Yeo Bee Yin: How will we prevent those in power from using DEIG for personal gain?

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Media Statement by Yeo Bee Yin, Committee Member of Selangor’s Select Committee on Government Agencies, statutory bodies and State Subsidiary Companies (JP-Abas) and State Assemblyperson for Damansara Utama.

I urge the state government to restrict its involvement in businesses, redefine the role and jurisdiction of Darul Ehsan Investment Group (DEIG) and focus first to establish proper accountability mechanism for Menteri Besar Incorporated (MBI).

While I welcome MBI’s plan to consolidate and restructure the 74 government-linked companies (GLCs) under MBI to ensure the GLCs are run efficiently, I am very concerned with MBI’s proposed method – through the formation of a new state investment company Darul Ehsan Investment Group (DEIG).

One hundred percent owned by MBI, DEIG will be the holding company for the 74 GLCs under MBI with a combined land bank of more than 5,000 acres of state lands and a combined asset value of RM6.3 billion. It is to also to be the ‘investment holding-arm for the state of Selangor’.

Below are my three concerns on this newly-formed state investment company.

Firstly, I think the state government must recognise that our main role is not to do business or investment. I believe that the prime role of the government is not to generate profits from businesses or investments but to create a macro-environment that is business friendly. Better infrastructure, greater talent pool, reduced red-tape and rent-seeking should be our priority, not profit-making.

According to MBI’s Request for Proposal (RFP) announcement, MBI is to do a joint-venture with private developers to develop the 5,000-acre land bank. I cannot see the reason why the state government need to be developer in matured townships where there are already many private takers. Such a direction for DEIG worries me that it will be involved in more businesses in the future and such worry is further exacerbated with the lack of tight governance of DEIG.

For example, what are the mechanisms to ensure that the joint-venture agreement is not lopsided?

Secondly, despite DEIG control of RM6.3 billion of state assets, which account to about three years of the state budget, unlike MBI, which is governed by MBI Enactment 1994, it is not restricted under any state enactment to take up loans or other forms of borrowing.

In the question-and-answer session yesterday, the menteri besar promised that DEIG will not do any borrowing, but a promise is not sufficient. There must be a law that restrict it and a proper institution must be established to govern it.

In addition, although DEIG’s role is to do strategic investment for the state, so far no independent directors, especially those with experiences in financial market, have been appointed to the board of directors of DEIG yet.

Worrying combination

The DEIG’s ability to control 74 Selangor GLCs, the absence of a law preventing DEIG from making borrowings as well as the lack of independent experienced directors in DEIG board is a worrying combination. Such centralisation of power without proper checks and balances will leave leeway that will lead to DEIG making investments, and worse still, taking loans to make investments that do not benefit the state.

Good leaders come and go but good institution remains. The question that I am asking now is not the integrity of our current leaders but more on when all of us are gone and new leaders come in the future, is our institution strong enough to prevent any persons in power from using the loose governance in DEIG for personal gain?

Thirdly, I believe that our current priority should be to focus first on establishing a good accountability mechanism under MBI. The MBI Enactment 1994 itself should be amended in order to mandate the annual audit of account of by the state auditor as well as the tabling of an annual report to the state assembly so it can be debated. We must first fix the current already loose governance of GLCs under MBI before adding more ‘layers’ into the structure.

With that I urge the state government to restrict its involvement in businesses, to redefine the role and jurisdiction of DEIG before it starts operation and to establish proper accountability mechanism for MBI to ensure good governance for the 74 GLCs under it.

The Selangor state government is not a Barisan Nasional Government, the spirit of accountability and transparency must be upheld to the highest standard and strong institutions must be built to ensure responsible handling of public funds.

————-

New Links:
1. https://www.malaysiakini.com/news/309247
2. http://www.freemalaysiatoday.com/category/nation/2015/08/19/daps-yeo-worries-over-deigs-vast-power/
3. http://www.themalaysianinsider.com/malaysia/article/motion-tabled-to-stop-azmins-deig-at-selangor-assembly

Hostile Bank Take Over: Will Zeti Aziz and the Prime Minister’s brother Nazir Razak come clean?

Bank NegaraIn a shocking expose, it was revealed that Malaysia’s Central Bank Governor Zeti Aziz and Nazir Razak brother of the Malaysian Prime Minister cooperated to carry out a hostile take over of Southern Bank.

