Now Everyone Can Bribe Directors of AirAsia & AirAsia X!

On 31 January 2020 the Learned UK Crown Court Judge, Dame Victoria Sharp P, delivered a damning Judgement / Verdict in a case between the Director of Serious Fraud Office of UK and Airbus SE for giving bribes to directors and employees of AirAsia and AirAsia X of Malaysia and others.

In her judgment, Dame Victoria Sharp said: The seriousness of the criminality in this case hardly needs to be spelled out. As is acknowledged on all sides, it was grave.”  “The number of countries subject to intense criminal investigation by the various agencies, and the scale and scope of the wrongdoing disclosed in the Statement of Facts demonstrate that bribery was to the extent indicated, endemic in two core business areas within Airbus,” she added

The said judgment arose from an application asking the UK Crown Court for approval to defer prosecution agreement reached between the UK Serious Fraud Office (SFO) and Airbus SE. In the said Judgement Airbus has to pay Euro 990,963,713 into the Consolidated Fund through SFO.  Yours truly has incorporated below the full writtenJudgment for those who would want to read it.

Backgrounds – AirAsia / Tony Fernandes Was On Shopping Spree

Captain Loke, our shameless Malaysia Minister of Transport, was seen in public together with his buddy Tan Sri Tony Ferndandes recently. They must be discussing about how the outbreak of the deadly Coronavirus in Wuhan!

On 23 June 2011 the buddy of our Minister of Transport, Anthony Loke aka “Captain Anthony Loke”, Tan Sri Tony Fernandes of AirAsia proudly announced AirAsia purchased 200 A320 neo aircraft from Airbus, this was a record deal in history, HERE.  Of course,  AirAsia had been deferring deliveries of some of the ordered aircrafts.

On 19 July 2018 Tan Sri Tony Fernandes, the CEO of AirAsia Group, had again announced that AirAsia had purchased another 100 aircraft from Airbus so that AirAsia X could fly out from Malaysia to London and other European cities like Vienna and Prague, HERE.  In 2020 we are still waiting for AirAsia X to fly to London, Vienna and Prague but no sign at all.

According to the above press reports, within 3 years AirAsia had bought a total 300 aircraft from Airbus.  According to the said Grounds of Judgment AirAsia had bought 406 aircraft!

No other airlines in the world could match AirAsia when purchasing aircraft is concerned.  AirAsia X has been making losses and yet it was able to buy new aircraft. Malaysia boleh!

Count No: 1 of The Charges Against Airbus & Connected To Directors/Staffs of AirAsia & AirAsia X

Airbus had admitted to many counts of payments of bribe to directors of companies and government official. Each of the counts on the Indictment concerns similar conduct, the detail of which can be found in the Statement of Facts.  In brief, persons associated with Airbus, not exclusively its employees, offered very substantial sums of money by way of bribes to third parties in order to secure the purchase of aircraft, by civil airline companies, in counts 1 to 4; and by the Government of Ghana, in count 5.

Malaysia is of course top of the list of charges. The two directors and staffs of AirAsia and AirAsia X have made us famous overnight!  We should be proud of the said two directors AirAsia and AirAsia X, who have been identified as AirAsia executives 1 and 2!

In Paragraphs 39 and 40 of the said Judgement, the Learned Judge had stated the following:

Count 1:     Malaysia

Paragraph 39 of the Grounds of Judgment

The first count alleges that contrary to section 7 of the Bribery Act 2010, between 1 July 2011 and 1 June 2015, Airbus SE failed to prevent persons associated with Airbus SE from bribing others concerned with the purchase of aircraft by AirAsia and AirAsia X airlines from Airbus, namely directors and/or employees of AirAsia airlines where the said bribery was intended to obtain or retain business or advantage in the conduct of business for Airbus SE.

Para 40

Para 40 AirAsia and AirAsia X are two major airlines in Southeast Asia, headquartered in Malaysia and were significant customers of Airbus at the time of the offences. Between October 2005 and November 2014, AirAsia and AirAsia X ordered 406 aircraft from Airbus, including 180 aircraft secured during the indictment period by way of improper payment (made by EADS France SAS, later Airbus Group SAS), and the offer of a further improper payment. The improper payment consisted of $50 million (and Airbus employees also offered but did not pay an additional $55 Million) paid to directors and/or employees of AirAsia and AirAsia X airlines as sponsorship for a sports team. The sports team was jointly owned by AirAsia Executive 1 and AirAsia Executive 2 but was legally unrelated to AirAsia and AirAsia X. The additional improper payment was prevented by the October 2014 freeze on payments to BPs described at para 29 above.”

The Directors Of AirAsia and AirAsia X

Director of AirAsia: 3rd from left: Datuk Kamarudin Meranun 5th from left: Datuk Abdul Aziz bin Abu Bakar & 6th from left:Tan Sri Tony Fernandes

AirAsia X – Board of Directors

1.  Tan Sri Rafidah Aziz (senior Independent Non-Executive Chairman

2.  Datuk Kamarudin Mernanun (Non-Independent Non-Executive Director)

3.  Tan Sri Tony Fernandes (Non Independent Non-Executive Director)

4.   Dato’ Yusri Mohamed Yused Yusof (Independent Non-Executive Dirtector)

5.   Lim Kian Onn (Non-Independent Non-executive Director)

6.   Tan Sri Asmat Kamarudin (Independent Non-Executive Director

7.   Dato’ Fam Lee Ee (Non-Independent Non-Executive Director) (MCA Youth)

AirAsia Bhd – Board of Directors 

1.  Datuk Kamarudin Meranun (Non-Independent Non-Independent  Executive Chairman)

2.  Tan Sri Tony Fernandes (Non Independent Executive Director & Group CEO)

3. Dato’ Abdel Aziz @ Abdul Aziz bin Abu Bakar (Non-Independent Non-Executive Director)

4.  Dato’ Mohded Khadar (independent Non-Executive Director and Chairman of Audit Committee

5.  Dato’ Fam Lee Ee (Independent Non-Executive Director) (MCA Youth)

6.  Mr Stuart L Dean (Independent Non-Executive Director).

7.  Noor Neelofa Mohd Noor (Independent Non-Executive Director)

Historical Facts On The Two Top Brass of AirAsia:  Tony Fernandes & Kamarudin Meranun

1.   Tony Fernandes Was Probed By Indian Authorities On Allegations of Bribery To Obtain Flying Licence
Left to Right:  Datuk Kamruddin Meranun, Captain Loke the Minister of Transport and good buddy of Tony Fernandes and Tan Sri Tony Fernandes

On 29 May 2018 it has been reported by Reuters that Indian police said they have filed a case against AirAsia group Bhd, the airlines C EO Tony Fernandes  and its domestic entity ion India over allegations of corruption and breaking rules in obtaining a flying licence. The Central Bureau of Investigation (CBI) accused the airline, some of its employees and third parties of violating India’s foreign direct investment rules while obtaining the license, and of bribing government officials in an attempt to get regulations relaxed to allow AirAsia India to fly international routes.

In its complaint, the CBI said the airline, Tony Fernandes and others “chose to beat the legal frameworks and policies of the aviation sector of India” and lobbied government officials “to secure mandatory approvals, some of them through non-transparent means”.  Please read HERE.

On 16 January 2020. it has been reported in  Business Today of India that AirAsia Group Bhd’s Tony Fernandes has been summoned by Enforcement Directorate (ED) In India for questioning regarding irregularities of funds and even criminal misconduct by AirAsia when it was lobbying for its operational licences in India, HERE.

It is not known whether to date Tony Fernandes the Group CEO of AirAsia had submitted himself for the said investigation.

2.   Datuk Kamarudin Meranun Was Involved In Insider Trading  During MAS-AirAsia Share “SUAP”

Datuk Kamarudin Meranun proudly showing his  MAS credential during the infamous MAS-AirAsia shares “SUAP”.

In 2011 Datuk Kamarudin Meranun was believed to have made some huge trading profits out of the proposed “MAS-AirAsia share SUAP” deal between the substantial shareholders of then MAS and AirAsia Group Bhd. It was an insider trading, HERE.

As a result of the finding of the said insider trading by  the Security Commission, Datuk Kamarudin Meranun, the Executive Chairman of AirAsia Group, had to enter into a settlement with the Security Commission and paid RM3.64 million for acquiring 5.66 million MAS shares between 1-5 August 2011, HERE.

The said share “SUAP” was engineered by the morons in Khazanah under the former MD of Khazanah, Tan Sri Azman Mokhtar, and it was announced on  7 August 2011,HERE.

In September 2019, the morons in Khazanah were up to their old tricks this time it was trying to merge MAS with the ailing AirAsia X, which had been making huge losses for some years, HERE.

Recently we have also heard that the morons in Khazanah were trying to again “handover” MAS on a silver platter to AIrAsia. Thank God that there was immense public pressures against the said disposal and it has gone quiet at least for now.  Knowing the backgrounds of the said morons in Khazanah they will strike again. We must closely watch them.

Who Are the AirAsia Executives 1 & 2?

AirAsia changed the livery on its aircraft to BN’s GE 14th Campaign slogan, “Hebatkan Negaraku”. Left:  Datuk Kamarudin Meranun (in white shirt), (the non-independent Executive Chairman of AirAsia Group). Centre: Najib. Extreme right: Tony Fernandes (in black shirt)(the Group CEO of AirAsia).  Please guess who were the AirAsia Executives 1 or 2.

Who were the AirAsia Executive 1 and AirAsia Executive 2 ?  Yours truly believes that all of you know who they were!  It is an open secret. If by chance you do not know, please make a guess and you will no doubt hit the bull eye.

Over To Puan Latheefa Koya  / MACC / SPRM

The arrest and detention of Dato’ Dr Siew Ka Wei (Ancom Bhd executive chairman) and Elizabeth Ken, the CEO of Geeko Tech Sdn Bhd and media specialist of Redberry Media Group, which is another outfit of Siew ka Wei. Redberry is connected to Ancom Bhd.

MACC/SPRM should be interested to examine thoroughly the Grounds of Judgment and take the necessary actions. Thereafter, SPRM / MACC can always NFA (No further Action) it after a few months like what it had done on several high profile cases. Rumour has it that the scandalous ‘Speedy Gonzales” Geeko RM100 million deal involving Dato’ Siew Ka Wei, who is the executive chairman of Ancom Bhd, and Elizabeth Ken, the Redberry Media Specialist, had been classified as “NFA” (No Further Action). Please read HERE.

$50 million Paid To the Directors Of AirAsia As “sponsorship” Of the Sport Team, Which Was Jointly Owned By the Executive 1 & 2 But Legally Unrelated To AirAsia & AirAsia X!

