properties was the reason given.
 

(17) 0 non-Malays  allowed to get shop lots in the new Muar bus station (Nov. 2004).
 

(18) 8000 (???) billion ringgit is the total amount the government channeled to Malay pockets through ASB, ASN, MARA, privatization of government agencies, Tabung Haji etc, through NEP over a 34 years period.
 

(19) 48 Chinese primary schools closed down from 1968 - 2000.
 

(20) 144 Tamil primary schools closed down from 1968 - 2000.
 

(21) 2637 Malay primary schools built from 1968 - 2000.
 

(22) 2.5% government budget for Chinese primary schools. Indian schools got only 1%, Malay schools got 96.5%.
 

(23) While a Chinese parent with RM1000 salary (monthly) cannot get school textbook loan, a Malay parent with RM2000 salary is eligible.
 

(24) All 10 public university vice chancellors are Malays.  (And they are now manufacturing unemployable graduates and potential ISIS recruits.)
 

(25) 5% of the government universities' lecturers are of non-Malay origins. This percentage has been reduced from about 70% in 1965 to only 5% in 2004.
 

(26) Only 5% has been given to non-Malays for government scholarships in over 40 years.
 

(27) 0 Chinese or Indians were sent to Japan and Korea under the "Look East Policy."
 

(28) 128 STPM Chinese top students could not get into the course to which they aspired, i.e. Medicine (in 2004).
 

(29) 10% quotas are in place for non-Bumi students for MARA science schools beginning in 2003, but only 7% are filled. Before that it was 100% Malays.
 

(30) 50 cases in which Chinese and Indian Malaysians are beaten up in the National Service program in 2003.
 

(31) 25% of the Malaysian population was Chinese in 2004, a drop from 45% in 1957.   

(Err...sour grapes. This simply means you folks may need Viagra. The Malay people dont need Viagra. They marry two, three and four wives !! )
 

(32) 7% of the Malaysian population is Indian (2004), a drop from 12% in 1957. (Ditto as Chinese above)
 

(33) 2 million Chinese Malaysians have emigrated in the past 40 years.
 

(34) 0.5 million Indian Malaysians have emigrated overseas.
 

(35) 3 millions Indonesians have migrated to Malaysia and become Malaysian citizens with Bumi status.  (One of them is that Javanese Monkey.)
 

(36) 600,000 Chinese and Indian Malaysians with red IC were rejected repeatedly when applying for citizenship in the past 40 years. Perhaps 60% of them had already passed away due to old age. This shows racism, based on how easily Indonesians got their citizenships compared with the Chinese and Indians.


(My comments : Now Nur Jazlan says he wants to keep maybe another 50,000 Rohingyas in his house. They will all be given PR.  The Javanese Monkey says the spare room in his house is already taken by Zakir Naik.) 

 (37) 5% - 15% discount for a Malay to buy a house. I AM 60 YEARS OLD, I LOST MY TRUST IN ALL MUSLIM LEADERS


Arianto Husani
 

My comments :  Ok thank you Arianto Husani.  

Here is another news article about Dr Lin See Yan's recent comments about the Malaysian economy. The economy is in deep shit.   
 

country facing high debts, weak currency, dependency on cheap foreign labour.

former deputy (BNM) governor concern over economy
high national debt
weak currency 
dependancy on cheap foreign labour 
signs of economic fatigue.

Lin See-Yan  worried about medium and long term.

All indicators showing signs of fatigue
Growth slowing down
fundamentally economy needs restructuring.

cannot depend on consumption to drive economy 
more consumption will raise debts said Lin


If  income growth is below consumption (growth) then debt will overwhelm you
It will also slow down consumption.



(My comments : the same Khazanah moron dungu who was behind the Competition Act was also behind the 'growth by domestic consumption' policy - plus many other failed policies.  Both are now killing the economy.   

The double whammy in Malaysia is that the Malays and bumiputras ie the people who are largely dependent on government handouts for survival (free text books, free university education,  so many subsidies, so much molly coddling, easy gomen jobs, easy GLC jobs that pay as much as Wall Street, easy gomen projek dan kontrak) were all  encouraged to go out and spend borrowed money ("growth by domestic consumption"). 

Lagi tak boleh bayar. Now when the oil revenues have almost disappeared, all these people are  left high and dry with little capacity to repay their debts. And the "growth by domestic consumption" super moron is now keeping quiet.)


we need domestic investments
Raising productivity of labour
According to Lin, Malaysia needs economic reform to push growth.
manufacturing of high value products as one such reform.

