Taib Probe Opens In Germany – Breaking News!
SARAWAK REPORT
The Federal Republic of Germany has become the latest country to announce that it is mounting corruption and money laundering investigations into Sarawak’s Chief Minister, Abdul Taib Mahmud.
The development places serious further international pressure on BN to deal with their corrupted State Minister, who was forced to promise he would soon resign during the recent elections, but now shows no sign of doing so.
We can reveal that the decision was confirmed to the Swiss NGO, the Bruno Manser Foundation at the end of last week and that the investigations are already under way.
The move follows similar action in May by the Swiss Federation, which in turn finally prompted Malaysia’s Anti-Corruption Commission (MACC) to initiate its own on-going enquiries into Taib, who has blatantly abused his political power in Sarawak to enrich himself over the past 30 years.
The MACC announcement in June, as reported by The Star
Trouble for Deutsche Bank !
Deustche Bank HQ – facing tough questions over Taib
The German announcement immediately places an embarrassing spotlight on one of country’s most recognised institutions, the global financial giant, Deutsche Bank.
Sarawak Report has been reporting on Deutsche Bank’s uncomfortable links with the Taib family assets for months and in June the Bruno Manser Foundation (BMF) led an official protest over the Bank’s involvement in alleged profits from timber corruption.
The NGO has now presented the German Finance Ministry with a dossier revealing further connections between Taib and Germany’s largest bank.
These latest concerns include the connections involving the multi-million ringgit investment banking operation K & N Kenanga Holdings Bhd, where Deutsche Asia Bank and Cahya Mata Sarawak (CMS), Taib’s family company, are together by far the biggest shareholders.
A merger in 2001 between K & N Kenanga, then 30% owned by Deutsche Asia Bank and the controversial finance subsidiary of CMS, Sarawak Securities Sdn Bhd, gained the combined company Universal Broker Status from the Securities Commission.
Separate questions have also been raised over an unusual bond issue brokered in 2005 by Deutsche Bank AG in Labuan on behalf of the State of Sarawak. The deal raised US$800 million through a private company, SGOS Capital Holdings Sdn Bhd, described as 100% owned by the State Secretary of Sarawak. The 10-year bond is backed by the State of Sarawak.
Details of the investigation
In an email to BMF (see below) Germany’s Finance Ministry has now confirmed that it has authorised the German Federal Financial Supervisory Authority, BaFin, to launch a full enquiry into the connections between the country’s leading financial institution and the Taib family.
The email’s explanation of BaFin’s role leaves no doubt that the remit of that enquiry, will include money laundering:
