By Joe Fernandez From FMT News

The entire scam was so well-thought through, that it fooled international auditors KPMG and Deloitte for years.

KUALA LUMPUR: The lies by 1MDB have come full circle, which strengthens suspicions that there was never any substantial money invested in the Cayman Islands, said Petaling Jaya Utara MP Tony Pua in a statement. “The investment was purportedly made with the USD2.318 billion proceeds from the disposal of 1MDB’s investment with PetroSaudi International Limited.”

Instead, he added, the supposed opaque investment now looks like a cover story for 1MDB to hide the fact that the billions of dollars invested with PetroSaudi have been lost through embezzlement and pilferage. “In fact, the entire scam was so well-thought through that it fooled international auditors KPMG and Deloitte for years.”
Pua, who is also DAP National Publicity Secretary, wants to know why the Royal Malaysian Police have not investigated the missing Cayman Islands investment arising from the supposed profitable disposal of 1MDB’s PetroSaudi investment. “I made a police report a year ago in March.”

He disclosed that he asked the Minister of Finance on the investment bank managing the balance of the proceeds in the form of ‘units’ which was redeemed from 1MDB’s Cayman Islands investment amounting to the reported USD940 million. “I received the reply on Wednesday stating that ‘no investment bank was appointed to manage state investment firm 1MDB’s funds in the Cayman Islands’.”
The purported “investment” was still stuck in Cayman Islands and could not be liquidated, ventured the MP. “Even more shocking was the claim by Najib that there was no investment bank fund manager for the ‘units’.”

“There can be no ‘units’ if there’s no fund manager.”

The latest reply from the Finance Minister has proven that 1MDB Chief Arul Kanda Kandasamy and 1MDB “miscommunicated” not only on the form of proceeds which were redeemed from the Caymans investment, lamented Pua. “The reply showed without a doubt that Arul Kanda and 1MDB lied about the fact that the balance of the USD940 million investment in Caymans was redeemed.”

1MDB must be the first investor in the world who can hold fund manager-less units creating a brand new class of investment assets, continued Pua.

All of the above points to the fact that lies were told by 1MDB and the government to carry out a massive cover up of the loss of billions of ringgit by 1MDB over its investment in and with PetroSaudi International, charged the MP. “For the billions we have invested in PetroSaudi, we are now in possession of worthless or even fake and fraudulent ‘units’.”

IMAGE: tony pua

For more on this story go to: http://www.freemalaysiatoday.com/category/nation/2016/03/17/pua-cops-should-act-on-cayman-islands-scandal/

See iNews Cayman related story with other links published March 16 2016 “No investment bank handling 1MDB’s funds in Cayman Islands” at: http://www.ieyenews.com/wordpress/no-investment-bank-handling-1mdbs-funds-in-cayman-islands/