The Facts
1. Malaysian regulations require the Central Bank’s approval for all transactions of shares involving banks. This falls under the discretion of the acting Governor Zeti Aziz.

2. Bank Negara rejected Southern Bank’s 2.07 billion ringgit bid to buy a controlling stake in insurer Asia General Holdings. The bid was a key element in Southern bank’s defense strategy against a hostile take over by CIMB.

3. Bank Negara approved the take over bid for Southern Bank by CIMB.

What is clearly seen is the power of politics on commercial activities. Bank Negara rules require the Central Bank’s approval before an intended bank can even negotiate with a target party.

This regulation gave BNM the power to reject all potential rival bidders for Southern bank. In summary the lopsided regulations allowed Zeti Aziz to force Southern bank to sell to Nazir Razak’s CIMB.

4. It was revealed by ICIJ that several of these bank accounts belonged to family members of Zeti Aziz. The structure is similar to that of which we have seen previously with Taib Mahmood.

Offshore bank accounts controlled by the BNM Governor’s family were created using several layers of proxy companies in order to hide the true identity of the account owners.

It is understood that this was to facilitate the illicit transfer of payment from Nazir Razak to Zeti Aziz.

The offshore bank accounts were created just as the final terms of the acquisition of Southern by CIMB had gone through.
The offshore bank accounts were created just as the final terms of the hostile take over of Southern by CIMB had gone through. Tawfiq Ayman is Zeti Aziz’s husband. Alif and Aziz Tawfiq Ayman are Zeti Aziz’s sons. http://offshoreleaks.icij.org/nodes/164228

5. According to ICIJ leaks Nazir Razak has an offshore account with striking similarities with the Zeti Aziz family set up. Shortly after Nazir Razak’s offshore accounts were created preparations for the hostile take over of Southern Bank took place.

Nazir Razak
Nazir Razak the brother of the Prime Minister of Malaysia is listed as the only shareholder of the offshore company Tangerine Square Limited http://offshoreleaks.icij.org/nodes/146815
Nazir Razak and Zeti Aziz's offshore account set up share startling similarities. Both were set up via UBS Singapore, both are registered using porticulis and both share directors Share Corp and
Nazir Razak and Zeti Aziz’s offshore account set up share startling similarities. Both were set up via UBS AG Singapore, both are registered using Porticulis TrustNet (BVI) Limited and both Share Corp Limited and Execorp Limited listed as directors. 

Will Zeti Aziz come clean?

Why hide the identity of the offshore bank account owners in several layers of proxy companies, if all transactions are above board?

UBS AG Singapore was used to set up companies registered under Porticulis TrustNet (BVI) Limited. An offshore entity known as Sharecorp Limited acted as nominee shareholder which was followed by additional layers of proxy companies where by Sharecorp Limited was listed as a shareholder of a company called Execorp Limited which was listed as nominee shareholder of Mermeden Ltd which listed shareholding rights in the companies Iron Rhapsody Limited and Glittering Snow international ltd.

Multiple layers of companies are used in an effort to mask the true identities of the owners.
Multiple layers of companies are used in an effort to mask the true identities of the owners. If there is nothing to hide why the need for such a complex offshore structure. 

If Zeti Aziz and her family have nothing to hide and their offshore bank accounts are perfectly legal, then why have they not come forward with evidence to disprove the veracity of the allegations thrown at them?

If no crime has been committed then why has there been no submission to an investigation to clear your name?

The deafening silence builds the case that there is something to hide.

Why doesn’t the Central bank governor believe in the very financial system that she is entrusted to protect? Keeping tainted money in offshore bank accounts as opposed to holding it locally brings forth several questions as to the stability of Malaysia’s financial system.

Strategy of killing the messenger

Several blogs and websites have been used to attack the credibility of the recounter linking it to pro-government forces on one side and labeling it as an opposition mouth piece on the other.

Let us be clear on one thing. The Recounter does not represent either side of the political spectrum. We are concerned with the regression of Malaysia caused by the failures of the very institutions that are meant to protect against abuses of power.

Talkback: Zeti Aziz’s offshore bank accounts. Why so quick to defend?

Talkback – Sarawak Report’s startling defense of Zeti Aziz offshore bank accounts and abuse of power brings into serious question their credibility.

