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Norway to regulate $850 billion fund’s tax haven exposure-lawmakers

Posted on 26 May 2016 by VRS  |  Email |Print

Norway will take a first step this week towards using its $850 billion sovereign wealth fund, the world’s biggest, as a tool to combat the use of tax havens, two key members of parliament’s finance committee told Reuters on Wednesday.
The country’s right-wing minority government will be asked to take a two-pronged approach to regulation, examining both the fund’s own use of ownership structures designed to cutits liability for tax on its foreign investments as well as that of companies it invests in, the politicians said. The move follows the Panama Papers leaks in April, which revealed details of corporate and individual tax evasion and triggered a global backlash against tax havens………………………………………..Full Article: Source

Hong Kong Monetary Authority looks to improve banks’ cyber security

Posted on 26 May 2016 by VRS  |  Email |Print

The banking regulator began a three-month consultation into the initiative on Tuesday, designed to ensure banks are ready to face online threats. The banking regulator is considering plans to require banks in the city to assess their resilience to cyber attacks and ways to train more qualified cybersecurity experts. From Tuesday, the Hong Kong Monetary Authority began a three-month consultation into the initiative.
The latest policy drive, which was named the “Cybersecurity Fortification Initiative”, was announced after the authority’s chief executive Norman Chan Tak-lam said at the Cyber Security Summit last week that the city’s financial sector could not be complacent, even though there were very few cases of serious cyberattacks reported in the past in Hong Kong………………………………………..Full Article: Source

No more bailouts for 1MDB

Posted on 26 May 2016 by VRS  |  Email |Print

All parties must ensure that 1Malay­­­sia Development Berhad (1MDB) does not borrow from public funds to “rescue” the national investment body. “There is nothing to hide. On questions on using funds from (Govern­ment) institutions to save 1MDB, I think we are all responsible to ensure that 1MDB will no longer borrow from them,” said Deputy Fi­­nance Minister Datuk Johari Abdul Ghani in response to a supplementary question by Datuk Mansor Othman (PKR-Nibong Tebal).
Mansor had asked how 1MDB’s debt rationalisation plan could be carried out without using public funds such as from Tabung Haji and the Armed Forces Fund Board………………………………………..Full Article: Source

Najib: No misappropriation in 1MDB’s accounts

Posted on 26 May 2016 by VRS  |  Email |Print

There was no misappropriation in 1MDB’s accounts and administration, only weaknesses in the administration of the company, the Dewan Rakyat was told today. Prime Minister Najib Razak said this in a written reply to Mahfuz Omar (PAS-Pokok Sena) who had asked the finance minister to specify the course of action taken against the 1MDB management after the Public Accounts Committee’s (PAC) report.
In his reply, Najib, who is also the Finance Minister, cited the PAC report, which he said had stated there was no misappropriation in the embattled state investment fund’s accounts administration. “There were only weaknesses in the administration of the company………………………………………..Full Article: Source

Goldman Sachs sees Malaysian deals evaporate amid 1MDB concerns

Posted on 25 May 2016 by VRS  |  Email |Print

When Malaysia’s largest sovereign wealth fund asked bankers to pitch for work arranging a US$750 million bond sale in December, one big name was conspicuous by its absence: Goldman Sachs.
Khazanah Nasional Bhd omitted the Wall Street firm from the list of banks invited to bid on that and other bond transactions in the past three years, according to a person familiar with the matter. During that time, Goldman slid down the Malaysian deal league tables, cold-shouldered by potential clients concerned about negative publicity from its dealings with 1Malaysia Development Bank Bhd (1MDB), another government entity………………………………………..Full Article: Source

BSI in serious breach of money laundering regulations: FINMA full statement

Posted on 25 May 2016 by VRS  |  Email |Print

Through business relationships and transactions linked to the corruption scandals surrounding the Malaysian sovereign wealth fund 1MDB, BSI AG committed serious breaches of money laundering regulations and “fit and proper” requirements. This is the outcome of enforcement proceedings launched by the Swiss Financial Market Supervisory Authority FINMA.
In the case of 1MDB, the bank executed numerous large transactions with unclear purpose over a period of several years and, despite clearly suspicious indications, did not clarify the background to these transactions. Among other measures, FINMA has ordered the disgorgement of profits amounting to CHF 95 million………………………………………..Full Article: Source

