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Malaysia PM accused of swindling billions off state fund

International reports claim US$700 million linked to debt-ridden 1MDB ended up in PM's personal accounts

03.07.2015 - Update : 03.07.2015
Malaysia PM accused of swindling billions off state fund

By P Prem Kumar

KUALA LUMPUR

International reports on Malaysian state-owned investment arm 1Malaysia Development Bhd (1MDB) have claimed that billions of Ringgit (hundreds of millions of dollars) from the debt-ridden firm were channelled to personal bank accounts belonging to Prime Minister Najib Razak.

The Wall Street Journal and whistle blower site Sarawak Report dropped a bombshell on Friday, when it quoted documents from the ongoing 1MDB probe claiming US$700 million (or 2.67 billion Ringgit) moved among government agencies, banks and entities linked to 1MDB finally ended up in the prime minister's personal accounts in five separate deposits.

They reported that the largest transactions were deposits of US$620 million and another one for US$61 million in March 2013, two months before Malaysia saw its most crucial 13th general election.

The government was quick to deny the accusations Friday, calling the revelation "political sabotage," and the work of "certain individuals" to undermine confidence in the economy, tarnish the government and remove a democratically elected prime minister.

"Despite the prime minister's successful stewardship of Malaysia's economy against global headwinds – as recognised this week by Fitch's upgrade – there have been concerted efforts by certain individuals to undermine confidence in our economy, tarnish the government, and remove a democratically elected prime minister," the Prime Minister's Office said in a short statement.

"These latest claims, attributed to unnamed investigators as a basis to attack the prime minister, are a continuation of this political sabotage."

The government also advised local media institutions not to accept such documents as genuine unless verified by the appropriate authorities.

1MDB is currently under intensive an probe by the auditor-general's department, central bank and the Parliament-bound Public Accounts Committee (PAC).

The inquiry concerns if 1MDB -- which has chalked up debt of 42 billion Ringgit just six years after being set up. -- contravened central bank rules and legislation in its foreign investments and offshore borrowings.

Razak, who is also the finance minister and chair of 1MDB's advisory board, has come under severe criticism lately over a number of issues.

Two of his bodyguards were involved in the murder of a glamorous Mongolian socialite, he has been forced to defend his handling of 1MDB, and United Nations Human Rights Chief Zeid Ra'ad al-Hussein has warned that Razak's revival of detention without trial and anti-terrorism laws threaten to severely curtail freedom of opinion and expression.

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