US Charges Malaysian Financier in Multibillion-Dollar Scheme

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2 November 2018, 14:34

Protesters hold portraits of Jho Low illustrated as a pirate in April during a protest in Kuala Lumpur, Malaysia. Photo: Sadiq Asyraf / Associated Press

WASHINGTON — The Justice Department announced charges Thursday against a fugitive Malaysian financier and two former Goldman Sachs bankers accused in a money laundering and bribery scheme that pilfered billions of dollars from a Malaysian investment fund created to spur economic development projects in that country.

A three-count indictment charges Low Taek Jho, also known as Jho Low, with misappropriating money from the state-owned fund and using it for bribes and kickbacks to foreign officials, to pay for luxury real estate, art and jewelry in the United States and to help finance Hollywood movies, including “The Wolf of Wall Street.”

Also charged was a former Goldman Sachs banker, Tim Leissner, who pleaded guilty to money laundering conspiracy and to conspiring to violate foreign bribery laws. Another former bank official, Ng Chong Hwa, 51, also known as Roger Ng, was arrested earlier Thursday in Malaysia and accused of circumventing internal accounting controls, prosecutors said.

Leissner’s attorney did not return messages seeking comment. It was not clear if Ng had a lawyer.

A spokesman for Goldman Sachs, which the indictment says raised about USD$6.5 billion through bond offerings for the fund, said the firm “continues to cooperate with all authorities investigating this matter.”

Police in Malaysia said in July that Low had fled Macau to an unknown destination. Before facing criminal charges, Low became well known in the New York City and Los Angeles club scenes. In 2012, he threw a lavish 31st birthday bash attended by Leonardo DiCaprio, Kim Kardashian and other celebrities that The Wall Street Journal called the “wildest party (Las) Vegas ever saw.”

Low, who remains at large, issued a statement through a spokesman maintaining his innocence.

“Mr. Low simply asks that the public keep an open mind regarding this case until all of the evidence comes to light, which he believes will vindicate him,” the statement said.

Leissner acknowledged paying millions of dollars in bribes and kickbacks to government officials in Malaysia and Abu Dhabi, according to court records. He was ordered to forfeit $43.7 million as part of his guilty plea.

The set of charges represent the first criminal prosecutions in the U.S. arising from the epic corruption scandal at the state investment fund known as 1MDB. The Justice Department in 2016 moved to recover more than $1 billion that it said had been stolen, filing a civil complaint that sought the forfeiture of property, including a Manhattan penthouse, a Beverly Hills mansion, a luxury jet and paintings by Vincent Van Gogh and Claude Monet.

In a speech last year in Washington, U.S. Attorney General Jeff Sessions denounced the scandal as “kleptocracy at its worst.” The pilfered funds were used on a “lavish spending spree,” the attorney general said, including a $265 million yacht and a $100 million investment in the music label EMI.

“In total, 1MDB officials allegedly laundered more than $4.5 billion in funds through a complex web of opaque transactions and fraudulent shell companies with bank accounts in countries ranging from Switzerland and Singapore to Luxembourg and the United States,” Sessions said.

The fund, 1Malaysia Development Berhad, was set up in 2009 by then-Prime Minister Najib Razak to promote economic development. It relied primarily on debt to fund investment and economic development projects and was overseen by senior Malaysian government officials, according to court records.

Najib chaired its advisory board and as finance minister held veto power over its activities. Low, a friend of Najib’s stepson Riza Aziz, had no official role at 1MDB but had considerable influence over its dealings and was in frequent contact with Najib, U.S. authorities have said.

“As noted in the indictment today, Mr. Low held no formal position at 1MDB, nor was he ever employed by Goldman Sachs, or the Governments of Malaysia or Abu Dhabi,” Low’s spokesman said.

The scandal has already had major political ramifications in Malaysia, where Najib in 2015 sacked his attorney general and a deputy prime minister for demanding answers about 1MDB. A parliamentary inquiry found many irregularities but had no mandate to prosecute.

Former leader Mahathir Mohamad, outraged over the scandal, came out of retirement and the opposition united behind him in the national elections, leading to Najib’s ouster in May.