SOFAZ’s 2015 budget Approved

Posted on 20 May 2016 by VRS  |  Email |Print

Azerbaijan’s President Ilham Aliyev signed a decree May 18 on execution of the 2015 budget of the country’s State Oil Fund (SOFAZ). SOFAZ’s revenues and expenditures were 7,721,084,900 manats and 9,187,826,900 manats, respectively, in 2015, according to the decree.
The budget revenues and expenditures were executed by 75.4 percent and 77.8 percent, respectively. The revenues from the sale of profitable oil and gas stood at 7,369,582,100 manats, while the revenues from the oil and gas transit through Azerbaijan’s territory amounted to 11,594,900 manats…………………………………….Full Article: Source

SocGen Rang ‘Fridge’ on Secret Phone, LIA Says in Bribe Suit

Posted on 20 May 2016 by VRS  |  Email |Print

A Societe Generale SA employee called the same “secret number” used by an associate of Saif Qaddafi, the son of the former Libyan dictator, to reach a Libyan Investment Authority official, according to LIA evidence in a London lawsuit trying to link the bank to the ousted regime’s corruption.
Libya’s $60 billion sovereign wealth fund is suing the French lender for about $1.5 billion over investment deals that it says were tied to bribery and intimidation of Libyan officials. SocGen has denied the claims and says the payments were for intelligence and introductory services in an unfamiliar market………………………………………..Full Article: Source

1MDB link to London home bought by Najib Razak’s son Riza Aziz

Posted on 20 May 2016 by VRS  |  Email |Print

The stepson of Malaysian Prime Minister Najib Razak bought a £23.25 million ($46.3m) house in central London in 2012 with money originating from the troubled Malaysian state investment fund 1Malaysia Development Berhad, according to people familiar with the situation.
The four-storey house, built around 1900, is part of a row set back from the road and protected by security gates, a short walk from Malaysia’s diplomatic mission in London’s exclusive Belgravia neighbourhood. The registered owner of the house is Qentas Holdings, a company based in the British Virgin Islands. Mr Najib’s stepson is the beneficial owner, sources said………………………………………..Full Article: Source

Libya sovereign fund case vs SocGen back in UK court on May 19

Posted on 19 May 2016 by VRS  |  Email |Print

A dispute between Libya’s $67 billion sovereign wealth fund and Societe Generale over alleged bribes paid to the company of a middleman linked to the Gaddafi family will be back in London’s High Court on May 19 for a pre-trial hearing.
In the ongoing litigation, the Libyan Investment Authority (LIA) is pursuing Societe Generale for some $2.1 billion in relation to a series of disputed trades, including derivatives, entered into between late 2007 and 2009, before Colonel Muammar Gaddafi was ousted………………………………………..Full Article: Source

Azerbaijani president approves execution of SOFAZ’s 2015 budget

Posted on 19 May 2016 by VRS  |  Email |Print

Azerbaijan’s President Ilham Aliyev signed a decree May 18 on execution of the 2015 budget of the country’s State Oil Fund (SOFAZ). SOFAZ’s revenues and expenditures were 7,721,084,900 manats and 9,187,826,900 manats, respectively, in 2015, according to the decree.
The budget revenues and expenditures were executed by 75.4 percent and 77.8 percent, respectively. The revenues from the sale of profitable oil and gas stood at 7,369,582,100 manats, while the revenues from the oil and gas transit through Azerbaijan’s territory amounted to 11,594,900 manats………………………………………..Full Article: Source

Malaysia Says Too Early to Conclude Fraud in 1MDB-Abu Dhabi Deal

Posted on 18 May 2016 by VRS  |  Email |Print

Malaysia said Tuesday it’s too early to conclude if fraud had occurred in dealings between its troubled state company and an Abu Dhabi sovereign wealth fund. 1Malaysia Development Bhd., which is the subject of global investigations, said last month it could be a victim of fraud if payments of $3.5 billion intended for Abu Dhabi’s International Petroleum Investment Co. never made it there.
“1MDB is still reviewing and taking steps to prove that IPIC and Aabar Investments PJS are responsible for the funds that had been paid by 1MDB to Aabar BVI totaling $3.5 billion,” the Malaysian finance ministry said in a written reply in parliament………………………………………..Full Article: Source

