The Wall Street Journal and whistle blower site Sarawak Report released reports Friday quoting documents they alleged were from an ongoing 1Malaysia Development Bhd (1MDB) probe that claimed that the $700 million moved among 1MDB-linked government agencies, banks and entities, before ending up in Razak’s personal accounts in five separate deposits.
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On Tuesday a task force investigating Malaysia’s troubled state investment fund 1MDB said it had frozen half a dozen bank accounts following the WSJ’s report.
Others disagree. The slow drip of support away from Najib within his United Malays National Organization, while not public, is increasing as party leaders fear that the massive corruption implied by the revelations will destroy the party’s 60-year hold on power.
Najib has accused former premier Mahathir Mohamad, an ally-turned-critic, of fanning allegations he described as a lie.
The fund was already an embarrassment to him – not only has it run up $US11.6 billion in debts and attracted inquiries by four different institutions, from the auditor-general to the police, but Najib himself chairs the fund’s advisory board.
One of the prime minister’s aides, meanwhile, said Najib would take legal action against the U.S. newspaper.
Najib, 61, has denied the allegations saying these were part of a concerted campaign of “political sabotage” to topple a democratically elected Prime Minister. Najib reiterated that there was a political plot against him, writing on his blog: “I would like to stress again that I have never taken 1MDB’s funds for personal use”.
“Reference is made to the said article wherein it has been stated that our client had been directly probed into 1MDB, however contents of the article refers to indirect transactions where our client has been implicated with 1MDB-linked companies”, the firm said in the letter.
“A further concern was that the documents were allegedly leaked from within the investigation itself”, he said in his statement.
The country’s attorney general confirmed over the weekend that he had received documents from investigators that linked Najib and 1MDB.
“These allegations are serious because they can affect the credibility and integrity of Najib as PM and the leader of the government”, Deputy Prime Minister Muhyiddin Yassin said in a statement.
“Financial institutions in Singapore are required to conduct rigorous customer due diligence, regular account reviews, and to monitor for and report any suspicious transactions,” the Monetary Authority of Singapore reportedly said.
“Even if nothing comes up from the investigation, the damage to Najib’s reputation has been done”.
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In March, the Audit Department was commissioned by Najib to audit 1MDB’s books, following widespread allegation of irregularities in the company’s finances.
