![1mdb logo](https://upload.wikimedia.org/wikipedia/commons/b/b7/1mdb_logo.png)
The 1Malaysia Development Berhad scandal, often referred to as the 1MDB scandal or just 1MDB, describes a
corruption
Corruption is a form of dishonesty or a criminal offense which is undertaken by a person or an organization which is entrusted in a position of authority, in order to acquire illicit benefits or abuse power for one's personal gain. Corruption m ...
,
bribery
Bribery is the Offer and acceptance, offering, Gift, giving, Offer and acceptance, receiving, or Solicitation, soliciting of any item of value to influence the actions of an official, or other person, in charge of a public or legal duty. With reg ...
and
money laundering
Money laundering is the process of concealing the origin of money, obtained from illicit activities such as drug trafficking, corruption, embezzlement or gambling, by converting it into a legitimate source. It is a crime in many jurisdictions ...
conspiracy
A conspiracy, also known as a plot, is a secret plan or agreement between persons (called conspirers or conspirators) for an unlawful or harmful purpose, such as murder or treason, especially with political motivation, while keeping their agree ...
in which the Malaysian
sovereign wealth fund
A sovereign wealth fund (SWF), sovereign investment fund, or social wealth fund is a state-owned investment fund that invests in real and financial assets such as stocks, bonds, real estate, precious metals, or in alternative investments such ...
1Malaysia Development Berhad (1MDB) was systematically
embezzled
Embezzlement is a crime that consists of withholding assets for the purpose of conversion of such assets, by one or more persons to whom the assets were entrusted, either to be held or to be used for specific purposes. Embezzlement is a type ...
, with assets diverted globally by the perpetrators of the scheme. International in scope, it implicated political, banking and entertainment figures and institutions and led to criminal investigations in several countries. The 1MDB scandal has been described as "one of the world's greatest financial scandals"
and declared by the
United States Department of Justice
The United States Department of Justice (DOJ), also known as the Justice Department, is a federal executive department of the United States government tasked with the enforcement of federal law and administration of justice in the United State ...
as the "largest
kleptocracy
Kleptocracy (from Greek κλέπτης ''kléptēs'', "thief", κλέπτω ''kléptō'', "I steal", and -κρατία -''kratía'' from κράτος ''krátos'', "power, rule") is a government whose corrupt leaders (kleptocrats) use political ...
case to date" in 2016.
In 2015, a
document leak
A news leak is the unsanctioned release of confidential information to news media. It can also be the premature publication of information by a news outlet, of information that it has agreed not to release before a specified time, in violation of ...
reported in
''The Edge'', ''
Sarawak Report
''Sarawak Report'' is an opinion, commentary, and political activism blog focused on environmental and corruption issues in Malaysia. It has been largely self-published and operated from London since 2010 by Clare Rewcastle Brown. The blog h ...
'', and ''
The Wall Street Journal
''The Wall Street Journal'' is an American business-focused, international daily newspaper based in New York City, with international editions also available in Chinese and Japanese. The ''Journal'', along with its Asian editions, is published ...
'' showed that
Malaysia
Malaysia ( ; ) is a country in Southeast Asia. The federation, federal constitutional monarchy consists of States and federal territories of Malaysia, thirteen states and three federal territories, separated by the South China Sea into two r ...
's then-Prime Minister
Najib Razak
Dato' Sri Haji Mohammad Najib bin Tun Haji Abdul Razak ( ms, محمد نجيب بن عبد الرزاق, label= Jawi, script=arab, italic=unset, ; born 23 July 1953) is a Malaysian politician who served as the 6th prime minister of Malaysi ...
had channeled over
RM (approximately US$) into his personal bank accounts from 1MDB, a government-run strategic development company. The alleged mastermind of the scheme,
Jho Low
Low Taek Jho (, born 4 November 1981), often called Jho Low, is a Malaysian fugitive businessman, wanted by authorities internationally in connection with the 1Malaysia Development Berhad scandal (1MDB scandal). He has been named the mastermin ...
, was central in the movement of 1MDB funds internationally through
shell companies
A shell corporation is a company or corporation that exists only on paper and has no office and no employees, but may have a bank account or may hold passive investments or be the registered owner of assets, such as intellectual property, or s ...
and
offshore bank accounts. The
U.S. Department of Justice
The United States Department of Justice (DOJ), also known as the Justice Department, is a federal executive department of the United States government tasked with the enforcement of federal law and administration of justice in the United State ...
later found that more than US$4.5 billion was diverted from 1MDB by Low and other conspirators including officials from Malaysia,
Saudi Arabia
Saudi Arabia, officially the Kingdom of Saudi Arabia (KSA), is a country in Western Asia. It covers the bulk of the Arabian Peninsula, and has a land area of about , making it the fifth-largest country in Asia, the second-largest in the A ...
and the
United Arab Emirates
The United Arab Emirates (UAE; ar, اَلْإِمَارَات الْعَرَبِيَة الْمُتَحِدَة ), or simply the Emirates ( ar, الِْإمَارَات ), is a country in Western Asia (The Middle East). It is located at th ...
. These were used to purchase luxury items and properties, including superyacht
''Equanimity'', and finance the American film company
Red Granite Pictures
Red Granite Pictures was an American film production and distribution company, co-founded by Riza Aziz and Joey McFarland in 2010. Its productions included ''The Wolf of Wall Street'' and ''Dumb and Dumber To''. It was dissolved in 2018 after bei ...
and its production of
''The Wolf of Wall Street''.
1MDB funds supported lavish lifestyles for Low, Najib and his wife
Rosmah Mansor
Rosmah binti Mansor ( Jawi: روسمه بنت منصور; born 10 December 1951) is the second wife of former Prime Minister of Malaysia, Najib Razak. Like her husband, she became implicated in the 1Malaysia Development Berhad scandal. On 1 S ...
, and established Najib's stepson
Riza Aziz
Riza Shahriz bin Abdul Aziz, better known as Riza Aziz, is a Malaysian film producer and the co-founder of Red Granite Pictures, a Los Angeles-based film production company.
Career
Riza holds a BS degree in Government & Economics and an MS in ...
in
Hollywood
Hollywood usually refers to:
* Hollywood, Los Angeles, a neighborhood in California
* Hollywood, a metonym for the cinema of the United States
Hollywood may also refer to:
Places United States
* Hollywood District (disambiguation)
* Hollywood, ...
. Attempts were also made for embezzled funds to be put towards political donations and
lobbying
In politics, lobbying, persuasion or interest representation is the act of lawfully attempting to influence the actions, policies, or decisions of government officials, most often legislators or members of regulatory agency, regulatory agencie ...
in the United States.
The revelations became a major
political scandal
In politics, a political scandal is an action or event regarded as morally or legally wrong and causing general public outrage. Politicians, government officials, party officials and lobbyists can be accused of various illegal, corrupt, unethic ...
in Malaysia, triggering protests and backlash. After several Malaysian investigations were opened, Najib responded by dismissing several of his critics from government positions, including his deputy
Muhyiddin Yassin
Tan Sri Dato' Haji Mahiaddin bin Md Yasin (born 15 May 1947), commonly known as Muhyiddin bin Muhammad Yassin ( ms, محيي الدين بن محمد ياسين, label= Jawi, script=arab, italic=unset; ), is a Malaysian politician who serv ...
and
attorney-general
In most common law jurisdictions, the attorney general or attorney-general (sometimes abbreviated AG or Atty.-Gen) is the main legal advisor to the government. The plural is attorneys general.
In some jurisdictions, attorneys general also have exec ...
Abdul Gani Patail
Tan Sri Datuk Seri Panglima Abdul Gani bin Patail (born 6 October 1955) is a Malaysian prosecutor. He was the Attorney General of Malaysia from 2002 to 2015, the first from Sabah to hold the position (hailing from Lahad Datu and was born in La ...
. Charges against Najib were subsequently dismissed. Among Najib's critics was former ally and Malaysia's fourth Prime Minister
Mahathir Mohamad
Mahathir bin Mohamad ( ms, محاضير بن محمد, label= Jawi, script=arab, italic=unset; ; born 10 July 1925) is a Malaysian politician, author, and physician who served as the 4th and 7th Prime Minister of Malaysia. He held the office ...
, who chaired the
Malaysian Citizens' Declaration, bringing together political figures and other organisations in calling for Najib Razak's resignation or removal. The Malaysian
Conference of Rulers
The Conference of Rulers (also Council of Rulers or Durbar, ms, Majlis Raja-Raja; Jawi: ) in Malaysia is a council comprising the nine rulers of the Malay states, and the governors or ''Yang di-Pertua Negeri'' of the other four states. It was ...
called for prompt investigation of the scandal, saying that it was causing a crisis of confidence in Malaysia.
Outside of Malaysia, investigations into financial and criminal activity relating to 1MDB opened in at least six countries.
According to its publicly filed accounts, 1MDB had nearly RM 42 billion (US$11.73 billion) in debt by 2015. Some of this debt resulted from a $3 billion state-guaranteed 2013 bond issue led by the American investment bank
Goldman Sachs
Goldman Sachs () is an American multinational investment bank and financial services company. Founded in 1869, Goldman Sachs is headquartered at 200 West Street in Lower Manhattan, with regional headquarters in London, Warsaw, Bangalore, H ...
, which had been reported to have received fees of up to $300 million for the deal, although the bank disputes this figure. Nevertheless, Goldman Sachs was charged under the
Foreign Corrupt Practices Act
The Foreign Corrupt Practices Act of 1977 (FCPA) (, ''et seq.'') is a United States federal law that prohibits U.S. citizens and entities from bribing foreign government officials to benefit their business interests.
The FCPA is applicable world ...
and agreed to pay over $2.9 billion in a settlement with the
U.S. Department of Justice
The United States Department of Justice (DOJ), also known as the Justice Department, is a federal executive department of the United States government tasked with the enforcement of federal law and administration of justice in the United State ...
(DOJ). American rapper
Pras
Prakazrel Samuel Michel (; born October 19, 1972) is a Haitian-American rapper, producer, songwriter and actor. He is best known as a member of the hip hop group Fugees, alongside Wyclef Jean and Lauryn Hill. After the Fugees, he earned two ...
