MH370 Debris found in Reunion may give clues on when plane part broke


The pilots of Malaysia Airlines Flight 370 are Forst Officer Gambar Fariq Abdul Hamid, left, and Captain Zaharie Ahmad Shah at right.

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Video: http://edition.cnn.com/2015/07/30/world/mh370-debris-investigation/  

Saint-Denis, Reunion Island (CNN)When investigators get an in-peA policeman and a gendarme stand next to a piece of debris from an unidentified aircraft found in the coastal area of Saint-Andre de la Reunion, in the east of the French Indian Ocean island of La Reunion, on July 29, 2015. The two-metre-long debris, which appears to be a piece of a wing, was found by employees of an association cleaning the area and handed over to the air transport brigade of the French gendarmerie (BGTA), who have opened an investigation. An air safety expert did not exclude it could be a part of the Malaysia Airlines flight MH370, which went missing in the Indian Ocean on March 8, 2014. AFP PHOTO / YANNICK PITONYANNICK PITON/AFP/Getty Imagesrson view of a wingcomponent that likely came from a Boeing 777, they’ll be looking for not only a serial number but cluesas to why the part broke off the Boeing 777.

Story highlights

  • Independent group says damage appears to indicate flaperon came off while plane was in air
  • Plane debris will be sent to investigators in France on Friday, official in Paris tells CNN
  • Investigators confident debris found on an Indian Ocean island comes from a 777 aircraft
One group of independent observers said Thursday that the damage to the component — a right wing flaperon — should give authorities a good indication that the piece came off while the plane was still in the air.
The group, led by American Mobile Satellite Corp. co-founder Mike Exner, points to the small amount of damage to the front of the flaperon and the ragged horizontal tear across the back.
The rear damage could have been caused if the airliner had its flaperon down as it went into the ocean, some members of Exner’s group wrote in a preliminary assessment after looking at photos and videos of the component.
But the lack of damage to the front makes it more likely the plane was in a high-speed, steep, spiral descent and the part fluttered until it broke off, the group said.
Boeing and Australian officials are confident the debris — found Wednesday off the coast of a remote island in the west Indian Ocean — came from a Boeing 777 — and might be from Malaysia Airlines Flight 370, a 777 that disappeared in March 2014 with 239 people on board.
The plane debris will be transported to France on Friday evening, a spokeswoman for the Paris prosecutor’s office said. Agnes Thibault-Lecuivre said the piece will arrive in Paris on Saturday and will be sent to Toulouse, the site of the nearest office of the BEA, the French authority responsible for civil aviation accident investigations.
Exner’s group — an informal cadre of aviation experts — said that if the flaperon were still on the wing when the plane hit water, the front would have been damaged by hitting the part of the wing to which it was attached. And the rear damage looks like it was caused by stress rather than being bent and broken off when the plane hit the water.
But an aircraft component specialist who spoke to CNN disagreed.
The lack of damage to the front section “tells me that the component could still have likely been back in its original position inside the wing itself,” said Michael Kenney, senior vice president of Universal Asset Management, which provides plane components to airlines.

‘Highly confident’ component from Boeing 777

Boeing investigators are confident that debris found on a remote island in the Indian Ocean comes from a 777 aircraft, according to a source close to the investigation.
Martin Dolan, chief commissioner of the Australian Transport Safety Bureau, agreed.
“We are highly confident but it still needs confirmation that it is a part from a 777 aircraft,” he told CNN’s “Erin Burnett OutFront.” “The only 777 aircraft that we’re aware of in the Indian Ocean that could have led to this part floating is MH370. But as I said, we still need to confirm that through closer study.”

EXPAND IMAGE
People cleaning a beach found the debris Wednesday on Reunion, a French overseas territory in the western Indian Ocean.
The source said Boeing investigators feel confident the piece comes from a 777 because of photos that have been analyzed and a stenciled number that corresponds to a 777 component. A component number is not the same as a part number, which is generally much longer.
Images of the debris also appear to match schematic drawings for the right wing flaperon from a Boeing 777. A flaperon helps the pilot control the aircraft. It is lightweight and has sealed chambers, making it buoyant.
Despite this confidence, no one is saying the part definitely comes from a 777, much less MH370.
Finding the debris is a “significant development” in the search for MH370, Australian Deputy Prime Minister Warren Truss said.