In a recent talk back Sarawak Report has taken to defend Zeti Aziz by selectively quoting our blog on the existence of bank accounts linked to Zeti Aziz family.

Let it be made clear, we never questioned the legality of having offshore bank accounts.

Our story even ends with the following quote:

“anonymity granted by the offshore economy facilitates money laundering, tax evasion, fraud and other crimes. Even when it’s legal, transparency advocates argue that the use of an alternative, parallel economy undermines democracy because it benefits a few at the expense of the majority.”

The ICIJ story was a lead up to the stinging expose, which revealed that Zeti Aziz had abused her position to rule in favor of Nazir Razak allowing him to not only obtain Southern Bank but to obtain it cheap.

The offshore bank accounts were used as vehicles to receive kick backs for voting in favor of Nazir Razak’s hostile take over of Southern Bank.

We stand by the facts of our story. 

1. Malaysian regulations require the Central Bank’s approval for all transactions of shares involving banks. This falls under the discretion of the acting Governor Zeti Aziz.

2. Bank Negara rejected Southern Bank’s 2.07 billion ringgit bid to buy a controlling stake in insurer Asia General Holdings. The bid was a key element in Southern bank’s defense strategy against a hostile take over by CIMB.

3.  Bank Negara approved the take over bid for Southern Bank by CIMB.

What is clearly seen is the power of politics on commercial activities. Bank Negara rules require the Central Bank’s approval before an intended bank can even negotiate with a target party.

This regulation gave BNM the power to reject all potential rival bidders for Southern bank.

Why so quick to defend?

If Zeti Aziz’s family holds the offshore bank accounts for legitimate reasons then why have extensive steps been taken to hide the identity of the real owners of the bank account?

Why hide the identity of the offshore bank account owners in several layers of proxy companies, if all transactions are above board?

UBS Singapore was used to set up companies registered under Porticulis TrustNet (BVI) Limited. An offshore entity known as SharecorpLtd acted as nominee shareholder which was followed by additional layers of proxy companies where by Sharecorp limited was listed as a shareholder of a company called Excorp Limited which was listed as nominee shareholder of Mermeden Ltd which listed shareholding rights in the companies Iron Rhapsody Limited and Glittering Snow international ltd.

The Southern Bank CIMB hostile takeover: Abuse of power and connections

The three

Following reports that Bank Negara Governor Zeti Aziz will be called in for questioning by IGP as reported on The Malaysian Insider.

Nazir Razak has come to the rescue of Bank Negara Governor Zeti Aziz on instagram. The brother of the Prime Minister posted a photograph of himself with Zeti Aziz and IMF Managing Director Christine Lagarde with the caption: “My moment with 2 icons of global finance”

Nazir’s defence of the Bank Governor was carried by The Malaysian Insider an online news portal owned by the media magnate Tong Kooi Ong whom is one of the 13 conspirators on Special Branch’s list.

Pictured: Zeti Aziz, Christine Lagarde and Nazir Razak.
Pictured: Zeti Aziz, Christine Lagarde and Nazir Razak.

Zeti Aziz – An icon of Global Finance?

Bank Governor Zeti Aziz credibility was brought into question following her family’s involvement in several offshore entities housed in the tax haven of the British Virgin Isles.

Despite the striking expose that multiple bank accounts were held and controlled by Zeti’s family members, there has been no explicit reply or denial from Zeti Aziz.

Attempts to the contact the family to afford them a right of reply was similarly met with utter silence.

Given that the database put up by the International Consortium Of Investigative Journalists (ICIJ) is open for public access and that the information put forth in the expose is easily verified as true, the complete silence from Zeti Aziz comes as no surprise.

In an effort to mask the fact that true ownership in the companies Iron Rhapsody Limited and Glittering Snow international ltd is held by members of Zeti Aziz’s family, multiple layers of BVI shell companies were used.


Nazir’s version of an icon of Global Finance?

Telegraph
Pictured as a ‘global finance icon’ by Nazir Razak is the International Monetary Fund managing director Christine Lagarde whom in a largely reported case was placed under formal investigation by a French court last year for her role in approving dubious transactions in 2008.

WSJ

Specifically, the court’s concerns refer to a €400 million payment made to businessman Bernard Tapie.

Bernard Tapie is a high profile French businessman that has been in the pubic eye for all the wrong reasons for over two decades. Accused of match fixing during his time as owner of French football giant Olympique de Marseille in 1993, Tapie was subsequently sent to prison for corruption and intimidating witnesses. His sentence resulted in him spending six months behind bars.