, former Goldman Sachs chairman
Tim Leissner and fundraiser
Elliott Broidy
Elliott B. Broidy (born 1956/1957) is an American venture capitalist and businessman. From 2005 to 2008, he served as finance chairman of the Republican National Committee (RNC). In 2009, he was convicted in a public corruption and bribery case in ...
were among those charged in the United States in connection with 1MDB.
After the
2018 election, the newly elected prime minister,
Mahathir Mohamad
Mahathir bin Mohamad ( ms, محاضير بن محمد, label= Jawi, script=arab, italic=unset; ; born 10 July 1925) is a Malaysian politician, author, and physician who served as the 4th and 7th Prime Minister of Malaysia. He held the office ...
, reopened Malaysian investigations into the scandal. The Malaysian Immigration Department barred Najib and 11 others from leaving the country, while the police seized more than 500 handbags and 12,000 pieces of jewellery estimated to be worth US$270 million from property linked to Najib, the largest seizure of goods in Malaysian history. Najib was later charged with criminal
breach of trust,
money laundering
Money laundering is the process of concealing the origin of money, obtained from illicit activities such as drug trafficking, corruption, embezzlement or gambling, by converting it into a legitimate source. It is a crime in many jurisdictions ...
and
abuse of power
Abuse is the improper usage or treatment of a thing, often to unfairly or improperly gain benefit. Abuse can come in many forms, such as: physical or verbal maltreatment, injury, assault, violation, rape, unjust practices, crimes, or other t ...
, while alleged mastermind
Jho Low
Low Taek Jho (, born 4 November 1981), often called Jho Low, is a Malaysian fugitive businessman, wanted by authorities internationally in connection with the 1Malaysia Development Berhad scandal (1MDB scandal). He has been named the mastermin ...
, by then an international
fugitive
A fugitive (or runaway) is a person who is fleeing from custody, whether it be from jail, a government arrest, government or non-government questioning, vigilante violence, or outraged private individuals. A fugitive from justice, also known ...
, was charged with money laundering. Najib was subsequently found guilty of seven charges connected to SRC International, a 1MDB subsidiary, and was sentenced to twelve years imprisonment.
In September 2020, the alleged amount stolen from 1MDB was estimated to be US$4.5 billion and a Malaysian government report listed 1MDB's outstanding debts to be at US$7.8 billion. The government has
assumed 1MDB's debts, which includes 30-year bonds due in 2039. In August 2021, the United States had recovered and returned a total of US$1.2 billion of 1MDB funds misappropriated within its
jurisdiction
Jurisdiction (from Latin 'law' + 'declaration') is the legal term for the legal authority granted to a legal entity to enact justice. In federations like the United States, areas of jurisdiction apply to local, state, and federal levels.
Jur ...
, joining countries such as Singapore and several others which have also initiated recovery or that have already repatriated smaller recovered amounts.
Background
Najib Razak became
Prime Minister of Malaysia
The prime minister of Malaysia ( ms, Perdana Menteri Malaysia; ms, ڤردان منتري مليسيا, label= Jawi, script=arab, italic=unset) is the head of government of Malaysia. The prime minister directs the executive branch of the fede ...
in 2009. In his first year in office, he established
1Malaysia Development Berhad (1MDB), a
sovereign wealth fund
A sovereign wealth fund (SWF), sovereign investment fund, or social wealth fund is a state-owned investment fund that invests in real and financial assets such as stocks, bonds, real estate, precious metals, or in alternative investments such ...
, which sought out to make strategic investments and alleviate
poverty
Poverty is the state of having few material possessions or little income. Poverty can have diverse social, economic, and political causes and effects. When evaluating poverty in ...
, as part of his
economic liberalisation policy and trademark
1Malaysia program.
The fund had a budget of $1bn to invest, with Najib having the sole authority to sign off investments and manage the personnel on its board and management team.
His wife is
Rosmah Mansor
Rosmah binti Mansor ( Jawi: روسمه بنت منصور; born 10 December 1951) is the second wife of former Prime Minister of Malaysia, Najib Razak. Like her husband, she became implicated in the 1Malaysia Development Berhad scandal. On 1 S ...
, whose son is
Riza Aziz
Riza Shahriz bin Abdul Aziz, better known as Riza Aziz, is a Malaysian film producer and the co-founder of Red Granite Pictures, a Los Angeles-based film production company.
Career
Riza holds a BS degree in Government & Economics and an MS in ...
from a previous relationship.
Jho Low
Low Taek Jho (, born 4 November 1981), often called Jho Low, is a Malaysian fugitive businessman, wanted by authorities internationally in connection with the 1Malaysia Development Berhad scandal (1MDB scandal). He has been named the mastermin ...
is a Malaysian businessman and financier from
Penang
Penang ( ms, Pulau Pinang, is a Malaysian state located on the northwest coast of Peninsular Malaysia, by the Malacca Strait. It has two parts: Penang Island, where the capital city, George Town, is located, and Seberang Perai on the Malay ...
. Despite not having a formal position at 1MDB, Low supported its establishment and was given extensive access to the fund due to high-profile political connections in Malaysia and the Middle East, and entertainment connections in the United States. Low joined high-level meetings and facilitated numerous deals.
Tim Leissner is a German banker who was chairman of American investment bank
Goldman Sachs
Goldman Sachs () is an American multinational investment bank and financial services company. Founded in 1869, Goldman Sachs is headquartered at 200 West Street in Lower Manhattan, with regional headquarters in London, Warsaw, Bangalore, H ...
in its
Southeast Asia
Southeast Asia, also spelled South East Asia and South-East Asia, and also known as Southeastern Asia, South-eastern Asia or SEA, is the geographical United Nations geoscheme for Asia#South-eastern Asia, south-eastern region of Asia, consistin ...
ventures. Leissner was credited with making lucrative deals for Goldman in the region in the aftermath of the
financial crisis of 2007–2008
Finance is the study and discipline of money, currency and capital assets. It is related to, but not synonymous with economics, the study of production, distribution, and consumption of money, assets, goods and services (the discipline of fi ...
. The head of Goldman Sachs in Malaysia, Roger Ng, introduced Leissner to Jho Low. Leissner and Ng worked with Low and used his political connections to establish deals and orchestrate the scheme.
Scheme
The
US DOJ
The United States Department of Justice (DOJ), also known as the Justice Department, is a federal executive department of the United States government tasked with the enforcement of federal law and administration of justice in the United State ...
described the scheme as involving three phases. In August 2009, Najib and Low met with representatives of private oil company PetroSaudi on a yacht in
Monaco
Monaco (; ), officially the Principality of Monaco (french: Principauté de Monaco; Ligurian: ; oc, Principat de Mónegue), is a sovereign city-state and microstate on the French Riviera a few kilometres west of the Italian region of Lig ...
to discuss 1MDB's first investment. This included Saudi royal
Turki bin Abdullah Al Saud
Turki bin Abdullah Al Saud ( ar, الأمير تركي بن عبد الله آل سعود) (born 21 October 1971) is the seventh son of King Abdullah of Saudi Arabia. He served as deputy governor and then, governor of Riyadh Province from 2013 ...
and Saudi national Tarek Obaid. During a subsequent visit to
Saudi Arabia
Saudi Arabia, officially the Kingdom of Saudi Arabia (KSA), is a country in Western Asia. It covers the bulk of the Arabian Peninsula, and has a land area of about , making it the fifth-largest country in Asia, the second-largest in the A ...
, Najib signed a $2.5bn joint venture between PetroSaudi and 1MDB. The DOJ later said this was used as a "pretence" to move $1bn into a
Swiss bank account
Banking in Switzerland dates to the early eighteenth century through Switzerland's merchant trade and has, over the centuries, grown into a complex, regulated, and international industry. Banking is seen as emblematic of Switzerland, along with ...
.
An additional $1.4bn was then raised by
Goldman Sachs
Goldman Sachs () is an American multinational investment bank and financial services company. Founded in 1869, Goldman Sachs is headquartered at 200 West Street in Lower Manhattan, with regional headquarters in London, Warsaw, Bangalore, H ...
in a
bond issue
In finance, a bond is a type of security under which the issuer (debtor) owes the holder (creditor) a debt, and is obliged – depending on the terms – to repay the principal (i.e. amount borrowed) of the bond at the maturity date as well as i ...
and misappropriated into a bank account in Switzerland. An additional $1.3bn from Goldman Sachs was also diverted into a bank account in Singapore.
US authorities say that Goldman Sachs, particularly Roger Ng, were central with orchestrating the scheme, particularly the
laundering of money from the fund, some of which was used to pay
bribes
Bribery is the offering, giving, receiving, or soliciting of any item of value to influence the actions of an official, or other person, in charge of a public or legal duty. With regard to governmental operations, essentially, bribery is "Corru ...
to officials in Malaysia and the United Arab Emirates.
Use of funds
More than $4bn was stolen from the 1MDB fund and spent by perpetrators on art,
diamonds
Diamond is a solid form of the element carbon with its atoms arranged in a crystal structure called diamond cubic. Another solid form of carbon known as graphite is the chemically stable form of carbon at room temperature and pressure, b ...
and property.
Low allegedly used 1MDB funds to support a lavish lifestyle in the United States. The DOJ traced $100m from the PetroSaudi deal to the purchase of properties in
Hollywood
Hollywood usually refers to:
* Hollywood, Los Angeles, a neighborhood in California
* Hollywood, a metonym for the cinema of the United States
Hollywood may also refer to:
Places United States
* Hollywood District (disambiguation)
* Hollywood, ...
and $40m to apartments in
New York
New York most commonly refers to:
* New York City, the most populous city in the United States, located in the state of New York
* New York (state), a state in the northeastern United States
New York may also refer to:
Film and television
* '' ...
.
He established friendships with musicians
Swizz Beats
Kasseem Daoud Dean (born September 13, 1978), known professionally as Swizz Beatz, is an American record producer, rapper, disc jockey (DJ) and songwriter. Born and raised in New York City, Dean embarked on his musical career as a DJ. At the ag ...
