1Malaysia Development Berhad scandal

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Template:1MDB scandal

The involvement of 1MDB in the multi-billion ringgit Tun Razak Exchange development project barely a year after its establishment has drawn criticisms from the opposition. Opposition leader and Member of Parliament for Permatang Pauh, Anwar Ibrahim, has openly questioned the credentials of the company. He told Parliament that according to the records held by the companies commission, 1MDB "has no business address and no appointed auditor." He further questioned the Prime Minister's interest in the approval given to 1MDB on this matter.[1]

The RM 425 million profit between September the 25th 2009 and March the 31st 2010 raised many criticisms and controversies on the lack of transparency given to 1MDB's accounts. Tony Pua, DAP Member of Parliament for Petaling Jaya Utara questioned Prime Minister Datuk Seri Najib Razak, 1MDB advisory board chairman, whether the figures were the result of an asset injection into 1MDB by the government such as the transfer of land rights to the company.[2][3]

During the October 2010 parliamentary session, 1MDB explained that its accounts had been fully audited and signed by KPMG, and closed as of 31 March 2010. Deloitte was involved in the valuation and analysis of the portfolio, while Ernst & Young provided tax advice for 1MDB.

1MDB raised attention by asking for a six-month extension on the annual report meant to be filed in with the CCM by September the 30th 2013. In the meantime, the change of three auditors since its inception in 2009 was considered suspicious.[4][5]

It also said that 1MDB has lodged the necessary information, including its registered address, with the Companies Commission of Malaysia as required by the law. The business address is also available on the company’s website, www.1mdb.com.my.

The Sungai Besi airport land transfer took place on June 2011 will be developed as Bandar Malaysia, a mixed integrated development of commercial, residential and hi-tech green environment.[6]

It was reported that 1MDB has accumulated debts totaling RM42 billion, causing the bonds issued by the fund to be downgraded to junk status by ratings agencies such as Standard and Poor and Fitch Ratings.[7][8][9] It was reported that the Malaysian cabinet had rejected a RM3 billion cash injection for 1MDB narrowing its options to pay off its debts on time.[10][11][12]

It was reported by news portal Sarawak Report and British newspaper The Sunday Times using leaked email correspondences that Penang-based financier Jho Low, who has ties with Najib's stepson was able to siphon US$700 million from a joint venture deal between 1MDB and the leading oil exploration and production company PetroSaudi.[13][14][15] An email revealed that Jho Low had the loan approval from Prime Minister Najib for US$1 billion without getting any approval from Bank Negara.[16][17]

It was claimed through a report by the Wall Street Journal that 1MDB made overpriced purchases of power assets in Malaysia through Genting Group in 2012. Genting then allegedly donated this money to a foundation controlled by Prime Minister Najib Razak, who used these funds for election campaign purposes during the 2013 general elections.[18][19][20]

Further allegations were made by the Wall Street Journal that US$700 million were transferred from 1MDB and deposited in AmBank and Affin Bank accounts under Najib's name.[21][22] A task forced that was tasked to investigate these claims have frozen 6 bank accounts linked to Najib and 1MDB.[23][24] According to highly placed sources, three of the bank accounts that have been frozen belongs to Najib.[25][26] The Wall Street Journal revealed the bank account details online to rebut denials by Najib and his supporters.[27][28][29]