More debris

New debris, which washed ashore Thursday and appears to resemble remnants of a suitcase, is also part of the investigation, Reunion Island police officials confirmed to CNN.
The flight vanished March 8, 2014, en route to Beijing. So far, no confirmed trace of it has been found, making it one of history’s biggest aviation mysteries and leaving relatives of passengers and crew members uncertain about the fate of their loved ones.
A preliminary assessment by U.S. intelligence agencies, produced in the wake of the MH370 disaster, suggested it was likely someone in the cockpit deliberately caused the aircraft’s movements before the Malaysian airliner disappeared.
Two U.S. officials briefed on the matter told CNN that the assessment, which was not intended for public release, was prepared months ago and was solely based on available satellite and other evidence.
The U.S. intelligence assessment was largely focused on the multiple course changes the aircraft made after it deviated from its scheduled Kuala Lumpur to Beijing route. Analysts determined that, absent any other evidence, it’s most likely someone in the cockpit deliberately moved the aircraft to specific waypoints, crossing Indonesian territory and eventually toward the south Indian Ocean.
Malaysian investigators haven’t reported finding any evidence that casts suspicion on the pilots.
The airliner’s crew has been the focus of attention since the mysterious disappearance, but no proof has emerged indicating they intended to destroy the plane. Law enforcement and intelligence agencies from numerous countries examined the plane’s manifest of crew and passengers and found no significant information to suggest anyone on board posed an obvious threat.

Missing plate

If it does turn out to be from Flight 370, the development would reassure Australian officials that they are looking for the rest of the plane in the right area, Truss and Dolan said.
Airplane debris found in western Indian Ocean

Airplane debris found in western Indian Ocean 02:27
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“It’s credible that debris from MH370 could have reached the Reunion Islands by now,” Truss said.
Malaysia Airlines is sending a team of investigators to Paris and a second team to Saint-Denis, Reunion, on Friday, an airline official in Kuala Lumpur, Malaysia, told CNN.
It’s unclear how identification will be made.
Normally identification would be aided by a small serial number plate attached to a flaperon, but the part found on the beach appears to be missing the serial number plate, according to photographs.

Other markings may be found on the part, said Kenney, the executive from Universal Asset Management.

Australia is leading the underwater search for the remains of Flight 370 in the southern Indian Ocean, some 2,300 nautical miles (3,700 kilometers) east of Reunion. But Truss said that French and Malaysian authorities will be responsible for establishing whether the debris found off the island came from the missing jetliner.

Australia has offered its help, he said, including asking marine experts to look at photos of the debris to determine whether barnacles on it are “consistent with something that was floating in the oceans for 16 months or more.”

Video: http://english.cntv.cn/2015/07/31/VIDE1438309202518257.shtml

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South China Sea Conflicts won’t affect Asean Cooperation


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Challenges we face are temporary

TIANJIN: China is confident that the conflicts at the South China Sea will not affect cooperation with Asean, says Chinese Vice Foreign Minister Liu Zhenmin.

He said China had been insisting on negotiation and consultation with the countries that also claim sovereignty in the disputed waters, and emphasising on working with Asean to uphold safety and freedom of navigation in the South China Sea.

“The challenges we are facing now are only temporary. There are broad prospects in the cooperation between China and Asean,” he said.

Liu was speaking to reporters together with Thai Foreign Ministry deputy permanent secretary Noppadon Theppitak after co-chairing the China-Asean senior officials’ meeting on the implementation of the Declaration on the Conduct of Parties in the South China Sea (DoC) here.

China and several countries in South-East Asia, including Malaysia, Brunei, the Philippines and Vietnam, assert overlapping claims on the resource-rich South China Sea.

Disputes have erupted with the claimants blaming each other for building military and civil facilities on the contested reefs.

Anti-China riots broke out in Vietnam last year when China deployed an oil rig in a section of the South China Sea claimed by both countries.

The Philippines has sought international arbitration to resolve the dispute, a move criticised by China as a betrayal to the commitment to solve the issue through dialogue and negotiations.

As tension continued to flare over the disputed waters, China has openly warned Japan and the United States against meddling in the conflicts.

On Tuesday, China carried out a live-fire drill in the South China Sea to “improve its maritime combat ability”, Chinese national news agency Xinhua reported.

Citing navy sources, Xinhua said dozens of missiles and torpedoes, as well as thousands of shells and bombs, were fired during the drill.

Expressing confidence that the conflicts in the South China Sea were “manageable”, Liu said there was no need to worry.