,
Alicia Keys
Alicia Augello Cook (born January 25, 1981), known professionally as Alicia Keys, is an American singer, songwriter, and pianist. A classically trained pianist, Keys started composing songs when she was 12 and was signed at 15 years old by Col ...
and
Pras
Prakazrel Samuel Michel (; born October 19, 1972) is a Haitian-American rapper, producer, songwriter and actor. He is best known as a member of the hip hop group Fugees, alongside Wyclef Jean and Lauryn Hill. After the Fugees, he earned two ...
, was pictured partying with socialite
Paris Hilton
Paris Whitney Hilton (born February 17, 1981) is an American media personality, businesswoman, socialite, model, and entertainer. Born in New York City, and raised there and in Beverly Hills, California, she is a great-granddaughter of Conra ...
, and used funds to purchase luxury items for model
Miranda Kerr
Miranda May Kerr (; born 20 April 1983) is an Australian model and businesswoman. Kerr rose to prominence in 2007, as one of the Victoria's Secret Angels. Kerr was the first Australian Victoria's Secret model and also represented the Australia ...
and singer
Elva Hsiao
Elva Hsiao (, born 24 August 1979) is a Taiwanese singer, dancer, actress and businesswoman. Since being signed to a record deal in 1998 after competing in a singing competition, Hsiao has gone on to release fourteen studio albums and has achie ...
, with whom he was romantically involved.
Hollywood film production company
Red Granite Pictures
Red Granite Pictures was an American film production and distribution company, co-founded by Riza Aziz and Joey McFarland in 2010. Its productions included ''The Wolf of Wall Street'' and ''Dumb and Dumber To''. It was dissolved in 2018 after bei ...
, co-founded by Riza Aziz and
Joey McFarland
Joey McFarland (born April 30, 1972) is an American film producer and the founder of McFarland Entertainment, a content development and production company for both film and television. He was previously vice chairman of Red Granite Pictures.
L ...
in 2010, also reportedly received misappropriated funds. The DOJ suggested these were put towards the production of
''The Wolf of Wall Street'',
''Daddy's Home'' and ''
Dumb and Dumber To
''Dumb and Dumber To'' is a 2014 American buddy comedy film co-written and directed by the Farrelly brothers. It is the third installment in the ''Dumb and Dumber'' franchise and a sequel to the 1994 film ''Dumb and Dumber''. The film stars Ji ...
'', and by 2017 had seized
royalties
A royalty payment is a payment made by one party to another that owns a particular asset, for the right to ongoing use of that asset. Royalties are typically agreed upon as a percentage of gross or net revenues derived from the use of an asset o ...
from all three films.
Jho Low was personally thanked in the credits of ''The Wolf of Wall Street''.
Malaysian investigations and actions
Change of auditors and transparency
The RM 425 million profit declared between 25 September 2009 and 31 March 2010 raised many criticisms and controversies about the lack of transparency in 1MDB's published accounts.
Tony Pua
Tony Pua Kiam Wee (; born 1 August 1972) is a Malaysian politician who served as the Member of Parliament (MP) for Damansara from May 2018 to November 2022, for Petaling Jaya Utara from March 2008 to May 2018 and Political Secretary to the ...
,
DAP
DAP or Dap may refer to:
Science
* DAP (gene), human gene that encodes death-associated proteins, which mediate programmed cell death
* Diamidophosphate, phosphorylating compound
* Diaminopimelic acid, amino acid derivative of lysine
* Diamin ...
Member of Parliament for
Petaling Jaya
)
, website =
, image_skyline =
, image_caption = ''From top, left to right:Skyline of Petaling Jaya, the 1 Utama Mall integrated with Bandar Utama Station, the Kota Darul Ehsan arch, the Petaling J ...
Utara, questioned Najib, 1MDB's advisory board chairman, as to whether the figures were the result of an asset injection into 1MDB by the government such as the transfer of land rights to the company.
During the October 2010 parliamentary session, 1MDB explained that its accounts had been fully audited and signed off by
KPMG
KPMG International Limited (or simply KPMG) is a multinational professional services network, and one of the Big Four accounting organizations.
Headquartered in Amstelveen, Netherlands, although incorporated in London, England, KPMG is a net ...
, and closed as of 31 March 2010.
Deloitte
Deloitte Touche Tohmatsu Limited (), commonly referred to as Deloitte, is an international professional services network headquartered in London, England. Deloitte is the largest professional services network by revenue and number of profession ...
was involved in the valuation and analysis of the portfolio, while
Ernst & Young
Ernst & Young Global Limited, trade name EY, is a multinational professional services partnership headquartered in London, England. EY is one of the largest professional services networks in the world. Along with Deloitte, KPMG and Pricewaterh ...
provided tax advice for 1MDB.
1MDB eventually rang alarm bells by asking for a six-month extension on the filing of its annual report with the
Companies Commission of Malaysia
A company, abbreviated as co., is a legal entity representing an association of people, whether natural, legal or a mixture of both, with a specific objective. Company members share a common purpose and unite to achieve specific, declared go ...
(CCM) due by 30 September 2013. At the same time, the change of three auditors since its inception in 2009 was considered suspicious. Responding to earlier criticism, CCM said that 1MDB had responded and lodged the necessary information, including registering an address, as required by law.
The
Sungai Besi airport land transfer took place in June 2011 as a precedent for the development known as
Bandar Malaysia
Bandar Malaysia is a 486-acre mixed-use, transit-oriented development by 1Malaysia Development Berhad (1MDB) located at Kuala Lumpur, Malaysia. This project will be built at the current Sungai Besi Air Base site over 20 years. It is planned as ...
, a mixed integrated project of commercial, residential, and hi-tech green environment. Prior to this, there had been questions in parliament by the opposition regarding the lack of progress on Bandar Malaysia even though 1MDB had already raised RM 3.5 billion in loans and
Islamic bonds to fund the project and take ownership of the land. In April 2013, 1MDB finally awarded a RM 2.1 billion contract to Perbadanan Perwira Harta Malaysia (PPHM), a subsidiary of
Lembaga Tabung Angkatan Tentera
The Armed Forces Fund Board (also commonly known by its Malay name Lembaga Tabung Angkatan Tentera and LTAT in short) is a statutory body which manages the pension fund for certain members of the Malaysian Armed Forces. LTAT was established in Au ...
(LTAT) to develop eight sites for the relocation of
Pangkalan Udara Kuala Lumpur, the military base on the Sungai Besi land that was to be developed. The construction of Bandar Malaysia was set to commence following the completion of this relocation. As part of its debt rationalisation plan, on 31 December 2015, 1MDB inked an agreement with a consortium comprising Iskandar Waterfront Holdings and
China Railway Engineering Corporation
The China Railway Engineering Corporation (CRECG) is a state-owned holding company of China, which is under the supervision of the State Council. The company is the major shareholder of China Railway Group Limited (CREC), its subsidiary.
Hist ...
to sell 60% of its stake in Bandar Malaysia Sdn Bhd. However, this deal eventually fell through.
On 7 September 2015, a member of the board of advisors to 1MDB,
Abdul Samad Alias, resigned stating that he did so after many of his requests for information on 1MDB affairs were ignored. 1MDB subsequently denied receiving repeated requests from Abdul Samad, stating that its president, Arul Kanda, had personally met Abdul Samad in January and March that year to "discuss the company's affairs".
1MDB had not had a proper external accounts audit since 2013, partly as a result of
Deloitte
Deloitte Touche Tohmatsu Limited (), commonly referred to as Deloitte, is an international professional services network headquartered in London, England. Deloitte is the largest professional services network by revenue and number of profession ...
Malaysia, their auditors at the start of that period, issuing a statement in July 2016 saying that their audit reports of 1MDB financial statements, dated 28 March 2014 and 5 November 2014 covering financial years 2013 and 2014 respectively, should no longer be relied upon. By early March 2015, with public discontent growing at the perceived lack of financial transparency at 1MDB, the Prime Minister, who was also the Chairman of 1MDB's Board of Advisors, ordered the
Auditor General of Malaysia
The role of the Auditor General of Malaysia is to aid accountability by conducting independent audits on the account of Federal Government, State Government and Federal Statutory Bodies as well as the activities of the Ministry/Department/Agen ...
to carry out an audit of 1MDB. However, on completion of the audit, the final report was classified as an
Official Secret
Classified information is material that a government body deems to be sensitive information that must be protected. Access is restricted by law or regulation to particular groups of people with the necessary security clearance and need to know, ...
and only made available to the
Public Accounts Committee (PAC) tasked to investigate improprieties at 1MDB. Purported copies of the report however surfaced on the internet. After Najib's ouster in the 2018 general election, the much-leaked audit report was declassified by the new government on 12 May 2018.
In May 2018, after the formation of the new Cabinet following
Pakatan Harapan
The Alliance of Hope ( ms, Pakatan Harapan; abbrev: PH; stylized as HARAPAN) is a Malaysian political coalition consisting of centre-left political parties which was formed in 2015 to succeed the Pakatan Rakyat coalition. It has been the r ...
's victory in the
General Elections
A general election is a political voting election where generally all or most members of a given political body are chosen. These are usually held for a nation, state, or territory's primary legislative body, and are different from by-elections ( ...
,
Finance Minister
A finance minister is an executive or cabinet position in charge of one or more of government finances, economic policy and financial regulation.
A finance minister's portfolio has a large variety of names around the world, such as "treasury", " ...
Lim Guan Eng
Lim Guan Eng (; born 8 December 1960) is a Malaysian politician and accountant from the Democratic Action Party (DAP), a component party of the Pakatan Harapan (PH) coalition who has served as Member of Parliament (MP) for Bagan, Member of the ...
ordered the appointment of
PricewaterhouseCoopers
PricewaterhouseCoopers is an international professional services brand of firms, operating as partnerships under the PwC brand. It is the second-largest professional services network in the world and is considered one of the Big Four accounting ...
(PwC) to conduct a special position audit and review of 1MDB.
Debts and rating downgrade
It was reported that by early 2015, 1MDB has accumulated debts of nearly RM 42 billion. Further alleged financial challenges caused 1MDB bonds to trade at a record low. Additionally, the Malaysian cabinet rejected a requested RM 3 billion cash injection by 1MDB, narrowing its options to pay off its debts on time.