  1. "Gov't 'gambling' on untested 1MDB". malaysiakini.com. 18 October 2010. http://www.malaysiakini.com/news/145649. 
  2. "Pua says 1MDB profits suspect". themalaysianinsider.com. 9 October 2010. http://www.themalaysianinsider.com/malaysia/article/pua-says-1mdb-profits-suspect/. 
  3. "1Malaysia Development Berhad Malaysia Factbook". malaysiafactbook.com. http://malaysiafactbook.com/1Malaysia_Development_Berhad. 
  4. "Has 1MDB filed its accounts?". theedgemalaysia.com. 1 April 2014. http://www.theedgemalaysia.com/index.php?option=com_content&task=view&id=282843&Itemid=79. 
  5. "Auditors highlight several critical areas in 1MDB's books". thestar.com.my. 22 April 2014. http://www.thestar.com.my/Business/Business-News/2014/04/22/Auditors-highlight-several-critical-areas-in-its-books-and-reveal-more-funds/. 
  6. "Agreements inked to develop Sungai Besi airport land into Bandar Malaysia". thestar.com.my. 15 June 2011. http://www.thestar.com.my/story.aspx/?file=%2f2011%2f6%2f15%2fnation%2f20110615165214&sec=nation. 
  7. "Ringgit under pressure over 1MDB debt". http://www.themalaysianinsider.com/business/article/ringgit-under-pressure-over-1mdb-debt. Retrieved 7 July 2015. 
  8. "1MDB faces fresh debt payment test". Free Malaysia Today. http://www.freemalaysiatoday.com/category/nation/2015/02/27/1mdb-faces-fresh-debt-payment-test/. Retrieved 7 July 2015. 
  9. "1MDB bonds drop to junk status as investors consider wind-down". http://www.themalaymailonline.com/money/article/1mdb-bonds-drop-to-junk-status-as-investors-consider-wind-down. Retrieved 7 July 2015. 
  10. "Cabinet rejects RM3 billion for 1MDB as debt repayment options narrow". http://www.theedgemarkets.com/my/article/cabinet-rejects-rm3-billion-1mdb-debt-repayment-options-narrow. Retrieved 7 July 2015. 
  11. "RPT-MALAYSIA PRESS-Cabinet rejects $834 mln proposed injection into 1MDB-The Malaysian Insider". Reuters. http://www.reuters.com/article/2015/02/27/malaysia-press-1mdb-idUSL4N0W116S20150227. Retrieved 7 July 2015. 
  12. "Cabinet rejects RM3 billion aid for 1MDB". Free Malaysia Today. http://www.freemalaysiatoday.com/category/nation/2015/02/27/cabinet-rejects-rm3-billion-aid-for-1mdb/. Retrieved 7 July 2015. 
  13. http://www.freemalaysiatoday.com/category/nation/2015/03/01/revealed-jho-lows-hand-in-1mdb-petrosaudi-deal/
  14. "Jho Low allegedly siphoned off US$700 million from 1MDB, says website". http://www.themalaysianinsider.com/malaysia/article/jho-low-allegedly-siphoned-off-us700-million-from-1mdb-says-website. Retrieved 7 July 2015. 
  15. "Jho Low accused of siphoning US$700m from 1MDB". http://www.theedgemarkets.com/my/article/jho-low-accused-siphoning-us700m-1mdb. Retrieved 7 July 2015. 
  16. "‘Jho Low email said Najib approved US$1bn loan’". Free Malaysia Today. http://www.freemalaysiatoday.com/category/nation/2015/03/08/jho-low-email-said-najib-approved-us1bn-loan/. Retrieved 7 July 2015. 
  17. "Jho Low claims Najib okayed 1MDB’s US$500 million loan to PetroSaudi, says Sarawak Report". http://www.themalaysianinsider.com/malaysia/article/jho-low-claims-najib-okayed-1mdbs-us500-million-loan-to-petrosaudi-says-sar. Retrieved 7 July 2015. 
  18. "WSJ: Najib used 1MDB's funds for GE13". http://www.malaysiakini.com/news/302433. Retrieved 8 July 2015. 
  19. "Bersih 2.0 says GE13 rigged, shocked over links to 1MDB". http://www.themalaysianinsider.com/malaysia/article/bersih-2.0-says-ge13-rigged-shocked-over-links-to-1mdb. Retrieved 8 July 2015. 
  20. "Roadshow unnecessary, just come clean on 1MDB’s objectives, Kit Siang tells BN". http://www.themalaymailonline.com/malaysia/article/roadshow-unnecessary-just-come-clean-on-1mdbs-objectives-kit-siang-tells-bn. Retrieved 8 July 2015. 
  21. Tom Wright and Simon Clark (2 July 2015). "Investigators Believe Money Flowed to Malaysian Leader Najib’s Accounts Amid 1MDB Probe". WSJ. http://www.wsj.com/articles/SB10130211234592774869404581083700187014570. Retrieved 8 July 2015. 
  22. "Special team to probe graft allegations against Malaysia PM Najib Razak". The Economic Times. http://economictimes.indiatimes.com/news/international/world-news/special-team-to-probe-graft-allegations-against-malaysia-pm-najib-razak/articleshow/47945077.cms. Retrieved 8 July 2015. 
  23. "Task force freezes bank accounts as pressure mounts on PM Najib". Channel NewsAsia. http://www.channelnewsasia.com/news/asiapacific/task-force-freezes-bank/1966362.html. Retrieved 8 July 2015. 
  24. Niluksi Koswanage (7 July 2015). "Malaysia Task Force to Freeze Accounts in Najib Money Probe". Bloomberg.com. http://www.bloomberg.com/news/articles/2015-07-07/malaysia-task-force-to-freeze-bank-accounts-in-najib-money-probe. Retrieved 8 July 2015. 
  25. "3 frozen accounts belong to Najib, sources say". http://www.themalaysianinsider.com/malaysia/article/3-frozen-accounts-belonged-to-najib-sources-say. Retrieved 8 July 2015. 
  26. "Three frozen accounts belong to PM, says source". http://www.malaysiakini.com/news/304349. Retrieved 8 July 2015. 
  27. Sarawak Report. "SENSATIONAL FINDINGS! - Prime Minister Najib Razak's Personal Accounts Linked To 1MDB Money Trail MALAYSIA EXCLUSIVE!". Sarawak Report. http://www.sarawakreport.org/2015/07/sensational-findings-prime-minister-najib-razaks-personal-accounts-linked-to-1mdb-money-trail-malaysia-exclusive/. Retrieved 8 July 2015. 
  28. "DocumentCloud Document Viewer". http://graphics.wsj.com/documents/doc-cloud-embedder/?sidebar=1#2158723-1mdb-documents. Retrieved 8 July 2015. 
  29. "Take legal action against WSJ, PM urged - Nation - The Star Online". http://www.thestar.com.my/News/Nation/2015/07/05/Take-legal-action-against-WSJ-PM-urged/. Retrieved 8 July 2015.