Najib and his former treasury chief were charged last week with criminal breach of trust involving 6.64 billion ringgit ($1.6 billion), charges that came on top of 32 earlier counts of corruption, breach of trust and money laundering that Najib faces in connection with the 1MDB scandal.

Najib and Mohamad Irwan Serigar Abdullah, the former treasury secretary-general, pleaded not guilty to misappropriating government funds between December 2016 and December 2017. Police have also seized hundreds of luxury handbags, jewelry and cash – worth more than $266 million – during raids on apartments linked to Najib’s family.

An attorney for Najib, Shafee Abdullah, dismissed the latest charges as “foolish.”

Story: Eric Tucker, Jim Mustian

Leicester Coach Says Score ‘Not Important’ for Saturday Game

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Associated Press

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2 November 2018, 14:17

Buddhist Monks pay their respects Wednesday at at Leicester City Football Club in Leicester, England. Photo: Mike Egerton / Associated Press — Buddhist Monks pay their respects Nov. 31 at Leicester City Football Club in Leicester, England. Photo: Mike Egerton / Associated Press

LEICESTER, England — Leicester manager Claude Puel says the result of his team’s Premier League match at Cardiff “is not important” as the players attempt to switch their focus to matters on the field following the death of the club’s owner in a helicopter crash.

Leicester’s players and staff have been offered grief counselling after Vichai Srivaddhanaprabha and four other people were killed when his helicopter spiraled out of control as it left the King Power Stadium following a Premier League game on Saturday.

After canceling an English League Cup match scheduled for Tuesday, Leicester will return to action in a league match at Cardiff on Saturday – the day Vichai’s funeral begins in his native Thailand.

Puel says “the result is not important, but our desire, our actions to give our best on the pitch to honor our chairman is the most important thing.”

Puel said Thursday that a meeting was held on Monday to allow the players to “speak and share” their feelings on what the French coach said has been “one of the hardest weeks in the history of this football club.”

King Expels Cop From Royal Guard for Lack of Dedication

By

Teeranai Charuvastra, News Chief

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2 November 2018, 12:07

Police Lt. Gen. Itthisak Krinchai, left, lectures recruits about VIP protection in March 2017 / ศูนย์ฝึกอบรม ตาก

BANGKOK — King Vajiralongkorn fired a police general from the royal bodyguard unit for failing to fully commit time and dedication to the job.

Lt. Gen. Itthisak Krinchai, promoted to the post eight months ago, damaged the unit with disciplinary infractions, according to an order published Thursday on the Royal Gazette website.

“He did not behave as a role model to his subordinates. He engaged in disciplinary violations by failing to commit his time to the service, lacking sacrifice and dedication, and neglecting to perform his duties as his responsibilities required,” the statement said.

The king signed the order Wednesday.

UN Finds 486 Million in Asia Still Hungry, Progress Stalled

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Associated Press

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2 November 2018, 11:38

This undated photo shows a girl in a slum in India. Photo: Max Pixel

BANGKOK — Despite rapid economic growth, the Asia-Pacific region has nearly a half billion people who go hungry as progress stalls in improving food security and basic living conditions, a United Nations report said Friday.

Even in relatively well-to-do cities like Bangkok and the Malaysian capital Kuala Lumpur, poor families cannot afford enough good food for their children, often with devastating long-term consequences for their health and future productivity, says the report compiled by the U.N. Food and Agricultural Organization.

In Bangkok, more than a third of children were not receiving an adequate diet as of 2017, the report said. In Pakistan only 4 percent of children were getting a “minimally acceptable diet,” it said, citing a government survey.

Meanwhile, the number of malnourished people in the region has begun to rise, especially in East and Southeast Asia, with almost no improvement in the past several years.

In the longer term, rates of malnutrition did fall from nearly 18 percent in 2005 to 11 percent in 2017, but hunger-related stunting that causes permanent impairment is worsening due to food insecurity and inadequate sanitation, with 79 million children younger than 5 across the region affected, the report said.

