More bad spin by our 'instant economists' and 'political shamans'. Latest, a Bank Negara Malaysia statement stating how the central bank had revoked three permissions granted to 1MDB for investments abroad worth RM7.58 billion (US$1.83b), was turned into a heckle.
Their intention is none other but to show how bad relations between the two entities are. The picture given was that both did not cooperate in the ongoing investigation.
As an answer to BNM statement, 1Malaysia Development Berhad (1MDB) said it acknowledges and respects the authority of Bank Negara Malaysia (BNM) to revoke its permissions and to issue any direction it deems fit under the Financial Services Act 2013.
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In a statement released on Friday night, it said that despite the Attorney-General’s Chambers (AGC) confirming that 1MDB officials committed no offence, the Government investment arm would continue to cooperate and engage with BNM.
This was in response to BNM’s statement that the central bank had revoked three permissions granted to 1MDB for investments abroad worth US$1.83bil (RM7.58bil).
In a statement on Friday, BNM said the permissions were revoked as the investments were obtained based on "inaccurate or incomplete disclosure of information".
Their intention is none other but to show how bad relations between the two entities are. The picture given was that both did not cooperate in the ongoing investigation.
As an answer to BNM statement, 1Malaysia Development Berhad (1MDB) said it acknowledges and respects the authority of Bank Negara Malaysia (BNM) to revoke its permissions and to issue any direction it deems fit under the Financial Services Act 2013.
In a statement released on Friday night, it said that despite the Attorney-General’s Chambers (AGC) confirming that 1MDB officials committed no offence, the Government investment arm would continue to cooperate and engage with BNM.
This was in response to BNM’s statement that the central bank had revoked three permissions granted to 1MDB for investments abroad worth US$1.83bil (RM7.58bil).
In a statement on Friday, BNM said the permissions were revoked as the investments were obtained based on "inaccurate or incomplete disclosure of information".
BANK NEGARA STATEMENT
THE Attorney General's decision with respect to the investigations on 1Malaysia Development Berhad (1MDB) relates to Bank Negara Malaysia's recommendation to initiate criminal prosecution against 1MDB for breaches under the Exchange Control Act 1953 (ECA). It is to be noted that under the Federal Constitution, the decision to initiate criminal prosecution lies solely with the Attorney General.As an investigative authority, the Bank is duty bound to conduct its investigations with the highest professional care and diligence. The Bank at all times expects full and accurate disclosure of information by applicants in considering any application under the ECA. On its part, the Bank concluded that permissions required under the ECA for 1MDB's investments abroad were obtained based on inaccurate or without complete disclosure of material information relevant to the Bank's assessment of 1MDB's applications.
Therefore, the Bank has revoked three permissions granted to 1MDB under the ECA for investments abroad totalling USD1.83 billion and also issued a direction under the Financial Services Act 2013 to 1MDB to repatriate the amount of USD1.83 billion to Malaysia and submit a plan to the Bank for this purpose.
The Bank will continue to extend its full cooperation to ongoing investigations by the Royal Malaysia Police and the Malaysia Anti-Corruption Commission.
Bank Negara MalaysiaOct 9, 2015
1MDB said it was not for money laundering or other alleged criminal actions as highlighted by certain media and opposition politicians.
“Apart from submitting written answers and sharing relevant documents, 1MDB board members, current and former staff were interviewed by Bank Negara, with detailed witness statements being recorded,” it said.
However, the AGC, as the legitimate authority for such matters, decided that there was “no offence committed by 1MDB officials” and directed that “no further action should be taken,” reiterated 1MDB.
Notwithstanding this direction by the AGC, BNM has issued a direction for 1MDB to repatriate a sum of US$1.83 billion. "This relates to certain historic permissions granted by Bank Negara between 2009 and 2011 for 1MDB to make overseas investments."
1MDB highlighted that those permissions, when granted, had no requirement for funds to be repatriated. “Further, the use of those funds had been described in detail in the notes to 1MDB's publicly available financial statements dated 31.03.2009 to 31.03. 2014.”
1MDB stated that the overseas investments of US$1.83bil relates to historic equity and murabaha loan investments in a joint venture with PetroSaudi in 2009-2011, that was eventually converted in September 2012 into fund units valued at US$2.318bil.
“As previously explained by 1MDB to Bank Negara, this sum of US$2.318bil (RM9.6bil) had been redeemed in 2014 and 2015, with proceeds being substantially utilised.“The remaining US$940mil (RM3.9bil) of fund units, are guaranteed by Aabar and have been ear-marked for a ‘debt for asset swap’ with its ‘AA’ rated parent, IPIC, as part of the 1MDB rationalisation plan,” it said.
1MDB said that it was clear that the original US$1.83bil sum had either been spent or ear-marked for debt settlement arrangements, that would result in a substantial reduction of 1MDB’s debt following its rationalisation plan.
1MDB also said that it had painstakingly provided multiple detailed written and verbal explanations of these facts to Bank Negara between June and end-September 2015.