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Goldman Says Libya Suffering From Buyers Remorse Over Bad Trades

Posted on 15 June 2016 by VRS  |  Email |Print

The Libyan Investment Authority is using Goldman Sachs Group Inc. as a scapegoat to recover more than $1 billion the sovereign-wealth fund lost during a period when global markets were seizing in the 2008 credit crunch, the investment bank’s lawyer said.
Robert Miles, Goldman Sachs’ lawyer, made his opening arguments to the London court a day after the multi-billion dollar sovereign-wealth fund said the New York-bank used vacations and prostitutes to push unsophisticated Libyan officials into risky bets before the global financial crisis………………………………………..Full Article: Source

Former Goldman Sachs executive denies paying for ‘improper entertainment’ in LIA case

Posted on 15 June 2016 by VRS  |  Email |Print

A Goldman Sachs executive at the centre of a $1.2 billion (£850 million) claim brought by Libya’s sovereign wealth fund has denied allegations he paid for “improper entertainment” for himself and the younger brother of a key decision-maker at the fund on a business trip.
Youssef Kabbaj, a former Goldman Sachs sales team executive, also said that all his expenses linked to the Libyan Investment Authority (LIA) had always been signed off by at least two senior partners at the bank and fully reimbursed by Goldman. In a trial at London’s High Court that began on Monday, the $67 billion LIA is attempting to claw back $1.2 billion from nine trades it carried out with Goldman Sachs in 2008………………………………………..Full Article: Source

Libyan Fund Alleges Goldman Took Advantage of Its Unsophistication

Posted on 14 June 2016 by VRS  |  Email |Print

Libya’s sovereign-wealth fund, in a long-awaited trial that started Monday, alleged Goldman Sachs Group Inc. took advantage of its lack of financial sophistication to draw it into losing trades. Emails in the case show Goldman executives saying that the Libyan fund had little experience in finance. “They are very unsophisticated—and anyone could ‘rape’ them,” one executive wrote in 2008.
In another internal email exchange, a Goldman executive wrote to a colleague that “you just delivered a pitch on structured leveraged loans to someone who lives in the middle of the desert with his camels.”……………………………………….Full Article: Source

Goldman Sachs exploited Libya fund, court told

Posted on 14 June 2016 by VRS  |  Email |Print

A Goldman Sachs banker described officials at Libya’s sovereign wealth fund as so unsophisticated that “anyone could ‘rape’ them”, it was claimed in the London’s High Court, on the first day of a $1bn legal case being brought against the financial group.
The court on Monday heard claims by the Libyan Investment Authority that Goldman had exploited the wealth fund’s limited experience in 2008, to force it into risky and ultimately lossmaking derivative trades………………………………………..Full Article: Source

Goldman Sachs set for revealing Libya trial

Posted on 13 June 2016 by VRS  |  Email |Print

It is a $1bn blockbuster legal battle pitting Goldman Sachs against Libya’s sovereign wealth fund, featuring colourful allegations of a “lavish trip to Morocco”, gifts, “heavy drinking and girls”. It promises to give a rare glimpse into the bank’s dealings with one of world’s richest investors, and into the behaviour of its bankers before the credit crunch.
And, on Monday, it will finally kick off at London’s High Court. In a lawsuit, the Libyan Investment Authority claims that Goldman exploited the sovereign wealth fund’s limited financial experience in 2008, forcing it into risky and ultimately lossmaking derivative trades. Goldman denies this………………………………………..Full Article: Source

Libya SWF trial against Goldman Sachs set to start at London High Court

Posted on 13 June 2016 by VRS  |  Email |Print

Libya’s $67 billion sovereign wealth fund will go head-to-head with Goldman Sachs in London’s High Court this week over claims that the U.S. investment bank exploited the fund by encouraging it to make risky and ultimately worthless investments.
In what will be one of the most closely watched cases in the City of London, the Libyan Investment Authority (LIA) is attempting to claw back $1.2 billion from the Wall Street giant from nine disputed trades carried out in 2008………………………………………..Full Article: Source