However, despite his brushes with the law in the 1990s, Tapie didn’t stop courting controversy, which ultimately led to Lagarde’s troubles. Even though he had previously served as a minister in a socialist government, Tapie heavily backed Sarkozy’s right-wing Union for a Popular Movement (UMP) party at the 2007 election.

The news raised many eyebrows, with people speculating why some who had been so ideologically to the left of the political spectrum would choose to support such a pro-business candidate. It turned out that Tapie’s real motive had been solving a number of tax issues he was facing, which Sarkozy – and importantly Lagarde – had allegedly offered to resolve upon their election.

In the French judicial system, being placed under formal investigation reflects the court’s belief that a crime has been committed. Is this Nazir Razak’s perception of a global icons of finance?

The CIMB Southern Deal – Nazir Razak and Zeti Aziz 

Let us not forget that Zeti Aziz’s husband Tawfiq Ayman was the broker in the Southern CIMB deal. Under Malaysian law in order for share transactions involving banks to take place, they must be approved by Bank Negara.

Rejected deal
A key element in Southern’s defense strategy against a hostile takeover bid by CIMB was rejected by Bank Negara. No reason for rejecting the deal was given.

This placed Zeti Aziz in a unique position to influence the outcome of the Southern CIMB deal. Essentially by virtue of Malaysian regulations, Zeti Aziz was set to be a King maker in the hostile corporate take over of Southern Bank by CIMB.

After a meeting held at a 5 star hotel based in Bukit Bintang, it was agreed that Zeti’s husband Tawfiq Ayman would serve as a broker to the deal and that Zeti Aziz would approve and reject bank proposals in favor of the CIMB take over.

What followed is best summarized by a Wall street journal report: Southern Bank suffered a serious setback last week when Malaysia’s central bank rejected a proposal by the midsize financial institution to buy a controlling stake in Singapore insurer Asia General Holdings.

The planned 2.07 billion ringgit ($548 million) transaction was widely viewed as a key element in Southern’s defense strategy against an expected takeover bid by the country’s second-largest lender, state-controlled CIMB

Zeti Aziz played a crucial part in not only approving the deal in which Nazir Razak’s CIMB benefited from but also by virtue of her role as acting Governor of the central bank Zeti was able to reject a key element of Southern bank’s defence to the CIMB take over.

In order for a payment to be given to Zeti Aziz, her husband Tawfiq Ayman served as the broker of the deal giving him access to a commission above market value on top of kick backs that would have been paid offshore. This gives credence to the need for the existence of the offshore bank accounts created under the control of Zeti Aziz’s family members.

The Southern Bank deal was finalized during the time in which offshore bank accounts controlled by Zeti’s family were created.

The offshore bank accounts were created just as the final terms of the acquisition of Southern by CIMB had gone through.
The offshore bank accounts held by Zeti’s family members were created just as the final terms of the acquisition of Southern by CIMB had gone through.

The Tong Kooi Ong & Nazir Razak link

Tong Kooi Ong owner of the edge media group and Nazir Razak have a solid working relationship and a friendship that dates back to as early as Anwar’s days as Finance minister.

A young Tong Kooi Ong officiates the opening of a CIMB bank outlet as long time friend Nazir Razak looks on.
A young Tong Kooi Ong officiates the opening of a CIMB bank outlet as long time friend Nazir Razak looks on.

Given the strong relationship between Zeti Aziz and Nazir Razak it is no surprise that he has come to her defense and given the nature of Nazir’s relationship with Tong Kooi Ong it is not surprising that portals controlled by the media magnate carried the story.

The close relationship between the corporate magnates Tong Kooi Ong and Nazir Razak is further solidified by the fact that Tong sits on the advisory board to CIMB Group.

Tong Kooi Ong is clearly listed as an advisor on the CIMB website:  http://www.cimb.com/en/who-we-are/overview/corporate-governance/board-committees.html
Tong Kooi Ong is clearly listed as an advisor on the CIMB website:
http://www.cimb.com/en/who-we-are/overview/corporate-governance/board-committees.html

As to whether Tong Kooi Ong is on CIMB payroll we can only speculate.

Tong Kooi Ong, Azlina Aziz & Nazir Razak share a light moment together.
Tong Kooi Ong, Azlina Aziz & Nazir Razak share a light moment together.

