KUALA LUMPUR: Former Goldman Sachs banker Roger Ng (pic) has arrived in Malaysia to assist investigations on the 1Malaysia Development Bhd (1MDB) scandal.Inspector-General of Police Tan Sri Razarudin Husain confirmed that Ng arrived in Malaysia at about midnight.
“He has already arrived in Malaysia and is under police custody. However, I cannot divulge more details on the matter for security reasons,” he said when contacted yesterday.
The IGP also did not indicate when Ng would be brought to court to face charges.
The Attorney General’s Chambers have yet to respond to queries regarding Ng’s return to Malaysia.
Officials from the Malaysian Anti-Corruption Commission said the former banker’s return was a matter handled by the police.
Home Minister Datuk Seri Saifuddin Nasution Ismail previously said the government’s priority with Ng’s return was to ensure the return of all assets linked to the case.
Saifuddin said Ng was allowed to attend trial in the United States, where he had been convicted but had not yet started serving his jail term.
Last Thursday, Chief US district judge Margo Brodie in Brooklyn had ordered Ng’s surrender to the US Marshals Service by Friday so that he could be turned over to Malaysian law enforcement, who then transported him home.
Ng is facing 10 years in jail in the US after being convicted in New York of helping to loot billions of dollars from 1MDB and would be required to begin his prison term upon his return to that country.
On Sept 5, Singapore’s central bank had banned Ng, also known as Ng Chong Hwa, for life, saying that his “severe misconduct” made it “contrary to public interest to allow him to carry on business as a representative”.
Brodie sentenced Ng in March, 11 months after jurors found him guilty of helping former Goldman boss Tim Leissner embezzle money from 1MDB, launder the proceeds and bribe government officials to win business.
Ng was arrested in Malaysia in November 2018 and agreed to be extradited to the United States.
Goldman Sachs Group Inc should follow up on its apology to Malaysia with a payment of US$7.5bil (RM30.86bil), says Lim Guan Eng.
The Finance Minister said a mere apology from the investment bank over the scandal-ridden 1Malaysia Development Bhd (1MDB) is not enough, unless they pay reparations and compensation.
Lim said Goldman Sachs should understand the agony and trauma suffered by Malaysians as a result of the scandal.
“An apology is not enough.
“An apology with US$7.5bil is what matters.
“At least he (Goldman Sachs CEO David Solomon) accepted that they have to bear and shoulder some responsibility but that is insufficient.
“They have made provisions of around US$561mil (RM2.3bil) but that is not adequate.
“We are seeking US$7.5bil,” he told a press conference here yesterday after announcing the names of the joint lead arrangers for the Samurai bond.
On Thursday, Solomon apologised to Malaysians for former banker Tim Leissner’s role in 1MDB.
Solomon also said it was very clear that Malaysians were defrauded by many individuals, including the highest members of the previous administration.
Asked if Malaysia would drop charges against Goldman Sachs with the US$7.5bil payment, Lim quipped: “US$7.5bil ... then we can discuss lah”.
Lim added that it was very clear who the top government official Solomon was referring to as there could only be one person.
“You worked hand in hand, and there has to be accountability. It also involved a breach in fiduciary duty, and I think the banking industry has this obligation to make good the losses that we suffered.
“I think this is at least an admission.
“If not for the change of government, do you think Goldman will apologise? We’re dealing with the largest investment bank in the world,” he said.
Lim added that he found it distressing that Datuk Seri Najib Tun Razak still refused to admit there was something wrong with 1MDB and the entire exercise.
He also lambasted the former premier for passing the buck to Goldman Sachs, and for being in a state of denial for refusing to admit that Malaysians suffered huge losses due to the scandal.
By Royce Tan The Star
Goldman Sachs CEO apologises for ex-banker’s role in 1MDB scandal
NEW YORK: Goldman Sachs Group Inc chief executive officer David Solomon (pic) has apologised to the Malaysian people for former banker Tim Leissner’s role in 1Malaysia Development Bhd (1MDB) scandal, but said the bank had conducted due diligence before every transaction.
