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Malaysia Bans The Color Yellow As Protests Swell Into The Hundreds Of Thousands
Malaysia Bans The Color Yellow As Protests Swell Into The Hundreds Of Thousands
The anti-government protests that swept through the Malaysian capital of Kuala Lumpur on Saturday continued unabated on Sunday after tens of thousands of demonstrators camped in the streets overnight.
Emboldened by the presence of influential former Prime Minister Mahathir Mohamad, protesters chanced being confronted with water cannons and tear gas, which police used to disperse crowds at previous Bersih rallies.
As we detailed on Saturday, calls for the ouster of Prime Minister Najib Razak have grown louder in recent months after the government appeared to be obstructing an investigation into how more than $600 million in funds from a Goldman-backed development bank ended up in Najib’s personal bank account.Mahathir Mohamad, who many say still hasn’t accepted the fact that he hasn’t been Prime Minister since 2003, has called for a no-confidence vote and insists that the man he handpicked to govern “has to go.”
Estimates of Sunday’s crowd varied slightly depending on who you listen to. Police, for instance, say the gathering attracted around 20,000 protesters while Bersih insists the number was closer to 300,000.
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Mass Protests Sweep Malaysian Capital As Anger At Goldman-Backed Slush Fund Boils Over
Mass Protests Sweep Malaysian Capital As Anger At Goldman-Backed Slush Fund Boils Over
If we told you that thousands of protesters donning bright yellow shirts had taken to the streets to call for the ouster of a leader in an important emerging market, you’d be forgiven for thinking we were talking about Brazil, where President Dilma Rousseff is facing calls for impeachment amid allegations of fiscal book cooking and government corruption.
But on this particular weekend, you’d be wrong.
We’re actually talking about Malaysia, where tens of thousands of demonstrators poured into the streets of Kuala Lumpur on Saturday to call for the resignation of Prime Minister Najib Razak whose government has been accused of obstructing an investigation into how some $700 million from 1Malaysia Development Berhad mysteriously ended up in Najib’s personal bank account.
1MDB was set up by Najib six years ago and has been the subject of intense scrutiny for borrowing $11 billion to fund questionable acquisitions. $6.5 billion of that debt came from three bond deals underwritten by Goldman, whose Southeast Asia chairman Tim Leissner is married to hip hop mogul Russell Simmons’ ex-wife Kimora Lee who, in turn, is good friends with Najib’s controversial wife Rosmah Manso.
You really cannot make this stuff up.
What Goldman did, apparently, is arrange for three private placements, one for $3 billion and two for $1.75 billion each back in 2013 and 2012, respectively. Goldman bought the bonds for its own book at 90 cents on the dollar with plans to sell them later at a profit (more here from FT). Somewhere in all of this, $700 million allegedly landed in Najib’s bank account and the going theory is that 1MDB is simply a slush fund.
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BC’s Gas Export Hopes Face ‘Scandal that Ate Malaysia’
BC’s Gas Export Hopes Face ‘Scandal that Ate Malaysia’
Asian nation’s PM, key to $36 billion LNG bid by Petronas, in corruption probe.
The prime minister of Malaysia, who is central to British Columbia’s liquefied natural gas development ambitions, is the subject of a major financial corruption scandal rocking his country.
Earlier this month The Wall Street Journal, citing documents from government probes, reported that investigators suspected that almost $700 million in cash had been wired through state agencies, banks, and companies linked to 1Malaysia Development Berhad (1MDB).
The company is a state-owned development vehicle chaired by Malaysian Prime Minister Najib Razak, who also serves as the country’s treasury minister.
Investigators believe the $700 million eventually found its way into Najib’s personal accounts and served as a slush fund for the last election. Malaysia has few rules on campaign donations or election spending.
Najib is the top authority overseeing Malaysia’s state-owned oil company Petronas, whose massive potential investment in B.C. liquefied natural gas (LNG) was greenlit by the provincial legislature earlier this month.
Now, The Australian and other news sources are saying reports of corruption have paralyzed the Malaysian government. “The scandal that ate Malaysia” is how U.S. business news agency Bloomberg is dubbing the financial brouhaha.
The debacle threatens to undermine the nation’s economy, according to an expert writing for East Asia Forum: “Malaysia’s international credibility is on the line, as is its currency, access to foreign capital and future economic prosperity.”
To date a task force investigating the 1MDB allegations has already frozen half a dozen bank accounts in Malaysia.
Petronas key to Clark’s LNG ambitions
In May of 2014, Premier Christy Clarksat for a photograph with Najib, central to any deal she sought with Petronas. The meeting was part of an eight-day trip to Malaysia and Hong Kong to promote LNG development after Clark made election campaign promises that LNG would create 100,000 jobs and erase the province’s debt.
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