362747264-1MDB mala-Case-Study-pptx.pptx

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1. 1Malaysia Development Berhad (1MDB) Presented by : Salman Khan Amir Maghrouni Jahan Israt Hamza Faheem Jerry Ngwale

2. 1MDB, what is it ? 1Malaysia Development Berhad founded in 2009, wholly owned by Malaysian Government to develop Malaysia in the long run. Forging global partnerships Foreign direct investment

3. 1MDB milestone Sept 2009 – Announced the setting up of a USD2.5billion venture with PetroSaudi International Limited. Jan 2010 – Signed a co-operation framework agreement with State Grid of China(SGCC) hoping they would become major investors in Sarawak Corridor of Renewable Energy(SCORE).

4. Jan 2010 – Signed a co-operation agreement with Abu Dhabi Future Energy Company( Masdar ) in hope to build Malaysia’s first carbon-neutral city. May 2010 – Being part in union of companies, jointly undertake project to redevelop Sungai Besi old international airport ( now:TUDM ) partnering with Qatar Investment Authority(QIA) where QIA proposed to invest USD5billion. May 2010 – Partnering with Mubadala Development Company to develop Tun Razak Exchange(TRX) project that launched in 2012.

5. 1MDB Beginning of 2010, critics raised and controversies on the lack of transparency given to 1MDB’s accounts. Fourth quarter of 2010, 1MDB explained that they had their accounts audited and signed by KPMG meanwhile Deloitte and Ernst & Young was involved too.

6. 1MDB 2013, 1MDB asked for a 6 months extension on annual report. Same year, change of 3 auditors since 2009 seems suspicious to the public. To justify their debt in 2015, they inked an agreement along with Iskandar Waterfront Holdings and China Railway Engineering Corporation to sell 60% of its stake in Bandar Malaysia Sdn Bhd.

7. 1MDB Global investigators believe more than $1billion entered Malaysian PM’s personal account - although denied. 2017, Malaysia is reported to pay Abu Dhabi $1.2 Billion to settle 1MDB’s debt. Investigation goes on finding also involved in this case is actor Leonardo DiCaprio and mode Miranda Kerr.

8. WHISTLE BLOWING & WHISTLEBLOWER When a former on the existing employee of the organization raise his voice against the unethical activities being carried out within the organization. Fraud, corruption, violation of company rules and policies. The person who raise his voice.

9. The Whistleblower Protection Act 2010 Provides protection to whistleblowers who voluntarily come forward to report or reveal information on corruption activities. Encourages the public from all sectors to disclose corruption related activities. This act is to give protection to the whistleblower in the form of confidentiality information, immunity from civil and criminal action and protection from detrimental action being taken against them. Created for combat the corruption and other wrong doings.

10. LIMIT OF THE WHISTLEBLOWER The whistleblower protection under the WPA 2010 may be revoked by the enforcement agency in six circumstances under s.11(1) WPA 2010 as follows: The whistleblower himself has participated in the improper conduct disclosed. The whistleblower willfully made in his disclosure of improper conduct a material statement which he knew or believed to be false or did not believe it to be true. The disclosure of improper conduct is frivolous or vexatious.

11. LIMIT OF THE WHISTLEBLOWER 4. The disclosure of improper conduct principally involves questioning the merits of government policy, including policy of a public body. 5. The disclosure of improper conduct is made solely or substantially with the motive of avoiding dismissal or other disciplinary action. 6. The whistleblower, in the course of making the disclosure or providing further information commits an offence under the WPA 2010.

12. BENEFIT OF WHISTLEBLOWER Section 15 (1) WPA 2010 provides that upon a request by the whistleblower that reprisal actions have been taken against him or at any time he fears that detrimental action would be taken against him, the enforcement agency may on his behalf, seek damages, injunction or any other relief as the court deems fit.

13. Clare Rewcastle Brown Sarawak-born Clare Rewcastle Brown is an investigative journalist who founded the Sarawak Report and Radio Free Sarawak in 2010. Clare Rewcastle Brown is the whistleblower in the case of 1MDB. She had published a bombshell of a report: the personal bank accounts of Malaysian Prime Minister Najib Razak , she alleged, held nearly $700 million tied to state fund 1Malaysia Development Berhad (1MDB). She is under Metropolitan Police protection in London.

14. Utilitarianism Theory Actions should be measured in terms of the happiness, or pleasure, that they produce. “We should act always so as to produce the greatest good for the greatest number.” Choose the action that would produce the most overall happiness for the group, even though it produced less happiness for you than other alternatives would have. Act Utilitarianism- Choose the action that produces the greatest good for the greatest number. Rule Utilitarianism- We ought to live by rules that, are likely to lead to the greatest good for the greatest number.

15. Utilitarianism Theory on 1MDB 1MDB’s objective was initially good, to drive strategic initiatives for long-term economic development for the country. Malaysian citizens as a whole would be able to enjoy economic growth. As Utilitarianism encourages producing the greatest good for the greatest number. However, instead of promoting economic growth for the well-being of the citizens. 1MDB funds were used to fuel the greed of a few individuals ( Jho Low, Riza Aziz, MO1) in order to purchase luxuries such as luxury hotels in Beverly Hills, paying gambling debts, partying with Hollywood celebrities, jewelry , and RM2.6 billion into personal the personal account of MO1. The scandal’s happenings were opposed to the Utilitarianism theory, which is to produce the greatest good for the greatest number. Instead, Malaysia’s sovereign funds were misappropriated to fulfil the greed of a few individuals, at the expense of the Malaysian citizens. Instead of promoting economic growth, 1MDB has instead hurt the Malaysian economy. Contributing to the fall of the Malaysian Ringgit, cuts in government expenses and the implementation of GST in order to foot the RM42 Billion debt it has caused.

16. Kantian Theory Introduction Immanuel Kant came up with theory Kantianism which states that individuals should always do the right thing no matter what. Act rationally and always tell the truth no matter what. Businesses should never be devious, which includes actions like stealing, lying, and other unethical activities. Duty is explained through the categorical imperative which states that our "maxims"(rule or principle on which you act) should be applied as a law to live which means it basically impacts everyone positively.

17. Kantian Theory on 1MDB 1MDB did not express any Kantian values with how it handled its economic dealings, leading to debts amounting to RM42 billion (USD11.73). It has misappropriated vast amounts of money leading to no positive outcome for the government or the citizens of Malaysia and has broken the categorical imperative of Kant’s theory that deliberate misrepresentation is always wrong. The humanistic dimension of Kant prohibits businesses to treat humans as a means to an end, 1MDB was supposed to promote economic growth but has instead acted on the greed of several individuals with little to no benefits for the Malaysian people.

18. Justification 1MDB did not adhere to Rawls theory of justice in which social and economic inequalities are justified only if the benefit the least advantaged members of society. Instead it has only benefitted a few people without any redistribution of wealth to the citizens. It also did not aim to solve the economic inequalities that it was originally created to reduce and has instead damaged Malaysia’s attractiveness towards investors. 1MDB’s actions and practices were unjustifiable as it should have made ethical business decisions and prevented mounting debts from occurring.

19. Thank you!