Count No: 1 at para 40 of the Grounds of Judgment

… The improper payment consisted of $50 million (and Airbus employees also offered but did not pay an additional $55 Million) paid to directors and/or employees of AirAsia and AirAsia X airlines as sponsorship for a sports team. The sports team was jointly owned by AirAsia Executive 1 and AirAsia Executive 2 but was legally unrelated to AirAsia and AirAsia X. The additional improper payment was prevented by the October 2014 freeze on payments to BPs described at para 29 above.

Was the “Sport Team” referred to in part of Count 1 above  was the Caterham F1 Team?  If it is.  According to Wikipedia: The Caterham F1 was a Malaysian, later British owned Formula One team based in the UK. which raced under a Malaysian licence.  The Caterham brand competed in the Formula One World Championship in. 2012 – 2014, following the acquisition of British sport car manufacturer Caterham Cars by former owner and team principal  Tony Fernandes, forming the Caterham Group, HERE.

During the happy time in Caterham

(L to R): Riad Asmat (the son of Tan Sri Asmat – director of AA) of AirAsia (MAL) Caterham F1 Chief Executive Officer with Datuk Kamarudin Meranum of AirAsia (MAL) Caterham F1 Shareholder; Mike Gascoyne (GBR) Caterham Group Chief Technical Office; and Tony Fernandes of AirAsia  (MAL) Caterham Team Principal at a Caterham F1 Team Photograph.
25.03.2012. Formula 1 World Championship, Rd 2, Malaysian Grand Prix, Sepang, Malaysia.

Tony Fernandes Sold Caterham To A Swiss Group

In October 2014 Tony Fernandes announced then the sale of Caterham. Please see the Guardian report entitled “F1 team Caterham threaten former owner Tony Fernandes with legal action“.  According to the UK Guardian Newspapers report, Tony Fernandes spent £250 million on the organisation and then sold it. Please also read Paul Tan’s posting, HERE.

Lets wait for the Airbus scandal to unfold a little bit more then we will get a clearer picture on the scandal.  For now we hope that the AirAsia Executive 1 or 2 will come out to clarify what had been stated in the said Grounds of Judgment.

Over to Security Commission & Bursas KL (KLSE)

The $50 million (equivalent RM204 million) bribe paid by Airbus to the AirAsia Executives 1 and 2 should be treated as income for airAsia and AirAsia X.  However, according to paragraph  39 of the said Grounds of Judgment the RM205 million was paid under the scheme of “sponsorship” to  a sport team which was unrelated to AirAsia or AirAsia X. In short the RM205 million was paid to the personal company of AirAsia executives 1 and 2.

No doubt this RM204 million that was received from Airbus was not reported in the respective Annual Accounts of AirAsia Bhd and AirAsia X Bhd. If the RM204 million was reported it would have changed the respective Annual Accounts of AirAsia X drastically.

In the best interest of the investing public, the Security Commission (Suruhanjaya Sekuriti) and Bursa KL are duty bound to launch an immediate investigation into the receipt of the said bribe of RM204 million by AirAsia executives 1 and 2.

The Full Grounds of Judgment / Verdict Of UK Crown Court 

If you don’t want to read the whole judgment, please proceed to paragraphs 39 – 40 at page 10 – 11 for the payments made to the directors and employees of AirAsia and AirAsia X.

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Grounds of Judgment page 2

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Grounds of Judgment page 3

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Grounds of Judgment – page 4

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Grounds of Judgment – page 5

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Grounds of Judgment – page 6

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Grounds of Judgment – page 7

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Grounds of Judgment – page 8

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Grounds of Judgment – page 9

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Grounds of Judgment – page 10

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Grounds of Judgment – page 11

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Grounds of Judgment – page 12

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Grounds of Judgment – page 13


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Grounds of Judgment – page 14

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Grounds of Judgment – page 15

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Grounds of Judgment – page 16

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Ground of Judgment – page 17


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Grounds of Judgment – page 18

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Grounds of Judgment – page 19

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Ground of Judgment – page 20

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Grounds of Judgment – page 21

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Grounds of Judgment – page 22

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Grounds of Judgment – page 23

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Grounds of Judgment – page 24

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Grounds of Judgment – page 25

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Grounds of Judgment – page 26

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Grounds of Judgment – page 27

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Grounds of Judgment – page 28

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Grounds of Judgment – page 29

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Grounds of Judgment – page 30

End

MCMC Looted, Shady ‘Speedy Gonzales’ Deal Resurfaces – Part 8 (SST, Acceptance, SD & RM30 million Payments Were All Done In One Day – The “Financial Literacy” of Khadijah)

The then “HEBAT” CEO of PADU, Puan Khadijah Abdullah, who had signed all the “Surat Setuju Terima” (SST) and the cheques for all payments made to the Special Purpose  Vehicle Account known as “Utusan – Epiweb Collection Account”.

It can’t get any funnier when one talks about PADU Corporation (PADU).

Just anything involving finances and unscrupulous officers can happen in this government agency which continues to lead the art of manoeuvring and trickery.

PADU dished out fund wantonly as though the public funds from MCMC that were held in TRUST by PADU belongs to the little napoleons namely, the then “HEBAT” CEO Puan Khadijah Abdullah and En Ahmad Izzat Ahmad Zaki, the CFO of Padu.

