Banker in 1MDB-linked Singapore case withdraws request to unfreeze accounts

A banker at Swiss wealth manager BSI's Singapore unit withdrew a court application to release his bank accounts that were frozen as part of the city-state's probe against possible money laundering linked to 1Malaysia Development Berhad (1MDB). 

PHOTO: REUTERS

FEB 5, 201612:35 PM

[SINGAPORE] A banker at Swiss wealth manager BSI's Singapore unit withdrew a court application to release his bank accounts that were frozen as part of the city-state's probe against possible money laundering linked to 1Malaysia Development Berhad (1MDB).

Yak Yew Chee, whom sources said is responsible for dealings between BSI in Singapore and entities linked to Malaysian state investment fund 1MDB, withdrew the request in Singapore's High Court on Friday, his lawyer Roderick Martin told the court.

The withdrawal came after Yak's lawyer asked the court if his client could remit about S$1.76 million to Singapore from his overseas accounts to pay his tax and legal fees without having such funds seized.

Singapore's deputy chief prosecutor confirmed that Yak could transfer money into the country. The judge then granted Yak's request to withdraw the application.

Yak did not appear at the court hearing.

Singapore's Commercial Affairs Department has seized S$9.7 million from Yak's bank accounts in Singapore, court documents show.

Earlier this week, the city-state said it had seized a large number of bank accounts in recent months as part of investigations into possible money-laundering and other offences linked to 1MDB.

1MDB, whose advisory board is chaired by Malaysian Prime Minister Najib Razak, is being investigated by authorities in Malaysia, Switzerland and the United States following accusations of financial mismanagement and graft. 1MDB has denied these allegations.

REUTERS

    
 

China graft watchdog raps financial regulators

China's main ruling Communist Party anti-graft watchdog has criticised four financial regulators after its latest inspection, saying they had problems ranging from using public funds for holidays to lack of corruption risk controls. 

PHOTO: BLOOMBERG

FEB 5, 201611:48 AM

[BEIJING] China's main ruling Communist Party anti-graft watchdog has criticised four financial regulators after its latest inspection, saying they had problems ranging from using public funds for holidays to lack of corruption risk controls.

The four - the People's Bank of China (PBOC), State Administration of Foreign Exchange, China Banking Regulatory Commission and China Securities Regulatory Commission - all said they took the issue seriously and vowed to follow party rules on fighting corruption.

In separate statements released late on Thursday, the Central Commission for Discipline listed a series of problems it had found at each of the regulators.

At the foreign exchange administration, it said some officials ignored discipline rules, that there were problems with promotions being "not standard enough" and weak law-enforcement oversight.

At the PBOC, the central bank, public funds were spent on gifts, while at the banking regulator public funds were spend on holidays, the watchdog said.

For the stock markets regulator, there was only lip service paid by some to anti-graft rules and insufficient oversight over certain "sensitive" posts, though it did not say which. "There exist hidden dangers for breeding corruption," the statement added.

Stock market regulatory chief Xiao Gang was quoted as saying they would strictly abide by President Xi Jinping's instructions on fighting corruption and make changes as suggested.

Central bank chief Zhou Xiaochuan was quoted as saying his team completely agreed with the watchdog's findings and"sincerely accepted them".

Mr Xi has launched a sweeping crackdown on deep-rooted graft since taking over the party's leadership in late 2012 and the presidency in 2013. Dozens of senior officials have been investigated or jailed.

Graft investigators have fanned out across the country looking for abuses, including in government departments and ministries in Beijing.

China's financial regulators have been under heavy pressure since stock markets collapsed in mid-June last year following a long bull run, though the statements made no mention of the markets.

REUTERS

    
 

World Bank says wars, cheap oil hurting Middle East growth

The World Bank said on Thursday that 2015 economic growth in the Middle East and North Africa likely came to just 2.6 per cent, falling short of a 2.8 per cent forecast in October as war, terrorism and cheap oil took their toll. 

PHOTO: REUTERS

FEB 5, 20169:32 AM

[WASHINGTON] The World Bank said on Thursday that 2015 economic growth in the Middle East and North Africa likely came to just 2.6 per cent, falling short of a 2.8 per cent forecast in October as war, terrorism and cheap oil took their toll.

In a new report, the bank said five years of war in Syria and spillovers to neighboring countries have cost the region some US$35 billion in lost output measured in 2007 prices, equal to Syria's gross domestic product that year.

The plunge in oil prices to around US$30 a barrel from over US$100 two years ago is causing major problem for the region's oil exporters, with government revenue falling sharply and budget deficits growing. The World Bank said Saudi Arabia's public debt would reach 20 per cent of GDP in 2017, 10 times its level of 2.2 per cent in 2013.

"The richest oil exporters in the region, Saudi Arabia, Qatar, Kuwait and United Arab Emirates, have large reserves that will enable them to run deficits over the coming years, although not far beyond that," the World Bank said in the report. "At current levels of spending, and an oil price of USD 40 per barrel, Saudi Arabia will exhaust its reserves by the end of the decade."

The report was issued as the World Bank is in talks on financing with some oil producers in other regions, including Azerbaijan, Nigeria and Angola.

The report cited World Bank estimates of US$3.6 billion to US$4.5 billion in physical damage to just six cities in war-torn Syria: Aleppo, Dar'a, Hama, Homs, Idlib and Latakia. The damage was assessed to housing, health, education, energy, water, transport and agriculture infrastructure.

