Mon, Feb 8, 2016
A A A
Welcome tstroemlev
RSS

Sovereign Wealth Funds Briefing - Category | Compliance/Regulation/Legal more

1MDB’s Latest Act: Two Obama Fundraisers, One Fugee and $69 Million

Posted on 16 November 2015 by VRS  |  Email |Print

The sprawling web of investments by a Malaysian government fund at the center of a corruption probe now includes two former fundraisers for President Barack Obama and a hip-hop superstar. The fund, 1Malaysia Development Bhd., paid private-equity group DuSable Capital Management LLC $69 million to buy its stake in a joint venture to develop solar power plants in the Southeast Asian country, the two sides said Wednesday.
The parties had signed an agreement in April 2014 giving DuSable a 49% stake, but 1MDB agreed to buy out the firm six months later, before construction had begun on any project, they said………………………………………..Full Article: Source

Bank Negara validating 1MDB’s explanation on US$1.83 billion funds

Posted on 16 November 2015 by VRS  |  Email |Print

Bank Negara Malaysia is still “validating” 1Malaysia Development Bhd’s (1MDB) explanation on its inability to repatriate US$1.83 billion in funds ordered by the central bank. Stressing that “the matter is not straight forward” and related to 1MDB’s rationalisation plan, Bank Negara governor Tan Sri Dr Zeti Akhtar Aziz did not commit a timeline for the completion of its evaluation process.
“It’s premature to say anything more, we’ll make assessments once we’ve received all information that we’ve requested,” she said during a press conference on Friday announcing the country’s gross domestic product growth figures for the third quarter of the year………………………………………..Full Article: Source

A-G should charge 1MDB with cheating, says Amanah

Posted on 12 November 2015 by VRS  |  Email |Print

There is grounds for a charge against 1Malaysia Development Bhd (1MDB) for cheating the central bank, Parti Amanah Negara’s legal bureau chief Mohamed Hanipa Maidin said today, urging the Attorney-General (A-G) to reconsider the case against the state investment firm.
The Sepang MP said that the A-G’s clearance of 1MDB from any offence was only in the context of the Exchange Control Act 1953 (ECA) in relation to non-disclosure or incomplete disclosure of information to Bank Negara Malaysia (BNM) for permissions to make overseas transfers of money. But this did not mean that 1MDB was innocent of the crime of cheating which made the state firm liable to be charged under the Penal Code, Hanipa said………………………………………Full Article: Source

Kayveas: Don’t scapegoat Najib for 1MDB’s financial woes

Posted on 11 November 2015 by VRS  |  Email |Print

Datuk Seri Najib Tun Razak should not be made the scapegoat for the problems faced by 1Malaysia Development Bhd (1MDB), as they are the responsibility of the fund’s management, says PPP president Tan Sri M Kayveas. “If I have a company and my company is not doing well, you can say what you want but that is for the management of the company. Why make Datuk Seri Najib the scapegoat?” Kayveas told reporters when met at his party’s Deepavali open house.
He was asked to respond to the view held by some that the Prime Minister should be ultimately responsible for the financial issues faced by 1MDB as well as the RM2.6bil donation. “1MDB is just like any other company. If for example I have RM52bil in assets in my company along with debts of RM42bil, I have no problem,” Kayveas said………………………………………..Full Article: Source

Monetary policy: A panacea Swiss SWFs?

Posted on 02 November 2015 by VRS  |  Email |Print

In regularity the topic “Swiss SWFs” always comes back to the media agenda. Mostly this is the case, when the Franks again by massive capital inflows threatens upgrade. This could soon be possible again if the ECB should decide to expand their securities purchases. You would then have more liquidity shoot in the markets from which a
Removing part of the euro and could accrue in the franc area. This often results in the suggestion that Switzerland could still use their inflowing foreign currency to build up a sovereign wealth fund. The capital inflow would not revalue the franc further, since the currency again would be used for the purchase of foreign shares, bonds or alternative investments. This could be used for an in Notlangen and would on the other hand a higher current ……………………………………….Full Article: Source

Omani sovereign wealth fund calls in Freshfields to sue Bulgaria

Posted on 30 October 2015 by VRS  |  Email |Print

Oman’s largest sovereign wealth fund has hired Freshfields Bruckhaus Deringer to take Bulgaria to arbitration over its role in the collapse in Balkan bank KTB, while the Bulgarian government has instructed Arnold & Porter to defend the claim ahead of preferred law firm White & Case.
Freshfields partners Boris Kasolowsky in Frankfurt and Willibald Plesser in Vienna have been handed the task of recouping losses suffered by the State General Reserve Fund of Oman after KTB closed in June 2014. The arbitration claim, understood to be valued at more than $100m including interest, has been filed at the World Bank’s arbitration court, the International Centre for Settlement of Investor Disputes (ICSID)………………………………………..Full Article: Source