As pressure mounts on Zeti Aziz and her family, Nazir Razak will lose a powerful ally dating back to the take over of Southern Bank by CIMB in 2006.

I will leave you to draw your own conclusions with an excerpt from a letter to Malaysiakini:

“I cannot help but sympathise and emphatise with Tan Teong Hean who is faced with a predator with strong political connections and favourable government policies, bent on acquiring the bank. There is no security even at his level of position and control.

For the simple fact that CIMB is managed by a brother of our deputy prime minister, the application of the rules by Bank Negara must not only be fair but seen to be fair. The Central Bank’s rejection of SBB’s offer to acquire Asia General has already been taken as biased by some quarters.

I do not buy the reason given by CIMB’s Nazir Razak that the price offered for SBB shares was good compared with the share prices of SBB over the last three years. For the same period, most companies listed on Bursa Malaysia were under-valued, even in terms of simple net tangible assets basis.”

Everything to hide: ICIJ reveals Bank Negara Governor Zeti Aziz link to offshore bank accounts


Swiss banking major UBS AG figures as the “master client” for several offshore entities floated by members of Bank Negara Governor Zeti Aziz’s family in tax havens such as British Virgin Islands (BVI), according to the database put up by the International Consortium Of Investigative Journalists (ICIJ). 

Master client refers to an intermediary or go-between, which helps a client set up an offshore entity. It is a method used by rich individuals to mask the true ownership of companies. Offshore bank accounts are used by the wealthy to avoid taxes, protect assets from the reach of the law whilst maintaining a high level of secrecy.

In an effort to mask the fact that true ownership in the companies Iron Rhapsody Limited and Glittering Snow international ltd is held by members of Zeti Aziz’s family, multiple layers of BVI shell companies were used.

The Family

BNM Governor Zeti Aziz's husband Tawfiq Ayman, Aziz Ayman and Alif Ayman are listed as directors or shareholders of offshore bank accounts.
BNM Governor Zeti Aziz’s husband Tawfiq Ayman, Aziz Ayman and Alif Ayman. Pic credit: http://www.Azair.com.my (A local water supply company controlled by the same family)

It is learnt that UBS AG’s Singapore unit helped Zeti Aziz’s family set up the BVI’s whilst the company Portcullis TrustNet Group appears as the record and register keeper of the family’s offshore companies.

Portcullis Trustnet lists it's jurisdiction as the British Virgin Isles. A popular destination for wealthy Malaysians.
Portcullis Trustnet lists it’s jurisdiction as the British Virgin Isles. A popular destination for wealthy Malaysians.

In a deliberate attempt to mask the true ownership of the companies, complex structures of registration and ownership of shell companies through nominees were used.

UBS Singapore was used to set up companies registered under Porticulis TrustNet (BVI) Limited. An offshore entity known as Sharecorp Ltd acted as nominee shareholder. This is a nominee company that acts on behalf of the beneficial owner of an entity to provide an extra level of secrecy.

This was followed by additional layers of proxy companies where by Sharecorp limited was listed as a shareholder of a company called Excorp Limited which was listed as nominee shareholder of Mermeden Ltd which listed shareholding rights in the companies Iron Rhapsody Limited and Glittering Snow international ltd.

Multiple layers of companies are used in an effort to mask the true identities of the owners.
Multiple layers of companies are used in an effort to mask the true identities of the owners.

Sharecorp is nominee shareholder of at least 100s of companies for Asian high net worth individuals and holds a stake in a few hundred offshore entities, according to ICIJ.

Hidden Funds under the control of the Family

Two offshore BVI companies are clearly under the control of the family. The first company Glittering Snow International Ltd lists the following as shareholders:

2008

The second British Virgin Isles (BVI) offshore company known as Iron Rhapsody Limited lists the following as shareholders:

2007

Zeti’s husband Tawfiq Ayman and two sons Aziz Tawfiq Ayman and Alif Tawfiq Ayman are listed as shareholders of the companies.
Screen Shot 2015-08-04 at 12.03.07 AM

The address linked to the companies include that of 23 Jalan Tunku Putra, Bukit Tunku 50480 Kuala Lumpur which we were able to verify as the home of Zeti Aziz.

