Tuesday, 3 July 2018

Najib arrested and charged in stunning fall from grace

Former Malaysian premier is held for his alleged role in pilfering billions from 1MDB fund. But is this the dawn of a 'New Malaysia' or old-fashioned political vengeance?

Anti-corruption officers arrested Malaysia’s former premier Najib Razak at his residence on Tuesday, a stunning reversal of fortunes and the latest in a string of dramatic political developments that have unfolded since May 9 polls toppled the long-dominant Barisan Nasional (BN) coalition for the first time in the nation’s history.

Since returning to office, Prime Minister Mahathir Mohamad reopened investigations into an international corruption scandal at the 1Malaysia Development Berhad (1MDB) state development fund, which accumulated billions in debts following its 2009 launch with Najib as its advisory board chairman.

Money laundering probes into 1MDB dealings are ongoing in at least six countries. Graft investigators at the US Department of Justice (DoJ) believe Najib’s associates embezzled and laundered US$4.5 billion from the fund from 2009 to 2014, some of which landed in the ex-premier’s bank account. Najib staunchly denies any wrongdoing.

Najib’s arrest yesterday was in relation to dealings at SRC International, a former unit of 1MDB which pursued overseas investments in energy resources. Investigators questioned the former premier in May over US$10.6 million from SRC International that was discovered to have been channeled into Najib’s personal bank account.

Read the full story at Asia Times.

Nile Bowie is a writer and journalist with the Asia Times covering current affairs in Singapore and Malaysia. He can be reached at nilebowie@gmail.com.