MACC Chief, Ms Latheefa Koya, who was a practising lawyer.
Yesterday yours truly had posted an article about the bribery scandal involving two AirAsia and AirAsia X executives, HERE. After several hours of the UK Crown Judgment / Verdict dated 31.1.2020 about the two directors of AirAsia were found to have received bribe of of US$50 million (RM204 million) from Airbus had gone viral, the MACC Chief Ms Latheefa Koya acted expeditiously and announced that MACC was in contact with the Serious Fraud Office (SFO) of UK, HERE.
She should be applauded for taking swift actions in public interest on the said bribery scandal involving the two directors of AirAsia.
Ms Latheefa Koya was right to state in her press statement that:
“Under the MACC Act, we are empowered, and have jurisdiction, to investigate any act of corruption committed by any Malaysian citizen or permanent resident in any place outside Malaysia.”
The AirAsia bribery scandal is not a difficult case for MACC. From a legal stand point, the SFO of UK must already have more than sufficient evidence to prosecute Airbus for bribery based on the evidence it had gathered. Hence, in the light of the evidence, Airbus was compelled to propose a settlement in order to defer prosecution pending approval from the Crown Court in UK. If Airbus did not enter into the settlement then it will be prosecuted for bribery and etc.
According to to the said Judgment / Verdict the SFO even possessed email correspondence from a director of AirAsia demanding furhter payment of US$4 million. The said email also mentioned that US$16 million had been owed to me for ages when I bought the first 60 aircrafts.
Yesterday yours truly called upon MACC, SC and Burtsa KL to act on the damning evidence exposed in the said Judgment / Verdict of the said Crown Court.
Transparency International Called Upon SC To Act On The Bribery Scandal
This morning Transparency International called upon SC to investigate into the Airbus having paid a bribe of US$50 mil to AirAsia Executive 1 and AirAsias Executive 2 as stated in the said Judgment / Verdict, HERE.
Securities Commission Malaysia Chairman Datuk Syed Zaid Albar
SC has issued a press statement this morning that it will also investigate into the said bribery scandal.
“The statement of facts in the case of Regina vs Airbus SE discloses several allegations against AirAsia Group Bhd and AirAsia X Bhd.
“As both are listed on Bursa Malaysia, the Securities Commission Malaysia will examine the allegations and review all available evidence to determine if there is any breach of securities laws,” SC chairman Datuk Syed Zaid Albar said in a statement, HERE.
Yours truly believes that this coming days Bursa KL will also commence its investigation into this bribery scandal.
The Spin Doctors For AirAsia
The spin doctors AirAsia was in great pain in trying to spin out of the very tight corner. But it was a miserable poor attempt, HERE.
It must be noted that in the said Judgment / Verdict Airbus had admitted to have bribed the two top brass of AirAsia and AirAsia X. The press statement by AirAsia did not touch one single bit about the Agreed Facts in the Judgment / Verdict of the UK Crown Court that Airbus had paid US$50 million (RM204 million) to AirAsiaExecutive 1 and AirAsia Executive 2!
However, it was very glaring that the spin doctors in AirAsia did not dare to spin on the US$50 million (RM204 million) bribe paid to and received by AirAsia Executive 1 and AirAsian Executive 2. Why? It must be that AirAsia knew too well that two of directors in AirAsia had received the RM204 million bribe from Airbus.
We can only feel sorry for the spin doctors in AirAsia was caught in the mess created by the two top brass in AirAsia and AirAsia X.
It is an open and shut case. It will not be too long that the two culprits in AirAsia will be dragged to the Court to be charged with receiving bribe and/or money laundering. Now that SC is also investigating the bribery scandal.
It Is Almost Impossible For AG to NFA The Bribery Scandal
On 9-1-2019 we witnessed 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.
It will be almost impossible for AG to NFA (No Further Action) this matter like the scandal costing Tourism Malaysia RM100 million, which involved Dato’ Siew Ka Wei, the executive chairman of Ancom Bhd, and the Redberry Media Specialist, Ms Elizabeth Ken, HERE & HERE. But we will never know.
Lets sit back and wait for the interesting movie on the Airbus bribery scandal to develop.