After leaving PADU on 31 May 2019 Puan Khadijah Abdullah was specially “head hunted” by Bank Negara Malaysia to head one of its important outfits dealing with “Financial Literacy”.  So if one wants to be noticed, appreciated and promoted to a majestic height in Bank Negara Malaysia then one has to emulate Khadijah Abdullah’s style of “financial literacy”/zero governance in PADU.

The “SURAT SETUJU TERIMA” (SST)

The SST dated 22 June 2017 signed by Puan Khadijah Abdullah, who is now a high ranking officer in Bank Negara Malaysia. Page 1
The SST dated 22 June 2017 page 2
The SST dated 22 June 2017 – Page 3
The Payments Schedule under SST dated 22 June 2017.  Such payments schedule is extremely rare in the commercial world except in PADU. 

On or about 22 June 2017 delivery of scandalous tablet project of PADU for Phase 1 and 2 was not completed as per the “Surat Setuju Terima” (SST), which was signed by the then most “Hebat” CEO of PADU for RM50 million (Phase 1) & RM 52 million (Phase 2).  Phase 3’s SST valued at RM49,985,605.00. Please read on you will see the SD resurfacing again.

The PADU’s Cheque Payments To The Special Purpose Vehicle Account 

First 35% payment

The first 35% payment should be RM17,484,961.75 (35% X 49,985,605 = RM17,494,961.75) under the said SST for Phase 3 but PADU under the leadership of Puan Khadijah Abdullah rounded it up and paid RM17.5 million, which was above the payment schedule as per SST terms dated 22 June 2017. How is that for zero governance!

The 2nd 25% payment also dated on 22 June – the same date as the SST and 1st payment!

The second 25% payment should be RM12,496,401.25 ( 25% X RM49,985,605.00 = RM12,496,401.25) and PADU rounded up to RM12.5 million which again above the payments schedule as per the SST dated 22 June 2017.

These two payments of 35% and 25%  were made in total violation of the PADU’s very own SST terms.

The Total Fund Received From MCMC

Total sum received from MCMC,

The funds for Phase 3 from MCMC were received in PADU account on 22 June 2017 (the same day PADU/Khadijah Abdullah issued the SST) and 28 June 2017! The fund was wired to PADU in two transactions as can be seen from the table above.

The Balance MCMC Funds in PADU Is About RM50 miliion

To date the total fund received by PADU from MCMC is RM309,879,325.00. PADU only paid out about a  total of RM267 million to the special purpose vehicle account. There is a balance of un-utilized MCMC Funds of about RM43 million in PADU’s bank account.  PADU must also take into account the total forfeited performance bond from Utusan totaling about RM7 million.   Therefore, the total balance in the PADU’s trust account should be RM50 million (RM43 mil + RM7 mil).  Of course, the little napoleons cum spin doctors in PADU will try to spin the balance to very much less than the RM50 million – may be cut down by half!

Although MCMC had demanded for the said balance to be returned to MCMC a few months ago but PADU came out with unacceptable excuses to keep the said balance.  Of course, MCMC didn’t set in motion for the return of the said balance sum.

The MCMC officers must accept the blame for the wanton disbursement of the MCMC Funds via wire transferred with zero governance. The MCMC Funds should have been paid to MOE and not direct to PADU. However, yours truly had sighted document that shows the then MOE’s KSU objected to direct payment to MOE because of the difficulties of disbursing it from MOE! What a joke!

The first draw down in PADU account was RM30 million (also on the 22 June 2017) and the second draw down of RM20 million  to PADU account was on 28 June 2017. 

Immediately upon receiving the fund from MCMC on 22 June 2017, PADU couldn’t wait to pay out all the RM30 millions in two cheques as shown above to the special purpose vehicle account, “Utusan-Epiweb Collection Account”As per the contract between Utusan and PADU, there was no provision for payments to be made to this special purpose vehicle account. Therefore, PADU should have made all payments to Utusan. But payments to the special purpose vehicle account was the modus operandi of Puan Khadijah Abdullah (the then CEO of PADU) and En Ahmad Izzat Ahmad Zaki (CFO of PADU).

Phase 3  Supported By Statutory Declaration By Utusan 

SD by Utusan GM En Ahmad Razif Mohamed – Page 1
Utusan’s SD 22-6-2017 by its GM – Page 2
Left: Datuk Fatmi Che Salleh (the executive chairman of Utusan and former political secretary to the then PM, Datuk Seri Najib)   2nd Left:  Datuk Mohd Noordin Abbas (a former banker from Affin Bank & CEO of Utusan)   Right: The famous Tan Sri Dr Mohamed Al Amin Hj Abdul Majid (he is a business partner to the corporate genius Dato’ Dr Siew Ka Wei, the Ancom Bhd‘s executive chairman & former chairman of Tourism Malaysia.)

Normally the Utusan’s SDs were signed by Datuk Mohd Noordin Abbas, the then CEO of Utusan, HERE.  Datuk Mohd Noordin Abbas was a former banker in Affin Bank. Datuk Fatmi Che Salleh was the former executive chairman of Utusan and the former political secretary to the former PM, Datuk Najib Razak.  On this occasion the SD was signed by the Utusan GM, En Ahmad Razif Mohamed.

On 22 June 2017 another statutory declaration was produced by Utusan to undertake that it will complete the deliveries of the tablets under Phase 1 and 2. How about that for governance in PADU?  PADU had been vendors “friendly” as far as the scandalous tablet deal was concerned. WHY? WHY? WHY?