The high risks also are reflected in the prevalence in wasting among very young children, a dangerous rapid weight loss related to illness or a lack of food, it said. The condition is seen most often in India and other parts of South Asia but also in Indonesia, Malaysia and Cambodia, affecting almost one in 10 children in Southeast Asia and 15 percent of children in South Asia.

“The prevalence of wasting is above the threshold of public health concern in three of every four countries in the region,” it said.

Conversely, even overweight children often are malnourished if their families rely on inexpensive street foods that are oily, starchy and sweet, but unhealthy and sometimes unsafe.

The report focused on two main factors that often contributed to food insecurity: climate-related disasters and inadequate access to clear water and sanitation.

Its authors said that providing adequate clean drinking water and sanitation were crucial for preventing illnesses that further undermine health, especially among children. It also lauded efforts in some countries to ensure city dwellers have access to fresh food markets.

In Indonesia, for example, a study cited in the report found that the prevalence of stunting correlated very closely with access to improved latrines. Children whose families relied on untreated water were more than thrice as likely to be stunted if their homes lacked such latrines, it said.

While access to drinking water is widespread it has stopped improving and actually decreased in urban areas, the report said.

Many poor living in Southeast Asia rely on bottled water that claims to be suitable for drinking but often is contaminated. A study of samples in Cambodia found 80 percent of such water contained bacteria and nearly all had coliform, or fecal contamination.

Ending the practice of open defecation, seen most widely in India, remains challenging, the report said, partly due to customary factors. In 2014, the country launched a campaign to end the practice by 2019, increasing the coverage of latrines to 65 percent. In the cities, progress has been faster.

Story: Elaine Kurtenbach

Cops Punished Over Halloween Rager Packed With Minors, Drugs

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Chayanit Itthipongmaetee, Staff Reporter

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2 November 2018, 11:34

On Thursday early morning, police raided Back Mountain Pub in Saraburi’s Nong Khae district and arrested hundreds of revelers.

Five members of the Nong Khae police force Thursday were removed from active duty and ordered to report to regional police headquarters for dereliction of duty after 128 minors were found at the Back Mountain Pub on Halloween night. Officers said 130 attendees tested positive for drugs.

The pub, called Lang Khao Pub, operated without a permit, according to Gen. Chalermkiat Srivorakan, deputy national police chief.

Early Thursday morning, police raided the venue while it hosted a Halloween party and arrested more than 400 revelers. They found 128 under 20; 48 of whom were under 18.

The officers were punished for failing to act against the club, which had been operating since 2014.

There were 131 people who tested positive for narcotics, according to Chalermkiat. Inside the venue, police said they found more than 80 packages of drugs and drug paraphernalia.

Pub owner Kwanjit Sae-ngui and her son Kritsana Wongduang, the manager, face six charges including opening a venue without a permit, selling alcohol after permissible hours and to underage patrons.

The pub was also ordered closed for over five years.

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Govt, Knocked by Rappers, Responds With Own Tune

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Associated Press

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2 November 2018, 10:55

Prime Minister Prayuth Chan-ocha speaks to reporters in September in Bangkok.

BANGKOK — When a rap video critical of the military government became a huge sensation, the authorities first responded with threats to arrest its creators.

Then they did what the establishment often does when under fire: try to co-opt the genre.

So on Thursday a government “Thailand 4.0” rap video was played to introduce Prime Minister Prayuth Chan-ocha’s remarks to about 500 attendees of a conference on start-ups.

The video was seen as a reaction to the popularity of the music video “Prathet Ku Mee” – translated by its producers as “My Country’s Got” – which castigates the army’s domination over politics. The video has logged over 25 million views since it was posted on YouTube on Oct. 22.

Prayuth himself has penned several patriotic ditties since seizing power in 2014.

Most fans of rap and hip-hop would find “Thailand 4.0,” which features a melodic sampling of the national anthem, to be lame.

In the attempt to counter the song or capitalize on its popularity, its lyrics resemble the many of the ballads attributed to Prayuth which encourage people to work together in harmony for a better Thailand.