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 Euro990,963,713 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 periodby 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 byAirAsia 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)
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 SriTony 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, TonyFernandes 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 AirAsiaExecutive 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 dealinvolving 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 byAirAsia 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 Meranumof 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.
Mapping of outflow of funds from the special purpose vehicle bank account “Utusan – Epiweb Collection Account” to Redberry Sdn Bhd & Nylex Bhd.
Updates on 21-8-2019 @ 3:30 pm:SHOCKER! It’s now confirmed! Ancom Bhd, being the sole shareholder of Redberry Sdn Bhd, and Nylex Bhd did not make any announcement to Bursa Saham Kuala Lumpur (BSKL) of their involvement in the PADU/MOE’s RM340 million tablet project and/or the purpose for the receipt of about RM50 million by Ancom Bhd through Redberry Sdn Bhd and RM20.6 million by Nylex Bhd from the special purpose vehicle bank account, Utusan-Epiweb Collection Account.
BSKL is duty bound to investigate into this serious matter in order to protect the interests of the investing public and to ensure an orderly capital market in Malaysia.
Perhaps our Securities Commission should also be looking into this serious matter.
The imminent closure of Utusan Malaysia and Kosmo newspapers by Utusan Melayu (M) Berhad further complicates the systemic manoeuvring in the shady mega computer tablet project for teachers nationwide.
The situation currently is as follows:
Utusan Melayu (M) Berhad is broke and cannot continue with the project that includes pre-installed Utusan e-paper.
PADU Corporation, a company set up by the Ministry of Education (MOE) to manage the RM340 million project to supply free 430,000 tablets to digitalise teaching in schools, is in a big fix.
The ONLY winners in the rip-off failed tablet deal are companies which are not parties to the agreements between PADU – Utusan or Utusan – Epiweb for the failed project.
It would appear from the above mapping table of outflow of funds that Redberry Sdn Bhd (Redberry) and public-listed chemical company Nylex Berhad (Nylex) were paid a whopping RM70.6 millionfrom the very special purpose vehicle bank account, “Utusan-Epiweb Collection Account”. It was set up to receive and disburse payments from PADU for the failed tablet project. The said payment of RM70.6 million represents 26.34%of the total payment of about RM268 million of MCMC Funds that PADU had paid into the said very special purpose vehicle bank account.
RM20.6 million was paid from the said special purpose vehicle account to Nylex Bhd, a company dealing with chemical products. What was this payment all about?
Any Annoucement Made To Bursa Saham Kuala Lumpur?
Since Nylex Bhd is a public listed company, did it inform or make any announcement in Bursa Saham Kuala Lumpur (BSKL) about this significant transaction. The investing public should be kept informed of these significant transactions.
Both companies (Redberry & Nylex Bhd), controlled by the disgraced ex-Tourism chairman, Dato Siew Ka Wei were non-existent in the contracts between PADU-Utusan and between Utusan and the supply, delivery and maintenance agent, Epiweb Sdn Bhd.
The Corporate Genius, Dato’ Siew Ka Wei
The arrest and detention of Dato’ Dr Siew Ka Wei, chairman of Ancom Bhd & Group MD of Nykex Bhd, 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’ Siew Ka Wei and his media specialist Ms Elizabeth Ken of Redberry Media Group were arrested and detained by MACC for four days, HERE, in connection with the Speedy Gonzales Geeko RM99.693 million with Tourism Malaysia,HERE.
Seven months have elapsed and there are no charges preferred by MACC. Why?
The Redberry Sdn Bhd
Redberry Sdn Bhd’s list of directors
Redberry’s list of shareholders – the sole shareholder, Ancom Bhd
Dato’ Siew Ka Wei is the director and manager of Redberry Sdn Bhd. Ancom Bhd is the sole shareholder of 4 million shares. Similarly, did Ancom Bhd inform or make an announcement in Bursa Saham Kuala Lumpur (BSKL) about this material transaction where Redberry, a subsidiary of Ancom Bhd, had received RM50 million from the said special purpose vehicle bank account.
Dato’ Siew Ka Wei is the executive chairman of the public listed company Ancom Bhd and group MD of another public listed company Nylex Bhd, which had also received RM20.6 million from the same account.