Without naming any countries in particular, he reminded third parties not to intervene and condemn China on the issue.

“The South China Sea is not an issue between China and Asean, but China and some countries in the grouping.

“Over the years, through the formulation of the DoC and the efforts to draw up a Code of Conduct (CoC), China and Asean have worked together to maintain peace and stability as well as to uphold freedom and safety of navigation in the South China Sea.

“China is confident and determined to work with Asean to jointly manage the issue,” he said.

Meanwhile, Noppadon said China and Asean had agreed to begin a new phase of consultations on the CoC and work towards its early conclusion.

He added that Thailand would submit a draft possible outline of the CoC for the consideration of the next joint working group, which would meet in Chengdu, Sichuan province, in October.

The meeting yesterday also witnessed the agreement to establish hotline communications between the Asean and Chinese foreign ministries to respond to emergencies at sea.

Malaysia was represented by Wisma Putra secretary-general Datuk Othman Hashim and three other officers in the meeting.

When approached, Othman said the meeting was peaceful and constructive.

“We discussed extensively on what we have achieved so far, and what has to be done for the future.

“We are working together with other Asean members for the implementation of the DoC and the development of the CoC,” he said.

Malaysia, which is the chair of Asean this year, will host a series of meetings, including the Asean Foreign Ministers’ Meeting and Asean Plus Three Foreign Ministers Meeting, from Aug 1 to 6.

Chinese Foreign Minister Wang Yi has confirmed his attendance.

BY THO XIN YI The Star/Asia News Network

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American FBI’s China accusation spurred by finance, not a good idea to spy on friends!


On Thursday last week, the FBI released a film entitled The Company Man: Protecting America’s Secrets, which targets economic espionage. The 35-minute film features two Chinese economic spies who try to bribe a US employee with money, attempting to acquire insulation technology from the latter’s company. The two were later prosecuted and caught in the net of justice. According to media reports, the video has already been shown nearly 1,300 times at US enterprises.

An FBI official publicly voiced that “China is the most dominant threat we face from economic espionage … The Chinese government plays a significant role.”

The official also declared that economic espionage has caused losses of hundreds billions of dollars annually to the US economy.

How much is “hundreds of billions of dollars?” Say $300 billion, about 2 percent of US annual GDP.

Since the FBI believes that there has been a 53 percent surge in economic espionage in the US, and 95 percent of US companies suspect that China is the main culprit, does it infer that China has stolen 2 percent of US GDP?

Some people may ponder that given the Cold War is over, Osama bin Laden and Saddam Hussein were eradicated and the war on terror is seemingly not that urgent for the moment, and in light of US federal budget constraints, the FBI needs to find new strategic reasons for more funds. Therefore, the “position” of “Chinese economic spies” has been greatly elevated.

What the FBI has done is bound to injure Sino-US relations. But it is US society that will suffer the most. Many Americans will hence think that their economy is fine, their companies have no problems at all and the only issue is the threat from Chinese economic espionage.


It looks to them like Chinese intelligence services and civilian business spies are much more powerful than the FBI, CIA and other non-governmental intelligence forces combined. China is not capable in every category except for spy technology. This is the logic of the FBI
.

If we take a good look at China’s overall development in this changing world, you will see that one-third of global new technical patents are now created by Chinese companies every year. Innovation has also become China’s national slogan. China will eventually be able to challenge the West’s dominance in high technology.

China is well aware that it should learn from the West, especially the US, in terms of technology. But this is not stealing.

US universities are also attracting students from all over the world, yet this brings more benefits than losses to the nation due to the dissemination of knowledge.

Someone who always claims that his house was robbed and feels free to suspect his friend or neighbor is the thief is very annoying, and that is what the US is doing right now. The whole world knows that US intelligent agencies are the most notorious regarding this issue.

We hope that the often-silent Chinese intelligence services could expose some hard evidence of espionage by US spies, and make a spy movie featuring US espionage, providing it with a mirror to look at itself.- Global Times

Not a good idea to spy on friends

THERE’s been so much dramatic news these days – from Greece’s miseries to Iran, China from blowhard Donald Trump – that the shocking story of how America’s National Security Agency has been spying on German and French leadership has gone almost unnoticed.

Last year, it was revealed that the NSA had intercepted Chancellor Angela Merkel’s cell phone. She is supposed to be one of Washington’s most important allies and the key power in Europe. There was quiet outrage in always subservient Germany, but no serious punitive action.