Goldman is being investigated by Malaysian authorities and the US Department of Justice (DOJ) for its role as underwriter and arranger of three bond sales that raised US$6.5bil (RM26.7bil) for the sovereign wealth fund.
US prosecutors last year charged two former Goldman bankers for the theft of billions of dollars from 1MDB. Leissner, a former partner for Goldman Sachs in Asia, pleaded guilty to conspiracy to launder money and violate the Foreign Corrupt Practices Act.
“It’s very clear that the people of Malaysia were defrauded by many individuals, including the highest members of the prior government,” Solomon said on conference call discussing the bank’s fourth-quarter results in a report by Reuters.
Solomon said Leissner denied the involvement of any of Goldman’s intermediaries in transactions with 1MDB.
An attorney representing Leissner did not immediately respond to a request for comment.
Roger Ng, the other charged former Goldman banker, was arrested in Malaysia at the request of US authorities and is expected to be extradited, according to John Marzulli, a spokesman for the prosecution.
The DOJ has said that US$4.5bil (RM18.5bil) was allegedly misappropriated by high-level officials of the fund and their associates between 2009 and 2014.
As part of Goldman’s due diligence efforts, Solomon said the bank sought and received written assurances from 1MDB and International Petroleum Investment Co (IPIC) that no third parties were involved in the first two bond sales.
Abu Dhabi’s IPIC had co-guaranteed the 1MDB bonds when they were issued in 2012.
In the final offering, the Malaysian government itself, along with 1MDB, represented that no intermediaries were involved, he said.
“All these representations to Goldman Sachs have proven to be false,” Solomon said.
Goldman Sachs did not disclose any other information about its involvement with 1MDB, but said the impact on its client franchise had been de minimis. Shares of the bank, which reported strong fourth-quarter results earlier in the day, have fallen over 25% in the last three months, after headlines about its involvement with the sovereign wealth fund emerged.
The Malaysian government said in December it was seeking up to US$7.5bil (RM30.8bil) in reparations from Goldman over its dealings with 1MDB. – Reuters
In an immediate reaction yesterday, former Prime Minister Datuk Seri Najib Tun Razak said Goldman Sachs had to take responsibility because they were appointed and paid by 1MDB to take care of Malaysian’s interests.
“We put up a system, the system was there to take care of our interests, you see.
“So if they fail, then they have to take responsibility, because they were appointed and paid by 1MDB to take care of our interests,” Najib said.- The Star
KUALA LUMPUR: Former prime minister Datuk Seri Najib Tun Razak has been brought to court several times but yesterday, he shared a dock at the Sessions Court with former Treasury secretary-general Tan Sri Dr Mohd Irwan Serigar Abdullah.
The two were jointly charged with six counts of criminal breach of trust (CBT) involving funds totalling RM6.636bil that belongs to the government.
Najib, 65, was the first accused while Dr Mohd Irwan, 61, was named as the second accused.
According to the first two charge sheets, the two men were entrusted with dominion over RM1.2bil and RM655mil respectively, and committed CBT in respect of those sums.
The third charge alleges that Najib and Dr Mohd Irwan committed CBT relating to RM220mil in the government’s Federal Consolidated Fund. The amount was allocated for administration expenses for the Kuala Lumpur International Airport.
The RM1.3bil at the centre of the fourth charge was in the same fund and classified as an allocation for subsidy and cash aids.
The fifth and sixth charges were for allegedly committing CBT in respect of 1.95 billion yuan (RM1.261bil) and RM2bil.
All the offences were allegedly committed at the Finance Ministry office in Putrajaya between Dec 21, 2016, and Dec 18, 2017.
The charges were framed under Section 409 of the Penal Code and each carries a jail term of between two and 20 years with whipping, if convicted.
Offenders are also liable to fines. Section 409 covers CBT by public servants and agents.
Najib and Dr Mohd Irwan pleaded not guilty, with both replying “Minta bicara (I claim trial)” after each charge was read out by the court interpreter.
