$250m yacht linked to 1MDB fund is seized in Malaysia

A $250MILLION superyacht seized six months ago over alleged links to a multi-billion dollar financial scandal sailed into Malaysia yesterday, and was boarded by law enforcement officers.

The 300ft Equanimity is among luxury assets the US Department of Justice (DOJ) alleges were bought using money stolen from the 1 Malaysian Development Berhad (1MDB) fund, set up by Najib Razak, the former prime minister.

Accusations of massive corruption at the 1MDB fund were a major factor behind the defeat of Mr Najib and his coalition in May elections, ushering in an alliance headed by Mahathir Mohammed. Dr Mahathir’s administration was quick to reinstate an investigation into the alleged looting of the state fund.

US investigators claim that Mr Najib’s associates stole and laundered $4.5billion (£3.4billion) from the fund.

The yacht is among high-end assets including real estate, jewellery and a Picasso painting that US investigators claim were bought with 1MDB money.

The DOJ has alleged in lawsuits filed in the US that the yacht was bought by Low Taek Jho, a Malaysian financier whose whereabouts are currently unknown. He issued a statement through his US attorney on Monday protesting the handover of the yacht as an “illegal act”. He has denied any wrongdoing.

Meanwhile, Mr Najib will today be charged under a money-laundering act, Malaysia’s anti-corruption agency said.

Last month, he was arrested and charged with abuse of power and criminal breach of trust related to an alleged transfer of 42 million ringgit (£8 million) into his personal bank account from SRC International, a former unit of 1MDB. He has denied wrongdoing.