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Malaysia Goes After Suspects In 1MDB Scandal

Tom Burroughes Group Editor 8 June 2018

Malaysia Goes After Suspects In 1MDB Scandal

Malaysia is reportedly closing in on those individuals accused of enabling a massive corruption scandal in the country.

Malaysia has issued an arrest warrant for financier Low Taek Jho, wanted for questioning in a graft probe involving former prime minister Najib Razak and state fund 1MDB, according to media reports.

The Malaysian Anti-Corruption Commission has issued a warrant for Jho Low, as he is known, and Nik Faisal Ariff Kamil, a director of SRC International, a former unit of 1Malaysia Development Berhad Bloomberg reported, quoting unnamed sources.

Reports said authorities are also preparing to issue warrants for Roger Ng, a former Goldman Sachs banker, and 1MDB’s ex-chief, Shahrol Halmi.

Activity in going after prominent individuals allegedly implicated in the scandal has accelerated since the Najib administration was kicked out of office last month in a shock election result. Najib is accused of using 1MDB to siphon off funds for personal gain – he has repeatedly denied the claims.

Several jurisdictions have started probes into illicit financial dealings. About two years ago, Singapore kicked out BSI and Falcon Private Bank the Asian city-state; there are also investigations in Luxembourg, Switzerland and the US.

The US Department of Justice has alleged that more than $4.5 billion was misappropriated from 1MDB, and about $700 million of that went to Najib’s personal bank accounts.

Low Taek Jho has offered to help investigators, Reuters quoted his spokesperson as saying yesterday. The Malaysian Anti-Corruption Commission has relaunched a probe into why $10.6 million from SRC International, a former unit of 1Malaysian Development Bhd, was transferred into the former prime minister's bank account. The amount is tiny compared with the billions of dollars that went missing from 1MDB, but the transfers from SRC were made through Malaysian entities making them easier for investigators to trace, the news service noted.
 

 

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