Amedeo Development Corporation
[9] In 1992, Jefri Bolkiah was appointed minister of finance and chairman of the Brunei Investment Agency (BIA), tasked with managing the sultanate's extensive oil wealth.
[15] Exclusive to the royal family and their guests, the Jerudong Park Polo Club featured a clubhouse, sports fields, and 200 imported Argentine horses, highlighting the opulence of Jefri Bolkiah's vision.
At the same time as this financial catastrophe, Jefri Bolkiah was sued by the BIA and the Bruneian government for allegedly misusing an estimated $15 billion in state funds.
Jefri Bolkiah agreed to repay the funds and assets he was accused of embezzling while serving as the head of BIA and finance minister as part of an out-of-court settlement reached in 1998.
[21] In an attempt to recover, Jefri sold off several of his businesses, including the Asprey Group, the jeweller Hamilton and Inches, and the couturier Tomasz Starzewski.
[23] The demise of Amedeo has been marred by serious accusations, including claims that the company may have embezzled money from the BIA, which Jefri Bolkiah had led until his removal in July 1998.
However, Jefri Bolkiah's legal attempt to block KPMG from sharing information on his private financial transactions hindered the investigation, with a UK court upholding his suit in November, potentially complicating the task force's work.
[22] After Jefri Bolkiah's removal, the government appointed Arthur Andersen to manage Amedeo's executive operations and Freshfields as its unofficial legal advisers.
[11] Global Evergreen was chaired by Abdul Aziz Umar, the minister of education and health, and also included Pengiran Rakawi Sabli, Jefri Bolkiah's confidential secretary, and Joseph Hage, his British legal counsel.
[22] Abdul Aziz, Jefri Bolkiah's successor at the BIA, acknowledged challenges in tracking funds but argued that these issues were exaggerated and promised a more transparent accounting system in the future.
The case attracted global attention in 2001 when Amedeo's liquidators, Foo, Kon & Tan of Singapore, held a highly publicised auction of the company's assets.
The auction showcased the extravagant nature of Amedeo's acquisitions, featuring over 100 chandeliers, gold-plated toilet brush holders, and even an Apache attack helicopter simulator.
[24] As the remains of the once-powerful corporation were dismantled, buyers gathered in the intense heat of a large plaster factory on Amedeo's grounds, struggling to hear the auctioneer over the deafening hum of massive fans.
Items ranging from pizza ovens and gym equipment to crystal chandeliers and gold-trimmed Jacuzzis painted a striking picture of the luxury that had characterised Amedeo's ventures.
[10] Amid rising public pressure from the Amedeo crisis, the government tightened political control and raised wages for state employees, who made up 80% of the workforce.
The lingering fallout from Amedeo's collapse and subsequent administrative changes underscored the delicate balance between reform and the need to restore public and international confidence, highlighting the close relationship between financial stability and Brunei's political evolution.
Selamat's dismissal raised speculation, with some suggesting his recent proposals for a personal income tax and reductions to senior officials' benefits may have contributed to his removal.
[5] However, a major change was brought about by the demise of Amedeo and Brunei's Bruneianisation program, which sought to lessen the country's reliance on foreign labor in the public sector.
Just 10% of the US$6.2 billion that the BIA and other creditors invested in Amedeo might be considered to have gone toward infrastructure upgrades, such as the construction of an international school, a telecommunications tower, and the Berakas power station.