A similar assessment in Yemen, also hit by war, found US$4 billion to US$5 billion in damage to four cities: Sanaa, the capital; Aden; Taiz and Zinjibar.

But the wars there and elsewhere may be extracting a bigger toll on human capital, as Syrian refugees languish with little or no work, the bank said, while educational gains are being reversed. More than half of school-age children in Syria were prevented from attending school during 2014-2015, it said.

"A peace settlement in Syria, Iraq, Libya and Yemen could lead to a swift rebound in oil output, allowing them to increase fiscal space, improve current account balances and boost economic growth in the medium term with positive spillovers to the neighboring countries," said Lili Mottaghi, World Bank economist for the region and the author of the report.

REUTERS

    
 

Oil market heads lower

Oil prices fell on Thursday on resurgent supply glut worries as traders discounted the odds of a near-term deal by major petroleum producers to cut output. 

PHOTO: BLOOMBERG

FEB 5, 20166:46 AM

[NEW YORK] Oil prices fell on Thursday on resurgent supply glut worries as traders discounted the odds of a near-term deal by major petroleum producers to cut output.

US benchmark West Texas Intermediate for March delivery fell 56 cents to US$31.72 a barrel on the New York Mercantile Exchange.

Brent North Sea oil for April delivery shed 58 cents at US$34.46 a barrel in London.

Oil prices had risen sharply on Wednesday on weakness in the dollar and speculation of a potential deal by major producers to cut output.

On Thursday, the dollar fell again but "fundamentally the picture remains weak," said Gene McGillian of Tradition Energy.

"For a real rally to take hold, I think we need to see some kind of change, either in the fundamental picture or some kind of sign that some of the fears about the economic conditions are basically unwarranted," Mr McGillian said. "And right now, I am not convinced we're seeing either of those."

US commercial oil inventories stand at record levels following a surprisingly large build last week, according to US Department of Energy data released Wednesday.

Talk of a coordinated production cut between Russia and the Organisation of the Petroleum Exporting Countries has provided intermittent support to oil over the last week or so.

Six members of Opec and Russia, along with Oman, have said they would attend an emergency meeting of producers, said Austin Sapp, commodity analyst at Schneider Electric.

"Although this is a fundamentally bullish stimulus, a lack of support of the motion from Saudi Arabia, Opec's largest producer by a wide margin, and doubts over Russia's actual willingness to cooperate with a cut in output, continue to undercut producer hopes that the meeting will be made a reality," Mr Sapp said.

AFP

    
 

Airbnb hands over 1.2m euros to Paris city coffers

The home rental web platform Airbnb - which last year agreed to start charging users in Paris a tourist tax - handed over nearly 1.2 million euros to city authorities in the last quarter of 2015, the municipality said. 

PHOTO: REUTERS

FEB 5, 20166:33 AM

[PARIS] The home rental web platform Airbnb - which last year agreed to start charging users in Paris a tourist tax - handed over nearly 1.2 million euros to city authorities in the last quarter of 2015, the municipality said.

Airbnb reached an agreement with the Paris authorities last year and from October 2015 has charged users a tourist tax of 83 cents (S$1.30) per night which it then passes on to the local authority.

As a result, Airbnb contributed 1.169 million euros (S$1.83 million) to Paris city coffers for the last quarter of 2015 corresponding to "1.4 million overnight stays over this period", the municipality told AFP.

The agreement followed similar pledges by the San Francisco group to collect and remit taxes in Amsterdam from January 2015 and the US capital Washington and Chicago from February 2015.

Airbnb which allows people to rent out their rooms, apartments or homes was launched in 2008 and quickly became very popular.

But traditional hotel chains see it as a rival and accuse it of helping people avoid taxes and hosting illegal hotels on its website.

AFP

    
 

Obama floats US$10-a-barrel oil tax

US President Barack Obama on Thursday proposed a US$10-a-barrel tax on oil firms to pay for much needed infrastructure improvements.

PHOTO: BLOOMBERG

FEB 5, 20166:43 AM

[WASHINGTON] US President Barack Obama on Thursday proposed a US$10-a-barrel tax on oil firms to pay for much needed infrastructure improvements.

The US$10 charge, phased in over five years, would be levied on companies - but the costs could be passed on to consumers.

"For too long, bipartisan support for innovative and expansive transportation investment has not been accompanied by a long-term plan for paying for it," the White House said in a statement.

The proposal comes amid current low oil prices and is also designed to wean Americans onto more climate-friendly fuels.

The plan is highly unlikely to pass muster in the Republican-controlled Congress.

AF
P

Singtel's Optus to boost regional mobile coverage with 1800 MHz spectrum

By

Lee Meixianleemx@sph.com.sg@LeeMeixianBT

FEB 5, 20168:11 AM

SINGTEL'S telco unit in Australia, Optus, on Friday said it has acquired new regional licences in the 1800 MHz spectrum band.

Specifically, it has obtained two 20 MHz in five regions, and two 25 MHz in seven regions for A$196 million (S$197 million).

"The 1800 MHz acquisition means Optus is well-placed to expand its 4G network coverage to more places around Australia. The Optus mobile network currently reaches 98.5 per cent of the Australian population, with 4G services now available for more than 90 per cent of Australians," the company noted.

Optus was successful in acquiring 1800 MHz spectrum in contiguous lots with alignment between its metropolitan and regional spectrum assets.

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