Norway sovereign wealth fund will seek to join class action against Volkswagen

Posted on 17 May 2016 by VRS  |  Email |Print

Norway’s $850 billion sovereign wealth fund will seek to join a class-action lawsuit in Germany against Volkswagen following revelations the carmaker rigged the exhaust systems of 11 million diesel-powered cars worldwide to pass official emissions tests.
Norges Bank Investment Management “intends to join a legal action against Volkswagen arising out of that the company provided incorrect emissions data,” spokeswoman Marthe Skaar said in an e-mailed statement. NBIM manages the assets of Government Pension Fund Global, Oslo, which according to data compiled by Bloomberg owns 1.64% of Volkswagen. NBIM said it’s acting “to safeguard” the sovereign wealth fund’s holdings in the carmaker……………………………………….Full Article: Source

Norway’s wealth fund to sue Volkswagen over emissions scandal

Posted on 16 May 2016 by VRS  |  Email |Print

Norway’s sovereign wealth fund, the world’s largest, said on Sunday it plans to join the class-action lawsuits filed against Volkswagen AG over the German automaker’s emissions scandal.
“Norges Bank Investment Management intends to join a legal action against Volkswagen arising out of that the company provided incorrect emissions data,” Marthe Skaar, the fund’s spokeswoman, said in a statement emailed to Reuters………………………………………..Full Article: Source

GIC’s address found in new Panama Papers leak

Posted on 12 May 2016 by VRS  |  Email |Print

Among the Singapore-based entities, officers, intermediaries and addresses released by the International Consortium of Investigative Journalism (ICIJ) is the address of GIC.
GIC Private Limited (formerly known as Government of Singapore Investment Corporation) is a sovereign wealth fund established in 1981 by the Government of Singapore, and is fully owned by the Republic’s Government………………………………………..Full Article: Source

1MDB default highlights uncertainty surrounding fund: Fitch

Posted on 12 May 2016 by VRS  |  Email |Print

1Malaysia Development Bhd’s (1MDB) missed bond coupon payment in April highlights ongoing uncertainty surrounding the finances and governance of the state-owned fund, said Fitch Ratings. The rating agency said the situation is unlikely to lead to an immediate crystallisation of existing guarantee obligations of the Malaysian sovereign for 1MDB securities affected by cross-defaults.
“The risk to the sovereign credit profile lies more in the potential for the affair to weaken policy focus or contribute to political instability. However, there is little sign of these risks materialising as yet,” it said………………………………………..Full Article: Source

Goldman Sachs loses against sovereign wealth fund in pre-trial review

Posted on 12 May 2016 by VRS  |  Email |Print

Goldman Sachs has lost a key costs argument at London’s High Court in a pre-trial review of the upcoming $1bn court battle between it and the Libyan Investment Authority (LIA).
The LIA’s claim against Goldman Sachs relates to nine financial derivative transactions into which it entered with the bank between January and April 2008. The LIA paid upfront premiums to Goldman Sachs to enter into the disputed trades, which expired as worthless in 2011………………………………………..Full Article: Source

HSF client Goldman Sachs loses costs argument against sovereign wealth fund ahead of $1bn

Posted on 11 May 2016 by VRS  |  Email |Print

A pre-trial review of the upcoming $1bn court battle between Goldman Sachs and the Libyan Investment Authority (LIA) has seen the bank lose a key costs argument at London’s High Court.
The $1bn claim against Goldman Sachs relates to nine financial derivative transactions which the LIA entered into with the bank between January 2008 and April 2008. The LIA paid upfront premiums to the bank to enter into the disputed trades which subsequently expired as worthless in 2011………………………………………..Full Article: Source

Norway’s Wealth Fund Faces Bill as Budget to Reveal Withdrawals

Posted on 10 May 2016 by VRS  |  Email |Print

Norway’s wealth fund, the world’s biggest, is about to find out just how much the government aims to withdraw this year. On Wednesday, the government will unveil a revised budget with new estimates on how much of the country’s $854 billion piggy bank will be used up during the course of 2016.
The government is spending a record amount of its oil wealth to protect against a recession and pay for a wave of immigrants. Established in the 1990s to safeguard the financial security of future generations, Norway’s wealth fund had been left untapped until October, when the government first announced it would have to use some of its abundant oil revenue………………………………………..Full Article: Source