Donation explanation from government
![Najib Razak 2008-08-21](https://upload.wikimedia.org/wikipedia/commons/a/a7/Najib_Razak_2008-08-21.jpg)
On 3 August 2015, the MACC stated that the RM 2.6 billion that had been banked into Najib's personal account came from donors, not 1MDB, but did not elaborate on who the donors were or why the funds were transferred, nor why this explanation had taken so long to emerge since the allegations were first made on 2 July 2015.
UMNO
The United Malays National Organisation (Malay: ; Jawi: ; abbreviated UMNO () or less commonly PEKEMBAR), is a nationalist right-wing political party in Malaysia. As the oldest continuous national political party within Malaysia (since its in ...
Kuantan division chief Wan Adnan Wan Mamat later claimed that the RM 2.6 billion was from Saudi Arabia as thanks for fighting
ISIS
Isis (; ''Ēse''; ; Meroitic: ''Wos'' 'a''or ''Wusa''; Phoenician: 𐤀𐤎, romanized: ʾs) was a major goddess in ancient Egyptian religion whose worship spread throughout the Greco-Roman world. Isis was first mentioned in the Old Kingd ...
. He further claimed that the Muslim community in the Philippines as well as southern Thailand had also received similar donations, and that since the donations were made to Najib personally as opposed to UMNO, the funds were deposited into Najib's personal accounts.
Saudi Foreign Minister
Adel al-Jubeir
Adel Al-Jubeir ( ar, عادل بن أحمد الجبير; born 1 February 1962) is a Saudi diplomat who is the former Saudi Minister of Foreign Affairs and the current Saudi Minister of State for Foreign Affairs. He is the second person not belon ...
said he was aware of the donation, and said that it was a genuine donation with nothing expected in return. Attorney-general Mohamad Apandi Ali has said that the donation was from one of the sons of the late Saudi King
Abdullah
Abdullah may refer to:
* Abdullah (name), a list of people with the given name or surname
* Abdullah, Kargı, Turkey, a village
* ''Abdullah'' (film), a 1980 Bollywood film directed by Sanjay Khan
* '' Abdullah: The Final Witness'', a 2015 Pakis ...
, namely
Turki bin Abdullah Al Saud
Turki bin Abdullah Al Saud ( ar, الأمير تركي بن عبد الله آل سعود) (born 21 October 1971) is the seventh son of King Abdullah of Saudi Arabia. He served as deputy governor and then, governor of Riyadh Province from 2013 ...
.
In an interview with
ABC News
ABC News is the news division of the American broadcast network ABC. Its flagship program is the daily evening newscast ''ABC World News Tonight, ABC World News Tonight with David Muir''; other programs include Breakfast television, morning ...
, WSJ finance editor Ken Brown stated that the money did not come from the Saudis and they had evidence that it came from companies related to 1MDB.
Bank Negara actions
Using the premise that 1MDB had used inaccurate or incomplete disclosure of information, Bank Negara, in early 2016, revoked permissions previously granted to 1MDB for investments abroad totalling $1.83 billion. Bank Negara then called for the Attorney General to begin criminal prosecution of 1MDB after completing its own investigations into 1MDB fund transfers. 1MDB responded that they were unable to repatriate the $1.83 billion demanded by Bank Negara because the funds had already been utilized.
Police reports
The scandal took a dramatic twist on 28 August 2015 when a member of Najib Razak's own UMNO party filed a civil suit against him alleging a breach of duties as trustee and that he defrauded party members by failing to disclose receipt of the donated funds, and account for their use. This suit was filed in the
Kuala Lumpur High Court
Kuala is a town and administrative district of Langkat Regency in northern Sumatra, Indonesia. It borders Selesai to the north, Salapian to the west, and Sei Bingai to the south and east. Most people in Kuala are Javanese people, with a signifi ...
and also named party executive secretary Abdul Rauf Yusof. Expressing fear that Najib Razak would wield influence to remove any member of UMNO "for the sole purpose of avoiding liability", the court was also being moved for an injunction to restrain UMNO, its Supreme Council, state liaison body, divisions and branches from removing the nominal plaintiff as a party member pending the determination of the suit. The plaintiff is also seeking a repayment amounting to $650 million, the amount allegedly deposited by Najib to a Singapore bank, an account of all monies that he had received in the form of donations, details of all monies in an AmPrivate Banking Account (No. 2112022009694), allegedly belonging to Najib, along with damages, costs, and other reliefs. One of the UMNO representatives, Anina Saadudin, who filed the lawsuit, was immediately expelled from the party.
Another police report was filed by a
Johor
Johor (; ), also spelled as Johore, is a States and federal territories of Malaysia, state of Malaysia in the south of the Malay Peninsula. Johor has land borders with the Malaysian states of Pahang to the north and Malacca and Negeri Sembilan ...
UMNO member, Abdul Rashed Jamaludin, against Najib Razak, over the funds that went into his bank account and other wrongdoings at 1MDB.
Another UMNO member, Khairuddin Abu Hassan, and his lawyer Matthias Chang, has submitted evidence on the 1MDB scandal to the Swiss attorney general for investigation into whether any Swiss banks had done business with 1MDB. Khairuddin also lodged a police report in Hong Kong against Najib Razak and Jho Low, pertaining to four companies: Alliance Assets International, Cityfield Enterprises, Bartingale International and Wonder Quest Investment, which had purported dealings with 1MDB. Khairuddin and Matthias were barred from leaving Malaysia. Khairuddin and Matthias were charged under the
Security Offenses Act (SOSMA) under the pretext of sabotaging Malaysia's banking and financial sector.
Local lawsuits
The opposition
People's Justice Party
The People's Justice Party ( ms, Parti Keadilan Rakyat , often known simply as KEADILAN or PKR) is a reformist political party in Malaysia, formed in 2003 by a merger of the National Justice Party and the older Malaysian People's Party. The ...
(PKR) filed a lawsuit against Najib Razak,
Tengku Adnan Tengku Mansor
Datuk Seri Utama Tengku Adnan bin Tengku Mansor ( Jawi: تڠكو عدنان بن تڠكو منصور; born 20 December 1950) is a Malaysian politician who served as Minister of Federal Territories, Minister of Tourism and Minister in the Pri ...
, 1MDB and the
Election Commission
An election commission is a body charged with overseeing the implementation of electioneering process of any country. The formal names of election commissions vary from jurisdiction to jurisdiction, and may be styled an electoral commission, a c ...
accusing them of violating election laws on campaign expenses, using funds from 1MDB. However, the Malaysian High Court threw out the suit, stating PKR had no legal standing to bring the suit against Najib and 1MDB.
Former Prime Minister Mahathir has filed a lawsuit against Najib Razak for alleged interference in government investigations on 1MDB and the RM 2.6 billion political donation.
Government actions
Following criticisms of the 1MDB issue, deputy Prime Minister
Muhyiddin Yassin
Tan Sri Dato' Haji Mahiaddin bin Md Yasin (born 15 May 1947), commonly known as Muhyiddin bin Muhammad Yassin ( ms, محيي الدين بن محمد ياسين, label= Jawi, script=arab, italic=unset; ), is a Malaysian politician who serv ...
was removed from office and his position was given to then Home Minister
Ahmad Zahid Hamidi
Dato' Seri Dr. Ahmad Zahid bin Hamidi ( ms, أحمد زاهد بن حميدي, label= Jawi, script=arab, italic=unset; born 4 January 1953) is a Malaysian politician who has served as the 11th and 14th Deputy Prime Minister from July 2015 to M ...
. Also removed from office was Rural and Regional Development Minister
Shafie Apdal
Datuk Seri Panglima Mohd Shafie bin Apdal ( Jawi: محمد شافعي بن أفضل; born 20 October 1956) is a Malaysian politician who has served as the Member of Parliament (MP) for Semporna since April 1995, State Leader of the Opposition o ...
who was also critical of the 1MDB issue. Both were eventually expelled from UMNO in June 2016.
The attorney general
Abdul Gani Patail
Tan Sri Datuk Seri Panglima Abdul Gani bin Patail (born 6 October 1955) is a Malaysian prosecutor. He was the Attorney General of Malaysia from 2002 to 2015, the first from Sabah to hold the position (hailing from Lahad Datu and was born in La ...
, who was heading a multi-agency task force investigating claims of misappropriations of funds allegedly involving Najib Razak and 1MDB, was dismissed and his position given to
Mohamed Apandi Ali, a former Federal Court judge. Additionally, the Public Action Committee that was investigating the purported losses in 1MDB was indefinitely postponed due to four of its members being given positions in Najib Razak's cabinet, namely the PAC chairman Nur Jazlan Mohamed, Reezal Merican Naina Merican, Wilfred Madius Tangau and Mas Ermieyati Samsudin.
The news publications The Edge Malaysia and The Edge Financial Daily were suspended, for three months in July 2015 for allegedly publishing false reports about 1MDB issues, by the Malaysian Home Ministry. Also in 2015, the website ''Sarawak Report'' was blocked by
Malaysian Communications and Multimedia Commission
The Malaysian Communications and Multimedia Commission (Abbreviation: MCMC; ms, Suruhanjaya Komunikasi dan Multimedia Malaysia) is a regulatory body whose key role is the regulation of the communications and multimedia industry based on the po ...
, which regulates Internet services in Malaysia. The Malaysian police also issued an arrest warrant for
Clare Rewcastle Brown, who was managing the Sarawak Report, alleging involvement in activities detrimental to parliamentary democracy and disseminating false reports about prime minister Najib.
The police also arrested UMNO member Khairuddin Abu Hassan after he lodged police reports in London, Singapore, France and Hong Kong regarding alleged financial improprieties by 1MDB. According to his lawyer, Khairuddin was going to the United States to meet with the
Federal Bureau of Investigation
The Federal Bureau of Investigation (FBI) is the domestic intelligence and security service of the United States and its principal federal law enforcement agency. Operating under the jurisdiction of the United States Department of Justice, ...
(FBI) to urge them to probe 1MDB over money laundering. However, the FBI's New York City office confirmed to the WSJ that no agent had arranged to meet Khairuddin or had any previous contact with him.
