Did Ismail Sabri got kickback for Dubai World Expo appearance?

Despite talk of his uncertain health condition, former Prime Minister Ismail Sabri was seen arriving at the MACC this morning to record his statement in relation to investigation for corruption and money laundering allegations. 

Four persons were remanded including Ismail's former political secretaries. Cash RM170 million and gold bars found at safehouses, presumably at the homes of his former officers. MACC confirmed 13 of Ismail's accounts with RM9.33 million forfeited. 

UMNO made two statements deny any link to Ismail and pre-empting any possible claim the money is "political fund raising" for GE15. Obviously, no money handed to UMNO and gold bar serve no purpose in political campaign. 

It is believed Ismail and former UMNO Secretary General, Annuar Musa were building a political war chest of their own. This leads to the incident Ismail's uninvited appearance at the Dubai Expo 2020 and talk he met estranged Serba Dinamik CEO Abdul Karim Abdullah. 

Focus M wrote of the visit in 2022:

Is there a Dubai link to the AG’s decision to compound Serba?

By FocusM

03/05/2022

 WHILE the Dubai diplomatic fiasco has stolen the limelight from Prime Minister Datuk Seri Ismail Sabri Yaakob’s Middle Eastern tour of duty in late March, there is another development that has been concealed – till today at least.

A little bird in the know – someone in the PM’s entourage – has revealed that while visiting the Malaysia Pavilion @ Expo 2020 Dubai on the penultimate day of the global trade showcase, the PM had “bumped into” Serba Dinamik Holdings Bhd group managing director/CEO Datuk Mohd Abdul Karim Abdullah and few other directors who happened to be on-site.

This is not surprising given that the global integrated oil & gas (O&G) outfit was a premier partner for the Malaysia Pavilion.

Interestingly, the source also shared that the Serba Dinamik management team led by its head honcho Abdul Karim had a “short meeting” with the PM.

Back home, it is public knowledge that Serba Dinamik, Abdul Karim and three senior executives of the company were earlier charged with submitting a false statement to Bursa Malaysia Securities Bhd in relation to the revenue figure of RM6.014 bil contained in the company’s consolidated results for the quarter and year ended Dec 31, 2020.

On April 11, news broke out that the aforementioned Serba Dinamik’s top executives were expected to get compound offers after the Attorney-General’s Chambers (AGC)  accepted letters of representation on the matter despite objections from the Securities Commission (SC) and Bursa Malaysia Securities Bhd.

Eventually, the SC had on April 13 compounded Serba Dinamik and its four top executives RM3 mil each for the submission of false statement which was previously red-flagged by the company’s external auditor, KPMG PLC.  

 

The four individuals were Abdul Karim, executive director Datuk Syed Nazim Syed Faisal who was chief financial officer (CFO) from June 2016 until mid-2020, its current group CFO Azhan Azmi, and vice president of accounts and finance Muhammad Hafiz Othman.

Muhammad Hafiz was also compounded an additional RM1 mil for falsifying the accounting records of Serba Dinamik’s subsidiary,

Well, FocusM has no intention of insinuating any connection between what transpired in Dubai at the Malaysia Pavilion and the AGC’s decision which culminated in the SC imposing a maximum compound on Serba Dinamik and its four top executives except to lay bare the chain of events.

Reacting to the compound settlement, the Minority Shareholders Watch Group (MSWG) has stated that in the interest of transparency, the AGC could “lift the veil of its absolute discretion and explain the reasons” for its decision.

This is because the criminal charges that the four executives faced were under Section 369(a)(B) of the Capital Market and Services Act (CMSA) 2007 are read together with Section 368(1)(b)(i) of the same Act.

This carries a maximum jail term of 10 years and a maximum fine of RM3 mil if one is convicted of the offence.

“In offering a compound, one must be mindful of not creating a dangerous precedent,” MSWG’s CEO Devanesan Evanson pointed out.

“It has been observed that some charges of lesser degree in the past were not compounded but went on to trial with resultant jail terms. We must be mindful of the message that we are sending to the capital market and potential wrongdoers.”

Anyway, the Serba Dinamik compound plot has thickened with the recent resignation of the SC’s executive chairman Datuk Syed Zaid Albar (last day on the job on May 31).

This has led to former finance minister Lim Guan Eng urging the PM and AG Tan Sri Idrus Harun to explain the resignation of Syed Zaid as his action can have repercussion on foreign investors’ confidence in Malaysia.

Meanwhile, Malay Mail reported that the SC has granted Serba Dinamik and its top executives a two-week extension to settle their compounds (from April 28 which was the original deadline to pay up).

“Sources said the company had appealed for an extension which was immediately rejected by the SC. A subsequent appeal was made by the company, citing difficulties in raising the money because their accounts had been frozen,” noted the English daily.

“Following discussions with the AGC, the SC agreed to extend the deadline by another two weeks which is understood to be on May 12.” – May 3, 2022  

-----------------

Focus M was reluctant to speculate on Ismail Sabri's appearance because officially Serba Dinamik was the sponsor of the Malaysia Day at the expo like Petronas. They claim to showcase Malaysian technology and innovation in Dubai.  

Ismail was there physically to witness six MOU signing ceremony, in which he was reported proudly by the news portal from Karim's home state of Sarawak for RM7.2 billion generated for merely business potential. Karim gave a denial too. 

However, market could not buy the excuse of a PM would coming all the way uninvited by the host and the controversy of two senior diplomat getting recalled.   

Apparently at the request Ismail's Principal Private Secretary, Nazimah, the diplomats were made scapegoat for the lack of official reception, immigration delays, and failure to secure a speaking slot for Ismail at the summit. 

The then Foreign Minister, Saifuddin Abdullah blamed the diplomats for UAE officials unable to accommodate Ismail's last minute appearance thus the alleged failure to properly coordinate Ismail's improperly planned visit. .  

Whistleblowing portal, Corporate Secret gave the excuse Ismail was to help Serba Dinamik from being delisted. However, their narrative points to the controversial compound. Did Ismail directed Idrus Harun to do so?

In Malaysia, such a big favour by national leadership to a private company would invite suspicion of kickback and its usually up-front. The speculation was the undetected way to carry large sum of money around is by private jet and better still, PM's private jet. 

But, how much cash or jongkong emas could a private jet carry?

Knowing the blatant fraud committed by Serba Dinamik as an organisation, including announcing non-existent overseas contract using fake companies and documents to the public and Bursa, such big favour cannot be for free.

SC chairman Syed Zaid Syed Jaafar resigned in protest. His elder brother and former UMNO Minister, Syed Hamid Albar is with PPBM and yet he opposed.

Ismail should be investigated and possibly charged for money laundering of RM170 million cash and 16 kg gold bar. 

At the same time, reopen the Serba Dinamik case by investigating his mysterious foreign visit. It could be part of the money presently laundered. 

MACC could use the opportunity to move in into the rotting SC. 

Newly appointed SC Chairman Faiz is a disappointment too. The accountant is too rigid, perspective too historical for a security market that anticipate the future, and plainly has no feel for the capital market.