Brazil’s president, Dilma Rousseff, was also bugged by American intelligence. Her predecessor, Luiz Lula da Silva, was also apparently bugged.

This year, came revelations that NSA and perhaps CIA had tapped the phones of France’s president, Francois Hollande, and his two predecessors, Nicholas Sarkozy and Jacques Chirac. Hollande ate humble pie and could only summon some faint peeps of protest to Washington. Luckily for the US, Charles de Gaulle was not around. After the US tried to strong-arm France, “le Grand Charles” kicked the US and Nato out of France.

Last week, WikiLeaks revealed that the NSA had bugged the phone of Germany’s foreign minister, Frank-Walter Steinmeier, for over a decade. Imagine the uproar and cries “the Gestapo is back” if it were revealed that German intelligence had bugged the phones of President Barack Obama or Secretary of State John Kerry.

A lot of Germans were really angry that their nation was being treated by the Americans as a northern banana republic. Many recalled that in the bad old days of East Germany its intelligence agency, Stasi, monitored everyone’s communications under the direct supervision of KGB big brother at Moscow Centre.

The National Security Agency and CIA claim their electronic spying is only aimed at thwarting attacks by anti-American groups (aka “terrorism”). This claim, as shown by recent events, is untrue. One supposes the rational must be a twist on the old adage “keep your enemies close, but your friends even closer”.

Ironically, the political leaders listed above – save perhaps Brazil’s da Silva – are all notably pro-American and responsive to Washington’s demands.

Why would the US risk alienating and humiliating some of its closet allies?

One suspects the reason is sheer arrogance … and because US intelligence could do it. But must US intelligence really know what Mr Merkel is making Mrs Merkel for dinner?

Until WikiLeaks blew the whistle, some European leaders may have known they were being spied upon but chose to close their eyes and avoid making an issue. Raising a fuss would have forced them to take action against the mighty US.

Besides, British, Italian and French intelligence are widely believed to have bugged most communications since the 1950’s. But not, of course, the White House or Pentagon. The only nation believed to have gotten away with bugging the White House was Israel during the Clinton years. The Pentagon was bugged by a number of foreign nations, including Israel, China and Russia.

Humiliating Europe’s leaders in this fashion is a gift to the growing numbers of Europeans who believe their nations are being treated by the US as vassal states.

There is widespread belief in Western Europe that US strategic policy aims at preventing deeper integration of the EU and thwarting a common foreign policy or a powerful European military. Britain serves as a Trojan horse for America’s strategic interests in Europe.

Way back in the 1960’s, then German defence minister Franz Josef Strauss, an ardent proponent of a truly united Europe, thundered that Europeans would not play spearmen to America’s atomic knights. But, of course, that’s just what happened.

The US still runs and finances Nato in the same way the Soviet Union commanded the Warsaw Pact. Washington calls on Europe for troop contingents in its Middle East and south Asian colonial wars in the same way that the Persian Empire summoned its vassals to war.

Many Germans and French, both right and left, would like their leaders to react more forcefully to NSA’s ham-handed spying. However, Merkel and Hollande are both political jellyfish eager to evade any confrontation with Big Brother in Washington. Maybe he has too much dirt on them.

But a confrontation is inevitable one day if Europe is to regain its true independence that was lost after World War II.

By Eric S. Margolis who is an award-winning, internationally syndicated columnist. Comments: letters@thesundaily.com

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Japan security bills, Abe fans anti-China flames with defense paper


By Li Feng

Abe fans anti-China flames with defense paper

People hold placards during a rally against Japan’s Prime Minister Shinzo Abe’s administration and his security-related legislation in front of the parliament building in Tokyo July 15, 2015. [Photo/Agencies]

The Japanese Cabinet on Tuesday approved its annual defense white paper, in which it accuses China of raising regional tensions in the East China Sea and South China Sea. China’s Ministry of Defense expressed strong dissatisfaction and opposition toward the 429-page document later the same day, saying it “tarnishes the image of China’s military” and deliberately plays up the “China threat” theory. Comments:

By defaming China as a regional security threat in its defense white paper, the Japanese administration led by Prime Minister Shinzo Abe is clearly aiming to add necessity and legitimacy to the new security bills, which breach Japan’s pacifist Constitution, and complicate Asia-Pacific security issues such as the South China Sea disputes. It will be unfortunate for both Japan and East Asia if Abe remains adamant on challenging China.