(My comments : But according to the GLC dunggus :

If I can do it, I wont approve your license to do it.
If I cannot do it, I wont approve your license to do it.
If I dont want to do it, I wont approve your license to do it.
If I dont need it, I wont approve your license to do it. 

That is why their economy is now in such deep shit.   Their "economic policies" cannot be found inside any economics textbooks.   Its their own imaginary economic policies, devoid of any scientific economic principles.

The ketunanan economists who have earned their PhDs  are sometimes confused about ceteris paribus.   Ceteris paribus is a term used in economics which means "with other conditions remaining the same."  By saying this it is meant that if you change some economic factors (like providing cheap capital or buta money) it will create a desired outcome (of producing fantastic entrepreneurs)  but subject to ceteris paribus or all other conditions remaining the same.  

But what if the guy who receives the buta money has not been trained to wake up early in the morning? Or learn to deliver on time and as promised? Or how to speak properly to all his customers? Or not to conduct business by race and religion? Or not to use his business loan to marry a second wife (before paying off his loans)? 

So there is no ceteris paribus. All other things are not equal.  
 
The text book explanation of ceteris paribus (from Wikipedia) says "shorter hours of labor will, ceteris paribus, reduce the volume of output".  

This is a perfectly logical and true statement.  So what happens if the workers stop five times a day to pray (or smoke a cigarette - for those who still cannot understand?)  Surely their volume of output will be reduced by the amount of time spent praying (or smoking cigarettes).  End of my comment.




Lin said govt should encourage jobs that would grow the value chain.

"Instead of stitching shoes, we should design shoes, use better materials, use more value-added products. Not just import Bangladeshis to help us pack gloves. That is crazy,” he said.

stop hiring cheap labour and focus on education to produce quality products

we depend on Indonesians for construction
teach our people to lay bricks, paint 
In developed countries, those in trade earn more than professionals

Lin added no point increasing wages 
lack of productivity in creating value-added products
would lead to inflation.


(My comments :  Which is what the Minimum Wages have done. I have been saying this for over 10 years now. Minimum Wages have caused prices to go up. When you force employers to pay RM1000 minimum wage to an employee (who is really only worth about RM700)  with no immediate increase in output and productivity, then the businessman must increase his selling price  to recoup that extra 30% wage cost. Prices will go up. As simple as that. When prices go up, that is inflation.)


govt debt RM655.7b at end-June 2016, 53.2% of (GDP).
weak ringgit does not reflect good economy

Lin concerned about inflation due to weakening ringgit.
weak ringgit does not reflect stronger economy

more minuses than pluses
Everything we buy, we pay more
Manufacturers pay more for imported stuff  
currency’s depreciation contribute to weak economy.


Closing remarks: Ok folks, especially Malay and bumiputra readers, listen closely.  

All the above was possible because the gomen had excess oil money to burn. Now the oil money is drying up. The gomen has no more money.

Chief Thief has confirmed (more than once) that if not for the GST, the gomen will not even be able to pay the salaries of 1.6 million Civil Servants.

Everything is being cut - PTPTN loans, hospital services, no more patrols by forest rangers, no more subsidies,  GST taxes are eating more into our purchasing power.

The Chief Thief has said that out of a 14 million workforce, only 2.1 million actually pay taxes. It will be interesting to see the racial mix up of those 2.1 million people and what portion each race contributes to the gomen's income tax revenues.

But we can rest assured that a large portion of those 2.1 million who pay taxes are the non Malays / non bumiputras.   I really dont think that the 7.0 million mostly Malays and bumiputras who are on the list of  BR1M recipients actually pay taxes.     

And if you are talking corporate taxes, again it is largely a non Malay / non bumiputra contribution.  A very large number of public listed companies are owned by non bumis. Non bumis also dominate the SMEs.  I assume all listed companies and also a large number of SMEs do pay all sorts of taxes - corporate taxes, sales taxes, import duties, foreign worker levies,  advertising permits, business licenses, manufacturing licenses etc etc etc. These are all revenues for the gomen.

So with a shrinking oil revenue the gomen has to depend more on the tax payments by those 2.1 million hardworking people to pay for all our bills. This is the goose that lays the golden egg. Whether you like it or not, do remember this fact.

These 2.1 million taxpayers pay taxes that contribute to support the entire 30 million people who live in Malaysia. It is called "1 carry 15".  Each of those 2.1 million taxpayers pays taxes to support the standard of living of 15 others. 

Imagine if these 2.1 million hardworking taxpayers were to disappear, or all those public listed companies and all the SMEs that pay taxes were to disappear, then where is the gomen going to raise tax revenue to pay for all the "dishing out the free money" programs?  Tak boleh.  Faham tak?  There is no more oil money.


