27 January 2016•Update: 01 February 2016
By P Prem Kumar
KUALA LUMPUR
Malaysia's attorney general has said that the country will cooperate with a Swiss probe into its state investment fund after Switzerland's chief prosecutor revealed that $4 billion appeared to have been misappropriated from Malaysian state companies.
In a short statement Saturday, Apandi Ali said his office would establish contact with its Swiss counterparts, after chief prosecutor Michael Lauber formally requested Malaysia's assistance to help in a probe into possible violations of Swiss law by 1Malaysia Development Berhad (1MDB).
In a statement seeking Malaysia's assistance released Friday, the Swiss attorney general's office said: "The monies believed to have been misappropriated would have been earmarked for investment in economic and social development projects in Malaysia."
It added that the possible violations include corruption, abuse of public office, money laundering, and criminal mismanagement.
Ali said he would study the Swiss findings -- along with details of their internal probe -- to find ways to cooperate.
Debt-ridden 1MDB -- the brainchild of Malaysia's Prime Minister Najib Razak -- is under fire for amassing debts of 42 billion Ringgit ($11 billion) in its six years of operations.
In July 2-15, international probes into 1MDB claimed that billions of Ringgit were channeled from the fund to personal bank accounts belonging to Razak -- only for a Malaysian court to absolve the premier of wrongdoing this month.
Ali announced Tuesday that Razak had been cleared of criminal charges, as the monies found in his account had been transferred by the Saudi royal family before the 2013 general election.
In his statement Saturday, Ali highlighted that the international probe into 1MDB was entirely separate from the investigations into donations made to Razak.
On Friday, the Swiss attorney-general's office stated that its probe had uncovered some $4 billion misappropriated from Malaysian state companies, of which some was found transferred to Swiss bank accounts held by former public officials from Malaysia, and both former and current public officials from the United Arab Emirates.
1MDB said Saturday that it is willing to cooperate with the Swiss authorities.
It underlined, however, that it has yet to receive any request from the Swiss attorney-general's office and future cooperation would be dependent on advice from its legal advisors.
“As we have previously stated, 1MDB has not been contacted by any foreign legal authorities on any matters relating to the counsel company," a statement from the Malaysian investment vehicle said.
“1MDB remains committed to fully cooperating with any lawful authority and investigation, subject to advice from the relevant domestic lawful authorities, and in accordance with international protocols governing such matters."