AK Attorney general presents proposal leveraging Permanent Fund to pay for budget

Posted on 30 October 2015 by VRS  |  Email |Print

Gov. Bill Walker’s administration says it wants to leverage the Permanent Fund to help balance the state budget in the long-term. His office says it isn’t a final proposal, but an idea it wants to present to the Legislature. Attorney General Craig Richards gave a presentation on the concept to lawmakers Tuesday afternoon.
The administration said it wants to create a new fund, called a Sovereign Wealth Fund (SWF). Under the plan, the amount of royalty oil revenue flowing into the permanent fund would be doubled. That money would be combined with other revenues to create a steady stream of money for the budget, regardless of oil prices………………………………………..Full Article: Source

Norway Seeks Explanation From VW Over Emissions Scandal

Posted on 29 October 2015 by VRS  |  Email |Print

Norway’s sovereign-wealth fund, the world’s biggest by assets, said Wednesday it would seek explanations from Volkswagen AG over an emissions cheating crisis that nearly halved the value of its interest in the German car market and hit its overall performance in the third quarter.
The fund, which held 1.22% of VW—worth 9.6 billion Norwegian kroner ($1.13 billion) at the end of 2014—said its stake lost 4.9 billion kroner in the third quarter. “Volkswagen was clearly the biggest negative contributor in the third quarter,” said Norges Bank Investment Management’s deputy chief executive, Trond Grande………………………………………..Full Article: Source

Oman Fund Claims against Bulgaria ‘Unfounded’ - FinMin

Posted on 28 October 2015 by VRS  |  Email |Print

Legal action taken against Bulgaria by the State General Reserve Fund of Oman is based on ill-founded claims, the country’s Finance Minister Vladislav Goranov said on Tuesday. He asserted Bulgaria was “prepared to fight this battle” and had already hired a team of lawyers.
His comments follow reports (later confirmed by the government) that the sovereign wealth fund was seeking to recover the book value of its investment in collapsed Corporate Commercial Bank (Corpbank or KTB)………………………………………..Full Article: Source

Omani wealth fund takes $165m legal action against Bulgaria over bank collapse

Posted on 28 October 2015 by VRS  |  Email |Print

Oman’s biggest sovereign wealth fund has filed an arbitration claim against Bulgaria over the collapse of Corporate Commercial Bank (Corpbank), the online database of Washington-based International Centre for Settlement of Investment Disputes showed.
Oman’s State General Reserve Fund (SGRF) fund owned a 30 percent stake in Corpbank, which was Bulgaria’s fourth-largest lender before collapsing last year following a bank run. The bank collapse triggered the Balkan country’s biggest financial crisis since the 1990s, prompting Sofia to pay over 3.6 billion levs ($2.03 billion) to guaranteed depositors and boosting the country’s fiscal deficit for 2014 to 5.8 percent of economic output………………………………………..Full Article: Source

Saudi Arabia considers cutting energy subsidies to manage budget deficit

Posted on 28 October 2015 by VRS  |  Email |Print

The kingdom has financial reserves of about 100 per cent of GDP, but has sold foreign reserves and tapped local bond markets, while its sovereign wealth fund has sold assets in a bid to generate enough cash to plug the deficit.
Sama Foreign Holdings, the kingdom’s sovereign wealth fund, has sold up to $70 billion of assets as it seeks to plug the gap in spending, the Financial Times reported last month, while Nasdaq estimates that it has sold a further $1.8bn of its European equity holdings. Saudi Arabia is scheduled to offer $27bn in debt to local markets by the end of the year………………………………………..Full Article: Source

Oman fund takes Bulgaria to arbitration over bank collapse

Posted on 27 October 2015 by VRS  |  Email |Print

Oman’s biggest sovereign wealth fund has filed an arbitration claim against Bulgaria over the collapse of Corporate Commercial Bank (Corpbank), the online database of Washington-based International Centre for Settlement of Investment Disputes showed.
Oman’s State General Reserve Fund (SGRF) fund owned a 30 percent stake in Corpbank, which was Bulgaria’s fourth-largest lender before collapsing last year following a bank run. The bank collapse triggered the Balkan country’s biggest financial crisis since the 1990s, prompting Sofia to pay over 3.6 billion levs ($2.03 billion) to guaranteed depositors and boosting the country’s fiscal deficit for 2014 to 5.8 percent of economic output……………………………………….Full Article: Source

Omani Sovereign Fund Said to Be Seeking EUR 720 M from Bulgaria over KTB Collapse