23 Jalan Tunku Putra, bukit tunku 50480 Kuala Lumpur
The BVI companies controlled by the family of Zeti Aziz are registered to the home address that sources confirm is the home of the Bank Negara Malaysia Governor.

Portcullis TrustNet Group – Used by the families of the ruling elite, clients include the likes of Suharto, Ne Win and Marcos

The Portcullis TrustNet Group describes itself as “an external service provider engaged by individuals who have planning needs”.

“One-stop shop”: the Portcullis TrustNet Cook Islands branch is on the third floor.

In 1996 and 1997 Porticullis TrustNet helped establish two British Virgin Islands companies for Aye Zaw Win, the son-in-law of General Ne Win, a military strongman who ruled Burma for three decades.

After the fall of the Indonesian dictator Suharto in 1998, a number of his family and other rich Indonesians began appearing as TrustNet clients, the documents obtained by ICIJ show.

Among the wealthy Indonesians was Suharto’s cousin Sudwikatmono. In the months after Suharto’s fall, Sudwikatmono retained a lawyer thousands of miles away in California by the name of Machiavelli W. Chao. The lawyer in turn sent Sudwikatmono and his money thousands of miles from both California and Indonesia, to the Cook Islands.

TrustNet helped the family set up the secret Wilshire International Trust and two offshore companies, Truease Ltd. and Rodeo International. The trust’s beneficiaries, according to documents, included Sudwikatmono’s wife, his son Agus and what appear to be his three daughters.

Related to a fallen dictator, Agus is currently one of the richest men in Indonesia.
Related to a fallen dictator, Agus is currently one of the richest men in Indonesia.

Sudwikatmono has since died, but his son emerged as one of Indonesia’s richest people, according to Forbes.

TrustNet also set up the secretive Sintra Trust in the British Virgin Islands for Maria Imelda Marcos Manotoc and her three sons. Imee, as she is known, is the oldest child of the former Philippines dictator Ferdinand Marcos who plundered his country’s finances and resources and enriched his family and business associates.

Hidden funds and conflict of Interests

It comes as a complete shock that the very person who is responsible for maintaining monetary and financial system stability in Malaysia does not maintain her family’s wealth locally.

Are we missing a part of the puzzle? Are there hidden reasons as to why it is necessary for the family to keep their assets abroad?

Perhaps Zeti and her family can explain why funds are being kept in two BVI companies in a similar fashion that we have seen with BVI’s set up for Marcos and Suharto.

Bank Negara Malaysia is the sole authority in issuing the national currency and in managing the country’s international reserves. Governor Zeti is also entrusted to protect and strengthen the foreign exchange market. The existence of BVI accounts linked to the Zeti Aziz’s family brings into questions significant questions about the fiscal stability of Malaysia.

In order to maintain the credibility of Bank Negara Malaysia and it’s Governor, it is critical that Zeti Aziz reveals the full details of bank accounts linked to her family. Failure to give full public access to the linked BVI company accounts would only imply guilt.

Consensus

ICIJ’s reporting to date has revealed the offshore dealings of politicians, oligarchs, rogue nations and even religious leaders. Extensive reporting by ICIJ and others show that the anonymity granted by the offshore economy facilitates money laundering, tax evasion, fraud and other crimes.

Even when it’s legal, transparency advocates argue that the use of an alternative, parallel economy undermines democracy because it benefits a few at the expense of the majority.

SB Crackdown: MACC advisor who met Sarawak Report arrested

11798274_1625660264318986_932861101_n

Datuk Rashpal was arrested by special branch
Datuk Rashpal was arrested by special branch

Special Branch arrested two people last night – a former anti-graft agency adviser and an officer from the Attorney-General’s Chambers – as part of their investigations into the debt-ridden 1Malaysia Development Bhd (1MDB) issue.

One of them – a former Malaysian Anti-Corruption Commission (MACC) advisor has been identified as Tan Sri Datuk Rashpal Singh.

It had earlier been reported that an MACC advisor had met Sarawak Report editor Clare Rewcastle-Brown in London’s Hyde Park.

Well placed sources confirm that the MACC adviser and Rashpal Singh are one in the same person.

Who is Rashpal?

Rashpal is one of the 13 conspirators initially listed and is closely linked to Dato Sri Mohd Sukri (MACC deputy Chief) and Datuk Tan Kang Sai (MACC Special Operations Director) whom are under his payroll. It is understood from the source that certain officers in BNM are also under Rashpal Singh’s payroll.

