Malaysia’s worldwide reserves rose in the first two weeks of September in a welcome boost to the country’s weakened external position, indicating the central bank may have eased off slightly from defending an embattled ringgit currency. All issues pertaining to 1MDB should be resolved.
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The NYT said the probe is focusing on USA properties that were purchased by shell companies belonging to PM Najib’s stepson and the premier’s personal bank accounts.The prime minister’s office didn’t respond to a phone call and text message seeking comment on the report.A report days earlier from the Wall Street Journal said the US Federal Bureau of Investigation began a probe into alleged offshore money laundering by state investment company 1Malaysia Development Bhd.
1MDB has been the subject of multiple investigations, amid allegations of financial mismanagement and graft.
“1MDB is disappointed that Tan Sri Zeti appears to single out 1MDB for the current weakness of the Ringgit”.
Besides a resolution of domestic issues, Dr Zeti said other factors which could prompt a recovery in the ringgit included an eventual decision by the United States Federal Reserve to raise interest rates, a recovery in global commodity and energy prices, and an improvement in China’s economy.
“Historically, never once has a company been linked in such a way to the value of the ringgit”.
The ringgit added to yesterday (Sept 21)’s decline after the New York Times reported the US Justice Department has started an investigation into allegations of corruption associated with Malaysian Prime Minister Najib Razak and people close to him, spurring a surge in debt insurance costs.
Bank Negara is one of the three agencies investigating the 1MDB cash flow problem due to its debts of nearly RM42bil.
“Even the Bank Negara Malaysia Governor Tan Seri Zeti Akhtar Aziz has said there are possible contraventions in approvals granted to 1MDB”, he pointed out.
“In this day and age, it must be known that there is no place on this planet that anyone can hide”.
“‘We don’t need any more scandals, we don’t need political uncertainty”, Zeti said Monday.
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In a press statement, the commission said it had to repeat this explanation since there were still questions from reporters and statements associating 1MDB investigations with MACC. “We trust that the facts shared by 1MDB and the immediate clarifications issued to date, will provide clarity and assurance to all concerned parties”, 1MDB said.