Government May Tweak Investment Norms for Infrastructure Fund

Posted on 10 June 2016 by VRS  |  Email |Print

Government is looking to tweak the investment norms for NIIF (National Investment and Infrastructure Fund) to allow investors to co-invest in this sovereign wealth fund as also in the individual projects.
The norms would be tweaked within the broad framework of the investment to take into account suggestions from the domestic and overseas investors, Economic Affairs Secretary Shaktikanta Das said. Das also expressed hope that the retail inflation would remain at 5 per cent this fiscal, in line with the RBI’s projection, and help India develop into a low-cost economy in terms of lower interest rates, transaction costs and logistics costs………………………………………..Full Article: Source

Temasek tenders NOL shares; CMA offer now unconditional

Posted on 10 June 2016 by VRS  |  Email |Print

Neptune Orient Lines (NOL) on Friday said the offer from France’s CMA CGM is now wholly unconditional, after NOL’s majority shareholder Temasek Holdings tendered all shares in the acceptance of the offer. This means the acceptance condition of the takeover has been met.
CMA CGM now owns 78.07 per cent of all NOL shares, and does not intend to preserve the listing status of NOL. It offered NOL shareholders the offer price of S$1.30 per share, in cash. Shares of NOL closed unchanged at S$1.30 on Thursday………………………………………..Full Article: Source

No 1MDB profits sent to Singapore banks: regulator

Posted on 09 June 2016 by VRS  |  Email |Print

Singapore said none of the banks in the city-state had received US$3 billion from Goldman Sachs Group Inc related to a bond sale by 1Malaysia Development Bhd (1MDB). The comment was made “in response to media queries,” the Monetary Authority of Singapore said in a one-line statement yesterday. It did not name any media organizations.
The statement came after the Wall Street Journal on Tuesday reported that Goldman Sachs had wired US$3 billion of proceeds from a bond issue it arranged for 1MDB in 2013 to an account controlled by the fund at the Singapore branch of a small Swiss private bank………………………………………..Full Article: Source

12 Swedish big shots have been blacklisted by Norway SWF

Posted on 09 June 2016 by VRS  |  Email |Print

The enormous Norwegian sovereign wealth fund have blacklisted twelve Swedes. In essence, this means that the fund opposes them as members of the board of the companies the fund owns shares in. According to the Swedish daily Dagens Industri, the fund has in 2016 voted against twelve Swedes as members of the board.
The fund, commonly referred to as The Oil Fund, manages the wealth produced by the Norwegian oil. It is absolutely huge: On average, the fund owns approximately 1.3 percent of the world’s listed companies. Over 700 billion dollars are managed by the fund, and its Swedish investments amount to approximately 15 billion dollars………………………………………..Full Article: Source

Senate moves to amend Nigeria Sovereign Wealth Investment Authority Act

Posted on 09 June 2016 by VRS  |  Email |Print

Senate Committee on Finance on Wednesday said it will amend Sovereign Wealth Investment Authority Act in order to widen the scope of activities of the agency. Speaking at stakeholders public hearing in Abuja, Chairman of the Committee, Senator John Owan Enoh stated that as an agency that was strategic to the economic growth of the nation, the 8th Assembly through the Committee has taken cognizance of areas in the Act that needs immediate legislative intervention.
He identified those areas to allowing the Sovereign Wealth Fund, an agency of the Authority to go into full blown investment………………………………………..Full Article: Source

Tencent Holding WeBank Denied Foreign Fund Raising

Posted on 08 June 2016 by VRS  |  Email |Print

WeBank, a Shenzhen-based Internet bank owned by Tencent Holding Ltd., has been restricted to get funds from foreign investors including the US private Warburg Pincus and the Singapore state-owned investment firm Temasek Holdings Pte Ltd., after the country’s banking regulator expressed serious concerns over the foreign ownership. The reason for blocking investment is still not clear.
In April 2016, it raised nearly $4.5 billion in funds, which gave the financial arm valuation of nearly $60 billion. Ant Financials domestic investors include various insurance companies and China’s sovereign wealth fund………………………………………..Full Article: Source