Jessica Singh - Femme Fatale. She had earlier been attacked online due to part in the leaking of information to foreign powers.
Jessica Singh – Femme Fatale. She had earlier been attacked online due to part in the leaking of information to foreign powers.

It was also revealed that Rashpal Singh has been dating Jessica Kaur for a long time. Jessica Kaur came under attack as one of the main causes of leaks of information.

It is understood that whilst dating Rashpal Singh she was at the same time sleeping with the ex-AG in order to obtain information.

Under what charges?

The duo will be charged under Section 124 of the penal code which carries a penalty of up to 20 years in prison.

Charges under the Official Secrets Act (OSA) and Anti Money Laundering Act 2001 (AMLA) are actively being considered.

There is evidence that Jaspal Singh has committed a crime under the OSA given that there is photographic evidence of him meeting Clare Brown in London.

Those close to him are reportedly shaken as they are aware of the meeting that took place and the part that he played in the leaks. Clare wrote extensively about the meeting and even went as far as to blatantly defend Raspal Singh.

“The Malaysian, who has a London home, was a social contact, but emphatically not ever a source of information for this blog” – Sarawak Report

Clare goes as far as to list Rashpal as a Pro UMNO social contact in order to protect the source.
Clare goes as far as to list Rashpal as a Pro UMNO social contact in order to protect the source.

Why did Clare Brown meet in her words “a known pro-UMNO official” in London’s Hyde park?

Similarly why did Raspal Singh agree to meet Clare Brown?

What was discussed at this meeting?

The Official Secrets Act – will Special Branch use this to get Rashpal to turn on his ‘friends’?

Under the Official Secrets Act 1972, the dissemination of confidential information is prohibited. The official secrets act carries the penalty of life imprisonment.

Passing information to a foreign entity only stands to complicate this further.
Evidence gathering – no honor amongst thieves? 

It is evident that similar to the MACC investigation, Special Branch is working bottom up.

The first two have been arrested and are currently being interrogated. These interrogations will provide evidence and additional leads as Special Branch goes through the wanted list.

It is only a matter of time before the dragnet reaches the top of the chain of 13 conspirators that includes Tan Sri Zeti Aziz (BNM Governor), Tong Kooi Ong (Edge Media Group Owner) and Tony Pua (DAP MP).

Investigations into the 13 Conspirators under section 124 of the penal code are underway. Section 124 carries a penalty of 20 years in prison.
Investigations into the 13 Conspirators under section 124 of the penal code are underway. Section 124 carries a penalty of 20 years in prison.

Special Branch Broadens Covert Investigation: Enhanced Interrogation Techniques Green Lit

Sources have indicated to us that the scope of the investigation into the 13 conspirators has been broadened to include all those involved whether directly or indirectly.

All employees at the Attorney General’s office, Bank Negara Malaysia (BNM), Malaysian Anti Corruption Commission (MACC) and even members of the Public Accounts Committee (PAC) will be made subject to military style interrogation techniques that it is understood will include polygraph tests in order to determine their level of involvement.

Enhanced interrogation techniques have been green lit for use.
Enhanced interrogation techniques have been green lit for use.

The polygraph test detects lies by monitoring a person’s physiological characteristics such as a person’s pulse and breathing rates. Modern polygraph tests are scarily accurate.

The extent of which powerful forces in Malaysia will go to further their personal agendas presents a worrying trend.

The covert investigation led by Special branch will involve enhanced interrogation tactics that is an issue of concern given the possibility that innocent recipients will be subject to inhumane psychological pressure.

The investigation has been broadened to include all members of relevant investigative bodies. It is understood that enhanced interrogation techniques will be utilized in an effort to plug all leakages.
The investigation has been broadened to include all members of relevant investigative bodies. It is understood that enhanced interrogation techniques will be utilized in an effort to plug information leakages.

Enhanced Interrogation Techniques came into prominence during the Bush administration. The techniques served as a useful and effective tool to acquire information from terrorist suspects.

As to whether the techniques constitute torture, the debate is still on going. We urge those with more information on the investigation to come forward.

The 13 individuals who top the list of conspirators against the democratically elected government will be subject to enhanced interrogation tactics.
The 13 individuals who top the list of conspirators against the democratically elected government will be subject to enhanced interrogation tactics.