Former 1MDB Manager Under Scrutiny as Police Launch Investigation
Kuala Lumpur: Malaysian Police Launch Investigation into Former 1MDB Manager
The Malaysian police have launched an investigation into the former manager of 1Malaysia Development Berhad (1MDB), following a series of reports and findings that suggest widespread financial mismanagement and corruption within the state-owned investment fund.
Background
The Public Accounts Committee (PAC) revealed that the board of directors, in which Najib Razak was the chairman, failed to provide proper oversight of the fund’s finances. The PAC report also found that US$3.5 billion was paid to a company, Aabar Investments PJS, despite IPIC releasing a statement denying any links to a British Virgin Islands-incorporated firm.
Investigation Focus
The police investigation is expected to focus on the former manager’s role in overseeing the fund’s finances and his potential involvement in any illegal activities. The board of directors has since resigned, and Najib Razak has been charged with corruption in connection with the fund’s alleged financial mismanagement.
Foreign Law Enforcement Agencies Join Investigation
The investigation into 1MDB has also drawn the attention of foreign law enforcement agencies, who have launched their own probes into the matter. The Australian Securities and Investments Commission (ASIC) is investigating an Australian fund management company that managed up to RM2.32 billion in 1MDB funds.
- Hong Kong police are also looking into $250 million in Credit Suisse branch deposits linked to Najib Razak and 1MDB.
- In Indonesia, the Financial Intelligence Unit has provided detailed information relating to offshore entities registered in Seychelles that are related to the international investigation.
Singapore Seizes Assets Totaling S$240 Million
In Singapore, the Monetary Authority of Singapore (MAS) and the Commercial Affairs Department have seized a number of bank accounts for possible money-laundering offences related to investigations into alleged financial mismanagement at 1MDB. Assets totalling S$240 million have been seized during the investigation.
Next Steps
The police investigation is expected to continue in the coming weeks, with the authorities seeking to recover any stolen funds and bring those responsible to justice.