USD 50 billion,Malaysia, its PM Abdullah Badawi, and a small Sydney company

From The Terror Finance Blog (posted on October 22, 2006) -Read Here

(UPDATE: Read HERE A Malaysian Reader's Scepticism of this Report)

The Deputy Governor of the Central Bank Of Malaysia, Zamani Abdul Ghani (deputy chief of the Malaysian equivalent of the Fed) has refused to disavow knowledge of the following:

A) That in a letter to him from Reezal Merican Naina Merican, political secretary to the Malaysian Prime Minister , Abdullah Badawi , who is also Malaysia’s Minister for Finance, dated 15 June 2006, he was instructed to give ”careful consideration” to the issuance of Malaysian Government bonds and guarantees to secure a financial facility for the value of USD 50 billion, via a private company Asasatu Technology Sdn Bhd.

B) that the above letter included another letter dated 30 May 2006 on Asasatu Technology Sdn Bhd letterhead which contained instructions to him from Prime Minister and Finance Minister Abdullah Badawi, in regards to the above matter , minuted on its face.

C) that a meeting was held at Level 7C of the Malaysian Central Bank on 25 October 2005, to discuss the above facility, and that the meeting was attended by:

i) Ms Lee Guat Keow, senior manager of the Foreign Exchange Administration Department , Central Bank Malaysia

ii) Zubir Ahmad CEO , Asasatu Technology

iii) Robert Power, executive director of Project Equity Services

Deputy Governor Zamani had earlier refuted as "rubbish" queries concerning the USD 50 billion facility,and the Central Bank's role in securing the facility.

He has remained silent since the details above were put to him.

Robert Power of Project Equity Services has provided the following response when questioned about the facility:

We are part of a group of legal entities which currently has project financing matters pending from Russia to Switzerland to China, Canada, Australia, USA and elsewhere in Asia. We are privately owned and do not confirm or deny any independent enquiry. Please also be advised that there exists under Australian Law a Privacy Act.

We fund and/or invest mainly in USD, with funds being clean, clear funds of non-criminal origin.

Project Equity Services might be, charitably, described as low key ; in truth, the company operates out of a small office in Sydney and is not known as a financier of any sort.

The "group of legal entities" appear to be shelf companies.

That the company should be able to obtain entree to the highest level of government in Malaysia raises further questions as to the intent of Malaysian Government officials who have lent their support to Project Equity Services and the facility it offers.

These officers include those named above as well as the Deputy Minister for Finance, Nor Mohamad Yackop.

Power has also NOT denied that he has corresponded with the Central Bank via the office of the Second Minister for Finance , Nor Mohamad Yackop (the second minister has full ministerial status).

Nor Mohamad was an adviser to SDGT Yassin Al-Kadi and his Abrar Group in the mid-nineties.

He was also a business associate of Kadi and Abrar, this being evident in a series of transactions in which Kadi and his other associates took some of their interests in Malaysia and the US public by backing those interests into a company listed on Malaysia’s Kuala Lumpur Stock Exchange that Yackop had taken control of.

Both Yackop and Prime Minister Badawi have ultimate control over the decision making processes of the Malaysian Ministry for Finance that oversees all (and this is said without exaggeration) financial businesses and transactions within the country.

Hence, both men have final say in the continued operation of the USD 8 billion Commercial IBT in Malaysia, a company that has been linked to Al-Kadi and his associates, as well as Al-Kadi’s other businesses in Malaysia. see www.terrorfinance.org/the_terror_finance_blog/2006/08/yassin_alkadist.html)

In 2004 Prime Minister Badawi was named in the Volker Report as a beneficiary of oil allocations granted by Sadam Hussein under the UN-Iraq Oil-for Food scheme. The allocations were made to a company named Mastek Sdn Bhd , controlled by his late wife’s sister and her then husband, Faek Ahmad Shareef , an Iraqi who had settled in Malaysia.

(http://www.iic-offp.org/documents/Final%20Report%2027Oct05/IIC%20Final%20Report%20-%20Chapter%20Two.pdf)

Mastek was one of the largest recipients of those allocations.

*****
From Lim Kit Siang's Blog (Read here)

MP Lit Kit Siang asked the Govt:

"....In the name of accountability, transparency, integrity and good governance, Abdullah must clarify three things:

1. Whether and why the government has adopted the unusual and even extraordinary arrangement to raise US$50 billion funding for the Ninth Malaysia Plan infrastructure development projects from 25 world top prime bank or local prime bank through dubious private companies.

2. Whether and why Asasatu Technology Sdn. Bhd, whose status in the latest record in Companies Commission of Malaysia (SSM) is “winding up”, has been chosen to arrange the USD50 billion for the Malaysian government.

