Malaysian authorities are now looking further back into a pre-1MDB bond deal in their probe into fugitive financier Jho Low, Bloomberg reported.
According to the US media outlet, authorities are investigating if Low profited from a 2009 RM5 billion bond sale involving 1MDB’s predecessor, the Terengganu Investment Authority (TIA), as well as Thai and Singapore-linked companies.
Citing sources, Bloomberg stated that this is linked to the US$126 million Low and his trusted aide Eric Tan Kim Loong allegedly received over the issuance of Islamic medium-term notes by TIA in May 2009.
Both Low and Tan have been charged with two counts of money laundering in relation to this.
The report stated that investigators are tracing the money flows to Low, as well as officers at TIA and the Malaysian bank who could have abetted Low, after TIA reached out to the bank to help it raise the RM5 billion.
Low was TIA’s adviser at the time and was allegedly involved in the bond discussion.
The bank then allegedly sold RM3.8 billion of the TIA notes to Thai-based company Country Group Securities Pcl, and RM700 million to a Singapore-based company, while buying RM500 million for itself, the sources were reported to have said.
The three parties were alleged to have bought these notes at a discounted price of about RM87 for 100, “on account of the notes being the first 30-year Islamic notes out of Malaysia”.
The bonds were then resold for profit on the same day with the help of the same Malaysian bank, at RM100 to RM105 to local investors, thus raising suspicion, Bloomberg reported.
According to Bloomberg, both the Malaysian police and Finance Ministry, which now oversees 1MDB, have declined to comment on the matter.
However, a spokesperson for the Securities Commission confirmed in the report that it was investigating TIA’s bond issuance in relation to 1MDB.
Meanwhile, Bukit Aman is tracking down four persons of interest in connection with the investigation into 1MDB.
Inspector-General of Police Tan Sri Mohamad Fuzi Harun said those wanted were Low’s parents, Tan Sri Larry Low Hock Peng and Goh Gaik Ewe, both 66; Shabnam Naraindas Daswani @ Natasha Mirpuri, 54; and Eric Tan Kim Loong, 40.
Singaporean national Shabnam is a fashion designer allegedly favoured by Datin Seri Rosmah Mansor previously while Tan was Jho Low’s close associate.
The last known address of Low’s parents was in Tanjong Bungah, Penang, while Shabnam’s last known address was Parkstone Road, Singapore, and Tan’s last known address was at Taman Pusat Kepong, Kuala Lumpur.
In 2015, Sarawak Report claimed that Shabnam had been involved in many of Rosmah’s high-value fashion and jewellery acquisitions.
Last June, The Star quoted a source as claiming that Tan had helped Low to raise money to finance charity work through the 1Malaysia-Penang Welfare Club and organised free concerts in Penang.
He is said to have paid Psy to perform in Penang, as well as overseen and funded the club’s activities to run Barisan Nasional’s (BN) election campaign.
He was also reportedly representing Low in Affinity International Equity Partners and Tanore Finance Corp, both British Virgin Islands-registered companies.
Those with information on the four should contact Supt Foo Wei Min at 03-2610-1402 or Deputy Supt Albany Hamzah at 019-2412-826 from the Bukit Aman Anti-Money Laundering and Anti-Terrorism Financing Prevention (Amlatfa) division or any nearest police station.