Malay Mail
Coincidentally, it was under Siew Ka Wei’s control that Malay Mail, then oldest newspaper in the country, was shut down 31 November 2018 even though at that material time Redberry and Nylex were getting a total of RM70.6 million from the said special purpose vehicle bank account. Until this day, many of the Malay Mail’s ex employees are still without a job.
Datuk Wong Sai Wan, The Best Editor In Asia!!
The famous Malay Mail editor in chief, Datuk Wong Sai Wan pressing the button on 30-11-2018 to bury Malay Mail for good.The Tweet from the BEST editor in Asia, Datuk Wong Sai Wan.
The famous Datuk Wong Sai Wan, editor in chief of Malay Mail, in his tweet was trying to exhibit his “COMPASSION” for the Utusan staff. Why the same compassion not shown to the Malay Mail staff when Malay Mail was shut down in 2018? Why was a small fraction of the RM50 million received from the said special purpose vehicle bank account not used to alleviate the hardship of the Malay Mail staff, who have slogged so hard for Malay Mail/Dato’ Siew Ka Wei? As a reminder to Datuk Wong, charity begins at home!
Datuk Wong is the BESTeditor in Asia, he is also a good businessman and director of Dato’ Siew Ka Wei’s outfit, Titanium Compass Sdn Bhd, which became part of the settlement agreement between Utusan and Redberry. Isn’t it strange?
The Ramifications Of Shutting Down Utusan
This latest development involving Utusan will have severe ramifications for PADU over the RM309,879,325.00 it received from the Malaysian Communications and Multimedia Commission (MCMC) for the scheme.
PADU had imposed about RM50 million in penalties against Utusan for breach of contracts that included non-delivery of tablets, late delivery and off specifications. Despite the breach of contract by Utusan in Phase 1 and 2, PADU under the leadership of Puan Khadijah Abdullah (former CEO of PADU & now with Bank Negara) and En Ahmad Izzat (CFO), Puan Khadijah carried on to sign contract after contract to facilitate payments to the so-called “vendors”.
Sources in MOE said that PADU/MOE has yet to enforce the penalties imposed. They are just playing “masak-masak” like kids!
Khadijah’s “Financial Literacy”
Now that Utusan is closing shop, it is almost impossible for PADU to recover the RM50 million unless Utusan has enough assets to cover it. PADU has to recover another RM18,402,690.25 which PADU paid out under Phase 6 against the decision of JK Pemandu on 17 April 2018, HERE. That was the “FINANCIAL LITERACY”/ZERO GOVERNANCE of Puan Khadijah Abdullah, the former CEO of PADU. She has been head hunted by Bank Negara to head a department that deal with “Financial Literacy”. May God bless Bank Negara!
For this payment under Phase 6, Redberry was paid RM10,402,690.25 from the special purpose vehicle bank account. God knows for what purpose??
Puan Khadijah Abdullah and EnAhmad Izzat Ahmad Zaki, CFO of PADU, should be held personally liable by surcharging them under the General Order for paying out the RM18,402,690.50 in total defiance of the JK Pemandu said decision.
The Suit Between Redberry & Utusan
Redberry Sdn Bhd, meanwhile, is on a roll. It obtained summary judgment of RM8.5 million against Utusan on 11 February 2019, claiming failure to refund the amount for “advertising, branding and communication exercise”, HERE.
The “Settlement Agreement” Between Utusan & Redberry
The signing page of the “Settlement Agreement” between Utusan & Redberry. It was signed by Dato’ Siew Ka Wei for Redberry Sdn Bhd.
Strangely on 8 April 2019, Utusan and Redberry entered into a “Settlement Agreement”.
The tablets purchased by PADU and the off specifications of the said tablets were issues recited in the said “settlement agreement”.
Ironically, while the suit was about refund of “advertising, branding and communication exercise”, the said tablets and the off specifications became issues in the ”settlement agreement”!
Utusan is to settle the judgment sum of RM8.5 million under the following conditions:
A full and final settlement of the amount owed to Redberry by Utusan for computer tablets purchased by Redberry for a sum of RM482,194.44 shall be set off against the Judgment sum.