From today’s check with the SSM, the particulars of Asasatu Technology Sdn. Bhd are:

(i) Address: No, Jalan Arowana 4,Kawasan Perniagaan Arowana, 13500, Permatang Pauh, Penang

(ii) Shareholder/director – Zubir bin Ahmad 1,980,000 shares-Rosni binti Rahmat 20,000 shares

(iii) Last filed accounts – 31st Dec. 2000.

(a)Fixed assets RM542,248; current assets RM1,976,421.

(b) Current liabilities RM1,071,641; long-term liabilities RM321,756.

(c)Profit for the year RM39,512; accumulated profits RM125,272.

(d) Four “unsatisfied” charges to four banks exceeding RM7 million.

3. Whether and why the partner and agent of Asasatu Technology Sdn. Bhd. to arrange for the USD50 billion financing for the government’s Ninth Malaysia Plan is the Sydney-based Project Equity Services Group (PESG).

An Internet search raises many questions about the PESG, whether it is a front-company for Roland Bleyer, who is also President of Union Financial Services Corporation and dogged by a long history of allegations of scams by their victims world-wide.

.....If Abdullah (Badawi) is really in the dark about such Internet material, I am prepared to ."forward to him all relevant information. "

****

FROM MALAYSIA-TODAY
Read here "How Malaysia is borrowing USD50 billion without borrowing"

Excerpts

".... On 15 June 2006, Reezal Merican Naina Merican wrote a letter to Datuk Zamani Abdul Ghani, the Deputy Governor of Bank Negara Malaysia.

The letter is about an amount of USD50 billion required by Malaysia to fund its national development. .... Malaysia recently launched its Ninth Malaysia Plan or Rancangan Malaysia Kesembilan (RMK9). The RMK9, which runs from 2006 to 2010, is going to cost the nation RM200 billion.

Who is Reezal Merican ? What authority does he have in instructing the Deputy Governor of Bank Negara?

[Note: Read here on Reezal Merican:

Reezal Merican Naina Merican is an Indian Muslim from Penang who had managed to bring himself to the attention of Abdullah Badawi three years before Khairy .Reezal Merican (often called ‘Ustaz Reezal’) is an IIUM graduate.When Abdullah ascended that high office, Reezal Merican thought that his time had come. He promptly got himself elected head of the IIUM alumni and therefore a nominal head of quite a substantial group of the local student support base. Perhaps it was in view of this that Abdullah finally made Reezal, in November 2003, a Political Secretary to the First Finance Minister.]

Reezal Merican is one of the ‘Tingkat Empat’ boys. He is Political Secretary to the Finance Minister, who happens to be Malaysia’s Prime Minister. Reezal Merican is not there because of his abilities but because Khairy Jamaluddin, the Prime Minister’s son-in-law, wants to keep an eye on things . Reezal Merican plays the role of Khairy’s eyes and ears.

Reezal Merican’s job is not only to report everything to Khairy and to be the minder for the Finance Minister II and keep him under control, but also to ensure that Khairy gets to read all reports and letters before it falls onto the desk of the Finance Minister II.

By the time any documents reach the table of the Finance Minister II, it would already have instructions etched on them about which project and which contract is to be awarded to which company.

In short, the jobs are apportioned out even before the Finance Minister II gets to see the papers.

Prior to Abdullah Ahmad Badawi tabling the RMK9 in Parliament for debate and approval, a copy had earlier been sent to the Finance Minister II. On this particular early-bird copy, against every project listed in the RMK9, Khairy had etched in his own handwriting which company was going to be awarded which project.

Abdullah Badawi tabled the RMK9 for Parliament’s approval only as a formality. Some projects such as in East Malaysia had in fact already started work. The contractors were already working even before Parliament had approved the projects.

It was reported that the Finance Minister II was flabbergasted.

Nevertheless, with people like Reezal Merican hovering over him, there was nothing he could do to resist. Doing so would mean he would have to retire once his term expires. .... he was smart enough not to resist Khairy but instead complied with whatever Khairy wants.

The letter of 15 June 2006.

Reezal Merican said in that letter of 15 June 2006 that he is under instructions of the Malaysian Prime Minister cum Finance Minister, Abdullah Ahmad Badawi.

And the letter refers to the USD50 billion funding requirement to finance the RM200 billion Rancangan Malaysia Kesembilan (RMK9) or Ninth Malaysian Plan.

The USD50 billion is being procured from 25 prime banks but will be channelled through a private limited company, Asasatu Technology Sdn Bhd. The name Ir. Hj Zubir bin Hj Ahmad is mentioned in that letter as the Managing Director of the company.

It appears that the USD50 billion will be channelled through a private limited company and not directly to the Malaysian government.

This would mean, officially, Malaysia is NOT borrowing any money. The money is being borrowed by a private limited company.

( (Read page one and page two of the letter here).).

