The United States government announced yesterday that it planned to move and seize more than US$1 billion in assets purchased with money that people close to Malaysian Prime Minister Najib Razak reportedly “stole” from the PM’s brainchild, Malaysian strategic investment fund 1MDB.
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“As the Prime Minister has always maintained, if any wrongdoing is proven, the law will be enforced without exception”, Tengku Sariffudin Tengku Ahmad said in a statement.
When asked whether this civil suit would affect Malaysia’s ties with the United States, he said it was a separate issue altogether, as this was relating to an individual and not the overall position of the two countries’ policies.
The lawsuits allege that public money stolen from Malaysian state fund 1MDB – which was set up by the Prime Minister Najib Razak in 2009 – was used to buy a laundry list of expensive properties, and even finance the Wolf of Wall Street movie.
Najib was investigated in Malaysia after revelations that $681 million was transferred to his personal bank accounts.
Similarly, Singapore authorities seized assets worth S$240mil (RM717.45mil) in an investigation into 1MDB-related fund flows for possible money laundering and which found “deficiencies” in several major banks. They refer though to “Malaysian Official 1”, described as a “high-ranking official” in the Malaysian government with control over 1MDB. The U.S. lawsuit does not directly name him in the case; however, there are several references to an unnamed “Malaysian Official 1”, which the Wall Street Journal reports is a moniker for Najib.
The latest update from Singapore followed an announcement from the United States authorities on Wednesday that they are seeking to recover $1.37 billion (CHF1.35 billion) in funds allegedly stolen from 1MDB.
“Furthermore, 1MDB has not been contacted by the U.S. DOJ or any other foreign agency in relation to their investigations”.
MAS said preliminary findings from its inspections had uncovered “instances of control failings” in UBS’s Singapore branch, Standard Chartered Plc’s local unit and at DBS, as well as “substantial breaches” of anti-money laundering regulations at Falcon Private Bank Ltd. The regulator vowed to take action against the four banks for the lapses, though the statement didn’t specify what they might be.
Wan Azizah also called upon the Cabinet to the Malaysian monarch to proclaim the formation of a Royal Commission of Inquiry to investigate the claims, and “to suggest the prosecution of those involved in this heinous crime”.
Al Qubaisi and Al-Husseiny are former officials at a sovereign fund in Abu Dhabi that participated in deals with 1MDB.
Among them are his stepson, Riza Shahriz Abdul Aziz, who co-founded movie production studio Red Granite Pictures, and businessman Low Taek Jho who is close to Mr Najib’s family.
“I remain consistent with my view that Najib’s political future can only be threatened by the members and leaders of Umno and not by any outside powers”.
Red Granite said neither the company or Mr Aziz had done anything wrong and that “none of the funding it received was in any way illegitimate”.
Malaysians should have a “peaceful rally” to demand Najib’s removal from office over the affair, he said.
“Instead, that money went to relatives and associates of the corrupt officials of 1MDB and others”.
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According to the Federal Bureau of Investigation, powerful officials at 1MDB siphoned more than $3.5 billion from the fund and laundered it though a series of global transactions.