Former
Kedah Menteri Besar Mukhriz Mahathir
Dato' Seri Utama Mukhriz bin Tun Dr. Mahathir ( Jawi: مخرج بن محاضر; born 25 November 1964) is a Malaysian politician who twice served as the 11th and 13th Menteri Besar of Kedah from May 2013 to February 2016 and again from May 2 ...
resigned his office on 3 February 2016, saying he did so because he had been told by Najib Razak that he was in the wrong by criticising him and 1MDB publicly. Four months later, in June, Mukhriz was expelled from UMNO. His father, Mahathir Mohamad, who had been Malaysia's fourth prime minister and who had been a Najib supporter since Najib assumed office, withdrew his support and quit UMNO later that same month.
Opposition member of parliament
Rafizi Ramli
Mohd Rafizi bin Ramli ( Jawi: ; born 14 September 1977) is a Malaysian politician who has served as the Minister of Economy in the Pakatan Harapan (PH) administration under Prime Minister Anwar Ibrahim since December 2022 and the Member of Par ...
was arrested and charged under the
Official Secrets Act
An Official Secrets Act (OSA) is legislation that provides for the protection of state secrets and official information, mainly related to national security but in unrevised form (based on the UK Official Secrets Act 1911) can include all infor ...
by the police and the government for leaking information about the Auditor General's report on 1MDB.
The Home Ministry stated that they and
Interpol
The International Criminal Police Organization (ICPO; french: link=no, Organisation internationale de police criminelle), commonly known as Interpol ( , ), is an international organization that facilitates worldwide police cooperation and cri ...
had been unsuccessful in locating various individuals linked to 1MDB to help in facilitating their investigations, including business tycoon Jho Low, 1MDB's former senior executives Casey Tang Keng Chee and Jasmine Loo Ai Swan, SRC International managing director Nik Faisal Ariff Kamil, and Deutsche Bank country manager Yusof Annuar Yaacob.
Internet access was blocked by the
Malaysian Communications and Multimedia Commission
The Malaysian Communications and Multimedia Commission (Abbreviation: MCMC; ms, Suruhanjaya Komunikasi dan Multimedia Malaysia) is a regulatory body whose key role is the regulation of the communications and multimedia industry based on the po ...
(MCMC), to websites including
Medium.com, a
social journalism platform over just a single article posted by ''Sarawak Report''. Another website,
Asia Sentinel
The ''Asia Sentinel'' is a web-based publication focused on Asian regional news, business, arts and culture. The site was launched in August 2006.
Its "About Us" page stated that "''Asia Sentinel'' was created to provide a platform for news, an ...
, was blocked after carrying a Sarawak Report article related to MACC completing a probe that allegedly resulted in 37 charges being drawn up against Najib.
The Malaysian Insider
''The Malaysian Insider'' (also known as ''TMI'', ''The Insider'', or ''Malay Ins Ins'') was a Malaysian bilingual news site. During its peak, it ranked consistently as one of the country's 100 most popular websites. In June 2009, Alexa ranke ...
was also blocked and its journalists investigated for carrying a report alleging that the MACC had found enough evidence in its investigations into Najib to charge him for corruption. Blocks were removed shortly after the handover of power from Najib's government in the
2018 general election.
Ramifications and debt restructuring default
The Malaysian Public Accounts Committee (PAC) inquiry into 1MDB revealed that the management of the fund acted without the board's approval and misled auditors several times, calling for the police to investigate its former manager. The PAC also found that the board of directors in which Najib Razak was the chairman failed in giving proper oversight of the fund's finances. The 1MDB board of directors immediately submitted their resignations after the PAC findings were made public. The PAC report stated that US$3.5 billion was paid to a company, Aabar Investments PJS, but IPIC released a statement that neither it or its subsidiary Aabar Investments PJS have any links to a British Virgin Islands-incorporated firm Aabar BVI or received any money from that BVI firm.
International Petroleum Investment Company made an announcement in a filing in the
London Stock Exchange
London Stock Exchange (LSE) is a stock exchange in the City of London, England, United Kingdom. , the total market value of all companies trading on LSE was £3.9 trillion. Its current premises are situated in Paternoster Square close to St Pau ...
that 1MDB failed to make a US$1.1 billion payment as part of its debt restructuring agreement, and that the debt deal between the two companies has been terminated.
Renewed investigations after 14th general election
After the
14th Malaysian general election on 9 May 2018 which marked a historic defeat for the
Barisan Nasional
The National Front ( ms, Barisan Nasional; abbrev: BN) is a political coalition of Malaysia that was founded in 1973 as a coalition of centre-right and right-wing political parties. It is also the third largest political coalition with 30 se ...
coalition led by Najib Razak,
Pakatan Harapan
The Alliance of Hope ( ms, Pakatan Harapan; abbrev: PH; stylized as HARAPAN) is a Malaysian political coalition consisting of centre-left political parties which was formed in 2015 to succeed the Pakatan Rakyat coalition. It has been the r ...
formed a new government led by Prime Minister
Mahathir Mohamad
Mahathir bin Mohamad ( ms, محاضير بن محمد, label= Jawi, script=arab, italic=unset; ; born 10 July 1925) is a Malaysian politician, author, and physician who served as the 4th and 7th Prime Minister of Malaysia. He held the office ...
. The government set up a special task force headed by former Attorney General
Tan Sri
The Malay language has a complex system of styles, titles and honorifics which are used extensively in Brunei, Indonesia, Malaysia, Singapore, and the southern Philippines.
Brunei, Malaysia, Singapore and several provinces in Indonesia regul ...
Abdul Gani Patail
Tan Sri Datuk Seri Panglima Abdul Gani bin Patail (born 6 October 1955) is a Malaysian prosecutor. He was the Attorney General of Malaysia from 2002 to 2015, the first from Sabah to hold the position (hailing from Lahad Datu and was born in La ...
to renew investigations into the 1MDB scandal.
The government barred Najib Razak from leaving the country, and the police seized cash and valuable items amounting to between RM 900 million and RM 1.1 billion ($220 million and $269 million) from residential units linked to Najib and his wife
Rosmah Mansor
Rosmah binti Mansor ( Jawi: روسمه بنت منصور; born 10 December 1951) is the second wife of former Prime Minister of Malaysia, Najib Razak. Like her husband, she became implicated in the 1Malaysia Development Berhad scandal. On 1 S ...
. As claimed by the police, this was the biggest seizure in Malaysian history, with the seized items comprising more than 12,000 pieces of jewelry, 423 valuable watches and 567 handbags made up of 37 luxury brands. Najib was subsequently arrested by the MACC. In September 2018, he faced 25 charges relating to abuse of power and money laundering amounting to RM 2.3 billion ($556 million), on top of seven charges with criminal breach of trust and power abuse brought against him in the preceding two months. As of April 2019, he stands with 42 charges.
The government has also issued arrest warrants against Jho Low and former director of SRC International Nik Faisal Ariff Kamil in a graft probe related to the state fund 1MDB.
On 28 June 2018, two days before the end of his employment contract, 1MDB sacked its president and Chief Executive Officer Arul Kanda on grounds of dereliction of duties.
Media reports from June 2018 also indicate that the MACC froze bank accounts associated with UMNO, purportedly in relation to investigations into the 1MDB matter.
![Equanimity, the seized yacht](https://upload.wikimedia.org/wikipedia/commons/8/86/Equanimity%2C_the_seized_yacht.jpg)
In August 2018, Malaysian police filed criminal charges against Jho Low and his father Larry Low over money laundering of US$457 million, which was allegedly stolen from 1MDB and most of the cash used for purchasing the superyacht ''
Equanimity
Equanimity (Latin: ''æquanimitas'', having an even mind; ''aequus'' even; ''animus'' mind/soul) is a state of inner peace, psychological stability and composure which is undisturbed by experience of or exposure to emotions, pain, or other phenom ...
''. From 29 October through 28 November 2018, the ''Equanimity'' was up for auction by investigators (pending a US$1 million deposit). It was eventually sold to the
Genting Group
The Genting Group is a company headquartered in the Wisma Genting in Kuala Lumpur, Malaysia. It comprises the holding company Genting Berhad (), its listed subsidiaries Genting Malaysia Berhad (), Genting Plantations Berhad (), Genting Singapore ...
at $126 million.
In December 2018, the Attorney-General Chambers of Malaysia filed criminal charges against subsidiaries of Goldman Sachs, their former employees Tim Leissner and Roger Ng Chong Hwa, former 1MDB employee Jasmine Loo, and Jho Low in connection with 1MDB bond offerings arranged and underwritten by Goldman Sachs in 2012 and 2013. The prosecutors were seeking criminal fines in excess of $2.7 billion misappropriated from the bonds proceeds, $600 million in fees received by Goldman Sachs, as well as custodial sentences against the individuals accused.
During an investigation into the 1MDB scandal, the then UAE crown prince,
Mohammed Bin Zayed
Sheikh Mohamed bin Zayed Al Nahyan ( ar, مُحَمّد بِن زَايد آل نَهيَان, Moḥamed bin Zāyed Āl Nahyān; born 11 March 1961), colloquially known by his initials as MBZ, is the third president of the United Arab Emirat ...
, was allegedly asked by Najib Tun Razak to help fabricate a loan agreement showing his stepson had received financing from IPIC and not from 1MDB in an attempt to cover up the scandal, according to the audio clips revealed by Malaysian anti-corruption officials in January 2020.
On 28 July 2020, Najib was found guilty in all seven charges related to SRC and was sentenced to 12 years' jail and a fine of RM 210 million ($49.5 million).
Respectively on 8 December 2021 and 23 August 2022, the Court of Appeal and the Federal Court upheld the conviction and sentence of Najib in all the SRC cases, in which Najib was found guilty of misappropriating RM42mil from the company's coffers. On 1 September 2022, Najib's wife
Rosmah Mansor
Rosmah binti Mansor ( Jawi: روسمه بنت منصور; born 10 December 1951) is the second wife of former Prime Minister of Malaysia, Najib Razak. Like her husband, she became implicated in the 1Malaysia Development Berhad scandal. On 1 S ...
was also found guilty of three counts of corruption by the Malaysian High Court and sentenced to both a ten-year term of imprisonment and a RM970 million fine.