Even if Petronas discovers newer deposits of all and gas, it is only going to make things worse. The more oil and gas are discovered, the lower will be the prices of oil and gas.  

So like all developed countries or advanced countries (negara maju) the gomen must depend more and more on taxpayers and corporations who pay taxes to collect enough tax revenues to pay for all our public services (schools, scholarships, roads, hospitals, etc.)

The more taxpayers we have, then the more taxes the gomen can collect and the more money the gomen will have to spend on our schools, scholarsips, hospitals, free medical care etc.   

So kawan-kawan, we need more taxpayers. 

If we allow 50,000 more Rohingyas there will be almost zero tax collection from them. The gomen must spend our limited taxpayers money to feed, clothe and house those 50,000 Rohingyas. Where is that money going to come from if not from the same 2.1 million taxpayers?  

The Rohingyas almost monopolise the fish market at the Pasar Borong in Sri Kembangan.  But absolutely none of them will pay any income taxes.   

If each of the  2 million Bangladeshis in the country earns RM1000 per month, that adds up to RM24 billion every year.  Absolutely NO TAXES are paid by the Bangladeshis on those  RM24 Billions each year.  

My Bangla grass cutter earns more than RM1000 per month. He is a mini conglomerate. Grass cutting, landscaping, house painting, supplies cooking gas, minor house renovations etc.  He has rented TWO apartments, one for himself and one for his workers.  He easily earns about RM5000 per month.  He does not pay any income taxes.

Yet they also consume our public roads, TNB electricity, water supplies, get treatment at government hospitals etc.  Their children here go to our gomen schools. They do not pay any taxes.

The 2 million Indons here also do not pay any taxes. An Indon I know runs a supermarket (occupying three shop lots). He is also  a cooking gas wholesaler.  I doubt he pays any income taxes at all.

My construction supervisor is an Indon. He drives an MPV and recently went for the pilgrimage.  I doubt he even knows where the LHDN is located.  

So the 2 million Banglas, the 2 million Indons, the hundred thousand Rohingyas etc DO NOT PAY income taxes.  Yet they also benefit from all our public  services. 

Last time we had Petronas oil money to burn. Now we dont have oil money.  So now the income tax from those same 2.1 million taxpayers is also used up to sustain the millions of Banglas, Indons and now the Rohingyas. 

There is going to be less and less left over for the remaining 30 million Malaysians, especially the Malays and bumiputras. 

We need more Malaysian citizens, people who live here and will die here, to be able to pay more taxes. 

This means we must help our Malaysians (all Malaysians) to become more educated, more skilled, more competitive, more productive, be able to create more wealth. 

Only then will they generate more revenue and from that revenue they can pay more taxesto the gomen.  

Then the gomen can use the extra tax revenues to spend on us the Malaysian citizens to have a higher quality of life.

Now the 7.0 million people on the list of  BR1M recipients are not likely to be paying much income taxes.   

People who cannot survive without free gomen money or gomen assistance also cannot pay much income taxes.  (If your survival depends on receiving taxpayers money dished out by the gomen, how are you going to pay taxes?) 

So folks, firstly lets find out who are these 2.1 million taxpayers and give them a big hug.  Just say 'Thank you' to them. This is the goose that lays the golden eggs.

Secondly, pleeeease do not do anything stupid that will prevent these 2.1 million people from earning more revenues, more sales, profits etc from which they pay their income and other taxes.   

The gomen should instead help these people more and more. 

Please remove all the obstacles and useless regulations that prevents them from earning more money.

These people are taxpayers remember. 
The more money they make, the more taxes they will pay. 
The richer the gomen will become. 
The better for all of us 30 million Malaysians.

Taxpayers are going to be the largest source of revenue for the gomen. 
The age of buta oil money is over.  

So make life easy for the people - all Malaysians - so that they can exploit all economic opportunities to the maximum of their abilities.    

Remove obstacles, remove impediments, remove useless and stupid regulations like quotas and permits.  

Hardworking people will know what to do with their lives. They will know how to generate business and wealth.  Leave them alone.  Do not 'kacau' them.

And you better do this in a hurry.  

The GST is killing the economy. The economy is surely grinding to a halt.  The GST taxes everyone - including 12 year old school kids and their parents who are BR1M recipients. Soon people have no more money to spend.  Soon GST collections will start dropping. 
    
The oil money is drying up.  

The only sources of revenue that is left for the gomen is tax revenue, especially income tax revenue.  This is the goose with the golden egg. Do not kill this goose.