Kuala Lumpur: Prime Minister Datuk Seri Najib Razak said Thursday he is serious about good governance and vowed to "fully cooperate" with a US investigation into a US$3.5 billion (about RM14 billion) scandal involving 1MDB, a state fund he headed. The comments came in the wake of the US Department of Justice revelation in Los Angeles on Wednesday that it has initiated action to seize about $1.3 billion (about RM5.2 billion) of the missing $3.5 billion (about RM14 billion) allegedly used to buy assets in the US by people close to Najib."Allow the process to take its course, but I want to say categorically that we are serious about good governance," Najib told reporters.
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Najib has consistently denied allegations of wrongdoing. The 1Malaysia Development Fund was created in 2009 by Najib shortly after he took office to promote economic development projects. Instead, US prosecutors said, fund officials diverted more than $3.5 billion (about RM14 billion) through a web of shell companies and bank accounts in Singapore, Switzerland, Luxembourg and the United States. The Justice Department says it wants to seize some $1.3 billion (about RM5.2 billion) of that money, which officials were able to trace through the US financial system.
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It says the forfeiture demand is the largest single action it's taken. The money was used to pay for luxury properties in New York and California, a $35 million (about RM140 million) jet, art by Vincent Van Gogh and Claude Monet and helped finance the Hollywood film, "The Wolf of Wall Street," according to the DOJ complaints.
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"In seeking to seize these forfeited items, the Department of Justice is sending a message that we will not allow the United States to become a playground for the corrupt," said Eileen Decker, the US Attorney in Los Angeles. "And we will not allow it to be a platform for money laundering or a place to hide and invest in stolen riches."Najib said he viewed the US action seriously but pointed out that it was limited to the individuals named in the complaints. He said his government will "fully cooperate" with US authorities. The complaints identify by name several people closed to Najib. Among them is his stepson, Riza Shahriz Abdul Aziz, who co-founded movie production studio Red Granite Pictures, and businessman Low Taek Jho, who is close to Najib's family. The complaint describes Riza as a relative of an unnamed "Malaysian Official 1" whose approval was needed for the fund's financial commitments. "We have to establish facts first. This is a civil action, this not a criminal action. Those people involved will have their say through the court process in the United States," Najib said.The US has now joined several other countries, including Switzerland and Singapore, where similar investigations are ongoing into the workings of 1MDB fund. Also Thursday, Singapore said it had seized assets worth 240 million Singapore dollars ($176 million) in its probe on possible money laundering linked to 1MDB.Allegations against 1MDB have gained steam over the months, but Najib has steadfastly denied any involvement or wrongdoing. He also remains firmly in political control of the country, thanks largely to the apparently unwavering support of ruling party members despite a few voices of dissent. Meanwhile, the police have recorded statements from more than 25 people in their investigation with regard to the 1MDB. Inspector-General of Police Tan Sri Khalid Abu Bakar said those who had given statements include former 1MDB Chief Executive Officer Datuk Shahrol Azral Ibrahim Halmi, who did so last month. He also said the first phase of the investigation, to scrutinise documents and record the statements of witnesses in the country, had almost been completed. "The second phase will involve sending police officers abroad to record statements from witnesses and obtain documents there. "Recording the statements of witnesses takes weeks," Khalid said.Stay up-to-date by following Daily Express’s Telegram channel.
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