1MDB scandal: Malaysia weighs cost of bailing out fund

Posted on 10 May 2016 by VRS  |  Email |Print

As investors brace for another ­potential default on debt issued by a troubled Malaysian government investment fund, attention is turning to the possible cost to the ­Malaysian government if it has to bail the fund out.
The fund, 1Malaysia Development Berhad, late last month defaulted on a $US1.75 billion ($2.4bn) bond — triggering a ­series of other defaults on 1MDB debt — following a dispute with Abu Dhabi sovereign wealth fund International Petroleum Investment Company over who should be making the interest payments. Those events look set to repeat when payment on a second $US1.75bn 1MDB bond comes due May 11………………………………………..Full Article: Source

Closing of Malaysian Fund Could Shift Billions in Debt to Government, Critics Fear

Posted on 09 May 2016 by VRS  |  Email |Print

Plans by the Malaysian government to shut down the troubled state fund at the heart of a multinational investigation could saddle the government with billions of dollars in debt and may be a first step toward a government bailout, opposition leaders said.
The government announced plans this week to close the fund, which was created by Prime Minister Najib Razak and is suspected of being the source of hundreds of millions of dollars deposited in his personal bank accounts. The Finance Ministry said on Wednesday that it would absorb the fund, 1Malaysia Development Berhad. The ministry, which Mr. Najib oversees in his capacity as the country’s finance minister, will take over 1MDB’s remaining assets………………………………………..Full Article: Source

Libya wealth fund seeks more detail on Goldman internship before June trial

Posted on 06 May 2016 by VRS  |  Email |Print

Lawyers for Libya’s $67 billion sovereign wealth fund asked Goldman Sachs on Thursday to provide more information about an internship the bank gave to the brother of a key decision-maker at the fund.
In a long-running legal dispute with Goldman Sachs, the Libyan Investment Authority (LIA) alleges the investment bank advised it to invest more than $1 billion in nine derivatives trades in 2008 that it claims were unsuitable and ultimately worthless. The fund requested the details during a pre-court hearing, before a trial scheduled to start on June 13 in London’s High Court, with Judge Vivien Rose presiding………………………………………..Full Article: Source

Malaysia Facing Bankruptcy Due to 1MDB Scandal, Warns Ex-PM

Posted on 06 May 2016 by VRS  |  Email |Print

Former Malaysian Prime Minister Mahathir Mohamad warned Thursday the country faces bankruptcy because of an ongoing scandal with the state-owned 1MDB fund. “The government will have financial deficits which may lead to bankruptcy if the (1MDB) loans are not serviced and the principal paid,” Mahathir stated in an online article and social media posts.
The former prime minister said any defaults by the government-owned company would affect Malaysia’s credit worthiness “and the government may not be able to borrow any more in the market.”……………………………………….Full Article: Source

Singapore’s 1MDB probe appears centred on its Cayman investments

Posted on 06 May 2016 by VRS  |  Email |Print

Singapore authorities are probing “complex and layered transactions” with “cross-border elements” involving many shell companies in their investigations into 1Malaysia Development Berhad (1MDB), according to prosecutors here.
This was revealed by Singapore’s chief prosecutor Tan Ken Hwee at the third mention in the state court in the case involving Kelvin Ang Wee Keng, who was charged with corrupt transactions in an ongoing probe into 1MDB. While the court submission again made no mention of 1MDB, it is widely accepted the case involves the probe into the money trail of Malay- sia’s troubled state-backed firm………………………………………..Full Article: Source

Malaysia dissolves 1MDB advisory board after payments probe

Posted on 05 May 2016 by VRS  |  Email |Print

Malaysia dissolved the advisory board of state investment fund 1MDB and is set to abolish a clause that gives the prime minister the final say over its investment decisions on Wednesday, as it moves to implement governance reforms recommended by a parliamentary inquiry.
The Malaysian parliament’s public accounts committee last month called for the fund’s advisory board — headed by premier Najib Razak — to be dismantled, following an investigation that found billions of dollars in transactions had not been accounted for………………………………………..Full Article: Source