Investigations by foreign law enforcement agencies
Australia
The Australian fund management company Avestra Asset Management, which managed up to RM 2.32 billion in 1MDB funds, is being liquidated, and is under investigation by the
Australian Securities and Investments Commission
The Australian Securities and Investments Commission (ASIC) is an independent commission of the Australian Government tasked as the national corporate regulator. ASIC's role is to regulate company and financial services and enforce laws to pro ...
for reported breaches of the law and potential losses to its members. The
Australian High Court has ordered five investment schemes run by Avestra to close down after discovering undisclosed related-party transactions, with 13 potential breaches of corporate law and failure to invest according to the fund's individual mandates.
Hong Kong
Hong Kong police have begun investigations regarding $250 million in
Credit Suisse
Credit Suisse Group AG is a global investment bank and financial services firm founded and based in Switzerland. Headquartered in Zürich, it maintains offices in all major financial centers around the world and is one of the nine global " ...
branch deposits in Hong Kong linked to Najib Razak and 1MDB.
Indonesia
Indonesia seized the superyacht ''
Equanimity
Equanimity (Latin: ''æquanimitas'', having an even mind; ''aequus'' even; ''animus'' mind/soul) is a state of inner peace, psychological stability and composure which is undisturbed by experience of or exposure to emotions, pain, or other phenom ...
'' on 28 February 2018 on the island of
Bali
Bali () is a province of Indonesia and the westernmost of the Lesser Sunda Islands. East of Java and west of Lombok, the province includes the island of Bali and a few smaller neighbouring islands, notably Nusa Penida, Nusa Lembongan, and Nu ...
at the request of the U.S. Department of Justice, as part of a corruption investigation linked to the 1MDB scandal. The Indonesian government returned the yacht to Malaysia in August 2018, following the activation of the Mutual Legal Assistance Treaties between Indonesia, the United States and Malaysia.
Luxembourg
State prosecutors in Luxembourg have also started money laundering investigations concerning 1MDB as it involved transfers of several hundred million dollars to an offshore company involving a bank account from Luxembourg. The bank in question is a private bank of the
Edmond de Rothschild Group
The Edmond de Rothschild Group is a financial institution specialized in private banking and asset management. Based in Geneva, the group is family-owned and independent, and encompasses the Edmond de Rothschild Foundations (philanthropic arm), ...
that manages money on behalf of wealthy clients.
Seychelles
The
Seychelles
Seychelles (, ; ), officially the Republic of Seychelles (french: link=no, République des Seychelles; Creole: ''La Repiblik Sesel''), is an archipelagic state consisting of 115 islands in the Indian Ocean. Its capital and largest city, V ...
's Financial Intelligence Unit is helping an international investigation into the troubled state fund 1MDB, by providing detailed information relating to offshore entities registered in Seychelles that are related to the international investigation.
1MDB has not contested, and appears unlikely to contest, any lawsuit which has arisen from the investigations of foreign investigating authorities.
Singapore
In Singapore, the
Monetary Authority of Singapore
The Monetary Authority of Singapore (MAS) is the central bank and financial regulatory authority of Singapore. It administers the various statutes pertaining to money, banking, insurance, securities and the financial sector in general, as well ...
(MAS) and the
Commercial Affairs Department
The Commercial Affairs Department (CAD) is a staff department of the Singapore Police Force (SPF). The department was first established in 1984 as the Commercial Crime Department (CCD), it is the white-collar crimes unit of the SPF.
History
The d ...
have seized a number of bank accounts in Singapore for possible money-laundering offences related to investigations into alleged financial mismanagement at 1MDB. One of the bank accounts frozen belonged to Yak Yew Chee, who was the relationship manager for 1MDB Global Investments Ltd, Aabar Investment PJS Limited and SRC International and
Low Taek Jho. Singaporean Yeo Jiawei, an ex-BSI banker, has been charged with money laundering and cheating offences as part of the Singapore probe into 1MDB, and Yeo's dealings with firms linked to 1MDB, Brazen Sky Ltd. and Bridge Partners Investment Management. A second individual, Kelvin Ang Wee Keng, was charged with corruption in connection with the Singaporean investigation into 1MDB.
According to a joint statement from the Attorney General's Chambers and the Monetary Authority of Singapore, assets totalling S$240 million have been seized during their investigations into 1MDB. Of the bank accounts and properties seized were S$120 million belonging to Jho Low and his family.
In March 2017, MAS issued a 10-year prohibition order against former
Goldman Sachs
Goldman Sachs () is an American multinational investment bank and financial services company. Founded in 1869, Goldman Sachs is headquartered at 200 West Street in Lower Manhattan, with regional headquarters in London, Warsaw, Bangalore, H ...
banker
Tim Leissner for making false statements on behalf of his bank without its knowledge. The prohibition order, which prevents him from performing any regulated activity under the Securities and Futures Act and from managing any capital market services firm in Singapore, was extended in December 2018 from 10 years to lifetime after he admitted to charges related to an investigation into the 1MDB scandal.
In September 2018, the Singapore State Courts granted the return of 1MDB monies with a total value of S$15.3 million to Malaysia while solicitors for the Malaysian government stated that efforts to recover other unlawfully misappropriated assets were ongoing.
Switzerland
Swiss authorities under the direction of the Office of the Attorney General of Switzerland began to freeze bank accounts amounting to several million US dollars linked to 1MDB. The Swiss attorney general's office said its investigation revealed indications that funds estimated to be US$4 billion may have been misappropriated and said it was looking into four cases of potential criminal conduct. The Swiss prosecutor has said that money had been deposited into Swiss bank accounts of former Malaysian public officials and current and former officials of United Arab Emirates.
Swiss Financial Market Supervisory Authority
The Swiss Financial Market Supervisory Authority (FINMA) is the Swiss government body responsible for financial regulation. This includes the supervision of banks, insurance companies, stock exchanges and securities dealers, as well as other ...
(Finma) has begun investigations into several Swiss banks as part of the money laundering probe involving 1MDB.
On 15 March 2018, the
Swiss parliament
The Federal Assembly (german: Bundesversammlung, french: Assemblée fédérale, it, Assemblea federale, rm, Assamblea federala), also known as the Swiss parliament (''Parlament'', ''Parlement'', ''Parlamento''), is Switzerland's federal legi ...
rejected a motion to return seized monies from their investigations into 1MDB to the Malaysian people, as had been lobbied for by Swiss politicians and non-governmental bodies. However, on 10 July 2018, Swiss Attorney General indicated that Switzerland would not enrich itself by keeping illicit or stolen assets and be able to have the monies returned by legal obligations.
United Arab Emirates
The United Arab Emirates has issued travel bans and frozen bank accounts of former Abu Dhabi sovereign-wealth fund International Petroleum Investment Company's employees
Khadem al-Qubaisi
Khadem Abdullah al-Qubaisi ( ar, خادم عبد الله القبيسي; born September 27, 1971) is an Emirati businessman and the former managing director of the International Petroleum Investment Company (IPIC). In 2015, he was replaced as ...
and Mohammed Badawy Al Husseiny who had close connections to 1MDB, and may have used the British Virgin Islands-based
Aabar Investments PJS to funnel money from 1MDB into various accounts and companies around the world.
United Kingdom
In September 2020, the U.S. Department of Justice initiated civil forfeiture proceedings against funds held by law firm
Clyde & Co in London, United Kingdom. The US$330 million were misappropriated 1MDB money, apparently intended for an oil project in Venezuela that later failed.
United States
''The Wall Street Journal'' reported in 2015 that the
Federal Bureau of Investigation
The Federal Bureau of Investigation (FBI) is the domestic intelligence and security service of the United States and its principal federal law enforcement agency. Operating under the jurisdiction of the United States Department of Justice, ...
had begun investigations into money laundering involving 1MDB. The international corruption unit of the US Department of Justice (DOJ) began a probe into property purchases in the United States involving Najib Razak's stepson
Riza Aziz
Riza Shahriz bin Abdul Aziz, better known as Riza Aziz, is a Malaysian film producer and the co-founder of Red Granite Pictures, a Los Angeles-based film production company.
Career
Riza holds a BS degree in Government & Economics and an MS in ...
and the transfer of millions of dollars into Najib Razak's personal account. The probe was looking at properties purchased by shell companies belonging to Riza Aziz and close family friend Jho Low. Investment banks such as
JPMorgan Chase
JPMorgan Chase & Co. is an American multinational investment bank and financial services holding company headquartered in New York City and incorporated in Delaware. As of 2022, JPMorgan Chase is the largest bank in the United States, the ...
& Co.,
Deutsche Bank
Deutsche Bank AG (), sometimes referred to simply as Deutsche, is a German multinational investment bank and financial services company headquartered in Frankfurt, Germany, and dual-listed on the Frankfurt Stock Exchange and the New York Sto ...
AG and
Wells Fargo
Wells Fargo & Company is an American multinational financial services company with corporate headquarters in San Francisco, California; operational headquarters in Manhattan; and managerial offices throughout the United States and intern ...
were asked by the DOJ to retain and turn over records that might be related to improper transfers from 1MDB. The FBI issued subpoenas to several past and present employees of film production company
Red Granite Pictures
Red Granite Pictures was an American film production and distribution company, co-founded by Riza Aziz and Joey McFarland in 2010. Its productions included ''The Wolf of Wall Street'' and ''Dumb and Dumber To''. It was dissolved in 2018 after bei ...
, co-founded by Riza Aziz, also its chairman, in regards to allegations that US$155 million was diverted from 1MDB to help finance the 2013 film
''The Wolf of Wall Street''.
Also under scrutiny by the FBI and DOJ was the role of global investment bank Goldman Sachs in alleged money laundering and corruption. The FBI probed the connection between Najib and a regional top executive of Goldman Sachs, and the nature of the latter's involvement in multibillion-dollar deals with 1MDB. Tim Leissner, the former chairman of Goldman Sachs' Southeast Asia branch and husband of
Kimora Lee Leissner, was issued a subpoena by the DOJ as part of their investigations. In the July 2016 DOJ civil lawsuit, a high-ranking government official having control over 1MDB, who was referred to more than 30 times as "Malaysian Official 1" ("MO1"), was alleged to have received around US$681 million (RM 2.8 billion) of stolen 1MDB money via Falcon Bank in Singapore on 21 and 25 March 2013, of which US$650 million (RM 2.0 billion) was sent back to Falcon Bank on 30 August 2013. In September 2016, Najib Razak was identified as "MO1" by Datuk
Abdul Rahman Dahlan
Datuk Seri Panglima Haji Abdul Rahman bin Dahlan ( Jawi: عبدالرحمن بن دحلان; born 24 November 1965) is a Malaysian politician. He is the former Minister in the Prime Minister's Department and the Minister of Urban Wellbeing, H ...