Posted on 27 October 2015 by VRS  |  Email |Print

The State General Reserve Fund of Oman has taken legal action against Bulgaria, seeking to recover the book value of its investment in collapsed Corporate Commercial Bank, Sofia-based 24 Chasa daily reported on Monday. The Omani sovereign wealth fund was also reportedly seeking interest payments for the period from the putting of the bank under the Bulgarian central bank’s control to the date when it was declared insolvent, 24 Chasa said.
The Bulgarian National Bank (BNB) put the country’s fourth-largest lender under direct administration on June 20, 2014 following a run on deposits, suspending shareholders’ rights. In April, Corporate Commercial Bank, known by its Bulgarian acronym KTB, was declared insolvent as of November 6, 2014 – the date when the BNB suspended its banking licence………………………………………..Full Article: Source

In Malaysia, 1MDB Scandal Hinders Economic Growth

Posted on 26 October 2015 by VRS  |  Email |Print

This week, with Malaysia’s parliament back in session, the opposition is renewing its efforts to oust Prime Minister Najib Razak through a no-confidence vote. The effort follows the prime minister’s involvement earlier this year in a scandal surrounding the heavily indebted 1Malaysia Development Berhad (1MDB) sovereign wealth fund. Among other points of controversy, Najib is struggling to explain the source of nearly $700 million deposited to his personal account.
Even without the political crisis, Malaysia is already facing economic headwinds because of low commodity prices and a looming interest rate hike by the U.S. Federal Reserve. But the scandal may be worsening the situation. Malaysia’s once globally esteemed financial institutions are now in question, and 1MDB is involved in nearly every part of the Malaysian economy, including energy, agriculture, tourism and real estate………………………………………..Full Article: Source

1MDB boss looks forward to being questioned by PAC

Posted on 26 October 2015 by VRS  |  Email |Print

1Malaysia Development Berhad (1MDB) president and group executive director Arul Kanda Kandasamy has reiterated that he “looks forward” to being questioned by the Public Accounts Committee (PAC). “Yes. We have confirmed to this publicly many times. We look forward to the PAC hearing in order to provide answers to the lawful authorities of the country,” said Arul.
He was present at Malaysia’s Economic Outlook Seminar to give a briefing on 1MDB’s history as well as to hold a question-and-answer session for MCA members. Applause could be heard from the seminar room when Arul concluded his session………………………………………..Full Article: Source

World’s biggest wealth fund calls for rules to fight ETF risks

Posted on 23 October 2015 by VRS  |  Email |Print

Norway’s sovereign wealth fund says there’s a need for new rules to limit the risks spreading from the growth in exchange-traded funds. The $860-billion fund is concerned over the growing impact ETFs have on the underlying securities they are connected to, said Oeyvind Schanke, chief investment officer for allocation strategies at Norges Bank Investment Management, the department in the central bank in Oslo that runs the fund.
A good step has been imposing circuit breakers on exchanges, “but the interaction between ETFs and underlying securities is also important,” he said in an interview after participating at a conference in Qatar. The interaction between futures and the ETFs underlying securities is increasing “so we probably need some set of rules that take care of that inter- connectivity.”……………………………………….Full Article: Source

Norway Fund Sets Tougher Water-Use Requirements on Companies

Posted on 23 October 2015 by VRS  |  Email |Print

Norway’s sovereign-wealth fund, the world’s largest by assets, has decided to impose tougher requirements on how businesses it invests in manage water resources. The fund, which is run by Norges Bank Investment Management, an arm of Norway’s central bank, will ask companies to come up with clear strategies and risk-management plans for water resources.
Until now, the fund only required companies to report on their water use. “We want our expectations to be very clear,” William Ambrose, a senior manager at NBIM told The Wall Street Journal………………………………………..Full Article: Source

Norway’s fund to seek approval for top property deals, central bank says

Posted on 22 October 2015 by VRS  |  Email |Print

The board of Norway’s central bank is introducing an extra layer of supervision for the country’s sovereign wealth fund, which will need to seek approval for all property deals over $250 million, the bank said on Tuesday. For the first time, the $860 billion wealth fund, the world’s largest, will need approval for some of its most valuable property deals. Property represents 2.7 percent of its total value, which it wants to increase to five percent.
The fund, which invests Norway’s revenues from oil and gas in stocks, bonds and property, will now need approval from a new investment committee for deals over $250 million. Deals worth more than $1 billion will need the approval of the board of the central bank. Until now, the fund’s management, led by Chief Executive Yngve Slyngstad, decided on its own………………………………………..Full Article: Source

Norway’s central bank ensures sovereign wealth fund seeks approval for large property deals

