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U.S. Department of Justice Names Malaysian Prime Minister in Billion Dollar Lawsuit

Najib said the government would give its full cooperation to international investigations of the 1MDB case.

Najib said the government would give its full cooperation to international investigations of the 1MDB case.

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KUALA LUMPURMalaysian Prime Minister Najib Razak said on Thursday judgment should be withheld until all the facts are known after the U.S. government filed lawsuits seeking to seize $1 billion in assets bought with money stolen from a state fund he oversaw.

The U.S. Justice Department lawsuits filed in a federal court on Wednesday did not name Najib, instead referring to “Malaysian Official 1.” Some of the allegations against this official were the same as those in a Malaysian investigation into a $681 million transfer to the premier’s personal bank account.

The lawsuits said $681 million from a 2013 bond sale by sovereign wealth fund 1Malaysia Development Berhad (1MDB) was transferred to the account of “Malaysian Official 1”.

A source familiar with the investigation confirmed that “Malaysian Official 1” was Najib.

Back in Malaysia, the hashtag #MalaysianOfficial1 was trending on Thursday.

The civil lawsuits allege that a total of $3.5 billion was misappropriated from 1MDB, a fund Najib established in 2009 and whose advisory board he chaired.

No criminal charges have been filed.

Federal prosecutors are seeking to seize $1 billion that they say was diverted from 1MDB into luxury real estate in New York, Beverly Hills and London; paintings by Vincent Van Gogh and Claude Monet and a private jet.

They also are trying to seize proceeds from the 2013 film “The Wolf of Wall Street”. Riza Aziz, Najib’s stepson and founder of Red Granite Pictures, which produced the movie, was named in the lawsuit.

Red Granite said on Wednesday that none of the funding it received to make the Oscar-nominated film, which took $400 million at the box office worldwide, was illegitimate and nothing the company or Riza did was wrong.

“GOOD GOVERNANCE”

Najib, who has consistently denied any wrongdoing, said on Thursday the U.S. lawsuits were “a civil not a criminal procedure”.

“And we don’t want to come to any conclusions until that process is done,” Najib told reporters at an event in Kuala Lumpur. “We have to establish the facts first. I want to say categorically that we are serious about good governance.”

Najib said the government would give its full cooperation to international investigations of the 1MDB case.

Malaysia’s Attorney-General Mohamed Apandi, however, on Thursday expressed “strong concerns at the insinuations and allegations” of wrongdoing against Najib in the lawsuits.

He said in a statement that none of the probes conducted by law enforcement agencies across the globe over the past year show that any funds were misappropriated from 1MDB.

Apandi said in January the money in Najib’s bank account was a political donation from the Saudi royal family and most of it was returned. Saudi Foreign Minister Adel Al-Jubeir said in April that funds wired into Najib’s personal bank account were a “genuine” donation originating from Saudi Arabia.

Saudi authorities had no immediate comment on the U.S. action.

CLOSER TIES

The lawsuits pose a potentially thorny issue between two countries that have grown closer during the administration of President Barack Obama, who has visited the Southeast Asia country twice in the last two years.

Washington views the moderate Muslim nation as a partner in its fight against radical Islamists, as a member of a U.S.-led Pacific trade group and as part of the U.S. strategic “pivot” to Asia to counter China’s rising ambitions.

Najib, however, said the lawsuits would not affect ties. “This is a separate issue, involving individuals,” he told reporters at the Thursday event.

A top White House official distanced Obama from the Justice Department’s litigation.

“The simple answer is we do not have any control over Justice Department actions,” Ben Rhodes, deputy national security adviser, told Reuters on Wednesday during a visit to Myanmar.

At home, former premier Mahathir Mohamad led a chorus of opposition voices calling on Najib to step down.

“The time has come where the nation must demand for the removal of the prime minister,” Mahathir said at a news conference, and asked Malaysians to call for a referendum on Najib’s leadership.