In order for PADU to issue the SST for Phase 3,  a scheme was blatantly hatched by the little napoleons in PADU to circumvent the previous contracts not fulfilled by Utusan and more importantly to facilitate the issuance of SST for Phase 3 so that payment of the first 35% and second payment of another 25% totalling RM30 million could be dished out to the special purpose vehicle account, Utusan-EPIWEB Collection Account” and thereafter substantial sums were dished out to two special entities Redberry and N… . This subject deserves a separate posting by itself in the coming Parts.

Using SD To Waive Delivery Of Tablets For Phase 1 & 2 – Board of Trustees Papers (an extract of it)

The extract of the Board of Trustees’s Circular Resolution also dated on 22 June 2017

A source in MOE revealed that despite the SST/contractual obligations for the scandalous tablets were not fully completed at that material time and yet En Ahmad Izzat Ahmad Zaki, the CFO of PADU, saw it fit to prepare the above Circular Resolution for the Board of Trustees of PADU to approve and the issuance of SST for Phase 3 based on waiver of the condition precedent for delivery for Phase 1 and 2.

On 22 June 2017 upon PADU signed the SST and acceptance by Utusan all on the same day, and on the 22 June 2017 itself, PADU issued the above two cheques for RM17.5 mil and RM12.5 mill totaling RM30 million. PADU was an extremely efficient paymaster when it comes to paying to the said special purpose vehicle account. WHY??

Why RM 10,402,690.25 Was Paid Out from the Special Purpose Vehicle Account To Redberry Sdn Bhd, an outfit of Dato’ Siew Ka Wei? 

Under Phase 6,  RM10,402,690.25 was paid out from the said special purpose vehicle account to Redberry Sdn Bhd, which is an outfit of Dato’ Dr Siew Ka Wei, the former chairman of Tourism Malaysia and executive chairman of public listed Ancom Bhd and Group MD of Nylex Bhd.  Dato’ Siew is also the MD for Redberry Media Group, the owner of the defunct Malay MailMs Elizabeh Ken is the media specialist in Redberry Media Group.

The arrest and detention of Dato’ Dr Siew Ka Wei and Elizabeth Ken, the CEO of Geeko Tech Sdn Bhd and media specialist of Redberry Media group, which is an outfit of Siew ka Wei.

On 9 January 2019 Dato’ Dr  Siew Ka Wei and Ms Elizabeth Ken were arrested and detained by MACC for four days, HERE.  Up to this date both of them have not been charged by MACC.  There was a new development that on 6 and 7 August 2019, Datuk Isham Ishak, the KSU of MOTAC was called up by MACC to assist in the investigation of the “Speedy Gonzales” Geeko Tech deal of RM99.7 million with Tourism Malaysia, HERE.

Datuk Isham Ishak was appointed MOTAC KSU on 15 February 2019, HERE. Therefore, he was not involved in the Geeko Tech’s scandal because that scandal took place in April 2018.

The “Mesyuarat Pre Council Jawantankuasa Tindakan Laporan Ketua Audit Negara Mengenai Laporan Ketua “Autar” Negara”

A reliable source in MOE has informed yours truly that “Jawantankuasa Siasatan Tadbir Urus Perolehan dan Kewangan Kerajaan” under PMO and Jawantankuasa Siasatan Ketua Audit Negara not Ketua “Autar” Negara are now investigating into this tablet scandal and balance of funds from MCMC.

This morning there will be a meeting known as “Mesyuarat Pre Council Jawantankuasa Tindakan Laporan Ketua Audit Negara Mengenai Laporan Ketua “Autar” Negara to be led by Jabatan Audit Negara with the top brass of MOE to investigate into this tablet scandal.

MOE Should Suspend The CFO of Padu, En Ahmad Izzat Ahmad Zaki and Special Officer to CEO, En Azrul Satria bin Abdul Rahim, Pending Investigations

How could the said two ‘Jawatankuasa Siasatan” have a proper in-dept investigation when the two key little napoleons/players of this tablet scandal namely, En Ahmad Izzat Ahamd Zaki (CFO of PADU) and En Azrul Satria bin Abdul Rahim (the “HEBAT” Special Officer to the CEO, Khadijah Abdullah,) have not been suspended?  In any investigation of such nature the key players would have been suspended until the end of the investigations. But not in PADU/MOE!

Board of Trustees Of PADU

Could the above manourvring and trickery be so smooth sailing if the Board of Trustees (BOT), headed by Tan Sri Megat Zaharuddin (chairman), Tan Sri Madinah Mohamad (then KSU of MOE was a member), Datuk Seri Alias Ahamd (who had been accused of being complicit in the Sarawak Solar project for schools), Mr See Huey Beng (member) and others, have performed their fiduciary duties properly by scrutinising the tablet project?  The little napoleons in PADU treated BOT as a rubber stamp, the then members of the BOT should also be held responsible for all the wrong doings in PADU which has resulted in a waste of few hundred million of public funds.

We can only hope that the current BOT will carry out its duties as TRUSTEES and not be part of the “GAJI BUTA” category.

It must be noted that in 2016 when Tan Sri Madinah Mohamad chaired the “Pre-Price Negotiation Meeting” for this scandalous tablet project, HERE.  The scandalous tablet project kicked off after this meeting.  By the way in 2016, she was also a member of the MCMC, HERE.  The funding of this tablet project came from MCMC!!!