Xinhua News Agency, July 21

Japan’s defense white paper for 2015 is not conducive to safeguarding peace and stability in East Asia. The so-called threat is not from China but Japan itself.

Kamakura Takao, an emeritus professor of Saitama University, Japan, July 21

Two new implications in Japan’s latest defense white paper should be noted. First, the document is in line with the new security bills that Abe is trying to muscle through, offering excuses for the country’s overseas military deployment. Second, as a non-stakeholder in the South China Sea issues, Tokyo may propose to participate in the US patrols in the area to expand its regional presence, and, of course, conduct more overseas military operations. It is a dangerous move that other regional powers should pay close attention to.

Qian Feng, vice-president of Asia Times, July 22

In the past, Japan used to see the Soviet Union and the Democratic People’s Republic of Korea as the top threats. Now China has become the No 1 “threat”. Confronted with the “unexpected” opposition to his security bills in Japan, Abe has resorted to the defense white paper to defuse public rage and convince peace-loving Japanese that the bills’ passage is necessary.

Ny Huang Dahui, director of the East Asia Research Center of Renmin University of China, July 21

Source: Asia News Network/China Daily

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BRICS and SCO: Seizing the Eruasian moment


While the West is distracted by the Gulf region and Ukraine, moves are afoot in parts of Asia and Europe to empower emerging regions in the future

IF there is still any doubt that Russia and China are cultivating their global presence together, events in recent days come as a timely antidote.

The five emerging BRICS economies of Brazil, Russia, India, China and South Africa, spanning nearly as many continents, had their seventh summit in Ufa, south-western Russia on Thursday.

Any lingering uncertainty over Moscow-Beijing relations would also have been dispelled by the fact that the BRICS summit was held back-to-back with the 15th Shanghai Cooperation Organisation (SCO) summit on Friday.

The SCO is an association of six countries – Kazakhstan, Kyrgyzstan, Tajikistan, Uzbekistan – and prime movers China and Russia, which also happen to be dominant. Its summit this time saw a growth in membership with the inclusion of India and Pakistan.

The BRICS countries have certain shared concerns and objectives, such as national development and international commerce that need not conform to the strictures of the Washington Consensus.

Strictures imposed by the Bretton Woods institutions, the World Bank and the International Monetary Fund (IMF), have bled already anaemic economies and destabilised countries in the developing world on the basis of ideological prescriptions.

At the same time, these Western-dominated financial institutions failed to give emerging economies, epitomised by China, their rightful voice according to their global economic importance. Thus a cash-rich China has had to evolve financial institutions of its own.

Such multilateral efforts are best done together with like-minded nations. So besides BRICS, SCO countries that span Eurasia – with a collective focus on Central Asia and now also South Asia – have come together to develop alternative funding agencies.

In addition to the Beijing Consensus of rapid growth that is politically conscious, defined and directed, there is now the “Shanghai Spirit” of mutual respect, trust, benefit and consultation with equality.

These values broadly mirror the Five Principles of Peaceful Coexistence adopted by China and India (Panchsheel Treaty) two generations ago.

But even as SCO membership sees steady growth, it is clear enough that its main drivers and those of BRICS are China and Russia. By dint of sheer size and capacity, particularly those of China, Beijing and Moscow have come to lead the rest.

The way Washington has managed to alienate China and Russia at the same time has helped develop their partnership. Following years of US criticism of both countries, the US navy chief lately branded Russia as the greatest threat while presidential hopeful Hillary Clinton accused China of hacking US sites.

Russia and China were thus prodded by the US to work more closely together. US foreign policy is often said to be defined by domestic interests, or perceived interests, and this is seldom more true than when a presidential election campaign approaches.

However, improving relations between China and Russia are not thanks solely to US posturing. Moscow and Beijing are not without common interests of their own.

On Thursday, Russian Foreign Minister Sergei Lavrov rallied member countries of both BRICS and the SCO to fight terrorism together. International terrorism today is a clear and present danger, a substantive threat and a common scourge requiring close cooperation particularly among neighbouring countries.

While BRICS’s terms of reference are more economic, the SCO’s are broader and more strategic. Within BRICS, member nations have formed a Business Council and formulated an Economic Partnership Strategy. Key sectors are manufacturing and infrastructure besides clean energy and agriculture.

