by Stephanie Bodoni/Shamim Adam
Bloomberg
March 31, 2016

Authorities in Luxembourg and Singapore are investigating transactions involving 1Malaysia Development Bhd. as the Malaysian state fund faces expanding probes into allegations of embezzlement and money laundering.

Prosecutors in Luxembourg said they started an investigation of 1MDB, as the fund is known, after finding “concrete clues” of embezzlement from companies owned by the fund via accounts in Singapore, Switzerland and Luxembourg. In response to questions about 1MDB, the Singapore central bank said it is conducting a “thorough review of various transactions as well as fund flows” through its banking system.

“The alleged facts concern in particular the amounts paid during the issuance of two bonds in May and October 2012,” Luxembourgish prosecutors said in an e-mailed statement. They will seek to “retrace the origin of four transfers during 2012 and one transfer in early 2013 for a total of several hundred million dollars, to an offshore company with an account in a bank in” Luxembourg. Read the rest of this entry »

The Australian
APRIL 1, 2016

Malaysian Prime Minister Najib Razak is doing neither himself nor the standing of his country any good by being so obdurate over the corruption charges that have been levelled against him. Lashing out at media (specifically Australian journalists) over reporting of the scandal and threatening members of the Malaysian Bar who have been critical of him with prosecution under draconian, colonial era sedition laws heighten concerns about his authoritarian government.

Mr Najib’s refusal to discuss, much less provide a credible explanation for, the $1 billion linked to the debt-laden sovereign wealth fund 1Malaysia Development Berhad that landed in his personal bank accounts is unhelpful. He should realise that even in countries that are major regional economic and strategic partners such as Australia — which long has been strongly linked to Kuala Lumpur through the Five Power Defence Arrangements and was closely allied with it in helping in the aftermath of the Malaysia Airlines MH370 and MH17 disasters — there is deepening concern about the fallout from the scandal. The US, too, is showing signs of dismay. Read the rest of this entry »