Former Federal Court judge Datuk Seri Gopal Sri Ram, who was appointed by the Attorney General’s Chambers to lead the prosecution, suggested bail at RM3mil each.
Najib’s lead counsel Tan Sri Dr Muhammad Shafee Abdullah objected, saying that his client had already paid RM4.5mil bail accumulatively for his previous 32 charges, an amount which could be “highest in the history of Malaysia”.
“A bail’s only criterion is to ensure his attendance and nothing else. It cannot be punitive. It cannot be oppressive,” he said, adding that his client’s accounts and assets had also been frozen.
Dr Muhammad Shafee asked the court to make an order for Najib to utilise the RM4.5mil bail for his current case.
Datuk K. Kumaraendran, who represented Dr Mohd Irwan, said the prosecution itself did not object to bail, which showed that his client was not a flight risk, and suggested bail of RM500,000 for his client.
Sri Ram replied that the court should not allow the first accused to utilise his RM4.5mil bail for the case as the charges were new.
“The sum we asked for is not fixed on the totality of the sum involved,” he said.
Sri Ram added that the second accused was paid “excessively” during his tenure as the Treasury secretary-general.
“This is not a tale of a good Samaritan. He is the trustee of the highest order of money in this country. He stands before you accused of breaching that trust.
“Any other sum would not reflect the justice of the case,” Sri Ram said.
Sessions Court judge Azman Ahmad allowed bail at RM1mil in two sureties for each of the accused.
He also ordered Dr Mohd Irwan to surrender his passport. Najib had surrendered both his civilian and diplomatic passports in his earlier court case.
The court also allowed for the accused to pay RM500,000 yesterday and to pay the balance in 10 days. Both accused paid the bail.
KUALA LUMPUR: Former spy chief Datuk Hasanah Ab Hamid has been charged with criminal breach of trust (CBT) involving US$12.1mil (RM50.3mil) belonging to the government at the Sessions Court here.
The former Malaysian External Intelligence Organisation (MEIO) director-general claimed trial before Judge Azman Ahmad on Thursday (Oct 25).
Hasanah, 61, who was charged in her capacity as a director-general of a research division, was accused of committing CBT in the Prime Minister's Department in Putrajaya between April 30 and May 9 this year.
The charge was made under Section 409 of the Penal Code, which provides a maximum 20 years' jail and whipping, as well as a fine upon conviction.
Lead Prosecutor Datuk Seri Gopal Sri Ram asked for a RM1mil bail.
Hasanah's counsel Shaharudin Ali, however, asked for the sum to be set at RM300,000.
Judge Azman Ahmad later set bail at RM500,000 in two sureties pending mention on Nov 29. - The Star by maizatul nazlina and royce tan
PUTRAJAYA: Datuk Seri Najib Tun Razak and a former key official of his government will be jointly charged with criminal breach of trust, said to involve more than RM6bil.
The former prime minister and former Treasury secretary-general Tan Sri Dr Mohd Irwan Serigar Abdullah are expected to face six counts of allegedly committing CBT – all involving 1MDB.
The two are to be charged in the Kuala Lumpur Sessions Court over 1MDB’s dealings with Abu Dhabi’s wealth fund International Petro-leum Investment Company (IPIC).
Separately, another top official from the previous administration will also be charged in court.
Former spy agency chief Datuk Hasanah Abdul Hamid will also be charged with committing criminal breach of trust.
The Malaysian Anti-Corruption Commission said it had received the go-ahead from the Attorney General’s Chambers to charge Najib, Dr Mohd Irwan and Hasanah with committing criminal breach of trust involving the government’s money.
With Dr Mohd Irwan being hauled to court, it will be the first time a former civil servant is being charged in connection with the sovereign wealth fund scandal.
As for Najib, the number of charges against him is now close to 40. He is already slapped with a total of 32 charges today involving corruption, criminal breach of trust and money laundering.
Sources with knowledge of the case confirmed the number of charges and that the amount of money involved in the 1MDB-IPIC scandal “runs into billions”.
Yesterday, both Najib and Dr Mohd Irwan were summoned by investigators. Both came separately at 1.55pm and 3.25pm respectively.
