Tuesday, 16 January 2007

The USD 50 Billion for RMK9 'Report': Bank Negara Cannot be THAT Stupid !

From a Reader's Letter to Malaysiakini

There were reports ( read here, here, here and here) on the internet that Malaysian Govt needed USD50 billion funding 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, with the help of a company called Union Financial Services Corporation of Sydney, Australia.

From "Jeffrey" ( Read here for more)

".... The report is highly unlikely to be true for the following reasons:

  1. The Malaysian government may not be of the top rating in international financial markets but with the last resort of EPF’s huge coffers and Petronas (whose consolidated accounts, for 2005 and 2006 alone, has an Ebitda amounting to some US$39.38 billion not to mention the profits of earlier years and investments offshore), it cannot be so cash-strapped as to want to borrow money (for a legitimate purpose of funding the 9th Malaysia Plan) through financial intermediaries such as Roland Bleyer’s Union Financial Services Corporation.

    This is specially so when financial capital markets of the world require dealings by governments to be transparent.

    Malaysian government CANNOT be that stupid to risk its credibility within financial capital markets for such a deal.

  2. Banks - especially foreign banks - have internal and external auditors and have to account to their shareholders. There is NO way they will lend to Asasatu Technology Sdn Bhd which is in the process of winding-up.

    For to do so - even if Asasatu were a front for the Malaysian government - will violate every tenet of prudent credit.

    ...Our company laws will NOT permit an insolvent company to borrow monies, and lenders do so at their own peril of not being able to recover a cent because the transaction may become void.

    It is entirely inconceivable that Bank Negara, regulator of banks, will direct any bank to lend under such circumstances.

  3. Who (other than regulated banks, which have just been discounted) would ever lend such a sum of US$50 billion based on 2.88% to 3.5% interest rate as stated in the letter dated Feb 22, 2006, purportedly from Project Equity Services Group to the PM and Bank Negara’s governor?

    Even organised crime and money launderers know how to count in that they can get a better yield of approximately 4.8% for lending to the US government via subscription of its treasury bills.

    It is shocking to suggest that the Malaysian government has better credibility than the US government in being able to get a finer and reduced rate of 2.88% to 3.5%!

  4. All speculations that Singapore is using intermediaries or proxies to finance - for the sake of quid pro quo - political and strategic interest in air space, sand, water supply or facilities in the Southern Corridor have NO basis or credibility.

    Singapore finances through Temasek, a listed GLC.

    There’s NO way it lends money directly, much less lend US$50 billion that exceeds by twice its shareholders funds, constituting one quarter of Singapore’s total reserves.

    Its risk appetite is at an all time low. Recently t Prime Minister Lee Hsien Loong had said that Temasek (even though led by his wife Madam Ho Ching) should be accountable for the loss of US$2 billion from the ill- conceived US$3.8 billion acquisition of former Thai prime minister Thaksin Shinawatra’s stake in Thai telco, Shin Corp.
Khazanah, our Ministry of Finance and our central bank just CANNOT be so dumb as to fall for what appears to resemble a typical Nigerian scam.

In Bolehland, it is easy to bribe a clerk to steal letterheads from any office or government department or even affix a seal or a rubber stamp (that can be made for RM5). The rest is just a case of forging the signatures and distributing copies of it via the Internet.

Who has verified the authenticity and signatures of the letters mentioned in the report?

The story first originated from one Ganesh Sahathevan, (click here on Terror Finance Blog) was blown up by blogger Raja Petra Kamaruddin of Malaysia Today and picked up by Opposition Leader Lim Kit Siang.

But who is Ganesh Sahathevan?

NOTE: Described here as :"Ganesh Sahathevan, Freelance Journalist and Researcher living and working in Australia.

Journalist who investigated financial mismanagement in Malaysia prior to the financial crisis in the 1990s. Now researching and reporting from Sydney, he continues to focus on South East Asian business, economic and politics.

Member of Working Group 9- (click here
Terrorist Finance . )

He was born in Malaysia and worked as a financial journalist between 1994 and 1997, investigation financial mismanagement in Malaysia and the region that led, in part, to the Asian Economics crisis of 1997. He continues to research and report on south east asian business, economics and politics while based in Sydney."