1MDB Defends Liquidity Position After Moody’s Rating Withdrawal

Posted on 08 June 2016 by VRS  |  Email |Print

Malaysia’s troubled state investment company 1Malaysia Development Bhd. defended its liquidity position after Moody’s Investors Service withdrew the rating for one of its bonds. Moody’s said Tuesday it withdrew the rating on 1MDB Energy Ltd.’s 5.99 percent $1.75 billion debt “for its own business reasons,” according to a statement, pointing to its website for its policy on such moves.
“1MDB reiterates that its liquidity position is strong and the company remains focused on execution of its successful rationalization plan,” the company said in a statement Wednesday………………………………………..Full Article: Source

Goldman Sachs fights $1bn court battle against Libya’s wealth fund

Posted on 06 June 2016 by VRS  |  Email |Print

Goldman Sachs is braced for a $1bn court battle this month, facing dramatic claims in the High Court that it took advantage of naïve leadership at the Libyan Investment Authority (LIA) to rip off the sovereign wealth fund.
The LIA claims that its former management, in the Gaddafi era, lacked any financial knowledge and so were taken advantage of by senior staff at Goldman Sachs, losing more than $1bn in a series of nine derivatives trades in 2008 which gave Goldman hundreds of millions of dollars in profit………………………………………..Full Article: Source

SSEK Advises GIC on Indonesian Investment in Logistics Sector

Posted on 02 June 2016 by VRS  |  Email |Print

SSEK Legal Consultants has acted as Indonesian counsel to GIC, Singapore’s sovereign wealth fund, on its partnership with PT Mega Manunggal Property Tbk, an Indonesian publicly listed logistics developer and one of Indonesia’s leading modern logistics companies, to develop logistics warehouses in Indonesia. This is GIC’s first investment in Indonesia’s logistics sector.
Partner Denny Rahmansyah led the SSEK team advising on the deal. Allen & Gledhill acted as foreign counsel for GIC………………………………………..Full Article: Source

Complete delayed 1MDB audits, new board of directors told

Posted on 02 June 2016 by VRS  |  Email |Print

The first act of the new board of directors at 1Malaysia Development Bhd (1MDB) must be to instruct accounting firm Deloitte to complete the months’ late audit of the firm, DAP’s Tony Pua said.
The DAP national publicity secretary said the audits for the financial years ending March 31, 2015 and March 2016 must be completed as soon as possible to provide 1MDB’s new directors a “clear and accurate” picture of the financial position of the company………………………………………..Full Article: Source

To tackle NPAs: Indian SWF NIIF to Rescue

Posted on 01 June 2016 by VRS  |  Email |Print

Union Minister of State (MoS) for Finance Jayant Sinha said the government is working towards the formation of a stressed assets fund which will be of a significant size to tackle the menace of non-performing assets (NPAs) in the banking system. Sinha further said other funds like the National Investment and Infrastructure Fund (NIIF) are also expected to pool in equity in the stressed asset funds.
“We expect a variety of funds — distressed debt funds, special situations fund and NIIF — to participate in the equity investments in these stressed assets,” he said. India is also very close to launching the NIIF, India’s first sovereign wealth fund, with the junior finance minister indicating there has been a thorough search for the CEO position on a global scale……………………………………….Full Article: Source

Malaysia announces wind-up of 1MDB

Posted on 01 June 2016 by VRS  |  Email |Print

Malaysia has replaced the board of 1Malaysia Development Berhad with treasury officials, paving the way for the dissolution of the troubled state investment fund.
A three-member board headed by the treasury’s top administrative officer succeeded the board of directors of 1MDB, effective Tuesday, the Ministry of Finance said in a press release. “The change of board reflects 1MDB’s new direction as a nonoperating company, focusing on completion of the successful rationalization plan and on servicing future debt repayments.”……………………………………….Full Article: Source

Norway Lawmakers Win Review on Wealth Fund Infrastructure Push

Posted on 31 May 2016 by VRS  |  Email |Print

Norway’s parliament demanded further study on whether the country’s $850 billion sovereign wealth fund should invest in infrastructure and recommended it start a review of its expectations for investments listed in tax havens.
“It’s very positive that we’ve managed to move the government from wanting to close the door entirely to agreeing to a step forward” on infrastructure, Torstein Tvedt Solberg, a lawmaker for the opposition Labor Party, said by telephone on Monday………………………………………..Full Article: Source

