How it began

The 1MDB created waves across not only Malaysia, but also the world. The trail of corruption spread across continents, taking shocking twists and turns and travelling perhaps farther than former prime minister Najib Razak ever could, even in his (taxpayerfunded) private jet. These luxury trips became a thing of the past when the disgraced former premier was booted out of office by angry voters in 2018.

Some RM2.6 billion ($866 million) is believed to have been siphoned from the development fund and frittered away on luxury yachts, priceless paintings and exclusive real estate. Within four years of its inception, the fund had amassed nearly US$12 billion in borrowings, but doubts began to surface when it seemed to have little to show for all its debt.

Several news organisations — including

The Edge Malaysia — began to run stories saying that things were going sour within 1MDB, sparking a years-long investigation that culminated in Najib’s being charged and the alleged mastermind behind it all — his associate and businessman — Low Taek Jho’s being on the run.

Meanwhile, the search is still on for Jho Low. In addition, severe consequences await US investment bank Goldman Sachs, which collected US$600 million in fees for its role in arranging bonds for 1MDB, in addition to criminal charges filed against the bank and its former employees — Tim Leissner and Roger Ng — in relation to the bond sales. Other bankers are under investigation in Switzerland, where authorities have also sanctioned Coutts & Co and JPMorgan for their involvement in 1MDB deals.

Several Singapore-based financial institutions, such as BSI Bank and Falcon Bank, were involved in facilitating the fund flows. Jho Low, for one, held big sway at BSI. He was described as “Big Boss” by private bankers such as his relationship manager Yak Yew Chee. So far, five individuals, including Yak, have been convicted by Singapore courts for their roles in the 1MDB scandal.