Listed his address as :
Ganesh Sahathevan
19 William Edward ST,
Longueville, NSW 2066

Even if the story carried were not true (as I suspect it is), such a report will impact on the credibility and integrity of our government leaders and state institutions like the central bank.

It will also lead to the irresistible inference that our online blogs and media are irresponsible to publish that which they have NOT first verified by scrupulous due diligence proportionate to the gravity of the allegations.

In the interest of the nation and as a counterweight against the pro-government stance of licenced mainstream media, the Internet’s blogs and online media like malaysiakini are indeed the last bastions to ferret out falsehood and defend the truth.

We CANNOT ....follow a herd instinct and rush to publish material that we have NOT done scrupulous due diligence and verification, committing the very sin of disseminating misinformation that we accuse the government’s media of and squandering in the same process, our moral and credibility capital in respect of publication of the truth.

In turn, opening the way for a government clamp down based on this very same justification.


Dek Mat said...

good report! i concur with everything you say!

I even tried to tell Jeff Ooi in his comments of course that I thought the documents were fake but he didn't approve my comments :(

so much for thinking allowed!

Malaysian Unplug said...

dek mat

There are two issues: Is it a scam or a fake?

A reader on Jeff Ooi's blog on this issue wrote and posed the following questions correctly:

1) Was this front-company Asasatu Technology involved in the scam or the scam originators illegally used their name to fraud the govt.

(2) Did this aussie firm, Project Equity Services Group and/or Union Financial Services write to Bank Negara or Govt?

(3) Is the Political Secretary part of the scam or buy into the scam and wrote to Bank Negara?

(4) Did Bank Negara follow through from the Merican letter after that?

If it is not a scam, then Police should investigate who falsify those letters to defraud the Govt?

Anonymous said...

The description of Ganesh in the so called “safe-democracy organisation and the related Madrid organisationslub” was given by Ganesh Sahathevan himself. The safe-democracy organisation and its related organisations in Madrid are funded by extremists Jewish elements with concerted Anti-Muslim and Anti-Asian stance.

Ganesh was a former “Sun” reporter in the 1990’s but fell foul of his employer because he was reporting matters which were not true. His colleagues found out that the reason he fabricated his articles about the Government, organisations and persons of note was to create a situation where he could blackmail and extort these organisations and persons.

Ganesh is dangerous because he is at heart a sociopath and pathological liar – a multi-headed snake For instance in the past he has given the impression to certain PAS people that he is a strong supporter and yet to certain UMNO people he gives the impression he is on UMNO’s side.

Such a person often attracts the extremist and criminal elements. And sure enough, Ganesh is presently being supported by extremist Jewish and some criminal elements to create dissension in Malaysia, Australia and wherever and whenever his masters determine.

One of his modus operandi is to Carbon Copy his emails to all and sundry particularly to bloggers, politicians and other media outlets. His emails and “articles” are often structured to contain some aspects of truth but with big doses of lies and fabrication. The gullible will lap his lies up and these include many western reporters and western organisations or regulatory authorities.

Read this:


I have worked with and along side Ganesh Sahathevan when he was in Malaysia. My comments and assessments are shared by all who know Ganesh Sahathevan. Ganesh Sahathevan is BAD NEWS.

When he was in Malaysia, he would often raise dubious and false accusations against companies and individuals. His fantasy knows no bounds. He would accuse without evidence companies being associated with various personalities or being engaged in illegal activities when in fact the companies and individuals were totally innocent.

However when challenged by other journalist to prove his allegations he despicably says "Who Cares". But he would persistently demand "proof" from the organisations and individuals he attacks. Double criminal standards. Unfortunately Ganesh has never realised nor admitted his wrongs and inconsistencies.
That is why I sincerely believe Ganesh is a CRIMINAL PSYCHOPATH.

Ganesh's accusations which he spreads via emails, internet or by word of mouth would often devastate companies and individuals in terms of public perception and investments.

When he began attacking falsely Bank Negara and certain government agencies and became the purveyor of lies he was then pursued by the authorities and he fled to Australia. He was additionally sued by Tan Sri Vincent Tan. As a result he "hates all Chinese".