“There are many talented Thais, if we work together, we’ll be stronger, stronger,” or “Just come outside the coconut shell, whoever says we’re crazy will only get stupider, stupider,” and “Thailand unites all ideas, how’s that wrong? Think far. We can go far. Don’t say you’re not going, because the world keeps on spinning. We have to. Thais can do it,” are some of the examples.

Prayuth said at the business event that he was happy to hear a rap song with appropriate lyrics. He said some of the song’s beats could be changed but the meaning of the words was good.

Officials are not so pleased with “Prathet Ku Mee,” which comes ahead of a general election planned for early next year and amid signs of public disenchantment with army rule.

The video provocatively references taboo subjects in Thai society. It replicates a gruesome historic scene where a corpse hanging from a tree is continuously beaten as a crowd cheers on, based on an iconic image from a 1976 massacre by police and soldiers of student pro-democracy demonstrators.

A group of rappers takes turns delivering verses such as “The country that points a gun at your throat, claims to have freedom but has no right to choose,” and “you must choose to either eat the truth, or bullets.”

Government officials initially strongly denounced the song, with police saying it could violate the country’s Computer Crime Act by allegedly stirring up unrest. Government spokesman Buddhipongse Punnakanta said the song’s lyrics attacked not only the military government but the country as a whole.

But they later backed down, with Deputy Police Chief Srivara Ransibrahmanakul saying Monday that the lyrics were insufficient evidence to launch a prosecution, so people were allowed to listen to, sing, and share the song.

Dechathorn Bamrungmuang, one of the rappers in “Prathet Ku Mee,” said at a seminar Wednesday that he thinks the song grew quickly in popularity because hip-hop is becoming more and more popular around the world.

“When the song came out, there were both negative receptions and supportive messages to us,” he said. “This made us feel like we can communicate with people through our music and that this song doesn’t overstep any boundaries.”

Story: Kaweewit Kaewjinda

Rap Video Blasting Junta Reaches 6M Views After Police Threats

Police to Summon Rappers Who Criticized Military Govt

With ‘My Country’s Got,’ Thai Rap Voices Rare Dissent Against Junta

‘Torn Down’ Prayuth Vows to ‘Fight’ in Latest Single

Political Campaigning to be Permitted Next Month: Deputy PM

By

Pravit Rojanaphruk, Senior Staff Writer

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1 November 2018, 16:44

Deputy junta chairman Prawit Wongsuwan speaks to reporters Nov. 28, 2016

BANGKOK — Deputy junta leader Gen. Prawit Wongsuwan said Thursday that the ban on political campaigning will be lifted no later than early December.

Prawit, who is also deputy prime minister and defense minister, said political parties can now go out and canvass potential voters but are still prohibited from campaigning.

A number of parties, including Pheu Thai, Action Coalition for Thailand, Pracharat and Future Forward have already hit the streets to meet with the electorate to promote their party or solicit new members. However, they claim that it does not constitute campaigning.

Engaging in “political activities” still remains forbidden for the general public. The ban on political gatherings of more than four people remains in place, and protests are considered illegal.

In a related development, the Election Commission said it will meet representatives of various political parties for the second time Nov. 22. The Election Commission will also unveil its new national map of electoral constituencies next week. As previously reported, it will result in fewer directly elected representatives.

Asked by reporters, Prawit said junta leader Gen. Prayuth Chan-ocha would be a suitable pick to head a civilian government, but added that if “you think it depends on election results, then I think like you too.”

8 Pro-Election Protest Leaders Indicted

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Pravit Rojanaphruk, Senior Staff Writer

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1 November 2018, 16:43

The eight activist leaders imitate a viral anti-junta rap song My Country's Got at the court today.

BANGKOK — Eight pro-democracy protest leaders were indicted Thursday for sedition at the South Bangkok Criminal Court.

They are also accused of violating of the junta’s ban on political gatherings and the Public Assembly Act for a series of rallies earlier this year calling for speedy elections. The defendants were released without having to post any bail.

The eight include Rangsiman Rome, Nuttaa Mahattana, Netiwit Chotiphatphaisal, Ekachai Hongkangwan and Sirawith Seritiwat.

