A Selangor Umno leader is allegedly demanding US$25 million (RM98.3 million) for securing an endorsement from a deputy finance minister in a proposed deal involving Malaysian funds, according to The Australian newspaper.
The report, which was published today, stated that the Umno leader had issued letters of demands to Nic Manikis, a senior Australian public servant who worked after hours as an international financier in a venture led by an unnamed alleged fraudster.
It said Manikis, through the company Ladylaw Securities in which he owns a 90 percent stake, had lobbied to borrow US$1 billion (RM3.93 billion) from Malaysian state-controlled funds.
The money was supposedly meant to be invested in Australian property and Canadian oil and gas ventures.
Malaysiakini cannot independently verify the report. It is temporarily withholding the name of the Umno leader pending comment.
The report said Manikis agreed to pay two percent of the proposed sum to people who could help Ladylaw secure the money from Malaysia.
"I said I’m happy to pay two percent to anyone who raises the funds.
“I did agree to that and that’s a reasonable approach," he told The Australian.
However, the fundraising effort was unsuccessful.
Nonetheless, Manikis said the Umno leader was still insisting on the two percent payment.
He had since received three legal letters, including one on Feb 18, from lawyers of the Umno leader demanding for money.
The Australian said the legal letters cited a "letter of consent from Deputy Minister of Finance Malaysia to support the investment proposal proposed by Ladylaw Securities".
“I’ve not received one red cent out of Malaysia.
"The way I’m responding to these people seeking commissions is to say, ‘Where’s the money?’.
“Had I got the US$1 billion I was seeking, I would have been out of there,” Manikis was quoted as saying by The Australian.
'Fake news', says M'sia
According to the report, Ladylaw had in early 2014 approached the Employees’ Provident Fund (EPF), Felda, and Federal Land Consolidation and Rehabilitation Authority (Felcra) with the proposal of borrowing US$1 billion.
Under the proposal, the US$1 billion would be used to buy a portfolio of buildings including offices occupied by Australian government agencies and the Qantas headquarters in Sydney, on top of Canadian oil and gas ventures.
"Documents obtained by The Weekend Australian show Ladylaw representatives, including Mr Manikis, scheduled meetings with Felda and Felcra in April 2014.
"Manikis said he, his Canadian business partner and another Ladylaw representative met an EPF general manager in Kuala Lumpur in June 2014," said the report.
The deal eventually did not go through despite initially having Prime Minister Najib Abdul Razak's endorsement, claimed Manikis.
The report quoted a spokesperson for the Malaysian government as saying that Najib and his office were neither aware of nor had had any interactions with the companies mentioned.
The government spokesperson said the claim may be "fake news" in the run-up to the general election.
"Furthermore, following an internal government inquiry, the leadership of the organisations you mentioned — such as Felda and EPF — have confirmed that they have not had any dealings with these companies or the individual," the spokesperson was quoted as saying.
Malaysiakini has also reached out to the Prime Minister's Office for comment.
EPF reports forged letters
On Wednesday, Sarawak Report highlighted an attempt to collateralise RM10 billion in bonds belonging to the EPF to Luxembourg-based company Limage Holdings and its owner Gyorgy Matrai, who was previously convicted of fraud in Switzerland.
The bonds were allegedly for Matrai to help raise funds that would be returned to Malaysia to fund the general election.
The portal had presented documents and correspondence on efforts to put together the fundraising attempt.
Manikis told The Australian he was aware of this separate fundraising attempt, but had never heard of Matrai or Limage before.
The EPF, in a statement on Wednesday stressed that it had not entered into either deal.
It confirmed the existence of the letters highlighted by Sarawak Report, but stressed that they were forgeries.
The EPF had found out about the letters before Sarawak Report went public with them, and had lodged three separate police reports.
The EPF said that it had never had any dealings nor entered into any agreements of sort with Limage Holdings SA, Limage Southwest Holdings, Matrai or any parties as stated by Sarawak Report.
"As such, no transfer of bonds nor funds of any kind to any of the aforementioned companies, parties or individual could have occurred as alleged," it said.
The EPF said it lodged a police report on Oct 28, 2015 and Feb 26, 2016 when it found out about a fake "letter of indemnity" and later a fake "letter of award" in relation to the Luxembourg fundraising attempt.
With regards to the Australian fundraising case, the EPF said, "The involvement of Ladylaw Securities Pte Ltd and Nic Manikis was made known to the EPF on Jan 20, 2017 and a police report was made on Jan 23, 2017 stating that the EPF has no knowledge nor was involved in any investment transaction with Ladylaw Securities nor Nik Manikis."
