By Ganesh Sahathevan From sahathevanblogspot.com

A prospectus issued by Bridge Global Capital Management Ltd (BGCM), an ASX listed fund manager which is part of the Bridge group of companies that has been entrusted with USO 2 billion of 1MOB’s funds, shows clearly that moneys held by Bridge Global Absolute Return Fund ,which is reported to be the actual manager of the funds (see report below),has been used in part to finance the recapitalization of BGCM. The prospectus is located at this link: http://www.asx.com.au/asxpdf/20141125/pdf/42tyzgj1jlx77w.pdf

As the notes below show, Bridge Capital is intimately owned Joseph Wan Cheun Chung and wile MaK Wai Chun.

NOTES

1MDB’s USO 2.3 Billion is placed with Bridge Capital which appears to be a wholly owned subsidiary of Baron Capital Ltd of Hong Kong, which is ultimately owned by Joseph Wan Cheun Chung and wife MaK Wai Chun:

The Baron Network 14th April 2004

The listing sponsor was Baron Capital and the investment manager was Baron Asset Management Ltd (Baron AM), which was then wholly-owned by Joseph Wan Chuen Chung (Joseph Wan), one of the stars of our story. In 1998, following an inquiry into the behaviour of his firm, Goldwyn Capital, the SFC suspended Joseph Wan’s investment adviser licence for 12 months ,but you can’t keep a good man down, and he has more than made up for lost time since then. Baron Capital and Baron AM are now subsidiaries of Baron Strategic Holdings Ltd (Baron), a BVI company 50% owned by Joseph Wan and 50% by his wife,Mak Wai Chun (Ms Mak).

Over US$2b of 1MOB’s Cayman funds managed by Aussle firm
Anita Gabriel , Over US$2b of 1MOB’s Cayman funds managed by Aussie finn

726 words
22 November 2014
Business Times Singapore
STBT English
(c) 2014 Singapore Press Holdings Limi ted

Avestra shares several executives with Bridge Global,whose fund 1MOB has Invested in Singapore

AUSTRALIAN fim Avestra Asset Management has been managing over US$2 billion of 1Malaysia Development Bhd’s monies invested in several Cayman Islands funds.

The Business Times understands that 1MOB ‘s investments via several segregated portfolio companies (SPCs) in the Cayman Islands called Bridge Global Absolute Return Fund are now managed by Queensland-based Avestra.

This is not known by many because the controversial Malaysian strategic fund, which is sprucing up its energy assets for a massive US$3 billion initial public offering sometime in the first quarter of next year, has not provided details on the funds or the names of the fund manager, although it has long been under pressure to do so for the sake of transparency.

It is not clear how and when Avestra emerged in the picture as investment adviser of the funds under Bridge Global. Brs numerous attempts to contact Avestra’s top executives and 1MOB drew a blank.

These funds – some 60 per cent of which have reportedly returned to Malaysia recently – were invested by the state­ backed fund through Brazen Sky Ltd -a wholly owned unit incorporated in the British Virgin Islands (BVI).

According to Avestra’s website, the asset management finn operates in Australia and Asia with research and marketing facilities in Hong Kong, Singapore and Malaysia.

There are several common individuals on the management line-up of Avestra and Bridge Global – Paul Rowles, who established the Avestra Group in 2004, Jason Dixon and Nick McDonald. Several attempts to reach Mr Rowles were also unsuccessful.

Bridge Global, according to its website, has over US$2.5 billion under management and to date, has launched nine segregated portfolios in the Cayman Islands.

News that 1MDB had ploughed some US$2.3 billion into Bridge Global funds which is managed by little-known Hong Kong-based Bridge Partners was first reported by BT in May this year. The link between Bridge Partners and Avestra, however, appears unclear.

These funds itself arose from a convoluted tie-up between 1MOB and obscure firm PetroSaudi International (PSI) initially involving US$1.8 billion which eventually fell through and was converted into an Islamic debt facility.

The investments in the Cayman Islands regulated funds are generating US$267 million in dividend, said 1MOB chairman Lodin Wok Kamaruddin recently at the fund’s first media briefing since it was set up five years ago where he vouched for the fund’s transparency, although the event itself was open to very few, selected local media organisations. “To date, almost 60 per cent, or RM4 billion (S$1.55 billion), of the fund has been liquidated for settlement of 1MOB’s financial commitments. The balance will be liquidated before the end of the year,” said Mr Lodin, according to a Malaysian news report.

1MDB, wholly owned by the Ministry of Finance and with Prime Minister Najib Razak as chairman of its advisory board, has been under stinging criticism for keeping its monies offshore, given that it is regarded as a sovereign wealth fund with most of its assets in Malaysia.

In recent weeks, there has been renewed and relentless attacks on 1MDB by opposition politicians in and out of Parliament.

On its part, 1MDB’s opaque investment decisions and the fact that it is saddled with hefty debt – its borrowings have ratcheted up to RM41.9 billion for fiscal year 2014 from RM36.2 billion a year ago- have made it an easy target.

The fund’s recently released delayed accounts for the fiscal year ended March 2014 provided additional fodder; escalating borrowing costs led the firm to swing into the red with losses of some RM665 million from a profit of RM778 million a year ago.

Last year’s numbers were aided by huge revaluation gains of property assets of RM2.7 billion, in the absence of which the fund would have bled some RM1.9 billion.

Despite frequent remarks by top Malaysian officials and 1MDB executives that 1MDB is able to service its debt load, there still appears to be palpable and widespread concern over the fund’s surging debt.

Singapore Press Holdings Limited

For a lot more on this story go to: http://sahathevan.blogspot.com/2015/09/1-mdb-cayman-funds-used-by-husband-wife.html?view=mosaic

See also iNews Cayman related story and links published September 23 2015 “Pua: 1MDB cannot explain ‘missing’ USD2b” at: http://www.ieyenews.com/wordpress/pua-1mdb-cannot-explain-missing-usd2b/

Related:
1MDB CEO: We are the ‘most investigated company’

By Karishma Vaswani Asia business correspondent From BBC

Arul Kanda, the head of the Malaysian state investment fund 1MDB has an impressive track record of restructuring ailing companies and making a profit from them. A former banker, he’s worked in the UK and in the Middle East, and has had a string of successes.

So it did seem surprising to me that he would be willing to stake his reputation on turning around the scandal hit fund 1MDB, after it amassed more than $11bn (£7bn) worth of debts.

And what a way to hit the ground running. Within the first six months of him taking on the job, 1MDB was hit by allegations that $700m from companies linked to 1MDB were transferred to Prime Minister Najib Razak’s personal bank account.

The claims have triggered investigations by some international authorities including the Swiss.

Both the Prime Minister and 1MDB have denied any wrongdoing and Malaysia’s anti-corruption commission said the money was donations from a private donor in the Middle East.

But the questions keep coming – not least from Malaysians themselves who are asking where the money’s gone.

Mr Kanda has a ready reply to those who would hold him and the Prime Minister to account.

“1MDB today, through the actions of the government, is now the most investigated company in the country,” Mr Kanda told me in his first international television interview.

“Whatever happened in the past is being thoroughly reviewed and investigated”.
Restructuring expert

Even before this story broke in July, questions were being asked about the purpose and performance of 1MDB, which has changed auditors twice since 2009.

Malaysia already has a sovereign wealth fund, Khazanah, which makes investments for the country’s national development.

1MDB was set up in 2009 by Mr Najib, who chairs its advisory board and also serves as Malaysia’s finance minister, with similar ambitions.

The fund borrowed money to buy major real estate and power assets in the country and abroad, with the intention of developing them and turn them into profitable entities.

But it’s now in the process of selling off stakes in some of its prized energy assets in an attempt to raise cash and pay down some of its multi-billion dollar debt.

Mr Kanda stressed 1MDB’s financials will be fine.

“The value of assets outweigh value of debt,” he told me at their office in Kuala Lumpur. The value of assets can be proven given bids we’ve received”.

Mr Kanda told me that the company would start to see a profit sometime next year, after they’ve sold off some of their key assets.

But as one opposition party member said to me that any business that has to sell off their key assets to stay alive really doesn’t have much to show for itself.

Others in the financial circles have said they don’t expect to see 1MDB last beyond next year.

Economic woes

And then there’s the politics – never far away from the world of business in Malaysia’s intricately connected society.

Since the scandal broke, calls for the prime minister to step down have been growing from protestors, and even from the high profile former Prime Minister Mahathir Mohamad, who still holds a lot of influence in the country.
Image copyright Getty Images
Image caption A widespread protest in August by the ‘Bersih’ or ‘Clean’ movement called for Malaysia Prime Minister to step down

This scandal couldn’t have come at a worse time for the Malaysian economy. It’s been particularly hard hit by the global slowdown and collapse in commodity prices.

Making things worse, the Malaysian ringgit, has lost about 13% of its value this year, making it the worst performing currency in Asia.

Most Malaysians are used to the culture of cronyism and patronage amongst their public officials.

But any hint of mismanagement of public funds – at a time when they’re grappling with the soaring cost of living – is likely to lead even higher levels of resentment with their leaders.

With additional reporting by Leisha Chi

Image copyright AFP
Image caption Analysts were concerned that 1MDB’s multibillion dollar debt load could threaten Malaysia’s financial standing

For more on this story and video go to: http://www.bbc.com/news/business-34409455