Protesters who broke away from the blockade at Thammasat University are stopped anew by a police barricade as they march toward Government House. Story: https://www.khaosodenglish.com/news/2018/05/22/coupanniversary-protest-live-blog/

โพสต์โดย Khaosod English เมื่อ วันจันทร์ที่ 21 พฤษภาคม 2018

Thai Army Paid Much, Much More For Same Helo Used by King Power CEO

By

Teeranai Charuvastra, News Chief

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1 November 2018, 16:09

BANGKOK — While the media have saturated the country with tributes to the duty-free tycoon who died in a helicopter crash Saturday, a transparency activist noticed something unusual in the details.

Srisuwan Janya noted today that the military paid nearly three times as much as Vichai Srivaddhanaprabha did for the same type of chopper that he lost his life in. And Srisuwan, a persistent good-governance petitioner, wanted to know why.

“The chopper owned by the tycoon was more modern than what the military has, so it should be more expensive. Yet the ones owned by the military are more expensive even though they are older models,” Srisuwan said in an interview. “It raised a lot of suspicions.”

Read: Data Recorder Recovered From Vichai’s Helicopter

The helicopter in which Wichai died was an AW169 made by Italian defense firm Leonardo. It costed Vichai about 280 million baht, Srisuwan said.

Yet when the Thai army bought 12 helicopters of a more outdated type from the same Italian company between 2012 to 2017, it paid 675 million baht to 737 million baht for each, according figures published by the armed forces and cited by Srisuwan.

“The acquisitions might not have been straightforward,” he said. “Maybe there was something going on on the inside.”

He said that he’s heard only five of the original 12 choppers bought remain functional, with the rest under repair.

Srisuwan added that he will file a formal complaint to the national auditor’s office about the cost disparity tomorrow.

Defense Ministry spokesman Kongcheep Tantravanich said there is a difference between civilian and military models of the helicopters, hence the gap in price.

“They have different functions,” Maj. Gen. Kongcheep said.

Price information available online indicates the military spent well over market price for the aircraft. A military-outfitted AW139 helicopter, the same model bought by the Thai army, reportedly sold for about 348 million baht apiece in 2013, according to Aviation International News. AW149s, a more recent model bought by the Thai army last year, sell on the market for about 480 million baht each, according to an aviation research company.

The defense spokesman added that the military is prepared to explain about the issue when Srisuwan files his complaint.

“The armed forces are ready to be scrutinized, whether by internal government agencies, or external agencies or the public,” Kongcheep said.

Thailand Among 30 Best Places to Do Business: World Bank

By

JINTAMAS SAKSORNCHAI

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1 November 2018, 15:25

BANGKOK — Thailand is the 27th easiest country in the world to start a business, according to a new World Bank economic forecast.

A year after it placed Thailand’s economic regulations among the world’s most reformed for the first time, the Doing Business 2019 report released Wednesday gave higher marks for business prospects in the kingdom, though it fell one place overall.

The composite score for Thailand for 2019 was 78.45 in the annual report, which evaluates the regulations that encourage or constrain business in 11 areas including how convenient it is to start a business in a country with indicators such as formalities and costs for starting a company, permits, utilities, property rights, credit and the labor market.

The score is calculated by 41 scaled indicators on a uniform set of economic criteria.

Thailand has improved considerably since it was ranked 46th for 2017 and now ranks higher than top world economies such as Japan (39th) and China (46th). New Zealand, Singapore, Denmark, Hong Kong and South Korea have been ranked the top five countries since 2015.

Malaysia came in 15th in the 2019 forecast, up from 24th. Indonesia and Vietnam dropped a single place to 73rd and 69th, respectively. India leaped from 100th to 77th.

Last year’s forecast pegged improvements in Thailand’s regulatory framework the second best in the world behind Brunei Darussalam.

Mara Warwick, World Bank’s director for Thailand, Brunei, Malaysia and the Philippines, said in a statement that the nation’s most important improvements included cutting costs of registering businesses, improving access to electricity, implementing a new tax code and going digital to speed international shipping.

She said the result shows that Thailand is determined to improve the business environment for private entrepreneurs, which would develop the job market for Thai people and lead to a better life quality.

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