How 1MDB cheats skimmed millions of dollars in ‘secret profits’

SINGAPORE (July 14): Malaysian businessman Low Taek Jho, better known as Jho Low, was “closely involved” in a scheme to skim millions of dollars in secret profits through a restructuring of 1Malaysia Development Bhd’s (1MDB) interest in PetroSaudi Oil Services Limited (PSOSL), according to state prosecutors.

Prosecutors this week revealed that BSI bank in Singapore had received instructions in mid-2012 to assist 1MDB to “restructure” its interest in PSOSL under a fiduciary fund structure. Post-restructuring, the value of 1MDB’s interest was to be marked as US$2.32 billion ($3.19 billion).

Investigations revealed that the principal assets of PSOSL were two aging drill ships: the PetroSaudi Saturn and PetroSaudi Discoverer. The vessels were each more than three decades old, and only one of the two was generating revenue.

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