Chinese regulators learning to manage market: CIC head

Posted on 05 May 2016 by VRS  |  Email |Print

Securities regulators are learning how to manage the market, China Investment Corp.’s Larry Zhang, told a US audience on Tuesday. Zhang, who heads public equities at the nation’s sovereign wealth fund, said regulators managed to wipe out $5 trillion worth of market value through their incompetent and mistake-ridden handling of last summer’s market rout.
“It was a disaster how they managed public equity, it created turbulence,” Zhang said during a panel at the Milken Institute Global Conference in Beverly Hills, Calif., on Tuesday………………………………………..Full Article: Source

CIC executive says China regulator mismanaged market crash

Posted on 05 May 2016 by VRS  |  Email |Print

China’s securities regulators mismanaged the country’s stock market crash and are learning how to better manage the market, the head of public equities at China’s sovereign wealth fund said on Tuesday, Bloomberg reported.
“It was a disaster how they managed public equity, it created turbulence,” Bloomberg quoted Larry Zhang of China Investment Corp. (CIC) saying at the Milken Institute Global Conference in California. China’s benchmark stock indexes fell over 40 percent from June to January, with regulators widely blamed for mishandling the crisis………………………………………..Full Article: Source

Norway’s sovereign wealth fund joins pension funds on climate-risk reporting at Exxon Mobil

Posted on 04 May 2016 by VRS  |  Email |Print

Norway’s Government Pension Fund Global, Oslo, plans to vote in favor of shareholder proposals at Exxon Mobil Corp. sponsored by major pension funds calling for climate-change reporting and proxy access, said a statement posted on the website of Norges Bank Investment Management, which oversees the assets and proxy voting of the 7.08 trillion Norwegian kroner ($877 billion) fund.
The sovereign wealth fund held 35.3 million Exxon Mobil shares, as of Dec. 31, according to NBIM’s 13F filing with the Securities and Exchange Commission. The shares were valued at $3.1 billion in Tuesday’s midday trading of Exxon Mobil at $87.93 a share………………………………………..Full Article: Source

SOFAZ’s 2015 budget execution project recommended for approval by Azerbaijan’s president

Posted on 04 May 2016 by VRS  |  Email |Print

The supervisory board of the State Oil Fund of Azerbaijan (SOFAZ) has approved the fund’s 2015 annual report and auditor’s (PricewaterhouseCoopers) report submitted by the executive director of the fund, SOFAZ said in a message May 3.
The supervisory board has recommended SOFAZ’s 2015 budget execution project for the approval by the president of Azerbaijan. SOFAZ was established in 1999 with assets of $271 million………………………………………..Full Article: Source

Moody’s rate assets of SOFAZ at Ba1

Posted on 03 May 2016 by VRS  |  Email |Print

Azerbaijan’s state oil fund was rated at Ba1 for the country’s long-term issuer and senior unsecured debt ratings by the international ratings agency Moody’s Investors Service. Moreover, Moody’s confirmed state-guaranteed senior unsecured debt rating of the Southern Gas Corridor’s at Ba1, according to the report of the rating agency posted on its website on April 29.
The report left Azerbaijan’s long-term and short-term foreign-currency bond and deposit ceilings unchanged at Ba1/NP and Ba2/NP, respectively. Meanwhile, the long-term local-currency bond and deposit country ceilings also remained unchanged at Ba1………………………………………..Full Article: Source

SNB Chair Jordan: Swiss National Bank Rejects Sovereign Wealth Fund

Posted on 02 May 2016 by VRS  |  Email |Print

Swiss National Bank (SNB) Chairman Jordan maintained familiar rhetoric surrounding interest rates and the franc at the bank’s shareholder meeting on Friday. He continued to insist that the bank had not exhausted its policy options and would not hesitate to take unconventional steps in the face of a franc, which is still significantly overvalued.
Any action to cut rates further or intervene would be taken on the basis of costs and benefits over the short and longer term. The huge expansion of the SNB balance sheet remains an important issue for the bank, monetary policy and shareholders. Jordan rejected calls for Switzerland to set up a sovereign wealth fund to mange the foreign exchange reserves, which have increased, to CHF576bn………………………………………..Full Article: Source

