Malaysia to take possession of 1Mdb-linked yacht

KUALA LUMPUR: Malaysia is making “some arrangement” with Indonesia to take ownership of a luxury yacht linked to a multi-billion dollar financial scandal, a government spokesman said on Sunday.

The Cayman Islandsregistered Equanimity, believed to be worth some $250 million, was seized in February off the Indonesian tourist island of Bali.

The US Department of Justice alleges in civil lawsuits that huge sums of money were stolen from Malaysia’s 1MDB investment fund — set up by former prime minister Najib Razak — in a huge fraud and money-laundering scam. The fund and Najib, who lost an election earlier this year, deny any wrongdoing.

The suits allege $1.7 billion worth of assets were allegedly bought with the stolen funds, which US officials are seeking to recover.

Those assets include a 300foot (90-metre) yacht bought by Jho Low, a former unofficial adviser to 1MDB.

“Some arrangements are being made with the Indonesian authorities responsible (to take over the yacht),” a spokesman for Malaysian Prime Minister Mahathir Mohamad’s office said.

“We will announce more once we have finalised the details,” he added, declining to elaborate further.

A senior maritime official familiar with the talks said that the super yacht was in Indonesian waters off Batam near Singapore.

Bilateral ties between Malaysia and Indonesia are close with Mahathir visiting Jakarta in June, making it his first official tour of the region after a stunning election victory in May over Najib.

Malaysia’s anti-corruption authorities have issued an arrest warrant for Jho Low, accused of being a key figure in the scandal surrounding sovereign wealth fund 1MDB.

Low is a close associate of Najib and allegedly conspired with him to loot the investment vehicle.

Low — full name Low Taek Jho — whose exact whereabouts are unknown, condemned Malaysia’s action to take over the yacht saying it was “politically motivated”.