Utusan shall procure Utusan Airtime Sdn Bhd(UASB), a wholly owned subsidiary of Utusan, to transfer its 20% shares in Titanium Compass Sdn Bhd(Titanium) valued at RM6 million to set off against the judgment sum. Pending the approval of the relevant authorities for transfer, Utusan shall procure UASB to hold in trust for Redberry. (Note: Titanium was awarded with 10 years exclusive advertising space contract in MRT Stations, HERE)
As full and final settlement of any claim that Utusan may have against Epiweb Sdn Bhd (Epiweb) arising out of or in connection with the Supply, Delivery and Maintenance Agreement pertaining the computer tablets between Epiweb and Utusan, dated 3 December 2015, Redberry has agreed as follows:
To bear the agreed portion of the loss suffered by Utusan arising from short payment by PADU of RM2,017,805.56 by setting off that amount against the judgement sum.
Utusan and Redberry agree that for any potential claim or legal action that PADU may take against Utusan in connection with the tablets supplied by Lenovo Technology Sdn Bhd which the processor speed of such tablet is below the specifications required by PADU and for which Lenovo is aware of PADU’s specifications:
Redberry shall procure Epiweb to cooperate and assist Utusan in their discussion and negotiation with PADU.
Redberry, Epiweb and Utusan shall jointly pursue against Lenovo an order to make Lenovo liable for any damages PADU may claim against Utusan.
All agreed legal costs incurred in defending the claim by PADU and the claim against Lenovo shall be shared jointly between Redberry and Utusan.
In the event that the court decides that Lenovo is not liable for any damages arising from PADU’s claim against Utusan, Redberry shall procure Epiweb to assist Utusan to source competitively priced tablets for the remaining gadgets under the Supply Agreement.
Redberry shall receive from Ancom Bhd a letter of confirmation addressed to Utusan that there is no outstanding amount owing between Utusan and Ancom Bhd.
On 9 April 2019 it was also reported that Nylex had entered into an agreement with Utusan Melayu Bhd to settle their legal dispute over refund of “deposit” totalling RM10 million where Utusan had agreed to transfer a property worth RM6.7 million to Redberry, HERE. It is unknown whether this was part of the settlement between Utusan and Redberry.
Dato’ Siew Ka Wei signed the said settlement agreement on behalf of Redberry.
Many questions arose from the above “Settlement Agreement”? The obvious questions are:
Why did the tablet’s off specifications involving PADU and its supplier Utusan become part of the settlement?
Whywas Redberry was so concerned about the potential suit from PADU against Utusan when it was not a party to it?
On 13 June 2016 Siew also represented Utusan in the “Pre Price Negotiation” for the tablets with PADU, HERE.
One would have thought that Dato’ Siew Ka Wei and Utusan were very friendly parties. From the said lawsuit and the said settlement agreement it would now appear that there was a “SPECIAL” relationship between Dato’ Siew Ka Wei/Redberry and Utusan.
It was also strange that all payments from PADU were paid into the special purpose vehicle account known as “Utusan-Epiweb Collection Account” when PADU only entered into agreements with Utusan.
Why Was RM70.6 mil Paid To Redberry and Nylex Bhd?
On 30 April 2018 RM10,402,690.25was paid out from the special purpose vehicle bank account under Phase 6 to Redberry. but there were several other payments to Redberry and Nylex Bhd totalling RM70 mil.
It must be noted that both Redberry and Nylex Bhd were not parties to the agreements between PADU – Utusan and Utusan – Epiweb.
PADU/MOE STOP PLAYING DUMB ON ABUSE OF PUBLIC FUNDS
When the news of the MCMC Funds had been abused broke out, on 16 July 2019YB Gobind Singh, the Minister of Communication and Multimedia, had assured the public that a report will be lodged with SPRM/MACC with regards to the abused of MCMC Funds, HERE. More than a month has elapsed and no such report was made by his ministry. Why? Is the Ministry trying to cover up for MCMC officers, who have disbursed the MCMC Funds to PADU wantonly with no control?
A culture of impunity has long reigned in this scandalous episode and PADU and MOE must come clean to clarify the RM70.6 mil paid out from the said special purpose vehicle bank account, “Utusan-Epiweb Collection Account” to Redberry and Nylex Bhd. The deafening silence is no longer an option for the Minister of Education, YB Datuk Dr Mazlee Malik!