Najib has weathered attacks on his leadership since the scandal first broke 18 months ago. He culled dissenting voices from within his ruling United Malay National Organisation (UMNO) and used draconian laws such as the Sedition Act to silence activists and opposition party leaders.

SINGAPORE SEIZES ASSETS

Singapore authorities said in a statement on Thursday they had seized S$240 million ($177 million) of assets in an investigation of 1MDB-related fund flows for possible money laundering.

They also said they found problems at three major banks: top local lender DBS Group Holdings Ltd, the world’s largest private bank UBS AG, and British-based Standard Chartered.

It was the first time Singapore authorities have mentioned 1MDB in statements about their money laundering investigation. In May, they said they were closing down the operations of Swiss private bank BSI AG in Singapore for serious breaches of anti-money laundering rules, the first such action in 32 years. They did not identify 1MDB in that announcement, though Swiss authorities did in a related move against BSI.

The U.S. investigation is the largest set of cases brought by the U.S. Department of Justice’s Kleptocracy Asset Recovery Initiative, which seeks the forfeiture of the proceeds of foreign corruption. The previous largest case in February sought to seize $850 million.

1MDB, set up shortly after Najib came to office, is being investigated for money laundering in at least six countries, including the United States, Singapore and Switzerland.

1MDB said in a statement “it is not a party to the civil suit, does not have any assets in the United States of America, nor has it benefited from the various transactions described in the civil suit”.

GOLDMAN SACHS ARRANGED TRANSACTION

The U.S. lawsuits seek to seize assets “involved in and traceable to an international conspiracy to launder money misappropriated from 1MDB” over a four-year period.

One transaction targeted by prosecutors was a $3-billion bond offering in early 2013 that was arranged by Goldman Sachs International, said U.S. Attorney Eileen Decker at a briefing on Wednesday. She is the chief prosecutor in central California.

More than a third of that money was misappropriated by corrupt officials, she said.

Goldman Sachs has not been accused of any wrongdoing.

“We helped raise money for a sovereign wealth fund that was designed to invest in Malaysia. We had no visibility into whether some of those funds may have been subsequently diverted to other purposes,” a Goldman Sachs spokesman said.

The lawsuits also named Malaysian financier Jho Low and Abu Dhabi government officials Khadem Abdulla Al-Qubaisi and Mohammed Ahmed Badawy Al-Husseiny. Al Qubaisi and Al-Husseiny are former officials at a sovereign fund in Abu Dhabi that participated in deals with 1MDB.

Jho Low did not respond to requests for comment sent to his Hong Kong-based company, Jynwel Capital. Al Qubaisi and Al-Husseiny could not be reached for comment.

Other misappropriated funds from 1MDB were transferred to the co-founder of PetroSaudi, a company that had a joint venture deal with 1MDB, and thereafter to “Malaysian Official 1”, the lawsuits said.

By Rozanna Latiff and Joseph Sipalan – Reuters

(Additional reporting by A. Ananthalakshmi and Praveen Menon in Kuala Lumpur, Marius Zaharia in Singapore, Julia Edwards, Doina Chiacu, David Alexander and Joel Schectman in Washington, Jonathan Stempel and Olivia Oran in New York; Editing by Kevin Drawbaugh and Bill Tarrant)

 

 

 

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Marine Le Pen’s National Rally Wins the First Round in France 2024 Election

Marine Le Pen's far-right National Rally (RN) party scored historic gains in France

Exit polls in France showed that Marine Le Pen’s right-wing National Rally (RN) party made huge gains to win the first round of election on Sunday. However, the final outcome will depend on how people trade votes in the days before next week’s run-off.

Exit polls from Ipsos, Ifop, OpinionWay, and Elabe showed that the RN got about 34% of the vote. This was a big loss for President Emmanuel Macron, who called the early election after his party lost badly in the European Parliament elections earlier this month.