But the star attraction at Ufa was the launch of the New Development Bank (NDB), also known as the BRICS bank, with an initial capital of US$100bil (RM378.2bil).

To be based in Shanghai with its first president in India’s K.V. Kamath, the NDB would be raising funds locally and internationally. It is set to issue its first loans next April. This is among four new financial institutions championed by China, the others being the Asian Infrastructure Investment Bank, the Silk Road Fund and the SCO’s Development Bank.

In the SCO context, member countries had made strides in the energy, telecommunications and transportation sectors. Now such gains needed to be affirmed while also developing opportunities in agriculture. Russia places a special priority on the Eurasian Economic Union (EAEU), which also covers Armenia, Belarus, Kazakhstan and Kyrgyzstan, with Russia dominant. China has prioritised its Silk Road Economic Belt initiatives linking Asia with Europe.

Working together, the EAEU and the Silk Road projects would be promoted jointly by the SCO. The proposed financial institutions, to which China would be contributing the most, would finance these and other related projects.

The fortunes of BRICS economies however have dipped in recent months. The Ufa summit did not deny the current challenges but chose to emphasise the positives.

Although numbering just five countries, the BRICS group had contributed half of the world’s economic growth over the past decade and produced 20% of total global output. No less than IMF findings show that until 2030 at least, BRICS growth would outperform developed and other emerging economies.

For Russia, the plans and initiatives have a more immediate tactical purpose – to alleviate economic pressures brought on by Western sanctions against its moves in Ukraine.

For China, the longer-term strategic purpose covers efforts to facilitate more trade, expedite internationalisation of the renminbi and generally build and solidify China’s global stature.

In investing massively in the new financial institutions however, Beijing will be competing against the IMF, the World Bank and the Asian Development Bank.

In doing so it will have to be more borrower-friendly, minus the strictures so synonymous with the Western-run rivals. The official word is that these new lending agencies are not going to challenge the Bretton Woods institutions, but the practical effect is nonetheless to offer borrowers more choice.

To substantiate the claim that the new institutions will neither rival nor replace the older ones, China is also calling for more open international accountability of the IMF and the World Bank. Somehow that may still not come as comforting news to Western power brokers.

But after all the platitudes and hurrah in Ufa, there are now the realities to contend with.

Strategic analysts prefer to gauge the viability of regional institutions based on the common interests shared among member states. In this respect, the future of BRICS may seem less promising than the SCO’s. Precisely because of the broad spread of the BRICS countries, there is little they have in common besides an affinity with alternative modes of development.

Their economic growth has been significant, but achieved independently of other BRICS nations and – except for China – with little support from (integration with) other countries in their respective regions.

The obvious question arises as to how sustainable can BRICS as an entity be. The fortunes of international associations depend on more than goodwill and bravado.

The SCO by comparison holds more prospects for success. By comprising a contiguous region that includes Eurasia and a substantial chunk of the Asian land mass, cross-border concerns are shared and can be attended to jointly.

Furthermore, practical projects like the Silk Road Economic Belt and the EAEU require constant attention, commitment and contributions from the 60 countries and regions that are involved.

This may mean more obligations to begin with, but consistent maintenance will ensure better management and success.

Bunn Nagara
By Bunn Nagara Behind the headlines

> Bunn Nagara is a Senior Fellow at the Institute of Strategic and International Studies (ISIS) Malaysia.

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1MDB probe gains momentum, a sensitive time for PM and Umno


PETALING JAYA: The probe into claims that funds  were channelled into the personal accounts of Prime Minister Datuk Seri
Najib Tun Razak heated up when the task force investigating the matter froze six bank accounts and said it was looking into 17 others.The Wall Street Journal (WSJ) meanwhile revealed documents that it claimed were the basis of its controversial story.

The freeze on the six accounts was issued on Monday, according to a statement issued jointly by Attorney-General Tan Sri Abdul Gani Patail, Bank Negara Malaysia governor Tan Sri Zeti Akhtar Aziz, Inspector-General of Police Tan Sri Khalid Abu Bakar and Malaysian Anti-Corruption Commission chief commissioner Tan Sri Abu Kassim
Mohamed.

“Several documents over the issue of non-compliance with Bank Negara’s rules and procedures have also been seized,” it read.

“As the investigations are still under way, we appeal to all parties to give their fullest cooperation to complete the probe.”

It is learnt that the 17 accounts belonged to various companies and individuals.