Posted on 22 October 2015 by VRS  |  Email |Print

The board of Norway’s central bank is introducing an extra layer of supervision for the country’s sovereign wealth fund, which will need to seek approval for all property deals over US$250 million, the bank said on Tuesday. For the first time, the US$860 billion wealth fund, the world’s largest, will need approval for some of its most valuable property deals. Property represents 2.7 percent of its total value, which it wants to increase to five percent.
The fund, which invests Norway’s revenues from oil and gas in stocks, bonds and property, will now need to approval from a new investment committee for deals over US$250 million. Deals worth more than US$1 billion will need the approval of the board of the central bank. Until now, the fund’s management, led by chief executive Yngve Slyngstad, decided on its own………………………………………..Full Article: Source

Norway’s fund to seek approval for top property deals, central bank says

Posted on 21 October 2015 by VRS  |  Email |Print

The board of Norway’s central bank is introducing an extra layer of supervision for the country’s sovereign wealth fund, which will need to seek approval for all property deals over $250 million, the bank said on Tuesday. For the first time, the $860 billion wealth fund, the world’s largest, will need approval for some of its most valuable property deals.
Property represents 2.7 percent of its total value, which it wants to increase to five percent. The fund, which invests Norway’s revenues from oil and gas in stocks, bonds and property, will now need to approval from a new investment committee for deals over $250 million. Deals worth more than $1 billion will need the approval of the board of the central bank. Until now, the fund’s management, led by Chief Executive Yngve Slyngstad, decided on its own………………………………………..Full Article: Source

1MDB, subsidiaries tax exempted for 10 years

Posted on 21 October 2015 by VRS  |  Email |Print

1Malaysia Development Bhd (1MDB) and its wholly-owned subsidiaries have been granted tax exemptions for 10 years by Prime Minister Datuk Seri Najib Razak, who is also the finance minister. Najib announced the tax holiday for 1MDB, which is currently under probe by the Public Accounts Committee (PAC), in Parliament yesterday through a written reply to Kampar member of Parliament (MP) Dr Ko Chung Sen who asked about taxes paid by the strategic investment fund since 2009.
“1MDB and its wholly-owned subsidiaries can enjoy tax exemptions including dividends for a period of 10 years in line with Section 127(3A) of the Income Tax Act 1967. However, other subsidiaries acquired by 1MDB are not entitled to the tax exemptions,” said Najib, who is also chairman of 1MDB’s board of advisors………………………………………..Full Article: Source

Rival Libyan investment authorities sabre rattle ahead of peace deal deadline

Posted on 21 October 2015 by VRS  |  Email |Print

Libya’s rival investment authorities, both claiming control of the embattled North African oil producer’s sovereign wealth fund, have reasserted their claim to the $60bn (£39bn) portfolio ahead of a UN-imposed deadline for peace.
Just as Libya currently has two governments battling for control of the country, two rival investment authorities have emerged claiming control of the nation’s surplus oil revenue investments. The claims are inherently tied to the two rival governments and ahead of a UN deadline which would see both share power in a unity government as of 20 October, the investment authorities have staked their claim to Libya’s frozen billions………………………………………..Full Article: Source

Future Fund uses Cayman Is tax haven

Posted on 20 October 2015 by VRS  |  Email |Print

Australia’s Future Fund has money invested in funds based in a notorious tax haven. Future Fund Management Agency managing director David Neal told a Senate estimates hearing on Tuesday the fund - which stood at $117.8 billion at the end of September - had money invested in funds that used the Cayman Islands.
“We’ve got a number of vehicles in the Cayman Islands and I think it would be standard practice,” Mr Neal said. Finance Minister Mathias Cormann said the Future Fund did not pay any tax so it would be wrong to suggest the Caymans were being used to minimise tax. “It’s related to their overall risk management strategy not seeking a particular tax outcome,” the minister told the hearing………………………………………..Full Article: Source

1MDB slams DAP publicity secretary for using unverified info

Posted on 20 October 2015 by VRS  |  Email |Print

1Malaysia Development Bhd (1MDB) took a swipe at DAP publicity secretary Tony Pua for recycling incorrect statements for cheap political gain. The government investment arm criticised Pua for also using unverified information from a discredited foreign blog to level baseless allegations against it.
1MDB said it had given authentic documents, including the minutes of the board of directors meeting, to the police and the Auditor-General to facilitate investigations. “But Pua has continuously used selective information to discredit 1MDB,” it said………………………………………..Full Article: Source

Volkswagen faces EUR40bn lawsuit from investors

Posted on 19 October 2015 by VRS  |  Email |Print

Volkswagen is set to be pushed deeper into crisis after it emerged that the carmaker is facing a record-breaking €40bn (£30bn) legal attack spearheaded by one of the world’s top law firms.Now Quinn Emanuel and Bentham are contacting VW’s biggest investors – which include sovereign wealth funds of Qatar and Norway – to ask them to join the claim.
VW has admitted that it fitted “defeat devices” to 11m cars that allowed them to fraudulently pass pollution controls, though the company’s senior management has insisted it was unaware of the practices………………………………………..Full Article: Source