I am not surprised if he has progressed to terrorism because even when he was in Malaysia he would often request either directly or indirectly financial consideration for him to withdraw or stop the spread of those lies. Ganesh used to tell colleagues "I DESERVE THE MONEY AND MY VICTIMS DESERVE MY BRAND OF PUNISHMENT"


I know 3 of his previous bosses, one of them an Australian in Australia who commented Ganesh is the "LOWEST OF THE LOWEST SCUM, spreading lies and feeding on vulnerability of companies and individuals to extract financial and/or other benefits.

Pity the innocent Anwar Ibrahim, CIBT and other organisations and persons who are victims of Ganesh!

But more "PITIFUL" are the authorities and regulators in Malaysia & Australia and; the inexperienced reporters in Malaysia and Australia (like Jacqueline Ho & M Shanmugam of "The Edge"; Peter Martin and Ginny Stein of the insignificant SBS TV Australia & Russell Robinson of tabloids) who are ignorant of Ganesh's criminal activities in the 1990's in Malaysia and in the 2000's in Australia.





By G.Knight

A Sydney Buses cleaner, Mr Ganesh Sahathevan, is facing dismissal from Sydney Buses after complaining and going public on the dangers of a chemical cleanser cleaners are given to use on the interior of buses. Mr Sahathevan began his campaign against the cleaning compound manufactured by Polo Citrus, when he began feeling ill last year. Mr Sahathevan claims he was suffering from respiratory problems, asthma, headaches and in the most severe case, vomiting. The Polo Citrus product, manufactured by a company called B.R. Mining Services (which in itself has a very interesting background), contains the chemical tubitutoxyethanol. Other workers at Sydney Buses have complained from the side effects of using the chemical and being exposed to the fumes. Mr Sahathevan said he was not only concerned for his own health, but other cleaners at the depot (including one who does not speak English at all well) have complained of illnesses and symptoms that are similar after having used the chemical. Mr Sahathevan also said his concern was the depot was a major centre for school buses and he felt the children travelling on the buses when they have been freshly cleaned were being exposed to fumes from the cleanser. Mr Sahathevan took his complaint to the depot management and then to RTBU (Rail Train and Bus Union) - the relevant union.


Excerpt from “THE STAR” www.thestar.com.my

Tuesday, August 22, 2000

Witness: Journalist should have told supevisor

KUALA LUMPUR: While it is not wrong for a journalist to report any misconduct to the relevant authorities, he would have to refer to his immediate supervisor first, the Industrial Court heard yesterday.

Former editor-in-chief of The Sun Datuk Ahmad Rejal Arbee, 59, said this in the trial where sacked journalist Ganesh Sahathevan is seeking to be reinstated to the paper without monetary loss or otherwise.

Ganesh was sacked by the Sun Media Group Sdn Bhd on Jan 14, 1997, after allegations were made against him and a domestic inquiry found him guilty on these charges:

• That on Nov 17, 1996, he wrote an article which allegedly was not based on authentic information;

• That he demanded a written explanation from a public relations consultant regarding a dispute involving a toll concessionaire and a developer failing which he threatened to report to the Securities Commission, which he allegedly did;

• That he had acted without authorisation for the second charge; and

• That on Nov 18, 1996 he had made abusive remarks to the financial controller and the editor-in-chief of the company.

Cross-examined by counsel Siva Kumar Kanagasabai, Ahmad Rejal said he did not have proof that Ganesh had reported to Securities Commission but added that it was not the business of reporters to threaten others
Saturday, June 25, 2005 3:11:45 PM

Malaysian Unplug said...


Your comments on Ganesh Sahathevan are noted.

Be what it may you said about this individual's motives and intent, the core issue is still the subject matter that was raised:

That is: Whether this "report" of USD 50 billion to be sourced via two questionable companies is true or not or whether a scam has been exposed.

Leaving aside the integrity of the messenger, of concern to Malaysians is whether what is being reported should be a grave concern to Malaysians.

If a truth is being exposed and eventually confirmed to be so, it does not matter if that truth was made known by a thief or a murderer. The messenger is of less importance if the message is correct.