At 5pm, Najib left the Malaysian Anti-Corruption Commission headquarters despite earlier speculation that he would be held overnight.
On the previous occasions, prosecutors had held the former prime minister and brought him to court the next day.
While Najib was released after giving his statement, MACC confirmed that Dr Mohd Irwan was arrested at 3.35pm and was being held overnight. Dr Mohd Irwan had made several trips to the MACC regarding the 1MDB-IPIC case, the last being on Aug 10.
Graft investigators had probed both Najib and Dr Mohd Irwan on 1MDB’s dealings over settlement payment of US$1.2bil (RM5.04bil) made to IPIC in 2017.
As for Hasanah, the former director-general of Malaysian External Intelligence Organisation is being charged with criminal breach of trust involving money belonging to the government.
She is being held answerable to committing one count of criminal breach of trust by misappropriating funds worth US$12mil said to be meant for the 14th General Election.
Despite earlier talk that Hasanah would also be held, sources said she was asked to present herself in court today instead.
Hasanah was among nine people who were remanded in September over the misappropriation of the fund. - The Star by mazwin nik anis and joseph kaos jr
Spotlight on Najib’s key officials
PUTRAJAYA: Datuk Seri Najib Tun Razak is to be hauled to court for a third time to face extra charges, but the spotlight will be on former Treasury secretary-general Tan Sri Dr Mohd Irwan Serigar Abdullah and ex-spy boss Datuk Hasanah Abdul Hamid.
The two former top civil servants are expected to face a multitude of charges brought against them by the Malaysian Anti-Corruption Commission (MACC).
All three will have to present themselves today at the MACC headquarters here where they will be held overnight before being taken to the Jalan Duta Courts Complex in the morning.
While it will be the third date in court for the former prime minister, the fresh development involves Irwan and Hasanah, two key officials of Najib.
Irwan is expected face charges in connection with the 1MDB scandal while Hasanah, who headed the Malaysian External Intelligence Organisation (MEIO), is expected to be charged for alleged misappropriation of funds worth US$12mil (RM49mil).
Sources said Najib and Irwan will be charged in connection with 1MDB’s dealings with Abu Dhabi’s wealth fund, International Petroleum Investment Company (IPIC).
However, it could not be confirmed if Najib – who is expected to be slapped with six more charges – and Irwan will be jointly or separately charged.
Najib is already facing 32 charges of criminal breach of trust, corruption and money laundering.
Najib will first face the Public Accounts Committee (PAC) in Parliament this morning before heading to the MACC headquarters in the afternoon.
Sources familiar with the investigation said a statement would be recorded from Najib today. While they did not reveal the amount of the misappropriation involved in the six more charges expected to be slapped against him, one can expect the total to run into billions of ringgit.
“It is a lot of money involved here,” said an MACC source without elaborating.
Last week, Najib was called up twice by MACC to explain the payment of over US$1.2bil (RM5.04bil) made to IPIC by 1MDB in a settlement over a US$6.5bil (RM27.3bil) claim made by IPIC.
The settlement was triggered by 1MDB’s default on a bond payment due in 2016, which was guaranteed by IPIC in 2012 for the acquisition of two power plants.
It is understood that Najib, who was chairman of the 1MDB advisory board, would be held liable for his role in the debt settlement.
It is, however, not known how many charges Irwan and Hasanah, both aged 61, will be facing. Irwan had been called up by investigators several times to be queried on the debt settlement between 1MDB and the Abu Dhabi wealth fund. His last session was on Aug 10.
Irwan had even lodged a report with MACC over the controversy involving the “missing” RM18mil in Goods and Services Tax (GST) refunds to determine if there were grounds for an investigation.
He later claimed that the allegation by the Pakatan Harapan government was baseless and that he lodged the report to enable the anti-graft body to investigate.
Finance Minister Lim Guan Eng had claimed in Parliament that the Barisan Nasional administration had stolen a total of RM18bil in GST refunds.