, then Minister in the
Prime Minister's Department
A cabinet department or prime minister's department is a department or other government agency that directly supports the work of the government's central executive office, usually the cabinet and/or prime minister, rather than specific ministe ...
. The wife of "MO1",
Rosmah Mansor
Rosmah binti Mansor ( Jawi: روسمه بنت منصور; born 10 December 1951) is the second wife of former Prime Minister of Malaysia, Najib Razak. Like her husband, she became implicated in the 1Malaysia Development Berhad scandal. On 1 S ...
, was also alleged to have received US$30 million worth of jewels financed from pilfered 1MDB funds.
In June 2017, the DOJ began actions to recover more than US$1 billion from people close to Najib and 1MDB, seizing assets including high-end properties in
Beverly Hills
Beverly Hills is a city located in Los Angeles County, California. A notable and historic suburb of Greater Los Angeles, it is in a wealthy area immediately southwest of the Hollywood Hills, approximately northwest of downtown Los Angeles. Bev ...
, Los Angeles, Manhattan, New York City and London, as well as fine artwork, a private jet, a luxury yacht and royalties from the film ''The Wolf of Wall Street'' and its production company Red Granite Pictures. On 7 March 2018, in California courts, the producers of the film agreed to pay US$60 million to settle DOJ's claims that they financed the movie with money siphoned from 1MDB. The claims were settled in August 2018, with the settlement stipulating that the payment should not be construed as "an admission of wrongdoing or liability on the part of Red Granite".
On 1 November 2018, the DOJ announced that two former Goldman Sachs bankers, Tim Leissner and Roger Ng, as well as Malaysian fugitive financier Jho Low, were charged over funds misappropriated from 1MDB and paying bribes to various Malaysian and Abu Dhabi officials. Tim Leissner admitted in a plea that more than US$200 million in proceeds from 1MDB bonds flowed into accounts controlled by him and a relative. He agreed to forfeit US$43.7 million (RM 185 million) and pleaded guilty to conspiring to launder money and violate the
Foreign Corrupt Practices Act
The Foreign Corrupt Practices Act of 1977 (FCPA) (, ''et seq.'') is a United States federal law that prohibits U.S. citizens and entities from bribing foreign government officials to benefit their business interests.
The FCPA is applicable world ...
, while Roger Ng was arrested in Malaysia at the request of DOJ and extradited to the US for prosecution before returning and facing charges in Malaysia. According to Roger Ng's lawyers, he was infected with Dengue fever and leptospirosis while in Malaysian jail and lost a significant amount of weight.
On 30 November 2018, the DOJ announced that George Higginbotham, a former DOJ employee, pleaded guilty to conspiracy to deceive US banks about the source and purpose of foreign funds for a lobbying campaign against the US investigations into the 1MDB scandal. The DOJ filed a lawsuit to recover more than US$73 million (RM 305 million) in American bank accounts that Higginbotham helped open on behalf of Jho Low to finance the lobbying campaign. Further in May 2019, the DOJ announced that it had charged Jho Low and former
Fugees
Fugees (; sometimes The Fugees) is an American hip hop group formed in the early 1990s. Deriving its name from a shortening of the word "refugees", the group consists of Wyclef Jean, Pras Michel, and Lauryn Hill. The group rose to fame with its ...
rapper
Pras
Prakazrel Samuel Michel (; born October 19, 1972) is a Haitian-American rapper, producer, songwriter and actor. He is best known as a member of the hip hop group Fugees, alongside Wyclef Jean and Lauryn Hill. After the Fugees, he earned two ...
for conspiring to funnel US$21.6 million from overseas accounts into the
2012 presidential election.
On 1 November 2019, ''Barron's'' reported that Jho Low had forfeited over $100 million in luxury homes as part of a settlement with prosecutors in the United States. Overall, he agreed to give up some $700 million in assets to the U.S. Department of Justice to have charges dropped, without admitting guilt.
Elliott Broidy
Elliott B. Broidy (born 1956/1957) is an American venture capitalist and businessman. From 2005 to 2008, he served as finance chairman of the Republican National Committee (RNC). In 2009, he was convicted in a public corruption and bribery case in ...
was charged by the Federal authorities in the violation of
Foreign Agents Registration Act
The Foreign Agents Registration Act (FARA)2 U.S.C. § 611 ''et seq.'' is a United States law that imposes public disclosure obligations on persons representing foreign interests. as per public court filing published on 8 October 2020. Broidy reportedly took $6 million from agents of
Malaysia
Malaysia ( ; ) is a country in Southeast Asia. The federation, federal constitutional monarchy consists of States and federal territories of Malaysia, thirteen states and three federal territories, separated by the South China Sea into two r ...
and
China
China, officially the People's Republic of China (PRC), is a country in East Asia. It is the world's most populous country, with a population exceeding 1.4 billion, slightly ahead of India. China spans the equivalent of five time zones and ...
to lobby officials from the administration to end the investigation 1MDB scandal. Broidy was also charged for lobbying
White House
The White House is the official residence and workplace of the president of the United States. It is located at 1600 Pennsylvania Avenue NW in Washington, D.C., and has been the residence of every U.S. president since John Adams in 1800. ...
officials in alignment to
UAE
The United Arab Emirates (UAE; ar, اَلْإِمَارَات الْعَرَبِيَة الْمُتَحِدَة ), or simply the Emirates ( ar, الِْإمَارَات ), is a country in Western Asia (The Middle East). It is located at th ...
’s interest.
On 23 February 2022, the star witness in the bribery trial of former Goldman Sachs Group Inc banker Roger Ng being held in New York, testified that ex-Goldman chief
Lloyd Blankfein
Lloyd Craig Blankfein (born September 20, 1954) is an American investment banker who has served as senior chairman of Goldman Sachs since 2019, and chairman and chief executive from 2006 until the end of 2018. Previous to leading Goldman Sachs, ...
met in 2009 with then Malaysian prime minister
Najib Razak
Dato' Sri Haji Mohammad Najib bin Tun Haji Abdul Razak ( ms, محمد نجيب بن عبد الرزاق, label= Jawi, script=arab, italic=unset, ; born 23 July 1953) is a Malaysian politician who served as the 6th prime minister of Malaysi ...
just ahead of big bond deals for the country’s 1MDB fund — and that the meeting came with an agenda. In return for the lucrative business, Goldman was to get Najib’s three children jobs at the bank. On 24 February, Najib's daughter Nooryana Najwa Najib has confirmed that she did try to apply for a job at Goldman Sachs. She said she once met two former Goldman Sachs employees, Roger Ng and Tim Leissner as part of her networking efforts to land a "competitive job". Ultimately, an officer within Goldman rejected progressing with any job offer within the group.
On 24 February 2022, it was announced that the trial of Roger Ng had been paused because the prosecutors did not share more than 15,000 documents with the defense lawyers representing Robert Ng. Ng was convicted of conspiring to launder money and bribe officials in Malaysia and the United Arab Emirates as well as violating the internal accounting controls of his employer under the
Foreign Corrupt Practices Act
The Foreign Corrupt Practices Act of 1977 (FCPA) (, ''et seq.'') is a United States federal law that prohibits U.S. citizens and entities from bribing foreign government officials to benefit their business interests.
The FCPA is applicable world ...
.
$4.5 billion of the stolen money was laundered through U.S. financial institutions.
Recovery of 1MDB assets
As of May 2019, Malaysia had recovered US$322 million (RM1.3 billion) worth of 1MDB assets since its renewed investigations into the 1MDB scandal after the 14th General Election in May 2018.
Steps have been taken to preserve the value of the assets caught up in the case, including the sale of the
Park Lane Hotel
The Sheraton Grand London Park Lane is a 5 Star hotel on Piccadilly, London.
The hotel opened in 1927 as The Park Lane Hotel to designs by architects Adie, Button and Partners, in a grand Art Deco style, and was constructed by the developer ...
in New York in November 2018, a step endorsed by the U.S. DOJ, in accordance with the rule of law and on the basis of no admission of wrongdoing or liability. In August 2018, Malaysian authorities seized a yacht allegedly purchased by Low, selling it some eight months later to minimize the costs associated with maintaining it. A spokesperson for Low described the seizure as "illegal".
Leonardo DiCaprio returned gifts received from Low to US authorities in 2017, including an Oscar received by
Marlon Brando
Marlon Brando Jr. (April 3, 1924 – July 1, 2004) was an American actor. Considered one of the most influential actors of the 20th century, he received numerous accolades throughout his career, which spanned six decades, including two Academ ...
and paintings by
Picasso
Pablo Ruiz Picasso (25 October 1881 – 8 April 1973) was a Spanish painter, sculptor, printmaker, ceramicist and Scenic design, theatre designer who spent most of his adult life in France. One of the most influential artists of the 20th ce ...
and
Jean-Michel Basquiat
Jean-Michel Basquiat (; December 22, 1960 – August 12, 1988) was an American artist who rose to success during the 1980s as part of the Neo-expressionism movement.
Basquiat first achieved fame as part of the graffiti duo SAMO, alongside Al ...
.
The recovered funds include the sum of US$126 million from the ''Equanimity'' judicially sold to the
Genting Group
The Genting Group is a company headquartered in the Wisma Genting in Kuala Lumpur, Malaysia. It comprises the holding company Genting Berhad (), its listed subsidiaries Genting Malaysia Berhad (), Genting Plantations Berhad (), Genting Singapore ...
, US$139 million to be returned by the United States after sale of Jho Low's interest in
Park Lane Hotel
The Sheraton Grand London Park Lane is a 5 Star hotel on Piccadilly, London.