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 PuanKhadijah 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 1The SST dated 22 June 2017 page 2The SST dated 22 June 2017 – Page 3The 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 1Utusan’s SD 22-6-2017 by its GM – Page 2Left: Datuk FatmiChe 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 2017itself, 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 Mail. Ms 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 MsElizabeth 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” Negaraare 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), MrSee 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.
Utusan letter dated 9 April 2018 to CEO Puan Khadijah bin Abdullah – Page 1.Utusan letter 9-4-2019 – Page 2.
Under the guise of management fee, controversial government agency PADUCorporation (PADU) made an unprecedented request for RM7 million or 2% of the RM360 million meant to provide free computer tablets to teachers nationwide.
This came even after PADU had been paid RM1.1 million as one-off payment to manage the scheme by the project funder/Cash Cow, Malaysian Communications and Multimedia Commission (MCMC) under Phase 2.
The contractor, Utusan Melayu (Malaysia) Berhad (Utusan), refused to meet PADU’s 2% demand, stating in a letter dated 9 April 2018 that it was not agreeable to paying the said amount.
The salient points in the said letter, signed by none other than one of the key players in this scandalous project Datuk Mohd Noordin bin Abbas (a former banker), Managing Director of Utusan, are as follows:
The requests by PADU for the RM7 million or 2% management fees exceeded our authority including myself;
SKMM never agreed that this fees to be paid to PADU;
When this tablet project was discussed in 2016 the necessity of this fees had not been brought up;
During the meeting on 11 January 2018 Pengarah BTP and CEO of Padu, Puan Khadijah Abdullah, who had attended the meeting, had agreed to apply to Prime Minister Office through Minister of Education for the management fees; and
For Utusan, we act as a DELIVERY CONTRACTOR of the Tablets to the teachers as directed by PADU and MOE.’
The Four Key Little Napoleons For Phase 1 – 6
The then CEO of PADU, Puan Khadijah binti Abdullah, whom the Utusan’s letter was addressed to. She was one of the four little napoleons, who was one of the key players in the scandalous Tablet Project. She was involved from Phase 1 – 6.
The famous DATUK SERI ALIAS BIN AHMAD was the other little napoleon. He was also one of the key players who facilitated the payment of RM18,402,690.25 for Phase 6 just before the 14 GE. He was the one who signed the cheque with Puan Khadijah binti Abdullah. At the material time he was the chairman of the Board of Trustees of PADU and also KSU from February 2017 to May 2018. To date not a single tablet was delivered to the teachers.
THE PADU CFO, En Ahmad Izzat bin Zaki, the third little napoleon who knowingly prepared all payments to the special purpose vehicle “Utusan – Epiweb Sdn Bhd Collection Account” from Phase 1 – 6.
En Azrul Satria bin Abdul Rahim, the very “HEBAT” special officer to Kadijah binti Abdullah and the current acting CEO En Razif. The fourth little napoleon in PADU. The silent operator for this scandalous Tablet Project from Phase 1 – 6.
The RM7 million Or 2%
The 2% request raises a troubling question whether PADU, a company incorporated by guarantee under the purview of Ministry of Education (MOE), was asking for a “clawback” or “kickback”.
Yours truly will boldly regard this a “kickback” because it is a norm for management fee to be entered into contracts at the outset and more so not sat the tail end.
According to the said Utusan letter of 9 April 2018 even the MCMC was not informed about PADU seeking RM7 million from Utusan.
MCMC had granted the RM360 million funding to PADU, which contracted Utusan to provide 430,000 tablets, pre-installed with E-Tutor app and Utusan Malaysia newspaper, to teachers over seven phases.
If PADU needed another round of management fee, it should have incorporated the 2% into the contract at the start and informed the relevant authorities.
Doesn’t the demand for management fee, more than a year after the contract was signed, indicate that the price of the tablets was INFLATED?
Basically, there was too much money in hand that would encourage predators to prey on the millions of Ringgit.
After all, it was a ‘god sent’ contract whereby even delivery of the gadgets was ridiculously supported by Statutory Declaration (SD) in HERE.
Utusan’s SD as proof of delivery of tablets!
In the SD, Utusan had specified that if it failed to deliver the gadgets, it will compensate PADU RM573 per tablet. The thing is, Padu was contracted to buy per tablet at RM853 from Utusan. At this moment no one know how much was the actual cost of the tablet.