As for Hasanah, prosecutors are expected to bring several charges against her, mostly with committing criminal breach of trust.
She was among nine persons who were arrested in connection with misappropriating funds meant for the 14th General Election.
Hasanah, seven other former MEIO officers and a businessman were arrested in late August.
MACC deputy chief commissioner (operations) Datuk Seri Azam Baki was reported to have said that US$12mil (RM50.4mil) of government funds were allegedly misappropriated.
The cash was believed to have been brought in via air, possibly through the Kuala Lumpur International Airport.
Highly-placed sources in the anti-graft body had said that this needed to be looked into as it would be difficult to carry such a staggering amount of money undetected.
Malaysian law requires those bringing in US$10,000 (RM41,000) and above into the country to have it declared at the point of entry.
Investigators found out that the money was brought into the country in May.
Investigators also do not discount the possibility of the funds coming from 1MDB.
The MACC has already called several witnesses, including three foreigners, and at least 20 more witnesses will be tracked down to assist in the investigation, a source said.
MEIO was listed as the “research division” of the Prime Minister’s Department under the Barisan administration.
Hasanah had courted controversy after writing to US Central Intelligence Agency director Gina Haspel, appealing to the United States administration to support Najib.- The Star by mazwin nik anis
The Bombardier Global 5000 jet parked on the tarmac of Seletar airport in Singapore
PETALING JAYA: Malaysia will have to cough up at least RM3.5mil to bring the Global 5000 private jet that belongs to fugitive Low Taek Jho, better known as Jho Low, back to Malaysia.
The luxury private jet, which was impounded by the Singapore authorities since February last year, is currently parked at the Singapore Seletar airport.
“However, before the plane is allowed to be flown to Malaysia, Seletar airport has asked for settlement of the parking charges first,” said a source.
The source said the parking charges over the last 18 months have escalated to about RM3mil.
It is learnt that Seletar airport had indicated the fee to the Singapore authorities following Malaysia’s keen interest in taking possession of the plane.
Seletar airport is managed by Changi Airport Group Pte Ltd, a facility mainly used for private flights.
Changi Airport Group declined to comment on the parking charges.
“Due to client privacy, we will not be able to share the information,” its spokesman told The Star.
The source said the Malaysian government would have to pay the fee before the airport authority allows the plane to leave its tarmac.
It is understood that negotiations on the parking charges have been held between the Malaysia and Singapore authorities and the airport operator.
But to date, the source said, they have yet to reach a conclusion on the payment.
“The Malaysian government would also have to fork out another RM500,000 to service the aircraft, which has been grounded and left under the sun at the airport apron,” said the source.
The source said the aircraft that has been grounded since February last year is currently undergoing service maintenance work to ensure its airworthiness before it is allowed to be flown to Malaysia.
“The maintenance work on the airport craft is almost completed,” said the source.
The plane is likely to be taken to Subang Airport, a facility mainly used by private planes, said the source.
The Global 5000 jet was listed by the US Department of Justice (DoJ) as one of the assets bought using Malaysia’s state-owned 1MDB laundered money, through a series of shell companies and bank accounts.
In a court filing in June 2017, the US DoJ document stated Jho Low used part of the US$700mil (RM2.3bil in 2009) diverted from the 1MDB to acquire the luxury jet.
The Bombardier Global 5000 built in 2008 costs about US$35.4mil (RM145mil). The aircraft was bought at the end of 2009, less than three months after the US$700mil was moved away from 1MDB.
The plane, registered in the US as N689WM/MSN 9265, is registered to a company called Wynton Aviation and placed as a trust with Wells Fargo Bank Northwest.
Wynton Aviation is a company that was registered in the British Virgin Isles in 2009. The DoJ stated that Wells Fargo’s records indicate that it is a holding company owned by Low.
It was learned that prior to the plane being seized, the jet was based at Teterboro Airport New Jersey, close to Jho Low’s New York home.
Airliners.net website showed the plane had flown to Paris, Geneva, Beijing and London among other countries between 2009 and 2017.