Libya SWF case against Goldman Sachs back in London court on May 5

Posted on 29 April 2016 by VRS  |  Email |Print

A dispute between Libya’s $67 billion sovereign wealth fund and Goldman Sachs over advice given on trades made in 2008 will be back in London’s High Court on May 5, with amended court papers that emerged on Wednesday adding new details.
In the ongoing litigation, the Libyan Investment Authority (LIA) alleges the Wall Street bank advised the fund to invest some $1 billion in nine trades that it claims were unsuitable and ultimately worthless. At the time, Libya was still headed by Colonel Muammar Gaddafi, who was overthrown in 2011. The leadership of the LIA is currently being disputed by two rival chairmen……………………………………….Full Article: Source

Malaysia Central Bank Fines 1MDB for Non-Compliance, Ends Probe

Posted on 29 April 2016 by VRS  |  Email |Print

Malaysia’s central bank slapped a fine on 1Malaysia Development Bhd. and announced it was ending its investigation into the troubled state fund, drawing one line under months of probes of 1MDB’s finances.
1MDB failed to explain why it can’t send back some funds from overseas, and has until May 30 to pay the fine for non-compliance, the central bank said in a Thursday statement. Bank Negara did not specify the size of the fine or how much 1MDB was required to repatriate………………………………………..Full Article: Source

1MDB in Default: The Abu Dhabi Dispute and Debt in Contention

Posted on 29 April 2016 by VRS  |  Email |Print

1Malaysia Development Bhd. defaulted on a $1.75 billion bond this week. It missed a $50 million interest payment amid a dispute with Abu Dhabi’s sovereign wealth fund over who is required to make the payment.
The default is the latest episode in financial scandals that have rocked 1MDB, already a target of global investigations into allegations of money laundering and embezzlement. This is what you need to know about the disagreement with Abu Dhabi, the bonds in question and other borrowings:……………………………………….Full Article: Source

1MDB scandal: Malaysian government ultimately to pay for all of state fund’s obligations

Posted on 28 April 2016 by VRS  |  Email |Print

The Malaysian government, and eventually taxpayers, will have to foot all of 1Malaysia Development Berhad (1MDB) financial obligations, even though some of them have been guaranteed by Abu Dhabi sovereign fund International Petroleum Investment Co (IPIC). This is because the government had provided a back-to-back guarantee on IPIC’s guarantee.
Lawmaker Tony Pua who also sits on the multi-party parliamentary Public Accounts Committee, noted that the government’s debt-asset swap arrangement with IPIC indicated that the Ministry of Finance would indemnify IPIC of all its obligations including advances and interest payments on behalf of 1MDB………………………………………..Full Article: Source

Libya fund accuses Goldman Sachs of breaching its own rules

Posted on 28 April 2016 by VRS  |  Email |Print

The brother of a top Libyan official who secured an internship at Goldman Sachs was paid a pro-rata salary of £36,000 plus a housing allowance — soon after the US bank carried out lossmaking trades on behalf of Libya’s sovereign wealth fund.
New details of the internship undertaken by Haitem Zarti, brother of Mustafa Zarti, the Libyan Investment Authority’s former deputy head, have been revealed in court documents as part of a $1bn legal battle between the Libyan Investment Authority and Goldman………………………………………..Full Article: Source

Malaysia’s Reputation Takes Another Hit as State Fund Defaults

Posted on 27 April 2016 by VRS  |  Email |Print

The Malaysian government’s reputation took another hit on Tuesday after state-owned 1Malaysia Development Bhd. defaulted on a $1.75 billion bond. The ringgit fell and 1MDB’s dollar debt slumped.
The development fund withheld a $50 million coupon payment amid a wider dispute with Abu Dhabi’s International Petroleum Investment Co., the co-guarantor of the bonds. The missed payment triggered cross defaults on 7.4 billion ringgit ($1.9 billion) of 1MDB debt, including borrowings that are guaranteed by the Malaysian government, the fund said in a statement on Tuesday………………………………………..Full Article: Source

Najib Razak 1MDB scandal: Malaysia’s troubled state investment fund defaults on bonds