While neither the banks involved nor the holders of the accounts were named, several portals claimed they had received confirmation that three of the accounts belonged to Najib.

Hours after the statement was released, WSJ uploaded nine documents on its claim that US$700mil (RM2.6bil) were channelled into three personal accounts of Najib.

The nine documents comprised three flow charts, three remittance forms, two credit transfer notices and a letter of authorisation by Nik Faisal Ariff Kamil, the former chief investment officer of 1Malaysia Development Bhd (1MDB).

However, Najib’s name appeared only in the flow charts. It was not in any of the banking documents in which the last few digits of the account numbers were blanked out.

A banker said it was normal that entire bank account numbers were not made public for fear that the accounts could be hacked.

“What is important is the codes in the documents are correct,” said the banker.

The charts detail funds flowing from SRC International Sdn Bhd, a company that used to be under 1MDB but was subsequently taken over by the Finance Ministry in 2012, into personal accounts supposedly belonging to Najib.

According to the charts, the funds flowed into AmPrivate Banking in AmBank Islamic and the beneficiary, it claimed, was Najib.

Based on one chart, the funds flowed out of SRC International’s account in AmBank Islamic into Gandingan Mentari Sdn Bhd, also in Ambank
Islamic.

Subsequently, the money was transferred to Ihsan Perdana Sdn Bhd, whose account is in Affin Bank. From there, the funds were moved to AmPrivate Banking in AmBank Islamic.

There were three accounts under AmPrivate Banking in AmBank Islamic supposedly belonging to Najib. The last few digits of the accounts were blanked out.

The Prime Minister’s name was not to be found in any remittance transfer forms from Affin Bank to AmBank Islamic.

The total amount transferred from Affin Bank to AmBank Islamic was RM42mil and the transactions were done in three tranches.

There were two transactions on Dec 26, 2014 and one on Feb 9, 2015. The reasons for the transfer of funds by Ihsan Perdana to the AmPrivate Banking account were stated as CSR programmes.

Najib’s name is also not visible in the two credit transfer notices from Wells Fargo Bank in the United States to the AmPrivate Banking account under AmBank Islamic.

But a banker said it was normal for the beneficiary’s name to be left out of remittance forms or credit transfer notices.

“The identity of the beneficiary does not need to appear if it is a familiar name. The banks only need the necessary codes and account numbers,” said the banker.

The funds from Well Fargo amounted to US$681mil and were transferred in two tranches, on March 21 and March 25, 2013, according to the documents.

The transaction order came from Tanore Finance Corp in British Virgin Island. The funds were transferred to AmPrivate Banking account in AmBank                                                Islamic under the Swift Output Code of Single Customer Credit Transfer.

“A Single Customer Credit Transfer means the account is held by an individual,” said the banker. – The Star

Sensitive time for PM and Umno

DATUK Seri Najib Tun Razak has been out and about every day since the start of the fasting month.

He has been seen at a number of Ramadan bazaars, he has been the VIP guest at various buka puasa functions and he has joined the congregation for evening prayers after the breaking of fast.

The fasting month is a test for all Muslims and even more so for the Prime Minister given the issues surrounding him.

The 1MDB issue has snowballed into a political monster for his administration and he is fighting what could be the biggest battle of his political career.

Allegations in The Wall Street Journal (WSJ) that billions of ringgit went into what is believed to be his personal bank account are still reverberating among the financial and political circles.

Najib has responded to the report, calling it wild allegations and insisting that he has never taken funds for personal gain. It was not quite the explanation or answer that people were expecting and it has raised more questions than provided answers.

But many in Umno are prepared to give him the benefit of the doubt even though they are unsure what to make of it.

Najib has a lot of support in his party and up until the recent allegations, he was said to have won over some 75% of the 191 Umno division heads.

They want to rally around him but they need clear answers in order to defend him.

Najib has made it very clear that he intends to sue WSJ and his lawyers are preparing a case to be filed soon against Dow Jones, the publisher of WSJ, in the United States. That is the way to go to clear his name.

The pressure mounted yesterday when four of the country’s top regulators and law enforcers issued a joint statement, saying that the special task force probing 1MDB had frozen six bank accounts related to the case.

The affected bank accounts were not identified but the signatories comprised the Attorney-General, Bank Negara Governor, Inspector-General of Police and the MACC chief.

It was unprecedented and it was a sign that the investigations had become more serious and complicated. The snowball has grown bigger.