U.S. gov’t reviews Goldman Sachs as part of broad 1MDB probe

Posted on 16 October 2015 by VRS  |  Email |Print

The U.S. government is reviewing Goldman Sachs’ business relationship with Malaysia’s sovereign wealth fund as part of a broader, wide-ranging investigation into 1Malaysia Development Berhad (1MDB), an FBI spokeswoman told Reuters on Thursday.
U.S. law enforcement sources are “aware of Goldman’s possible involvement” in investments with the fund, the spokeswoman said. She added that the bureau has “yet to determine if the matter will become the focus of any investigation into the 1MDB scandal.” A Goldman Sachs spokesman declined to comment when asked about the FBI’s review on Thursday………………………………………..Full Article: Source

Malaysian Leader Najib Razak at the Center of a Storm

Posted on 16 October 2015 by VRS  |  Email |Print

Prime minister played a key role at 1MDB, a state development fund that has sparked a raft of investigations. In early 2013 at the glitzy World Economic Forum in Davos, Switzerland, Malaysia’s prime minister approached the country’s longtime financial adviser Goldman Sachs with an urgent assignment.
A government investment fund the prime minister oversaw wanted Goldman to help it raise $3 billion quickly and quietly, according to people close to the bank. The fund, 1Malaysia Development Bhd., or 1MDB, was Prime Minister Najib Razak’s signature initiative, envisioned as helping transform Malaysia into a modern Muslim democracy fueled by new industries………………………………………..Full Article: Source

Goldman Entangled in Scandal at Malaysia Fund 1MDB : WSJ

Posted on 15 October 2015 by VRS  |  Email |Print

Goldman Sachs’ actions as an adviser to Malaysia’s troubled sovereign wealth fund are being examined by U.S. authorities, The Wall Street Journal has reported. Citing unnamed sources, the WSJ wrote that Goldman was consulted on the creation of 1Malaysia Developmment Berhad (1MDB), and advised on three acquisitions and $6.5 billion bond sale by the fund. The bank’s fees for its work were far more than $350 million, according to the report.
The inquiries by the Federal Bureau of Investigation and the Department of Justice were at an early stage, sources told the WSJ, and there was no suggestion of wrongdoing by Goldman………………………………………..Full Article: Source

Goldman Sachs Stock Down, Under Investigation in Malaysia Fund Probe

Posted on 15 October 2015 by VRS  |  Email |Print

Goldman Sachs Group shares are declining 0.71% to $179.67 on reports that as the FBI and the U.S. Department of Justice are investigating the investment banking company’s actions in a series of transactions at 1 Malaysia Development Bhd. (1MDB), an economic development fund in Malaysia, the Wall Street Journal reports.
However, the inquiries are still at an early stage and there is no suggestion of wrongdoing by the company. The investigators “have yet to determine if the matter will become a focus of any investigations into the 1MDB scandal,” the Journal noted. Goldman Sachs is an adviser to Malaysia’s wealth fund, advising on three acquisitions and $6.5 billion bond sale, CNBC.com added………………………………………..Full Article: Source

Muhyiddin: Hidden hands shielding 1MDB culprits

Posted on 08 October 2015 by VRS  |  Email |Print

Former deputy prime minister Muhyiddin Yassin suspects there may be hidden hands trying to cover up for those implicated in the1MDB scandal. He said this is because investigations into the debt-ridden sovereign wealth fund appear to have been interrupted.
“It is as though there are hidden hands that want to cover up the wrongdoings of certain parties. This is unacceptable,” he said. Bank Negara governor Zeti Akhtar Aziz has previously said the central bank’s probe into 1MDB has already been concluded and sent to the Attorney-General’s Chambers in August………………………………………..Full Article: Source

Malaysia’s 1MDB says not contacted by foreign investigators

Posted on 30 September 2015 by VRS  |  Email |Print

Malaysia’s troubled strategic investment fund 1Malaysia Development Bhd (1MDB) has not been contacted by any foreign investigators over allegations of mismanagement and corruption, its president Arul Kanda said. “In terms of the Swiss investigations or the Singaporean investigations or the FBI investigations, 1MDB has not been contacted by any of those authorities,” said Kanda, who was hired from Abu Dhabi Commercial Bank in January to conduct a strategic review of the state-owned fund, which owns mostly power and property assets.
The fund, which has Prime Minister Najib Razak as chairman of its advisory board, has amassed debt of more than $11 billion, engulfing Najib in a political storm amid allegations at home and abroad of graft and financial mismanagement at the fund. 1MDB has denied all the allegations………………………………………..Full Article: Source

BTA Bank completes buyback of common shares from Samruk-Kazyna and terminates trust management agreement