Norway wealth fund needs policy on tax declarations: committee

Posted on 31 May 2016 by VRS  |  Email |Print

Norway’s $860-billion sovereign wealth fund, the world’s largest, must develop a policy on how companies in which it has invested declare their taxes, parliament’s finance committee said. The fund, managed by a unit of the central bank, invests the income from Norway’s oil industry. It owns 1.3 percent of the world’s listed company equity, with stakes in some 9,050 firms.
The move is a first step by Norway to use the fund as a tool to combat the use of tax havens. It follows the Panama Papers leaks in April, which revealed details of corporate and individual tax evasion and triggered a global backlash. Two key committee members told Reuters of the move last week………………………………………..Full Article: Source

Norway’s wealth fund passed on Facebook investment

Posted on 31 May 2016 by VRS  |  Email |Print

The rules governing Norway’s sovereign wealth fund kept it from jumping on board when Facebook asked it to invest in the social media giant ahead of its 2012 IPO. The head of the Norwegian Government Pension Fund told VG that Facebook reached out ahead of its IPO to see if the sovereign wealth fund, the largest of its kind in the world, was interested in becoming an investor.
“It wasn’t at the inception of Facebook, but it was before it was listed. We are not allowed to invest in companies before they are listed so we couldn’t go along when we received the request,” Ynge Slygstad said………………………………………..Full Article: Source

1MDB scandal taking toll on Malaysia stock market as foreigners sell

Posted on 31 May 2016 by VRS  |  Email |Print

One of the worst global financial scandals is taking its toll on the world’s longest bull market run. Deepening concerns over 1Malaysia Development Bhd (1MDB), the embattled state investment fund at the center of probes from Switzerland to Singapore, has spurred the biggest outflow of foreign funds in eight months.
Malaysia’s benchmark stock index has erased most of its gains after climbing to this year’s high in April. The prolonged impact of 1MDB is prompting investors to seek out other markets in Southeast Asia, according to Baring Asset Management………………………………………..Full Article: Source

Samruk-Kazyna Group of Companies under the Privatization Plan for 2016-2020 to Auction 10 Companies until the End of July

Posted on 30 May 2016 by VRS  |  Email |Print

Samruk-Kazyna Group of Companies will place various ownership interests in 10 companies to the electronic auction by the end of July. The share sale is planned in the framework of implementation of the Comprehensive Privatization Plan for 2016-2020 approved by the Government of the Republic of Kazakhstan.
“The State Commission for Economic Modernization under the Government of the Republic of Kazakhstan approved the sale of different shares in 10 Samruk-Kazyna companies”. Auctions of 5 assets of JSC NC Kazakhstan Engineering, 3 assets of JSC NAC Kazatomprom, 2 assets of Samruk-Energy JSC are scheduled until the end of July, - said the Managing Director for Asset Optimization - Member of the Management Board of Samruk-Kazyna JSC Berik Beisengaliyev……………………………………….Full Article: Source

1MDB Unit Bought by China Nuclear Firm Was Distressed, Auditor Says

Posted on 27 May 2016 by VRS  |  Email |Print

An audit of a key energy group sold by troubled state investment fund 1Malaysia Development Bhd. to a Chinese state-owned nuclear-power company flagged deep uncertainty over the company’s viability.
Notes from auditor Deloitte in the 140-page financial accounts of Edra Global Energy Bhd. for the year ended March 31, 2015, said the audit found “an existence of a material uncertainty which may cast significant doubt about the group’s and company’s ability to continue as a going concern.”……………………………………….Full Article: Source

FINMA links BSI Singapore, BSI Swiss to 1MDB

Posted on 27 May 2016 by VRS  |  Email |Print

In a massive revelation, the Swiss financial market supervisory authority FINMA has conclusively linked troubled bank BSI AG and its Singapore branch, to the global scandal surrounding Malaysian sovereign wealth fund 1MDB. FINMA said through business relationships and transactions linked to the corruption scandals surrounding 1MDB, BSI AG committed serious breaches of money laundering regulations.
It said in the case of 1MDB, there were deliberate management decisions made by the bank that led FINMA to reach its conclusions of corruption and money laundering accusations. Transactions involving 1MDB were executed within the client group and with THIRD PARTIES without the bank adequately clarifying their commercial justification………………………………………..Full Article: Source

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

Posted on 27 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 cut its 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

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

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