Posted on 27 April 2016 by VRS  |  Email |Print

Troubled Malaysian state investment fund 1MDB says it has defaulted on $US1.75 billion ($2.27 billion) in bonds it issued after missing an interest payment, raising fears of financial-market fallout from the scandal-tainted company.
The fund, founded in 2009 by Malaysian Prime Minister Najib Razak, who remains the chair of its advisory board, is teetering on the verge of collapse amid multiple investigations around the world into allegations that billions were looted from it………………………………………..Full Article: Source

Abu Dhabi’s IPIC to Make 1MDB Bond Payment in Event of Default

Posted on 26 April 2016 by VRS  |  Email |Print

Abu Dhabi’s sovereign wealth fund said on Monday it will pay bondholders of Malaysia’s troubled investment company should the latter default on an interest payment of $50 million.
International Petroleum Investment Co., which is the co-guarantor for $1.75 billion of 1Malaysia Development Bhd. bonds maturing in 2022, said it will pay the coupon if 1MDB fails to do so when the grace period expires Monday, according to a filing to the London Stock Exchange. The payment was due at midnight on April 18 in New York………………………………………..Full Article: Source

1MDB in default, declares Gulf fund

Posted on 26 April 2016 by VRS  |  Email |Print

State-owned 1Malaysia Development Berhad (1MDB) was declared in default yesterday after it failed to settle a US$50.3 million (S$68 million) debt payment on billions of dollars in bonds guaranteed by an Abu Dhabi state-owned sovereign wealth fund which, for its part, said it would honour its obligations to bond holders.
The declaration of default against 1MDB by Abu Dhabi’s International Petroleum Investment Corp, or IPIC, immediately exposes Prime Minister Najib Razak’s government to more than US$6.481 billion in debt owed to the Gulf emirate………………………………………..Full Article: Source

1MDB ready to cooperate with any foreign authority regarding investigation

Posted on 21 April 2016 by VRS  |  Email |Print

1Malaysia Development Bhd (1MDB) reaffirmed its readiness to cooperate with foreign authorities to assist with any investigation involving the company. However, at the moment, the company has not been contacted by any foreign authority regarding the investigations, said President and Group Executive Director Arul Kanda Kandasamy.
“We have very clearly and openly stated that if we are being contacted or asked to help, we will fully cooperate, subject to any international protocol, relating to such matters,” he said in a Bloomberg TV Malaysia interview on Tuesday………………………………………..Full Article: Source

1MDB and Abu Dhabi sovereign fund accuse each other of defaulting on payments

Posted on 20 April 2016 by VRS  |  Email |Print

The relationship between one-time allies, Malaysia and United Arab Emirates seem to be coming under great strain. Malaysia’s state fund 1Malaysia Development Berhad and Abu Dhabi’s sovereign wealth fund, International Petroleum Investment Company have again crossed swords. This time they have both accused each other of failing to make payments on their obligations.
IPIC, in an announcement to the London Stock Exchange, said that 1MDB had failed to make a $1.1bn payment as part of a debt-restructuring agreement. As a result of this, it said the deal between both funds has been terminated………………………………………..Full Article: Source

1MDB risks US$50m default as IPIC refuses to step in

Posted on 19 April 2016 by VRS  |  Email |Print

1MDB is facing the risk of default as Abu Dhabi-owned sovereign wealth fund International Petroleum Investment Company (IPIC) is no longer willing to service bond interest for the Malaysian fund, according to The Straits Times of Singapore.
1MDB has a US$50 million interest payment for its US$3.5 billion bond, which is due tomorrow. “Malaysian government officials, who spoke to The Straits Times on condition of anonymity, said IPIC has informally told 1MDB that it has no intention of honouring the interest payment because of the alleged default of the bond agreement………………………………………..Full Article: Source

Malaysia’s 1MDB at Risk of Default as Partner Ends Bond Support

Posted on 19 April 2016 by VRS  |  Email |Print

Malaysia’s state investment company, already a target of global investigations into allegations of money laundering and embezzlement, has another major problem: It now faces the risk of sinking into default.
1Malaysia Development Bhd. failed to make a payment of more than $1 billion in connection with a loan made last year by Abu Dhabi’s sovereign wealth fund, according to a London stock exchange filing. That means that 1MDB and Malaysia’s finance ministry “are in default,” Abu Dhabi’s International Petroleum Investment Co. said………………………………………..Full Article: Source