Posted on 30 September 2015 by VRS  |  Email |Print

JSC BTA Bank announces on September 28 on completion of buyback of 27,351,461,050 common shares representing 4.26% of outstanding common shares from JSC National Wealth Fund Samruk-Kazyna and on termination of the Trust management agreement in respect these common shares.
Buyback of common shares and its conditions were approved by the Board of Directors of BTA on 5 January 2015 based on recommendations of the extraordinary general meeting of BTA shareholders after approval of KKB and BTA integration model by shareholders. Due to buyback of common shares from Samruk-Kazyna, the Trust Management Agreement signed on 31 January 2014 between KKB as Trustee and JSC Sovereign Wealth Fund Samruk-Kazyna as Trustor was terminated………………………………………..Full Article: Source

How 1MDB’s Money Went Missing Through The Aabar Power Purchase Deals

Posted on 29 September 2015 by VRS  |  Email |Print

While the man responsible for 1MDB’s investment decisions hangs out in New York, DAP’s Tony Pua has queried the emergence of some astonishing figures. Out of the US$3.5 billion raised by the fund through its so-called power purchase bonds, he says it can now be seen that 1MDB walked away with with a deficit of US$649 million!
The bonds were raised through a co-guarantee by Abu Dhabi’s Aabar subsidiary of the IPIC sovereign wealth fund, which Pua and others have pointed out was totally unnecessary and has turned out to be ruinously costly………………………………………..Full Article: Source

Qatar wealth fund may be down $4.6bn on VW and Glencore

Posted on 25 September 2015 by VRS  |  Email |Print

Qatar’s sovereign-wealth fund may have lost $4.6 billion in just two days from its stakes in Volkswagen and Glencore. Qatar Investment Authority, the biggest holder of VW’s preferred shares and the third-largest owner of its ordinary stock, stands to have seen €3.8 billion evaporate from its holdings in the automaker.
QIA is also the largest investor in Glencore. The ownership data are based on compilations from regulatory filings dated April 2015 in the most recent case. A QIA media representative declined to comment on the current stakes. VW and Glencore tumbled more than 15 per cent in the first two days of the week, leading slumps in European shares. The carmaker said it cheated on emissions rules in the US, while Glencore closed at a record low as metals prices sank on concerns that China’s economy is slowing………………………………………..Full Article: Source

Qatar’s Volkswagen stake slumps $3.73bn amidst fallout from the emissions scandal in the US

Posted on 25 September 2015 by VRS  |  Email |Print

Qatar Investment Authority, one of Volkswagen’s top shareholders, has seen the value of its holding fall by 3.35 billion euros ($3.73 billion) since the carmaker was hit by an emissions scandal at the end of last week.
Below is a table of the top five holders of Volkswagen’s preference and ordinary shares, according to Thomson Reuters Eikon data, showing losses as of 1417 GMT for preferred shares, and 1423 GMT for ordinary shares………………………………………..Full Article: Source

Malaysian police unaware of new 1MDB probes in US

Posted on 24 September 2015 by VRS  |  Email |Print

The Malaysian police are unaware whether the United States has opened two investigations on Prime Minister Najib Razak and those associated with him, Deputy Police Chief Noor Rashid Ibrahim said yesterday amid increasing international scrutiny over a multi-million-dollar corruption scandal revolving around sovereign wealth fund 1Malaysia Development Bhd (1MDB).
Mr Noor Rashid said he could not be certain of the authenticity of the reports. “As far as I’m concerned, these outside parties have not contacted PDRM (Royal Malaysia Police) yet,” he told reporters. “If they are indeed conducting investigations, we would have surely been contacted by now,” he said………………………………………..Full Article: Source

India: Companies can approach SWFs, pension funds for ECBs

Posted on 24 September 2015 by VRS  |  Email |Print

In order to encourage overseas funding, RBI today proposed to allow domestic companies to borrow money from pension funds, sovereign wealth funds (SWFs) and insurance funds as part of the ECBs. The draft framework on External Commercial Borrowings (ECBs), however, proposed to lower the all-in cost borrowing by 0.50 per cent to ensure that the funds are borrowed from abroad at a reasonable interest rate.
The modification in the ECB guidelines on which RBI has invited comments till October 1 are aimed at replacing the ECB policy with a more rational and liberal framework, keeping in view the evolving domestic as well as global macroeconomic and financial conditions, challenges faced in external sector management and the experience gained so far, the draft guidelines added………………………………………..Full Article: Source