Why Is The Minister Of Education Playing Dumb On The Scandalous Tablet Issue?

It is most unfortunate that the Minister of Education is still playing dumb on this RM306 million tablet scandal!

MACC & Bank Negara Malaysia

Yours truly calls upon SPRM/MACC to investigate into the wanton disbursement of RM309 million of MCMC Funds into the said special purpose vehicle account and Governor of Bank Negara Malaysia to explain on what basis Puan Khadijah Abdullah was appointed to head or be part of one of its important outfit dealing with “Financial Literacy” for Malaysia. It is hoped that cronyism has no role to play in Bank Negara Malaysia.

Stay Tuned – Part 9

MCMC Looted , Shady ‘Speedy Gonzales’ Deal Resurfaces – Part 5 (Backdated Letters, Using SD As Proof Of Deliveries & The “Autar” General Report 2018)

Auditor “Autar” General Report 2018 under the leadership of the disgraced AuditorAutar” General Tan Sri Madinah.

Updates 19 July 2019 @ 11:00 am: The “gaji buta” TOPless management of PADU are well paid for championing their own interest instead of the rakyat. This tablet scandal is a very good example for the Minister of Education to see and take drastic actions against them. Unfortunate the Minister is too engrossed with how to get the students to wear “black shoes”!  Therefore, he “buat tak tahu” about this scandal worth RM300 million! We shall wake him up soon with more parts to this scandal.

Rumour has it that previous CEO of PADU, Puan Khadijah binti Abdullah, monthly salary was RM60,000 plus perks special allowance, car, petrol and etc,  and CFO En Ahmad Izzat bin Zaki more than RM38,000.00 plus perks a month . Both went all out to facilitate the tablet project especially on the one sided contract and making “speedy Gonzales” payments to the special account “Utusan – EPIWEB Collection Account”.  PH Government must held both of these two little napoleons personally liable by surcharging them as provided under the General Order because they chose to facilitate bad governance and defy JK Pemandu’s decision of 17 April, 2018 to stop the tablet project before GE14.  Both went ahead to pay RM18,402,690.25! The PH Government must also look at the salary scale of the agencies like PADU. 

Updates 18July 2019 @ 10:00 pm:  Under Phase 1 for the the scandalous Tablet Project, PADU contracted with Utusan that upon acceptance of the “Surat Setuju Terima” (SST) by Utusan, PADU shall immediately pay 95% of the value of  SST of RM50 million. PADU paid RM47.25 million to the Special Purpose Vehicle Account called “Utusan – EPIWEB Collection Account”  without a single tablet being delivered by Utusan. This aspect of the ridiculous contract was not even highlighted in the “Autar” General Report. You don’t need capital to do business with PADU. PADU will abuse Rakyat money to help you. Actually not for the normal rakyat but a special breed only.

 

As the dishonesty and collapse of the RM360 million free computer tablet project for teachers nationwide spins out of control, the Auditor General’s Report 2018 kept elegantly silent over the debacle.

The full scale of the scandal was not revealed in the report and that speaks volumes about the culture of systemic graft involving political and corporate entities under the previous Barisan Nasional government.

The disgraced Tan Sri Madinah binti Mohamad, the then KSU of MOE in 2016/2017 and appointed Auditor “Autar” General from February 2017 to February 2019.

The then Auditor “Autar” General Tan Sri Madinah binti Mohamad has dragged herself into the scandal by overlooking critical issues in the report about the project which is under the purview of the Ministry of Education (MOE).

That makes the contemptible mismanagement of taxpayers’ money even more outrageous as multiple top civil servants had breached their duties as government officials to partake in misusing funds together with private entities.

Since yours truly published four articles that exposed discrepancies, wanton management of funds, outsiders gate crashing the project and zero governance, it is becoming clearer by the day that the rot is getting deeper.

It must be noted that at the material time Tan Sri Madinah was the secretary general (KSU) of MOE before her appointment as Auditor “Autar” General from February 2017 to February 2019.

The Minutes for the “Pre Price Negotiation Meeting” dated 13-6-2016 held in MOE shows Tan Sri Madinah chaired the meeting. Isn’t this a clear case of conflict of interest when one examines the Audit Report 2018 on this matte?

On 13 June 2016, the disgraced Tan Sri Madinah chaired the ‘Pre-Price Negotiation Meeting’ to discuss the proposed contract for the E-Tutor Tablets between PADU Corporation (PADU) and Utusan Melayu (Malaysia) Berhad for seven phases, where Dato’ Dr Siew Ka Wei, who is not a party to the contract, attended as Utusan Melayu sdn Bhd’s (Utusan) representative, HERE.

For context, the contractual parties for the project are PADU Corporation, a company incorporated by guarantee under the purview of MOE, and Utusan.

The RM360 million funding was granted by the Malaysian Communications and Multimedia Commission (MCMC) to MOE but MOE, when Tan Sri Madinah was the KSU, passed the Tablet Project to PADU. Why?

The said contract, without open tender, was for the free supply of 430,000 computer tablets with pre-installed Tutor Guru app and Utusan Malaysia e-paper to teachers by June 2018.

The silence of PADU and/or the Minister of Education, YB Datuk Mazlee Malik, confirms the arrogance of power and zero sense of public accountability.