The hotel opened in 1927 as The Park Lane Hotel to designs by architects Adie, Button and Partners, in a grand Art Deco style, and was constructed by the developer ...
in Manhattan, and US$57 million from a forfeiture settlement of Red Granite Pictures, which has been repatriated to Malaysia after deducting the costs incurred for investigations, seizures and litigation.
Apart from the above, another sum of S$50 million (RM152 million) related to 1MDB has been ordered by the Singapore Courts to be repatriated.
Malaysia has been working with at least six countries to recover about US$4.5 billion worth of assets allegedly stolen from 1MDB, in which US$1.7 billion (RM7 billion) worth of assets have been sought by the DOJ to forfeit.
On 15 April 2020, it was reported that the DOJ had returned US$300 million in funds stolen during the 1MDB scandal to Malaysia.
On 24 July 2020, it was announced that the Malaysian government would receive US$2.5 billion in cash from Goldman Sachs, and a guarantee from the bank they would also return US$1.4 billion in assets linked to 1MDB bonds. Put together this was substantially less than the US$7.5 billion that had been previously demanded by the Malaysian finance minister. At the same time, the Malaysian government agreed to drop all criminal charges against the bank and that it would cease legal proceedings against 17 current and former Goldman directors. Some commentators argued that Goldman had got away with a very good deal.
In January 2022, the Malaysian government received RM 333 million ($111 million) as a fine from the local affiliate of KPMG in settlement of the lawsuit filed against it.
Reports by Offshore Alert indicate that actions to recover further misappropriated assets are ongoing in various jurisdictions.
Media coverage
In January 2015, around 227,000 leaked documents related to the fraud were provided to the ''
Wall Street Journal
''The Wall Street Journal'' is an American business-focused, international daily newspaper based in New York City, with international editions also available in Chinese and Japanese. The ''Journal'', along with its Asian editions, is published ...
'' and activist blogger
Clare Rewcastle-Brown, who writes ''
Sarawak Report
''Sarawak Report'' is an opinion, commentary, and political activism blog focused on environmental and corruption issues in Malaysia. It has been largely self-published and operated from London since 2010 by Clare Rewcastle Brown. The blog h ...
''.
The documents were leaked by Swiss national Xavier Justo, a former PetroSaudi International employee. In February 2015, ''
The Sunday Times
''The Sunday Times'' is a British newspaper whose circulation makes it the largest in Britain's quality press market category. It was founded in 1821 as ''The New Observer''. It is published by Times Newspapers Ltd, a subsidiary of News UK, whi ...
'' newspaper and the ''Sarawak Report'' blog'','' referencing leaked email correspondences, that Penang-based Low Taek Jho, who has ties Najib Razak, siphoned out US$700 million from a joint venture deal between 1MDB and PetroSaudi International through an entity named Good Star Ltd.
Although Low never received an official position in 1MDB, he is described as someone who was regularly consulted about 1MDB without having any decision-making authority. An email revealed that Low had the loan approval from Najib for $1 billion without getting any approval from
Bank Negara
The Central Bank of Malaysia (BNM; ms, Bank Negara Malaysia) is the Malaysian central bank. Established on 26 January 1959 as the Central Bank of Malaya (''Bank Negara Tanah Melayu''), its main purpose is to issue currency, act as banker and ad ...
.
Within Malaysia, ''
The Edge
David Howell Evans (born 8 August 1961), better known as the Edge or simply Edge,McCormick (2006), pp. 21, 23–24 is an English-born Irish musician, singer, and songwriter. He is best known as the lead guitarist, keyboardist, and backing voca ...
'' was one of the few
media outlets
Mass media refers to a diverse array of media technologies that reach a large audience via mass communication. The technologies through which this communication takes place include a variety of outlets.
Broadcast media transmit information ...
which published investigations on the scandal. Its license was suspended by the Malaysian government, in a move that its publisher suggested was
censorship
Censorship is the suppression of speech, public communication, or other information. This may be done on the basis that such material is considered objectionable, harmful, sensitive, or "inconvenient". Censorship can be conducted by governments ...
.
Wall Street Journal reporting
It was claimed through a report by ''The Wall Street Journal'' that 1MDB made overpriced purchases of power assets in Malaysia through
Genting Group
The Genting Group is a company headquartered in the Wisma Genting in Kuala Lumpur, Malaysia. It comprises the holding company Genting Berhad (), its listed subsidiaries Genting Malaysia Berhad (), Genting Plantations Berhad (), Genting Singapore ...
in 2012. Genting then allegedly donated this money to a foundation controlled by Najib, who used these funds for election campaign purposes during the
2013 general elections. According to a news report quoting 1MDB, the company denied that it overpaid for its energy assets. 1MDB was quoted as saying that their energy acquisitions were made only when the company was convinced of its long-term value.
Further allegations were made by ''The Wall Street Journal'' that $700 million was transferred from 1MDB and deposited in
AmBank
AmBank Group comprises AMMB Holdings Berhad (AMBANK 1015) is one of the largest banking groups in Malaysia whose core businesses are retail banking, wholesale banking, Islamic banking, and life and general insurance.
The Group trades under a ...
and
Affin Bank
Affin Bank Berhad d.b.a. AFFIN BANK () is the financial holding company of Affin Islamic Bank Berhad, Affin Hwang Investment Bank Berhad, Affin Moneybrokers Sdn Bhd and AXA AFFIN Life Insurance Berhad. AXA AFFIN General Insurance Berhad is an ass ...
accounts under Najib's name. A task force to investigate these claims had frozen six bank accounts linked to Najib and 1MDB. The
Malaysian Anti-Corruption Commission
The Malaysian Anti-Corruption Commission ( ms, Suruhanjaya Pencegahan Rasuah Malaysia), abbreviated MACC or ''SPRM'', (formerly known as Anti-Corruption Agency, ACA or ''Badan Pencegah Rasuah'', ''BPR'') is a government agency in Malaysia that ...
(MACC) subsequently, in August 2015, cleared 1MDB of this allegation. MACC issued a statement saying, among other things, "Results of the investigation have found that the RM2.6bil which was allegedly transferred into the account belonging to Najib Razak came from the contribution of donors, and not from 1MDB".
Najib Razak had originally denied allegations that stolen money was found in his bank accounts, saying "If I wanted to steal, surely I won’t steal the money and bring it into an account in Malaysia. The WSJ responded by revealing the bank account details online to rebut the denials by Najib and his supporters. Singapore police had frozen two Singapore bank accounts in connection with their own investigation into the alleged financial mismanagement at 1MDB, after reports stated that $700 million worth of deposits was moved through Falcon Bank in Singapore into Najib's personal accounts in Malaysia. However, 1MDB denied having any knowledge of their accounts being frozen, and said they have not been contacted by any of the foreign investigating authorities.
The WSJ also reported that 1MDB transferred around $850 million via three transactions in 2014 to a British Virgin Islands-registered company with a name disguising that it was controlled by
International Petroleum Investment Company (IPIC), a United Arab Emirates state investment vehicle, according to wire transfer documents.
The WSJ released a report stating that 1MDB failed to pay $1.4 billion to IPIC. The money was owed to IPIC after it had guaranteed a US$3.5 billion bond issued by 1MDB to fund its purchase of power plant assets in 2012. The WSJ released another report saying that a further $993 million was missing that 1MDB was supposed to pay IPIC. 1MDB responded to the WSJ report, saying that the company continues to enjoy a strong business relationship with IPIC, as proven by the execution of a binding term sheet that saw IPIC assume obligation for a $3.5 billion bond, currently held by 1MDB, and followed a $1 billion cash payment made by IPIC to 1MDB in June. Earlier in October 2015, IPIC reaffirmed their commitment to working with 1MDB and the Malaysian Ministry of Finance.
Another report by the WSJ pointed out that 1MDB, in connection with a United States political fundraiser DuSable Capital Management LLC, signed a joint venture agreement creating a fund, Yurus PE Fund, to develop solar power plants in Malaysia. Six months after the joint venture agreement was signed, 1MDB bought out DuSable's stake of 49% of Yurus for $69 million before any construction took place. Based on bank transfer information, the WSJ reported that Najib spent close to $15 million on clothes, jewellery, and a car in places such as the United States, Singapore, and Italy using a credit card that was paid from one of several private bank accounts owned by Najib, to which 1MDB funds had been diverted.
Timeline
See also
* ''
The Kleptocrats
''The Kleptocrats'' is a 2018 documentary film produced by Mike Lerner and directed by Sam Hobkinson and Havana Marking that investigates the theft of over $3 billion from Malaysian government fund 1MDB. The scandal implicated several public fi ...
''
*
Corruption in Malaysia
According to a 2013 public survey in Malaysia by Transparency International, a majority of the surveyed households perceived Malaysian political parties to be highly corrupt. A quarter of the surveyed households consider the government's effor ...
*
Goldman Sachs controversies
*
History of Malaysia
Malaysia is located on a strategic sea lane that exposes it to global trade and various cultures. The name "Malaysia" is a modern concept, created in the second half of the 20th century. However, contemporary Malaysia regards the entire history ...
Citations
Bibliography
*
*
External links
* ''
The Guardian
''The Guardian'' is a British daily newspaper. It was founded in 1821 as ''The Manchester Guardian'', and changed its name in 1959. Along with its sister papers ''The Observer'' and ''The Guardian Weekly'', ''The Guardian'' is part of the Gu ...
'',
1MDB: The inside story of the world’s biggest financial scandal, 28 July 2016.
*
Global Witness
Global Witness is an international NGO established in 1993 that works to break the links between natural resource exploitation, conflict, poverty, corruption, and human rights abuses worldwide. The organisation has offices in London and Washingt ...
:
**
The Real Wolves of Wall Street – The banks, lawyers and auditors at the heart of Malaysia’s biggest corruption scandal (HTML), March 2018.
**
The Real Wolves of Wall Street – The banks, lawyers and auditors at the heart of Malaysia’s biggest corruption scandal (PDF), March 2018.
*
Bloomberg News
Bloomberg News (originally Bloomberg Business News) is an international news agency headquartered in New York City and a division of Bloomberg L.P. Content produced by Bloomberg News is disseminated through Bloomberg Terminals, Bloomberg Televi ...
,
A Guide to the Worldwide Probes of Malaysia's 1MDB Fund, 8 March 2018.
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