Najib’s deputy Tan Sri Muhyiddin Yassin has added to the pressure. He had asked the authorities to look into the WSJ allegations and Umno vice-president Datuk Seri Shafie Apdal has joined in.

Their move confirms the political divide in the party that the Umno crowd has been talking about.

Umno politicians also noticed that Tun Dr Mahathir Mohamad has been rather restrained after months of relentless attacks and it could mean two things.

One, he feels that he has achieved his desired objective – he has got Najib up against the wall.

Two, Dr Mahathir might have realised that in his determination to remove the head of the house, the entire house may come down too.

His campaign against Pak Lah contributed to the 2008 political tsunami and his attacks against Najib has damaged Umno even more.

A group of Umno supreme council members met Najib at his official residence on Sunday night. It was very hush-hush and none of those who attended picked up or returned the calls of reporters, let alone spoke about what transpired.

The speculation is that the meeting was probably not about declaring support for the boss, otherwise they would not be so secretive.

The group was there to seek answers about what Najib plans to do and where he intends to go from here. This is a very sensitive time for Umno and especially for Muhyiddin. He played a leading role in Tun Abdullah Ahmad Badawi’s exit and he is again in the spotlight.

It is doubly sensitive for Muhyiddin this time around because he is an interested party.

Muhyiddin is being extra cautious because he understands the powers of incumbency and is aware of what the Prime Minister could do to those who are not with him.

Moreover, Najib’s tentacles in the party go back a long way and whoever wants to take him on has to consider the repercussions from his hardcore supporters.


By Joceline  Tan Analysis The Star

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China committed to upholding peace, stability in S. China Sea island-building, rejects US criticism to isolate China in Asia


Admiral Sun Jianguo, deputy chief of staff of China’s People’s Liberation Army (PLA) addresses the fourth plenary session of the Shangri-La Dialogue in Singapore, May 31, 2015. Sun Jianguo elaborated on China’s foreign and defense policies. (Xinhua/Bao Xuelin)

http://player.cntv.cn/standard/cntvOutSidePlayer.swf

http://english.cntv.cn/2015/06/01/VIDE1433110801945569.shtml

China must insist on island-building

During the just-concluded Shangri-La Dialogue, military representatives from China and the US did not engage in the bitter brawling predicted by the media. Both sides have reaffirmed their own stance. US Defense Secretary Ashton Carter asked all claimants, especially China, to cease island-building in the South China Sea, and by cautiously skirting around the question of how the US will respond if China continues its construction activities, Carter didn’t issue further threats against China.

But the US is still able to launch more provocations in this region, perhaps by sending surveillance planes and warships to the periphery of 12 nautical miles from China-controlled islands.

No matter how disturbing the US can be, China must not stop its construction, which is in line with China’s sovereign integrity. If Beijing backs off due to Washington’s threats and some Western countries’ protests, this will create a horrific precedent, which will embolden US-led forces to set tougher positions against China. China should try its best to inject prosperity into the South China Sea, promoting regional economic development and enhancing its disaster resistance ability. Only in this way will the ongoing quarrels calm down.

If China can play its cards right, these expanded islands will not only prevent the South China Sea situation from becoming intensified, but initiate a new constructive thinking for regional development. China’s construction activities will offer an opportunity to break the vicious circle that has been haunting the South China Sea for decades.

These expanded islands will allow China to acquire more initiative to carry out its South China Sea policies. For now, it is China that values regional peace more than any other state, because the stability of the South China Sea is a prerequisite for China to make use of this important period of strategic opportunities.

As of now, military confrontation is still the last choice for all stakeholders in the South China Sea. However, different desires and expectations have caused the complexity in the South China Sea issues. When China can set a firm foothold in the area, it will bring along more elements that can drive peace and stability.

China needs to make broad plans including countermeasures against more US intrusions. Beijing should be fully prepared, both mentally and physically, for possible military conflicts with the US. China needs to clearly express its unwillingness as well as fearlessness to fight. The more prepared China can be, the lower the possibility of military conflict.

This round of contest in the South China Sea is more like a strategic dialogue, through which China and the US can come up with a set of models and principles under which they can show mutual respect around China’s offshore areas.

If China insists on its island construction, publicizes its peaceful purposes, and avoids making these expanded islands a focal point of Sino-US military competition, we believe it will be eventually accepted by the widest number of parties concerned. – Global Times

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