YB Mazlee should learn from YB Gobind Singh Deo, who on learning about the the abuse of MCMC funds in the AG’s Report, immediately instructed his ministry to lodge a MACC report on the misuse of more than RM600 million. HERE.

The Shoddy AG’s Report 2018

Let’s look at the incongruities in the slipshod AG’s report that was tabled in the Dewan Rakyat on 15 July 2019.

Para 8-45 of the Auditor General Report 2018
The shoddy Report showing only company numbers instead of identifying Padu & Utusan.

 

In para 8-45, it was most unprecedented when the contractual parties were identified by their company registration numbers.

PADU was listed as company no: 1039148 and Utusan 7170-V.

Now, how would the MPs and/or the rakyat know that these company numbers represented PADU and Utusan respectively?

The report was cunningly crafted with the predominant purpose to mislead if not covering up .

It stated that under Phase 1, the tablets for Wilayah Persekutuan and Sarawak were according to specifications but it chose not to touch on phases 2-5.

The MOE had stated in their own report that the Lenovo tablets were not in accordance with specifications under phases 2-5.

Auditor “Autar” General Report 2018 Para 8-45 (“berpusing-pusing”)

The Two Acceptance By Utusan & Payment by Padu for Phase 6 before GE 14

Utusan’s first acceptance was signed on 30 April 2018

 

Payment by PADU was made on 27 April 2018! PADU was so eager to make this payment without any verification. WHY??? The cheque was signed by PADU CFO, En Ahmad Izzat bin Zaki Padu Board of Trustee Chairman, Datuk Seri Alias bin Ahmad, & the then CEO Puan Khadijah binti Abdullah. PADU’s CFO, En Ahmad Izzat bin Zaki prepared the payment process.

 

Upon discovery of the discrepancy in the date of acceptance and payment, acceptance date was subsequently changed to 26 April to legitimise the transaction.

The report also stated that phases 1–5 involving 312,353 units of E-Tutor Tablets were delivered at a cost of RM260.50 million.

For Phase 6, audit found out that on 4 April 2018, MCMC paid RM52.64 million to a company, numbered in the report as 1039148-H (which is PADU)!

It was extremely mischievous of the AG to state:

Bagi Fasa 6, pihak Audit mendapati SKMM menyalurkan dana berjumlah RM52.64 juta kepada syarikat 1039148-H pada 4 April 2018 dan Surat Setuju Terima (SST) telah ditandatanganni oleh syarikat pembekal 7170-V pada 26 April 2018.”

To the unsuspecting eye, this part of the report appears to be perfectly all right.

Except that the AG was mischievous in glaringly omitting the date of the SST, which was also on 26 April 2018!

If this date had been incorporated in the report it would have set off alarm bells.

Why? Because the whole process of issuance of SST by PADU, acceptance by Utusan a were all in done in one day, 26 April 2018, if we were to assume there was only one acceptance letter from Utusan, and payment made by PADU on the next day.

Even more glaring of the AG’s incompetence or failure to do a thorough investigation was to knowingly failing to state that originally Utusan had signed the acceptance of the SST on 30 April 2018 and subsequently backdated by another acceptance to 26 April 2018 in order to make the transaction look legitimate for what it is worth.

This acceptance letter of 30 April 2018 was extended to your truly by an unknown source in Utusan. A source in MOE also confirmed that there were two acceptance letters from Utusan to support the payment of RM18,402,690.25 namely 30 April and 26 April 2018.

It must be also noted that the report chose to totally ignore the important minutes of JK Pemandu (Steering Committee) of MOE dated 17 April 2018 which in para 4.4 had decided as follows:

 

Mesyuarat MEMUTUSKAN bahawa Fasa 6 ditangguhkan sehingga selepas PRU14. Please read HERE.

 

Yet the CFO of PADU, En Ahmad Izzat bin Zaki, went ahead to prepare the cheque for the then CEO Puan Khadijah binti Abdullah and Datuk Seri Alias bin Ahmad to sign.  Three of them chose to defy the said JK Pemandu’s decision of 17 April, 2019, and proceed to pay the RM18,402,690.25 to the Special Purpose Vehicle Account called “Utusan EPIWEB Collection Account”. After the RM18,402,690.35 was paid, not a single tablet was delivered because of the one sided agreement.

The Famous Datuk Seri Alias Bin Ahmad 

THE FAMOUS DATUK SERI ALIAS BIN AHMAD.  When he was the DG of Immigration Department he was fully aware of UKSB, the visa processing company. Datuk Seri Zahid, former DPM, was charged for taking bribes from UKSB, visa processing company.

 

By the way Datuk Seri Alias bin Ahmad (Alias) was appointed KSU of MOE after Tan Sri Madinah was appointed “Autar” General in February 2017, HERE.  When he was involved in the “solar project” in Sarawak!  Just a bit of background of Alias, when he was the DG of Immigration Department he had knowledge of UKSB, the visa processing company, HERE.  Datuk Seri Ahmad Zahid Hamidi, the former DPM, was charged for corruption involving UKSB!  Sarawak Report had reproduced letter from Najib, the then PM, to Datuk Seri Alias, the then KSU of MOE, to disburse  RM130 million for the scandalous Solar Project for schools in Sarawak which cost RM1.25 billion, HERE.  This scandalous solar project had been investigated by MACC.

These three little napoleons (Khadijah, Izzat & Alias) were extremely efficient when making payment to the special purpose vehicle account. They were prepare to ignore procedures and decisions made by MOE’s JK Pemandu. WHY? WHY? WHY?  “Tahu sama tahu”!!!

