Whistleblower portal Sarawak Report has presented what it claims is fresh evidence linking the government's 1Malaysia Development Berhad (1MDB) to tycoon Low Taek Jho, who is seen to be close to Prime Minister Najib Abdul Razak's family.

 

This is despite the Malaysian government-owned sovereign wealth fund having denied any links to Low. The flamboyant businessman, better known as Jho Low, has likewise denied any such links.

 

However, Sarawak Report  presented  an August 2012 UK High Court judgment involving a dispute in the purchase of a controlling stake in the Coroin hotel group in which Low was an interested party.

The judgment detailed how in 2011 rival bidders were attempting to buy up approximately 39 percent of shares in the Coroin group from the distressed businessman Derek Quinlan, said the report. 

 

The report claimed the judgment had noted that Low's £1.028 billion (RM5.7billion) bid for the hotel group through the privately-owned Wynton Group, was backed by 1MDB against UK's Barclay brothers.

 

"The judge made it clear on a number of occasions that Low ( right ) was representing himself and his company as an entity backed by a Malaysian government ‘sovereign wealth fund’," said the report.

 

The report added when the British seller was unconvinced by Low's bid, he produced a number of written third party assurances including a letter from 1MDB confirming its support for the strengthened offer.

 

'1MDB letter backing Jho Low'

 

The report quoted the judgment which read: "The provision on 15 January 2011 of a letter from 1 Malaysian Berhad (sic), an investment vehicle wholly owned by the Malaysian government, confirming its support for the offer, did not allay the concerns of the majority of the shareholders.

 

"A further letter from Wynton dated 24 January 2011 stated that the financing for the offer had 'in principle' been fully underwritten by Malaysian government-backed investment funds."

 

Ultimately though, the bid was not accepted even though Quinlan's representative noted that Low's offer was "better" on paper.

 

"My sense is that it is an offer that can’t really be delivered either in time or structure.

 

"The delivery of the Malaysian government bond is not guaranteed and the deal may end up in an open ended bridging situation because it does not have the proper financing.

 

"I also sense that some (in the) Malaysian government may have a political motive and that will naturally delay execution," wrote the representative which was included in the judgment.

 

The report claimed this confirmed that an offer to the tune of just over £1billion (RM5.5 billion) was on the table with the backing of 1MDB.

 

'Low and 1MDB named in debt purchase'

 

In a  separate piece , Sarawak Report said the same judgment had zoomed in on a related deal in which Low purchased debt in the hands of Ireland’s National Asset Management Agency (Nama), which had been taken over from Quinlan.

 

Curiously though, Sarawak Report pointed out that despite the judgment naming Low in the purchase, the Irish press had reported the purchase was by 1MDB.

 

“As Derek Quinlan’s property empire staggered last week, it has emerged that Nama made a hefty €60m profit (RM271 million) by flipping developer Quinlan’s Claridges Hotel loans to the Malaysian outfit OneMBD (sic)," reported the Irish Independent .

 

UK's Sunday Times similarly named 1MDB in the purchase, said Sarawak Report.

 

"This new evidence flies in the face of denials as late as last month by Low that he has had any involvement or received any benefit from the public fund," said the report.

 

Low through his representative at Edelman, New York had last in March,  denied  links to 1MDB.

 

The statement to KiniBiz read: "Neither Low nor any company in which Low is a shareholder has ever received any compensation directly from TIA (Terengganu Investment Authority), 1MDB or the Government of Malaysia, or from any activity related to TIA".

 

Likewise, 1MDB chief executive officer Shahrol Halmi last year had said Jho Low's role as far as the sovereign wealth fund was concern was "zero".

 

Malaysiakini has contacted Jho Low for his response over the latest allegation and is awaiting reply.