According to the Registrar of Companies, Asasatu Technology Sdn Bhd, a company based in Permatang Pauh in Penang, is in the process of being wound up. .... the company that is arranging the USD50 billion for the Malaysian government is a company that is being wound up.

How can a company that is being wound up be the front for the Malaysian government in negotiating a very important matter like funding the country’s RMK9?

The last filed accounts for Asasatu Technology Sdn Bhd is 31 December 2000.

There are NO accounts filed since then.

In 2000, the company’s fixed assets were shown as RM542,248.00 with current assets of RM1,976,421.00. But it had current liabilities of RM1,071,641.00 and long-term liabilities of RM321,756.00.

The profit for the year was RM39,512.00 with accumulated profits of RM125,272.00.

This is certainly NOT the kind of company Malaysia should be using to raise USD50 billion for the purpose of funding such an important matter like the RMK9.

We do not know what the latest financial figures are. Since the company is being wound up we can only assume that since 2001 it cannot have been doing very well.

Ir. Hj Zubir bin Hj Ahmad mentioned in the 15 June 2006 letter is a Director of the company and holds 1,980,000 shares while Rosni binti Rahmat, the other Director, holds 20,000 shares.

The agent who will arrange the financing is named in that letter as Union Financial Services Corporation of Sydney, Australia, and the address is listed as PO Box A2286.

So there is no way of confirming whether this company is just a ‘PO Box’ company or a legitimate fund manager. Considering that we are talking about Malaysia’s funding requirement for the five years until 2010, this makes it very dicey indeed.

This USD50 billion is going to be Malaysia’s lifeline and the whole matter is being handled through:

• a PO Box in Australia and
  
  
• a private limited company in Malaysia in the process of being wound up.

Two weeks earlier, on 30 May 2006, Asasatu Technology Sdn Bhd had written Abdullah Ahmad Badawi a letter offering the USD50 billion and mentioning in that letter that their partner is Union Financial Services Corporation.

The letter was signed by Ir. Hj Zubir bin Hj Ahmad. A person by the name of Roland Bleyer is also mentioned as the President of Union Financial Services Corporation.

Reezal Merican’s 15 June 2006 letter is in response to this letter of 30 May 2006.

(Read page one and page two of the letter here).

Even earlier to that, on 22 February 2006, a company called Project Equity Services Group from Singapore had written to the Prime Minister and the Bank Negara Governor referring to a meeting in Bank Negara on 25 October 2005. The letter mentions all those present in the meeting.

(Read page one and page two of the letter here).

The 22 February 2006 letter mentions that the whole arrangement must be done through Ir. Hj Zubir bin Hj Ahmad, the Managing Director of Asasatu Technology Sdn Bhd. It also mentions that this is according to the request by Bank Negara.

Therefore, Bank Negara was the one that stipulated Asasatu Technology Sdn Bhd would be fronting for the Malaysian government.

The USD50 billion will have to be paid back within ten years and carries an interest rate of between 2.88% to 3.5%. And it would of course have to be paid back in US Dollars and subject to whatever the exchange rate at that time would be. This means the USD50 billion is exposed to currency fluctuations and exchange risk.

Reading the THREE letters together, it is clear that

1. Bank Negara has agreed that a private limited company currently in the process of being wound up is to be used as a front to borrow USD50 billion. This company will act as a front for the Malaysian government so that it will NOT be seen that Malaysia is borrowing USD50 billion from overseas.
   
   
2. The whole package was brokered by a Singapore outfit. (This is ) so as NOT to reveal that Singapore is involved, lest fingers start pointing to the prime Minister’s son-in-law, they shall put the whole thing through an Australian PO Box that will front as the ‘partner’ for the Malaysian outfit.
   
   
3. The Malaysian government will NOT officially borrow the money and the borrower will instead be a small mama-papa private limited company called Asasatu Technology Sdn Bhd. This will keep the Malaysian government ‘clean’ of any foreign borrowings.
   
   
4. When the Malaysian government announced the RM200 billion RMK9 in Parliament, they did NOT have the money to finance it. However, not wanting it to appear like the country is borrowing interest-bearing US Dollars, plus is subject to currency fluctuations, to finance its development plans, they used a small private limited company as a front, which again used an Australian PO Box company, which in turn is backed by Singapore.

In short, through many layers or levels of front companies and PO Box companies, Singapore is funding Malaysia’s development proudly touted as the Rancangan Malaysia Kesembilan or RMK9.

Further information on Asasatu Technology Sdn Bhd is as follows:

Address: No.1, Jalan Arowana 4, Kawasan Perniagaan Arowana, Permatang Pauh, P. Pinang
Poscode: 13500
Tel: 604-3973211, 604-3974211
Fax: 604-3975211

Australian Securities and Investments Commission report on Union Financial Services Corporation (see below)