The National Rally (RN) easily won more votes than its opponents on the left and center, including Macron’s Together group, whose bloc was predicted to get 20.5% to 23% of the vote. Exit polls showed that the New Popular Front (NFP), a hastily put together left-wing alliance, would get about 29% of the vote.

The results of the exit polls matched what people said in polls before the election, which made Le Pen’s fans very happy. But they didn’t say for sure if the anti-immigrant, anti-EU National Rally (RN) will be able to “cohabit” with the pro-EU Macron in a government after the runoff election next Sunday.

Voters in France Angry at Macron

Many French people have looked down on the National Rally (RN) for a long time, but now it is closer to power than it has ever been. A party known for racism and antisemitism has tried to clean up its image, and it has worked. Voters are angry at Macron, the high cost of living, and rising concerns about immigration.

Fans of Marine Le Pen waved French flags and sang the Marseillaise in the northern French district of Henin-Beaumont. The crowd cheered as Le Pen said, “The French have shown they are ready to turn the page on a power that is disrespectful and destructive.”

The National Rally’s chances of taking power next week will rest on what political deals its opponents make in the next few days. Right-wing and left-wing parties used to work together to keep the National Rally (RN) out of power, but the “republican front,” which refers to this group, is less stable than ever.

If no candidate gets 50% of the vote in the first round, the top two candidates and anyone else with 12.5% of the registered voters immediately move on to the second round. The district goes to the person who gets the most votes in the runoff.

France is likely to have a record number of three-way runoffs because so many people voted on Sunday. Experts say that these are much better for the National Rally (RN) than two-way games. Almost right away on Sunday night, the horse trade began.

Macron asked people to support candidates who are “clearly republican and democratic.” Based on what he has said recently, this would rule out candidates from the National Rally (RN) and the hard-left France Unbowed (LFI) party. Leaders on the far left and the center left both asked their third-placed candidates to drop out.

Minority government

Jean-Luc Melenchon, leader of France Unbowed, said, “Our rule is simple and clear: not a single more vote for the National Rally.” But the center-right Republicans party, which split before the vote when some of its members joined the RN, didn’t say anything.

The president of the RN party, Jordan Bardella, who is 28 years old, said he was ready to be prime minister if his party gets a majority of seats. He has said he won’t try to make a minority government, and neither Macron nor the communist NFP will work with him.

“I will be a “cohabitation” Prime Minister, respectful of the constitution and of the office of President of the Republic, but uncompromising about the policies we will implement,” he said.

A few thousand anti-RN protesters met in Paris’s Republique square on Sunday night for a rally of the leftist alliance. The mood was gloomy.

Niya Khaldi, a 33-year-old teacher, said that the RN’s good results made her feel “disgust, sadness, and fear.”

“This is not how I normally act,” she said. “I think I came to reassure myself, to not feel alone.”

Election Runoff

The result on Sunday didn’t have much of an effect on the market. In early Asia-Pacific trade, the euro gained about 0.23%. Fiona Cincotta, a senior markets expert at City Index in London, said she was glad the outcome “didn’t come as a surprise.”

“Le Pen had a slightly smaller margin than some of the polls had pointed to, which may have helped the euro a little bit higher on the open,” she noted. “Now everyone is waiting for July 7 to see if the second round supports a clear majority or not. So it does feel like we’re on the edge of something.”

Some pollsters thought the RN would win the most seats in the National Assembly, but Elabe was the only one who thought the party would win all 289 seats in the run-off. Seat projections made after the first round of voting are often very wrong, and this race is no exception.

On Sunday night, Reuters reported there were no final results for the whole country yet, but they were due in the next few hours. In France, exit polls have usually been very accurate.

Voter turnout was high compared to previous parliamentary elections. This shows how passionate people are about politics after Macron made the shocking and politically risky decision to call a vote in parliament.

