The complaint said the high-flying Malaysian businessman known as Jho Low, a friend of Najib’s family who helped create 1MDB, had allegedly laundered hundreds of millions of illicit funds into the United States, which funded the real estate purchases and a lavish personal lifestyle.
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Singapore authorities today (July 21) revealed it had seized S$240 million in assets through its probe into alleged fraud and money-laundering related to 1MDB.
The development was likely to prove particularly embarrassing for Najib, who, as finance minister, controlled the company until its dissolution in May.
“The actions are damaging to Malaysia’s reputation and they raise serious questions about the credibility of the government’s claim that there is no wrongdoing in the 1MDB saga”.
“No need to set up a tribunal.we already have the PAC and its committee also comprised the opposition representatives.even the PAC vice-chairman Tan Seng Giaw of DAP had also said that Najib was not involved directly in the 1MDB issues”, he said.
These figures include Najib’s stepson Riza Aziz, Jho Low, other officials, and an individual the U.S. filing calls “Malaysian Official 1” – a thinly-veiled apparent reference to Najib himself. The fund said it has not been contacted by the Justice Department or any other foreign agency on the matter.
How did the scandal emerge? But by 2014 it was struggling to service debts of more than $11 billion. A source familiar with the investigation later confirmed that “Malaysian Official 1” is Najib.
What are key allegations by U.S. investigators?
“In the course of the investigations, bank accounts belonging to various individuals have been seized and dealings in properties belonging to some of these individuals have been curtailed”, they said. Another $330 million was re-routed to his accounts in 2011.
Almost 20 other assets have been targeted, including high-end real estate in Beverly Hills, New York, and London, artworks by Monet and Van Gogh, and a Bombardier Global 5000 business jet.
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.
The complaint describes Riza as a relative of an unnamed “Malaysian Official 1” whose approval was needed for the fund’s financial commitments.
Singapore’s central bank, which on Thursday singled out banks including UBS Group AG for lapses related to Malaysia’s scandal-riven investment fund, also put other financial firms on notice that isn’t done probing the sector.
Mr Najib has weathered a year of political turmoil at home over the revelations of the funds that reached his accounts.
He denies they came from 1MDB, saying they were a “gift” from the Saudi royal family.
What impact has 1MDB had on Malaysia?
Najib has acknowledged receiving the money but said he broke no laws and took nothing for personal gain.
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“With this action, we are seeking to forfeit and recover funds that were meant to grow the Malaysian economy and support the Malaysian people”. But they add that appears unlikely for now as Najib’s crackdown has dramatically strengthened his hold on the party.
