Washington/Kuala
Lumpur.
Switzerland's chief prosecutor said on Friday that a criminal investigation
into state fund 1Malaysia Development Berhad (1MDB) had revealed that about $4
billion appeared to have been misappropriated from Malaysian state companies.
The office
of Swiss Attorney General Michael Lauber said it had formally asked Malaysia to
help with its probes into possible violations of Swiss laws related to bribery
of foreign officials, misconduct in public office, money laundering and
criminal mismanagement at the fund.
It said it
had identified four cases of alleged criminal conduct.
1MDB, whose
advisory board is chaired by Malaysian Prime Minister Najib Razak, has been
probed by Malaysian authorities following accusations of financial
mismanagement and graft.
Earlier this
week, Malaysia's attorney general cleared Najib himself of any criminal
offences or corruption, declaring that $681 million deposited into his personal
bank account was a gift from Saudi Arabia's Royal family.
The
Malaysian attorney general's office said in a statement on Saturday it would
take all possible steps to follow up and collaborate with its Swiss
counterpart, but noted that the investigations into donations made to Najib
were entirely separate from those into 1MDB.
Najib has
consistently denied any wrongdoing, saying the funds were a political donation
and he did not take any money for personal gain.
In its
statement seeking Malaysia's assistance, the Swiss attorney general's office
said: "The monies believed to have been misappropriated would have been
earmarked for investment in economic and social development projects in
Malaysia."
It added
that each case involved "a systematic course of action carried out by
means of complex financial structures."
1MDB said it
has not been contacted by foreign legal authorities on any matters relating to
the company.
The Swiss
authorities began investigations last August into 1MDB for suspected corruption
of public foreign officials, dishonest management of public interests and money
laundering.
Lauber's
office said a small portion of the apparently misappropriated money had been
transferred to accounts held in Switzerland by former Malaysian public
officials and current and former public officials from the United Arab
Emirates.
The four
cases of suspected criminal conduct related to former 1MDB subsidiary SRC
International, Petrosaudi, Genting/Tanjong and ADMIC between 2009 and 2013, it
said.
When
presenting his findings last week, Malaysia's top lawyer had asked the
country's anti-graft agency to close all probes into SRC and the money
deposited in Najib's account.
Officials
from Malaysia's anti-graft agency were not immediately available for comment on
the statement by the Swiss authorities. Genting and Tanjong did not answer
calls seeking comment. Petrosaudi and ADMIC could not immediately be reached.
The Swiss
statement said Lauber had discussed the 1MDB case with his Malaysian
counterpart at a meeting in Zurich in September.
Sources
familiar with the September discussion between the two law enforcement
officials said the Malaysian official strongly urged Lauber to abandon his
1MDB-related investigation.
1MDB is also
under investigation by law enforcement agencies in Hong Kong and the United
States, media and other sources have said.
Tony Pua, a
member of the Malaysian parliament with the opposition Democratic Action Party,
called on the Malaysian attorney general to cooperate fully with foreign
investigating agencies.
"Such
cooperation will not only go a long way towards identifying the culprits ...
but also removing the perception that the Malaysian AG was biased in favor of
the prime minister," Pua said.
Malaysia's
anti-corruption commission has said it will seek a review of a decision by the
attorney-general to clear Najib.
The Swiss
statement said the request for mutual assistance is to advise the companies
involved and the Malaysian government of the results of the Swiss criminal
proceedings, "with the aim of finding out whether losses on this scale
have been sustained."
Reuters
Of course I am extremely interested to see more details of the Swiss suspicions, as usually where there is smoke some fire must be smoldering, but I doubt the PM would risk or even want to be party of such schemes. It's just not in his character or needs, the Saudi personal gift is more than he needs for his well padded life.
ReplyDeleteStill something must be wrong as the Swiss would rather protect their popular repository standing than raise such issues normally. Then as you say HK and USA have some suspicions they are checking on makes this even more interesting to me.
Even in hard nosed Vietnam Party anti-PM push of recent times they are not doing things like this or even suggesting such for all the gossip accusations of the retiring PM's son-in-law Mafia like rumors.
No I don't believe going for the PM's jugular is necessary in either case, and feel sure truth will out in such cases. It's rather like Australian senior Liberal Party Amanda Vanstone and mates casting aspersions against outed PM Abbott, factional in-fighting using innuendo to reduce the finished politicians re-emergence. In Malaysian PM's case he isn't even thinking of ending his term and no one seriously believes he should get out on his higher rating in the face of such innuendo. The Swiss don't appear to be accusing him anyhow, their words are pointing other directions. At worst I could see him lacking foresight to seek such problems among others in his government good God he gives the opposition hell for even gossip of him screwing his driver.