Mathieu Gallard, research head at Ipsos France, said that at 1500 GMT, nearly 60% of voters had turned out, up from 39.42% two years earlier. This was the highest comparable turnout since the 1986 legislative vote. It wasn’t clear when the official number of people who voted would be changed.

 

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Pakistan Seeks US Support for Counter-Terrorism Operation Azm-e-Istehkam

Pakistan

(CTN News) – Pakistan’s Ambassador to the United States, Masood Khan, has urged Washington to provide Pakistan with sophisticated small arms and communication equipment to ensure the success of Operation Azm-e-Istehkam, a newly approved counter-terrorism initiative in the country.

The federal government recently approved the reinvigorated national counter-terrorism drive, which comprises three components: doctrinal, societal, and operational.

Ambassador Khan noted that work on the first two phases has already begun, with the third phase set to be implemented soon.

Addressing US policymakers, scholars, and corporate leaders at the Wilson Center in Washington, Khan emphasized the importance of strong security links, enhanced intelligence cooperation, and the resumption of sales of advanced military platforms between Pakistan and the US.

He argued that this is crucial for regional security and countering the rising tide of terrorism, which also threatens the interests of the US and its allies.

“Pakistan has launched Azm-i-Istehkam […] to oppose and dismantle terrorist networks. For that, we need sophisticated small arms and communication equipment,” said Ambassador Khan.

Pakistan–United States relations

The ambassador observed that the prospects of Pakistan-United States relations were bright, stating that the two countries “share values, our security and economic interests are interwoven, and it is the aspiration of our two peoples that strengthens our ties.”

He invited US investors and businesses to explore Pakistan’s potential in terms of demographic dividend, technological advancements, and market opportunities.

Khan also suggested that the US should consider Pakistan as a partner in its diplomatic efforts in Kabul and collaborate on counterterrorism and the rights of women and girls in Afghanistan.

He stressed that the bilateral relationship should be based on ground realities and not be hindered by a few issues.

“We should not base our engagement on the incongruity of expectations.

Our ties should be anchored in ground realities, even as we aim for stronger security and economic partnerships. Secondly, one or two issues should not hold the entire relationship hostage,” said the ambassador.

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China Urges Taiwanese to Visit Mainland ‘Without Worry’ Despite Execution Threat

China Urges Taiwanese to Visit Mainland Without Worry Despite Threats

China has reassured Taiwanese citizens that they can visit the mainland “without the slightest worry”, despite Taiwan raising its travel alert to the second-highest level in response to Beijing’s new judicial guidelines targeting supporters of Taiwanese independence.

Last week, China published guidelines that could impose the death penalty for “particularly serious” cases involving “diehard” advocates of Taiwanese independence.

In response, Taiwan’s government urged the public to avoid “unnecessary travel” to mainland China and Hong Kong, and raised its travel warning to the “orange” level.

However, Zhu Fenglian, a spokeswoman for a Chinese body overseeing Taiwan affairs, stated that the new directives are “aimed solely at the very small number of supporters of ‘Taiwan independence’, who are engaged in malicious acts and utterances”.

She emphasized that “the vast majority of Taiwan compatriots involved in cross-strait exchanges and cooperation do not need to have the slightest worry when they come to or leave mainland China”.

“They can arrive in high spirits and leave fully satisfied with their stay,” Zhu added.

What’s Behind The China-Taiwan Tensions?

The tensions stem from the longstanding dispute over Taiwan’s status. Mainland China claims Taiwan as part of its territory and has refused to rule out using force to bring the democratic island under its control, while Taiwan sees itself as a sovereign state.

Beijing has not conducted top-level communications with Taipei since 2016, when the Democratic Progressive Party’s Tsai Ing-wen became Taiwan’s leader. China has since branded her successor, President Lai Ching-te, a “dangerous separatist”.

“The DPP authorities have fabricated excuses to deceive the people on the island and incite confrontation and opposition,” Zhu said in her statement.
Despite the political tensions, many Taiwanese continue to travel to mainland China for work, study, or business.

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