Najib faces US grand jury corruption investigation

Posted on 23 September 2015 by VRS  |  Email |Print

Embattled Malaysian Prime Minister Najib Razak, facing mounting political turmoil and a parade of inquiries at home and abroad into a sovereign wealth fund that he oversees, is now coming under the scrutiny of American investigators as well. A federal grand jury is examining allegations of corruption involving Mr Najib, and people close to him, according to two people with knowledge of the investigation.
The inquiry, being run by a unit of the Justice Department that investigates international corruption, is focused on properties in the United States that were purchased in recent years by shell companies that belong to Mr Najib’s stepson as well as other real estate connected to a close family friend, said the people knowledgeable about the case, who asked for anonymity because they were not authorised to discuss it………………………………………..Full Article: Source

NSIA Faults Oshiomhole, Insists Funds under Management Remain Intact

Posted on 22 September 2015 by VRS  |  Email |Print

The Nigeria Sovereign Investment Authority (NSIA) Sunday assured Nigerians that all funds and assets managed by it remained intact and fully accounted for. It added that its funds had been invested profitably, realising a net comprehensive income of N15.8billion in the year ended December 31, 2014, compared to N505 million recorded in the 15 months ended December 31, 2013.
This was disclosed in a statement by the management in an apparent reaction to allegations by Edo State Governor and Chairman of the National Economic Council (NEC) Ad-hoc Committee on the management of the Excess Crude Account (ECA) and related federation accounts issues, Mr. Adams Oshiomhole, that the managers of the Sovereign Wealth Fund (SWF) could not account for $700 million out of the $1billion contributed for the fund………………………………………..Full Article: Source

Sovereign Wealth Fund assets intact – NSIA

Posted on 21 September 2015 by VRS  |  Email |Print

The Nigeria Sovereign Investment Authority has said all funds and assets managed by it are intact and fully accounted for as detailed in its audited financial statement for the year ended 2014. The organisation, which manages the country’s Sovereign Wealth Fund, said in a statement on Sunday that funds in its custody had been invested profitably, realising a net comprehensive income of N15.8bn in the year ended December 31, 2014, compared with N505m recorded in the 15 months ended December 31, 2013.
In addition to the audited annual reports of 2013 and 2014, the NSIA stated that it had also made available its quarterly audited accounts until March 2015 on its website, adding that the accounts were being audited quarterly and annually by PricewaterhouseCoopers, an international firm of auditors, using the International Financial Reporting Standard……………………………………….Full Article: Source

Nigerian press on arrest order for senate president, others

Posted on 21 September 2015 by VRS  |  Email |Print

The order for the arrest of Senate President by a tribunal over corruption and the $700 million missing Sovereign Wealth Fund were major stories in Nigerian newspapers on Saturday.The Vanguard’s front page had it that the Code of Conduct Tribunal, CCT, sitting in Abuja, on Friday ordered the arrest of the Senate President, Dr. Bukola Saraki following his refusal to appear in court to face a 13-count criminal charge that was preferred against him by the federal government.
Nation said the police declared that they were awaiting orders to effect the arrest of the Senate President, Senator Bukola Saraki. It also reported that the Northern Ethnic Nationalities Unity Congress (NENUC) has called for the resignation of Saraki………………………………………..Full Article: Source

FBI Probes Malaysia Development Fund

Posted on 21 September 2015 by VRS  |  Email |Print

U.S. opens money-laundering investigation amid international 1MDB probe; Malaysia police arrest critic of prime minister. The FBI has opened an investigation into allegations of money-laundering related to a Malaysian state investment fund, a person familiar with the matter said.
The scope of the investigation wasn’t known. It is the latest in a series of international investigations related to the fund that have been revealed in the past several weeks. The international investigations center on entities related to 1Malaysia Development Bhd., which was set up by Prime Minister Najib Razak in 2009 to help drive the economy………………………………………..Full Article: Source

Malaysia Blocks Critic of Prime Minister From Taking Case to U.S.

Posted on 21 September 2015 by VRS  |  Email |Print

The Malaysian authorities on Friday prevented a member of the governing party from traveling to New York, where he had planned to urge American law enforcement officials to investigate a sovereign wealth fund headed by Malaysia’s prime minister.
The party member, Khairuddin Abu Hassan, was arrested hours after his planned departure on Friday. He was charged with trying to overthrow the government, his lawyer said. The arrest comes amid a crackdown against those investigating Prime Minister Najib Razak over deposits in 2013 of nearly $700 million into his personal bank accounts………………………………………..Full Article: Source

What next will Najib do to stop Umno man from meeting FBI on 1MDB

Posted on 21 September 2015 by VRS  |  Email |Print

The Malaysian authorities yesterday prevented a member of the ruling party from travelling to New York where he had planned to urge US law enforcement officials to investigate a sovereign wealth fund headed by Malaysia’s prime minister. The party member, Datuk Khairuddin Abu Hassan, was arrested hours after his planned departure yesterday. He was charged with trying to overthrow the government, his lawyer said.
The arrest comes amid a crackdown against those investigating Prime Minister Datuk Seri Najib Razak over deposits in 2013 of nearly US$700 million (RM2.9 billion) into his personal bank accounts………………………………………..Full Article: Source