Prime Minister Tun Dr Mahathir Mohamad had on Aug 13 said Malaysia was keen to take possession of the aircraft.
Early in the month, Malaysia also took possession of the superyacht Equanimity from the Indonesian authorities.
The vessel, valued at US$250mil (RM1bil), was handed over to Malaysian authorities near Indonesia’s Batam island on Aug 6.
It has since been brought back to the Boustead Cruise Centre in Pulau Indah.
Equanimity, which according to DoJ belongs to Jho Low and purchased with funds diverted from 1MDB, was seized by the Indonesian authorities in Tanjung Benoa port, Bali, in February.
The yacht, which is 54th in luxury vessels of its class in the world, was seized at the request of US authorities as part of its initiative to recover the billions diverted from 1MDB.
Another source said due to the high maintenance of the superyacht and its crew, the Indonesian government had decided to turn over the vessel to Malaysia at the request of Dr Mahathir when he visited Jakarta in June.
KUALA LUMPUR: Super yacht Equanimity of fugitive financier Low Taek Jho (Jho Low) fame, was bought using four tranches of funds totalling US$262.4 million misappropriated from 1Malaysia Development Bhd (1MDB) between January and June 2014, according to lawyers representing the Malaysian government who “arrested” the billion-ringgit vessel in Port Klang yesterday.
In fact, US$140.6 million or just over half the yacht’s price tag was paid in early June 2014 using proceeds of a US$239.9 million Deutsche Bank bridging loan taken by 1MDB’s then 100%-owned unit 1MDB Energy Holdings Ltd (1MEHL) on May 26, 2014, according to information from Sitpah Selvaratnam, from the firm Tommy Thomas Advocates & Solicitors and lauded as one of Malaysia’s best maritime lawyers. [See Chart 4]
Two days after getting the loan, 1MEHL transferred most of the cash to Aabar BVI (British Virgin Islands), also known as the fake Aabar. The money then went through Affinity Equity and Alpha Synergy before reaching Jho Low, who on June 3, 2014 transferred US$140.6 million to WorldView for the fourth and final payment of the yacht. The earlier three tranches originating from 1MDB also went to WorldView.
“WorldView Ltd is a family trust of which only the Low family are beneficial owners of,” according to Low’s email in June 2015 to a lawyer at Hill Dickinson LLP and a senior BSI banker cited in the 251-page filing by the US Department of Justice (DoJ) in June 2017 to seize 1MDB assets, including the Equanimity.
The same filing said Jho Low and his parents Low Hock Peng (LHP) and Evelyn Goh Gaik Ewe on Sept 9, 2013 flew from Barcelona to Rotterdam — near where the Equanimity was being built — to view the shipyard and the yacht the following day.
The DoJ filing also said Jho Low laundered over US$200 million in misappropriated funds traceable to 1MDB’s 2013 bond sale into a US account belonging to US-based law firm DLA Piper.
The US$29.1 million second payment for Equanimity made on Feb 5 and 18 as well as April 2, 2014 was part of the US$56.5 million that went from DLA Piper’s account to LHP — who with Jho Low participated in the Condor joint venture (JV) through Strategic Resources (Global) Ltd (SRG) to acquire Houston-based Coastal Energy with International Petroleum Investment Co (Ipic) and Ipic’s Spanish unit Compañía Española de Petróleos SA.
The first and third tranches of payments for Equanimity made on Jan 7, 2014 and April 11, 2014 originated from US$2.72 billion bond proceeds raised in March 2013 by 1MDB Global Investment Ltd, which found their way to another Jho Low-linked offshore entity, Tanore Finance Corp.
The bond proceeds were intended for a JV with Ipic’s unit Aabar Investments PJS called Abu Dhabi Malaysia Investment Co. But instead of funding the Tun Razak Exchange development, the cash ended at Tanore instead. The money in the Tanore account was also used to buy artworks and the Park Lane hotel in New York, according to the DoJ filing.
When questioned by reporters yesterday, former prime minister Datuk Seri Najib Razak said he has never been on the Equanimity and has no knowledge that the yacht was bought using 1MDB money.
