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.

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