According to a report from MOE, Huawei tablets were according to specs for Phase 1 and Lenovo for Phase 2 – 5 not according to specs. We will together discuss this damning report in more detail in another part later. If we are to assume that the actual cost of the tablet was RM573 per unit then, Utusan was making RM280 (RM853-RM573) per tablet for just playing its role as delivery boy so to speak. It was too good to be true that Utusan made a profit of RM280 per tablet! If the profit was RMM280 then Utusan would have made RM120.4 million for the 430,000 tablets! God forbid!
Is Epiweb Sdn Bhd A Special Purpose Vehicle For WHO?
Who was the real culprit behind this Special Purpose Vehicle “Utusan-Epiweb Sdn Bhd Collection Account”? Who was the biggest beneficiary of this special Purpose Vehicle? Only an in-depth investigation into the paper trail by MACC will reveal the real culprit. We are lucky that YB Gobind Singh Deo, the Minister of Communications and Multi Media had announced that his ministry will lodge a report with MACC over this scam. Lets see when the ministry will do it. Yours truly would have thought that in the light of what have been exposed the Minister of Education would have reported tis matter to MACC. may be the minister is too preoccupied with the sorting out the issue of black and white shoes!
Remember there was another middle man in this transaction called EPIWEB SDN BHD, the so-called supplier of the tablets to Utusan. En Khairul Firdaus, who is not a director of Epiweb Sdn Bhd and signed the supply agreement with Utusan. Upon receipt of RM18,402,690.25 on 27 April 201 (justbefore 14 GE) for most questionable Phase 6, the special purpose vehicle “UTUSAN-EPIWEB SDN BHD Collection Account” paid out RM10,402,690.25 to Redberry Sdn Bhd, which was not a party to the contract between Utusan – Padu or Epiweb Sdn Bhd – Utusan, HERE. The remaining RM8 million of the RM18,402,690.25 received from PADU went to Utusan. It would appear from this particular transaction Epiweb Sdn Bhd received nothing from the payment under Phase 6! This raises more questions for PADU and MOE to answer. For phase 1 – 5, did Reberry receive any payment from this special purpose vehicle – “Utusan – Epiweb Collection Account”?
The famous Malay Mail editor in chief, Datuk Wong Sai Wan in red Malay Mail’s T-shirt was pressing the button on 30-11-2018 to bury Malay Mail for good!
On 9 January 2019 Dato’ Dr Siew Ka Wei, former chairman of Tourism Malaysia, executive chairman of public listed company Ancom Bhd and MD of Redberry Media Group (Redberry) and Ms Elizabeth Ken, the media specialist of Redberry were handcuffed in orange uniforms.
Redberry Media Group (Redberry) is one of the special outfits of Dato’ Dr Siew Ka Wei, who was arrested and detained by MACC together with Ms Elizabeth Ken in connection with the ‘Speedy Gonzales’ Geeko Tech RM99.693 million deal with Tourism Malaysia for four days in January 2019. By coincidence, Ms Ms Elizabeth Ken, who is a shareholder and CEO of Geeko Tech Sdn Bhd and the media specialist of Redberry and Dato Dr’ Siew Ka Wei (Siew) is the MD of Redberry. Siew is also a current executive chairman of public listed company Ancom Bhd, which is the parent company of Redberry, and Group MD of Nylex Bhd (part of Ancom Bhd). Redberry is the owner of the defunct Malay Mail (printed version) and the equally famous Datuk Wong Sai Wan is the editor-in-chief, who is a director of several of Dato’ Dr Siew Ka Wei’s outfits. Datuk Wong is the only one of a few editors in chief in Malaysia , who is a director of several companies, HERE.
PADU, The “VENDOR FRIENDLY” – Must Be Shut Down!
By all accounts, one can declare PADU the most “vendor friendly” company in the world!
PADU must be shut down for gross mismanagement and sloppy supervision of what was a novel IT project to digitalise education. At last the little napoleons at the top management in PADU had fleeced it like other projects under the last BN administration. Its existence is a waste of public fund. In the interim, the PH government must commission a forensic audit into its accounts.
The deafening silence on the part of PADU and/or MOE is most alarming. Don’t tell us the Minister of Education is equally “Tidak Apa” as the little napoleons in PADU!
Wee Choo Keong 