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Writer's pictureYB Wong Chen
Nov 12, 2015

Response to 1MDB-DuSable Joint Statement

MEDIA STATEMENT: RESPONSE TO 1MDB-DuSable JOINT STATEMENT, AND DO TELL US ABOUT YURUS PRIVATE EQUITY FUND.

I am amused to learn that whilst 1MDB-DuSable insists that they don’t have a joint venture agreement on the solar project in Kedah, that they have somehow decided in a joint venture of sorts, to issue a “joint” press statement last night.

Background:

On 27th October 2015, more than 2 weeks ago, I asked for a status update on the 1MDB-DuSable solar power project in Kedah. Prime Minister Najib Razak, in his capacity as the Finance Minister gave a curious one line written reply: that 1MDB has never signed a joint venture agreement with DuSable.

Unsatisfied with this answer, on two occasions, I asked the Prime Minister to come clean on the deal, in particular after revelations of US$524,000 was paid for fees and disbursements to DuSable.

I appreciate the joint statement issued by 1MDB-DuSable but I was expecting a reply from the Prime Minister since the matter was for him to reply to Parliament. Therefore, I still call upon him to give the public a straight forward answer on the matter.

As for the reply from 1MDB-DuSable, I find the content amusing, as it technically argues, on behalf of the Prime Minister, that the relationship is not a “project level joint venture agreement” after admitting that the relationship involved a “Master Joint Venture Agreement” (Master JVA) and “discussions for a partnership”.

Why is 1MDB-Dusable trying their level best to technically justify the Prime Minister’s written reply to my Parliamentary question, which did not even mention any “joint venture agreement” in the very first place.

As for the disclosures contained in statement, in particular those relating to the Yurus Private Equity Fund 1 (Yurus PE Fund), I believe that the public will very much like to know much more details regarding the same.

For start, who are the two investors behind the Yurus PE Fund? On 17th October 2013, DuSable reported to the US Securities and Exchange Commission that the Yurus PE Fund had raised US$505 million from two investors.

This matter is even more curious now that 1MDB has admitted that on 2nd October 2014, it had bought from Yurus PE Fund, the 49% rights under the Master JVA for US$69 million (RM300 million). Note that the Master JVA was only signed six months earlier. I therefore urge the Prime Minister to again come clean on the matter and disclose more to the public about the owners of the Yurus PE Fund so that we all can assess whether Yurus PE Fund had handsomely profited RM300 million after a mere six months of paperwork.

To avoid embarrassment to all parties, the disclosure must be urgent and complete before President Obama arrives in Malaysia. DuSable is owned by Frank White junior, a chief fundraiser for President Obama.

YB Wong Chen Member of Parliament Kelana Jaya 12 November 2015

 

For those who are interested to find out more about the Najib-Obama link via 1MDB-DuSable, you can check out these reports by Sarawak Report, the Wall Street Journal and Asia Sentinel.

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