It is for Malaysians to verify the truth of what had been reported, be it coming from this person Ganesh who you feel is unscrupulous, or any other individual.

If the report of the USD 50 billion had been falsely spread by Ganesh, who , it would seem, had initiated this issue in the media, then the Govt can sue Ganesh for whatever it is worth for libel/slander etc.

The issue at hand, I am afraid, is not Ganesh, but the report itself? If the report is NOT true, then the issue is Ganesh. And we know where he is, who he is and where he lives in Sydney to redress what he had done.

Anonymous said...

Dear Malaysian Unplug,

Thank you for your response and your comments are noted but some issues need to be aired.

If the person is essentially a pathological liar or a sociopath then we get the classic liar paradox as to whether what he says is true or not. (I am not wishing to engage in a debate on this paradox or others in the Epimenides or Taskian tradition).

Murderers or rapist may tell the truth about certain matters but not all – for instance they may not tell the truth about the murder or the rape itself.
However a pathological liar by definition is a person whose statements about generally most matters cannot be relied upon.

On your other matters raised, all I can say is we do not live in a perfect world hence sometimes pure theoretical logic often does not apply.

And Ganesh DOES NOT follow the rules of logic nor evidence nor humanitarian fair play.

For instance, by legal, humanitarian logic and fair play, reporters (or for that matter extortionists or criminals and murderers - and this is circular logic as we do not expect extortionists/criminals to follow fair game do we?) should find out the truth before publishing matters. As “publication” could destroy and harm innocent individuals and organisations.

But not so, persons of Ganesh’s ilk will engage in “Trail by Media”.. The etymology of “Trial by Media” was derived from the context of a court matter in progress while the media embarked on certain liberties which may or may not be supported by evidence.

However Ganesh’s brand of “Trial By Media” is a misnomer. It is in fact lies calculated to assassinate individuals and organisations. So even when no court matter is in progress he will randomly picks (or directed by his pay or political masters) a person or organisation of means or perceived power as a target. He will then create out of nothing a fabricated story and commence mass circulation and dissemination of its contents. Hence he has the intention to destroy a person’s or organisation’s reputation and livelihood. When livelihood and income are affected unjustly, in a perfect world this would be akin to “murder”.

Analogously, take the alleged axis of “righteousness” – United States, Australia and United Kingdom”. Since September 11, the draconian U.S Patriot Act (the word “draconian” in this context is in fact an euphemism for corruption and abuse of power and human rights) to imprison someone or annihilate organisations on the mere suspicion and rumour of alleged terrorist like activities or alleged links to terrorist type activities. This often extends to “punishment” based or skin colour or religion but a lame excuse related to “illegal or criminal activity” is often given to justify such “punishment”

And often in a very practical scenario (which has happened many times before) these governments or in our context (these extortionists) would freeze the accounts of innocent persons/entities making these very victims unable to afford legal representation to prove the truth or the fact of their innocence.

These then are the tactics used by the Ganesh and his group of blackmailers.

So on a practical and real life basis, is there incentive for an innocent individual/orgnisation to prove its righteousness when it is already destroyed?

You also mentioned suing for libel. In real life –

1) Governments as a whole do not often sue on such matters as this, they surmise detracts them from the perceived regalness (Though the Singaporean Government may be different);

2) Individual ministers or politicians may take action and sue or defamation;

In the case of persons of Ganesh’s ilk, ironically they often issue (and have issued) threats by instigating their victims to take legal proceedings against them. They taunt their victims by saying that they have made themselves bankrupt or impecunious and additionally that they would enjoy the publicity. Hence even if victims win a court battle, they lost the war as the victims found themselves losing everything they own because of legal expenses. It is an empty victori.

Unfortunately the LAW does not often equate to JUSTICE. This is real life not theory.


Consequent to the above, therefore, to say that Truth is independent of the messenger when the messenger cannot be trusted is inaccurate and practically disastrous. The unscrupulous messenger will disseminate false information PRIOR to discovering the TRUTH. In this time line sequence, the victims are destroyed before the TRUTH can be shown. This is not Justice.