1MDB affair a simple confidence trick

Posted on 18 April 2016 by VRS  |  Email |Print

The senior management of 1MDB, we are led to understand from last week’s public statements, sent US$3.5bn around four years ago to a company they believed was Aabar Investments PJS, owned by International Petroleum Investment Co, Abu Dhabi’s sovereign wealth fund.
But the money didn’t get to that particular Aabar. Instead it went to an eponymous Aabar, in the form of Aabar Investments PJS Limited, a British Virgin Islands-registered company which had nothing to do with the Middle East state’s sovereign wealth fund. It was just that by some strange coincidence it just happened to have exactly the same name with a few letters added on at the end in the form of “Limited.”……………………………………….Full Article: Source

Malaysia’s 1MDB Fund Says It May Be Victim of $3.5 Billion Fraud

Posted on 14 April 2016 by VRS  |  Email |Print

1Malaysia Development Bhd., the troubled Malaysian state fund that’s the subject of global investigations, said it could be a victim of fraud if payments of $3.5 billion intended for an Abu Dhabi sovereign wealth fund never made it there.
Abu Dhabi’s International Petroleum Investment Co. this week denied ownership of a company that received the funds known as Aabar Investments PJS Limited or Aabar BVI. Swiss authorities said on Tuesday they are investigating two former public officials from the United Arab Emirates, who handled Abu Dhabi sovereign wealth funds that guaranteed 1MDB bonds………………………………………..Full Article: Source

Swiss Expand 1MDB Probe to Two Former Emirati Fund Officials

Posted on 14 April 2016 by VRS  |  Email |Print

Swiss authorities have expanded a criminal probe surrounding state fund 1Malaysia Development Berhad (1MDB) to include two former Emirati officials in charge of Abu Dhabi sovereign funds, Switzerland’s Office of the Attorney General (OAG) said.
Swiss authorities began investigations in August tied to 1MDB for suspected corruption of public foreign officials, dishonest management of public interests and money laundering………………………………………..Full Article: Source

Senate Finance introduces bill to tap Permanent Fund earnings

Posted on 14 April 2016 by VRS  |  Email |Print

The Alaska Senate Finance Committee has unveiled its plan to fill much of the state’s $4.1 billion annual deficit using the Alaska Permanent Fund. In April 12 meeting, Sen. Anna MacKinnon, R-Eagle River, and co-chair of the committee, debuted “in pencil — per the governor — a committee substitute for Senate Bill 128.”
Senate Bill 128, proposed by Gov. Bill Walker earlier this year, proposed reforming the $52.2 billion Permanent Fund based on a sovereign wealth fund model that would generate $3.3 billion per year from its investments for state operations. The new proposal takes Walker’s notion and blends it with Senate Bill 114, a similar bill introduced by Sen. Lesil McGuire, R-Anchorage, last year that uses what’s called a Percent of Market Value approach, or POMV………………………………………..Full Article: Source

Swiss expand 1MDB probe to two former Emirati fund officials

Posted on 13 April 2016 by VRS  |  Email |Print

Swiss authorities have expanded a criminal probe surrounding state fund 1Malaysia Development Berhad (1MDB) to include two former Emirati officials in charge of Abu Dhabi sovereign funds, Switzerland’s Office of the Attorney General (OAG) said.
Swiss authorities began investigations in August tied to 1MDB for suspected corruption of public foreign officials, dishonest management of public interests and money laundering. The inquiry has so far shown that about $4 billion appeared to have been misappropriated from Malaysian state companies, Attorney General Michael Lauber said in January………………………………………..Full Article: Source

Swiss seek S’pore’s help for criminal probe into 1MDB

Posted on 13 April 2016 by VRS  |  Email |Print

Singapore’s Attorney-General’s Chambers (AGC) said on Tuesday (April 12) it has received a request from its Swiss counterparts for mutual legal assistance in criminal matters related to troubled state investment firm 1Malaysia Development Berhad (1MDB).
The statement, which was issued in response to media queries, is the latest in a series of twists and turns in the long-running saga, including a revelation by the Abu Dhabi sovereign wealth fund that it never received several billion dollars which 1MDB claimed it had sent………………………………………..Full Article: Source

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