“Why we didn’t pursue [to get back the yacht] earlier [was] because we were interested in the full settlement with United Arab Emirates on Ipic … that is worth much more than this Equanimity. That is the biggest sum; we wanted [this] big settlement to be settled first, that’s why we didn’t pursue the yacht,” Najib said, adding that the Equanimity “is being used as a populist move”.
“I have no knowledge whatsoever as to the yacht and also the yacht itself is subject to litigation. It’s not a clear-cut matter,” Najib added.
PETALING JAYA: Equanimity
could smash the world record for the most expensive superyacht ever to
be sold at auction in the event it goes under the hammer.
With the vessel now in Malaysian custody, all eyes are on the fate of the luxury yacht reportedly worth US$250mil (RM1bil).
Finance Minister Lim Guan Eng had said on Monday that his ministry wanted to get the best value from the Equanimity.
“Our aim is to draw back as much money as we can from the asset,” Lim
had said, adding that the immediate plan was to ensure that all
paperwork was in order and that all proper controls were imposed.
An online search of prices fetched so far by superyachts suggest that Equanimity could create a new record if the government decides to initiate an auction.
An article on the website of British publication Boat International listed the sale of the 72m Lürssen Apoise as the most expensive yacht ever auctioned.
At an auction in 2010, the yacht was sold for US$34.75mil (RM164mil), which is much lower than what Equanimity could be worth.
VesselsValue, a London-based online ship-valuation database firm, when contacted, said it valued Equanimity at US$175mil (RM712mil).
“Looking through our system, we also have the Apoise as the superyacht which has achieved the most at auction,” said VesselsValue associate director Claudia Norrgren.
The Apoise and Equanimity fall under the category
of a superyacht or mega yacht, which refers to a commercially operated
luxury yacht which is over 24m long.
Asked about the long term, Norrgren said superyachts don’t really go up in value.
“If it goes for auction it never realises its full potential as it is
a distressed sale,” she said, adding that there have been times when a
superyacht could go up in value from its ordered price.
“Pre-2018, people wanted a yacht immediately and there was a premium for very young superyachts, around one or two years old.
“Nowadays, it is a pretty stable market for second-hand superyachts,
with changes in value set by market depreciation rather than being
influenced by economic factors,” explained Norrgren.
The market for superyachts comprises the super-rich, also known as ultra-high net-worth individuals, said a luxury yacht broker.
The broker said it was in the best interest for the government to keep Equanimity in good condition in order to sell it easily.
The selling price of a used superyacht such as Equanimity, he said, would depend on a number of factors including how many people have been on the ship and used it daily.
The broker said offering Equanimity for charter service could diminish its value.
“The condition (of the yacht) will deteriorate. It will bring in
charter income but the resale price of the yacht will be reduced,” added
the broker.
Despite its eye-watering value, Equanimity is not the most expensive when it comes to superyachts.
In an online CNN article last month, which listed 10 of the most expensive superyachts, the top spot went to Serene, a 134m stunner that was reportedly bought by Saudi Crown Prince Mohammed Salman for US$550mil (RM2.24bil).
In 10th position is Octopus, a US$200mil (RM814mil) vessel commissioned by Microsoft co-founder Paul Allen.
KUALA LUMPUR (Aug 8): Former prime minister
Datuk Seri Najib Razak has arrived at the Kuala Lumpur Court Complex
this morning to face new charges against him in relation to SRC
International Sdn Bhd. He is scheduled to go to the Sessions Court today
to ...
... fund 1Malaysia Development Bhd (1MDB) has laid claim to ... bought using monies misappropriated from 1MDB, when it finally arrived ... plaintiffs — the 1MDB Group of Companies, 1MDB and two of ... its anti-kleptocracy investigation into 1MDB. The DoJ said proceedings ...
PORT KLANG: The 1Malaysia Development Bhd
legal team appointed by the Attorney-General’s Chambers to represent the
investment firm and the Government will be seeking a declaration of
ownership of the superyacht Equanimity. Free Malaysia Today reported ...