These three little napoleons should be held personally liable for this payment of RM18,402,690.25 and be surcharged under the General Order of the Government. These two little napoleons must be taught a lesson and be an example for other civil servants.  Although Khadijah’s contract was not renewed, and Alias had retired, they could be made personally liable under the General Order. Surcharged them for abused of public fund!

 

The Statutory Declaration As Proof Of Deliveries

The SD of Datuk Mohd Noordin Bin Abbas, the then MD of Utusan.

 

Page 1 of SD dated 6 July 2017

 

Page 2 of the SD

The said Report also chose to totally omit the fact that for Phase 1 the proof of deliveries were supported by Statutory Declaration (SD) signed by Datuk Mohd Noordin bin Abbas, the then MD of Utusan. Upon receipt of these two SDs, PADU immediately paid out the remaining 5% for Phase 1 and 2 to the “UTUSAN-EPIWEB Collection Account”.  What a good way of doing business with PADU!

The report also chose to glaringly omit that all payments made by PADU were not to Utusan but to a special purpose vehicle “Utusan – EPIWEB Collection Account”, which is not a party in the agreement between PADU and Utusan. There was no mentioned in the said Report which party were all the payments made to by PADU.

Reliable sources in MOE said that 2,000 units of tablet under these two SDs are unaccounted for. The total value of it is RM1.7 million.

 

The Payment For Phase 6 – Why Redberry, a Siew Ka Wei’s outfit, was paid from the Special Purpose Vehicle Account?

All said, it was a very poor attempt by the then “Autar” General, Tan Sri Madinah to assist in the covering up of this scandalous payment of RM18, 402,690.25!

It must be noted that from this special purpose vehicle account the RM18,402,690.25 payment for Phase 6 was deposited on 30 April 2018.

2nd left: Dato’ Dr Siew Ka Wei & 4th left: Elizabeth Ken were arrested and detained by MACC on 9 January 2019.

On the same day, RM10,402,690.25 was paid to Redberry Sdn Bhd (Redberry), which is an outfit under tainted ex-Tourism Malaysia chairman, Dato’ Dr Siew Ka Wei (Siew). Siew is the current executive chairman of public listed Ancom Bhd, Group MD of Nylex Bhd and MD of Redberry Media Group. On 9 January 2019 both Siew and his media specialist in Redberry Media Group, Elizabeth Ken, were arrested and detained by MACC, for their alleged involvement in the scandalous “Speedy Gonzales” RM99.693 million Geeko – Tourism Malaysia Deal, HERE.

What was this RM10,402,690.25 payment for? God only knows.

Whether Redberry was paid any money under phases 1-5 must be made public. Redberry was not a party in the agreement between PADU and Utusan and neither was it a party in the supply agreement between Utusan and Epiweb Sdn Bhd.

What we know is that Dato’ Dr Siew Ka Wei was listed as a Utusan representative – when he was never with the company — without designation in a pre-price negotiation meeting with PADU, chaired by Tan Sri Madinah, on 13 June 2016.

 

The Redberry’s media specialist (Ms Elizabeth Ken), having signed the Supply, Delivery and Maintenance Agreement between Utusan Melayu and politically connected EPIWEB Sdn Bhd as a witness for the latter on 3 December 2015.

The role of Redberry‘s media specialist Ms Elizabeth Ken was also disclosed by this blog, HERE. She signed the Supply, Delivery and Maintenance Agreement on 3 December 2015, between Utusan Melayu and Epiweb Sdn Bhd as the witness for the latter’s signatory, En Khairul Firdaus Akbar Khan, who is not a director of the company, but well connected politically.

The Letter of YB Datuk Seri Dr Salleh Syed Keruak dated 22 April 2016

Letter dated 22 April 2016 from the then Minister of Communication Multimedia. Tan Sri Madinah, the then KSU of MOE, minuted: “sila bicang segera” dated 25 April 2016. See top right hand corner.

 

It would appear from this that as early as in December 2015 (5 months early), Ms Elizabeth Ken had prior knowledge of the impending tablet project, which was only proposed by the then Minister of Communications and Multimedia on 22 April 2016, Datuk Seri Dr Salleh Keruak.

Datuk Salleh only issued a letter dated 22 April 2016 specifically stated that MOE was to manage funds granted by MCMC for the said tablet Project the purchase of tablets for teachers using MCMC funds and that his ministry had no objection to a grant of RM50 million for this tablet project.

Quite frankly, the AG’s Report on the tablet project is a sham and not worth the paper it was printed on. It is a case of “Harapkan Pagar, Pagar Makan Padi”!

The Ministry of Finance and MACC must investigate why this “half past six” report was crafted to mislead Parliament and the Rakyat.

Close Down The Useless PADU

This tablet project has been shrouded with secrecy. One would have thought that a project worth RM360 million would have been widely published in PADU’s website and its Annual Report 2016 and  2017 .  The 2018 report is coming out and it is pretty sure that the Tablet Project will not be mentioned at all too. . But not a word about the tablet project was published in the PADU’s website or in its Annual Reports. PADU’s top management knew that the tablet project is just a sham.  PADU’s existence is now open to big question mark. PH Government should close it down and save all the money for more usual activities that will really help the teachers and students. Close down PADU and the government will do a big favour for the nation.

Stay Tuned for Part 6