Abu Dhabi claims another US$1 billion from 1MDB missing, says WSJ

Posted on 21 September 2015 by VRS  |  Email |Print

Referring to a copy of a draft Malaysian Auditor-General report WSJ claimed it saw, the publication highlighted how 1MDB said it transferred almost US$1 billion to an IPIC unit last November as partial payment for the options to buy a stake in some power assets.
Another US$1 billion payment from 1MDB to Abu Dhabi’s global Petroleum Investment Co (IPIC) is allegedly missing, according to the Wall Street Journal. Officials in the emirate were trying to trace a further US$993 million that 1MDB reportedly paid to the global Petroleum Investment Co (IPIC), WSJ said………………………………………..Full Article: Source

1MDB crisis will weigh on sovereign investors

Posted on 17 September 2015 by VRS  |  Email |Print

The crisis at 1Malaysia Development Berhad may weigh on sovereign investors. The fund has spawned one of the industry’s worst scandals. Allegations of graft involving Prime Minister Najib Razak – which he strenuously denies – have led to a political crisis, a plunging currency, and investigations from Switzerland to Hong Kong.
Emirati backer International Petroleum Investment Company could now be on the hook for $7 billion. Though neither is a typical sovereign wealth fund, more traditional peers could suffer in the fallout. IPIC, chaired by Abu Dhabi royal and Manchester City owner Sheikh Mansour bin Zayed Al Nahyan, aided 1MDB’s debt-fuelled expansion………………………………………..Full Article: Source

Scandal Surrounding Sovereign Fund 1MDB Shakes Malaysian Government

Posted on 16 September 2015 by VRS  |  Email |Print

For years Malaysia has locked horns with international agencies and investors over its economic policies, most notably during the Asian financial crisis in the late 1990s, when the government spurned the advice of the International Monetary Fund and imposed capital controls to defend its currency. But the country’s decision to create sovereign wealth funds to harness national savings and promote development has long been seen as a plus for the economy.
Now a reassessment is in order because of the growing controversy surrounding 1Malaysia Development Berhad. Over the past five years, the Kuala Lumpur-based sovereign fund, known as 1MDB, has run up $12 billion in debt amid allegations of financial mismanagement………………………………………..Full Article: Source

Malaysia to Allow Swiss to Question Witnesses in 1MDB Probe

Posted on 16 September 2015 by VRS  |  Email |Print

The Malaysian government will allow Swiss authorities to question witnesses in a probe into the troubled Malaysian state investment fund 1Malaysia Development Bhd, or 1MDB, according to the office of the Swiss attorney general.
The fund, which was founded by Malaysian Prime Minister Najib Razak, has amassed $11 billion in debt it is struggling to repay. The Wall Street Journal reported in July that Malaysian investigators had traced almost $700 million of deposits into what they believed were Mr. Najib’s personal bank accounts after the movement of cash among agencies, banks and companies linked to 1MDB………………………………………..Full Article: Source

Zambia: IDC has been opened to abuse by the President - Mutati

Posted on 15 September 2015 by VRS  |  Email |Print

Felix Mutati says giving the powers to superintend over the Industrial Development Corporation to the presidency is opening the institution to abuse by the Head of State or those exercising power on behalf of the President. Last week, President Edgar Lungu announced that IDC had taken over, from the Ministry of Finance, ownership of government stake in all state-owned enterprises.
Mutati also said the 2016 budget should provide for a sovereign wealth fund which should be funded by IDC through profits and dividends. “And it is that sovereign wealth fund that can be used for investments and other activities. They shouldn’t be deployment of resources from government into IDC for the purpose of investment. IDC must find money to deploy for investment,” said Mutati………………………………………..Full Article: Source

Investigations Stymied in Malaysia, Critics of Najib Razak Take Their Case Global

Posted on 14 September 2015 by VRS  |  Email |Print

Faced with what they see as stonewalling at home, opponents of Prime Minister Najib Razak, some from within his own party, are going global, prodding foreign governments and agencies to investigate allegations of graft and money laundering they say are related to the case. Some international inquiries have already begun.
The Swiss authorities have opened an investigation into assets linked to a sovereign wealth fund that Mr. Najib leads. The Hong Kong police say they are looking into deposits made at a branch of a Swiss bank there. And a state investment fund in the United Arab Emirates is reportedly seeking clarification over a debt payment of more than a billion dollars that was promised by the sovereign wealth fund but may not have been delivered………………………………………..Full Article: Source

banner
February 2016
M T W T F S S
« Jan    
1234567
891011121314
15161718192021
22232425262728
29