The diverted funds paid for luxury properties in NY and California, a $35 million jet, art by Vincent Van Gogh and Claude Monet and helped finance the Hollywood film, “The Wolf of Wall Street”, according to federal government complaints that demand the recovery and forfeiture of the ill-gotten assets.
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News that USA prosecutors are seeking to seize more than $1 billion in assets linked to an embattled Malaysian state development fund has divided opinion in Malaysia and led to fresh calls for Prime Minister Najib Razak to resign.
Singapore authorities have seized assets worth S$240 million ($176.82 million) in an investigation of 1MDB-related fund flows for possible money laundering, in a probe which has found “deficiencies” at several major banks in the city-state.
In the statement, the prime minister’s office said it would “fully cooperate with any lawful investigation of Malaysian companies or citizens, in accordance with global protocols, as the prime minister has always maintained, if any wrongdoing is proven, the law will be enforced without exception”, he added.
The film was produced by a company owned by Najib’s stepson Riza Aziz using more than $100 million siphoned from 1MDB, the Justice Department said.
USA government-seized assets are usually sold off at auction to raise money for victims.
1MDB, or 1Malaysia Development Berhad, was launched by Najib in 2009 to invest in economic development projects.
“I believe the Malaysian people want Najib to go on leave as prime minister so as not to create the perception of abuse of power … or to hinder a full and transparent investigation on this very serious issue”, opposition leader Wan Azizah Wan Ismail, wife of jailed political figure Anwar Ibrahim, said. “(BVI)”, said a joint statement by the Monetary Authority of Singapore, the Attorney-General’s Chambers and the Commercial Affairs Department.
Amanah Strategic Director Dr Dzulkefly Ahmad says Prime Minister Najib Razak is ultimately morally responsible for the sovereign fund.
Dzulkefly said that the Umno Supreme Council was the “last bastion” to remove Najib. The complaint describes Riza as a relative of an unnamed “Malaysian Official 1” whose approval was needed for the fund’s financial commitments.
The US Justice Department on Wednesday moved to seize more than US$1bil in assets allegedly tied to corruption at 1MDB. Also present are Deputy Minister in the Prime Minister’s Department Datuk Razali Ibrahim (second left) and Felda chairman Tan Sri Mohd Isa Abdul Samad (second right).
Malaysia’s Attorney-General Mohamed Apandi, however, expressed “strong concerns at the insinuations and allegations” of wrongdoing against Najib in the lawsuits.
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About $1.3 billion raised through purportedly legitimate bond offerings was swiftly transferred to a Swiss bank account and, from there, distributed to fund officials for their personal benefit.
