The Swiss attorney general’s office investigating Malaysian state-owned development fund 1MDB said on Friday it suspects that about $4 billion has been misappropriated from “Malaysian state companies”. They did not confirm if the accounts seized were connected to the Swiss investigation into 1MDB. It claims a small portion of the misappropriated money had been transferred to accounts held in Switzerland by former Malaysian public officials and current and former public officials from the United Arab Emirates.
Advertisement
The attorney-general added that due to the lack of criminal involvement in the case, he would not pursue further action against the Malaysian head of government.
Communications and Multimedia Minister Datuk Seri Dr Salleh Said Keruak has taken the Swiss authorities to task for “breaking protocol and spreading misinformation” over its statement concerning alleged misappropriation of funds involving 1Malaysia Development Bhd (1MDB).
Malaysia has been rocked for more than a year by allegations that huge sums of money were diverted from 1MDB, an investment company, and the revelation last July of the $681 million payment to Najib. Salleh said 1MBD had undergone extensive audits since 2009 and the $4bn figure “simply could not have been misappropriated under such conditions”.
The Swiss authorities started its investigations into the state fund in August a year ago.
“I am satisfied that there is no evidence to show that the donation was a form of gratification given corruptly”, said Attorney-General Mohamed Apandi Ali.
In a statement issued late on Monday, 1MDB said it had not been contacted by Singapore authorities. The Malaysian attorney general’s office dismissed the central bank’s requests, which alleged that 1MDB breached the Exchange Control Act.
The Swiss statement said the request for mutual assistance is to advise the companies involved and the Malaysian government of the results of the Swiss criminal proceedings, “with the aim of finding out whether losses on this scale have been sustained”.
“Singapore is also cooperating closely with relevant authorities, including those in Malaysia, Switzerland and the United States”, said the statement, adding that it can not divulge more details as investigations are still underway.
“Since the middle of past year, the Commercial Affairs Department and the Monetary Authority of Singapore have been actively investigating possible money-laundering and other offences carried out in Singapore”, they said.
Advertisement
Mr Khairuddin was arrested and charged with economic sabotage after he lodged reports against 1MDB with authorities from UK, Switzerland, Hong Kong and Singapore.
