BN’s fall opens door wider to 1MDB scandal
KUAL A LUMPU R: The collapse of the Barisan Nasional government following the BN defeat in the 14th General Election (GE14) on May 9 opened the door wider to one disclosure after another on the 1Malaysia Development Berhad ( 1MDB) scandal.
Although the investigation into the world’s biggest financial case is being carried out by several countries including the United States, the United Kingdom, Singapore, Switzerland and Indonesia, Malaysia only began the probe after Pakatan Harapan took over the government, burying 61 years of BN rule.
The May 15 declassification by the National Audit Department of 1MDB documents which had been kept under the Official Secrets Act since January 2016 was akin to opening a can of worms.
The executive summary of the documents, among others, revealed that 1MDB needed about RM42.26 billion to pay the principal sum and matured loan interest between November 2015 and May 2039.
Two days later, the Bukit Aman Commercial Crime Investigation Department conducted a raid on four luxury condominiums in the capital linked to former prime minister Datuk Seri Najib Tun Razak and his family.
The raid shocked Malaysia when the police revealed they had seized 72 bags containing jewellery, various types of currencies and valuable items and nearly 300 boxes filled with luxury handbags of various brands linked to 1MDB from those premises, estimated to be worth between RM900 million and RM1.1 billion.
Subsequently, a 1MDB Special Investigation Team was formed on May 21 to conduct a thorough investigation on the Ministry of Finance strategic development company, including coordination of investigations and detection of misappropriated money both inside and outside the country.
On June 29, the special team confirmed that it had frozen a number of accounts belonging to individuals and several organisations, including UMNO and political parties allegedly involved in the misappropriation of 1MDB funds.
On July 4, Najib was charged in the Kuala Lumpur High Court on three counts of criminal breach of trust and a charge under the MACC Act over the misappropriation of RM42 million linked to SRC International Sdn Bhd, which had been a subsidiary of 1MDB.
To date, Najib faces 39 charges of corruption, criminal breach of trust, abuse of power and money laundering in connection with the misappropriation of 1MDB funds. He has pleaded not guilty to all the charges.
The irregularities in 1MDB were first disclosed by Petaling Jaya Utara (now Damansara) MP Tony Pua in the Dewan Rakyat in 2010. The attempts by the opposition at that time to raise the issue were suppressed by the BN.
Despite the allegations and disclosures, Najib, who is also the former Finance Minister and chairman of the 1MDB Advisory Board, insists that he has no knowledge of the alleged wrongdoing at the company.
The investigation into 1MDB recorded another significant development when the Malaysian government regained ownership of the luxury yacht Equanimity belonging to Low Taek Jho or Jho Low, which was allegedly bought with 1MDB funds. — Bernama