From: Patrick Mahony <[email protected]>
To: Radhi Mohamad
Cc: Shahrol Halmi; Casey Tang; Tarek Obaid < [email protected]>; Nik Faisal Ariff Kamil
Sent: Sat Dec 19 21:03:10 2009
Subject: RE: Finance AdministrationRadhi,
I just wanted to explain to you how the PetroSaudi team works as it relates to the 1MDB PSI JV. The JV has four directors, Shahrol, Casey, Tarek and myself. For any matters related to the JV, Tarek and myself are the only PSI people that have any involvement with the JV. So any queries related to the JV should only be addressed to Tarek and myself.
Rick is responsible for all of the operations below the JV, which start at PSI Cayman. This is where the whole team is that manages the operations and this is the main holding company for all of the PetroSaudi investments. We want to keep Rick and the team only focused on operations so do not want them involved in the JV at all. The JV is where the funds are managed and these are shareholder matters that Rick and the team should not be privy to. The funding and investment decisions at the JV level should only stay with Tarek and myself from the PSI side.
In answer to your question below, the JV does not have any auditors yet. All four of the directors know this well as we have not chosen any yet. This is something we will do at our next board meeting (currently scheduled for the 28th but will likely be moved into January as this is not a very convenient date). Also the financials of the JV are pretty straightforward. It has received $300m and the $300m is still there – though we are currently looking to move funds now to fund working capital requirements of PSI Cayman (and the companies below) as well as various new investments that are being proposed by the shareholders of the JV.
I hope this is clear. We will get auditors in at the JV eventually but currently, the situation is quite simple as the JV is just a bank account for the time being and we can all track the movements of that cash easily
This email printed by the Malaysia Chronicle as part of its commentary on the 1MDB scandal is one of thousands still being examined from the crook company PetroSaudi’s database.
In it Patrick Mahony admits something in private to his 1MDB contact, which 1MDB and PetroSaudi have repeatedly denied in their public statements, which is that only USD$300 million was ever paid into the joint venture out of the US$1 billion ‘invested’ by 1MDB.
“the financials of the JV are pretty straightforward. It has received $300m and the $300m is still there”, says Mahony three months after the transfer.
So what happened to the remaining US$700 million?
When Sarawak Report detailed how that vast sum was siphoned off into the company Good Star, owned by Jho Low, 1MDB and PetroSaudi repeatedly denied it and claimed that Good Star was a subsidiary of PetroSaudi and somehow part of the joint venture.
But, in his private email above Mahony makes clear that he knows perfectly well that the JV received only US$300 million.
What’s more, three months on he confirms that the JV consisted merely of a bank account with the money in it – there was no investment being made at all.
As this revealing email also makes plain, the crooked directors Mahony and Tarek Obaid were very anxious to make sure that their lofty boss, the PetroSaudi President Rick Haythornthwaite, was kept right out of the loop on all matters relating to this funding arrangement from 1MDB.
Haythornthwaite was a top UK businessman after all and he could not be involved in condoning the daylight robbery of 1MDB.
Given all the subsequent publicity however, it is telling that Mr Haythornthwaite continues to defend his colleagues over this thieving contract and to criticise journalists like Sarawak Report for exposing the criminal deal his shareholders took part in – without apparently wishing to examine the facts of the case….. time he asked to check his own company’s database?