Malaysia raps US for seizure of assets linked to 1MDB

KUALA LUMPUR — Malaysia hit out at the United States on Friday (June 16) after the Department of Justice (DoJ) moved to recover about US$540 million (S$747 million) in assets – including artworks, jewellery and film rights – that it says were purchased with misappropriated funds from state investment firm 1Malaysia Development Berhad (1MDB).

A senior aide to Prime Minister Najib Razak suggested the DoJ has a motivation that goes beyond seizing assets, while Malaysian Attorney-General expressed disappointment that the department did not inform or alert his office prior to its latest action on Thursday (June 15).

Mr Mohamed Apandi Ali, the Attorney-General, said in a statement: “We would like to express frustration that yet again AGC (Attorney-General’s Chambers) was not informed or alerted by DoJ of this action.”

He said it was the second time American prosecutors have taken such action, without consulting Putrajaya.

“We also note that there has been no evidence from any investigation conducted by any law enforcement agencies in various jurisdictions that shows that money has been misappropriated from 1MDB; and that there have been no criminal charges against any individuals for misappropriation of funds from 1MDB.”

In a stout defence, Mr Apandi said 1MDB is a Malaysian company that has been the subject of multiple investigations within the country, including by the Malaysian Anti-Corruption Commission, Auditor-General, and bi-partisan Public Accounts Committee.

This time last year, US prosecutors filed civil asset-forfeiture suits against more than US$1 billion worth of American assets bought with money allegedly misappropriated from 1MDB.

Last year’s lawsuit also renewed calls from Mr Najib’s detractors — from opposition lawmakers to former premier Mahathir Mohamad — for him to quit. Mr Najib has been under intense political pressure over the RM2.6 billion (S$840 million) deposited into his private accounts, as well as irregularities in 1MDB.

Malaysia’s attorney-general has cleared Mr Najib of wrongdoing, saying that the money in his bank account was a political donation from the Saudi royal family. Despite the controversy, Mr Najib has consolidated his political power, removing officials from the governing party who have criticised him.

Reiterating that no crime was found to have been committed, Mr Apandi said on Friday there is still an ongoing investigation conducted by the police in relation to the state investment firm.

“We would like to express strong concerns at the insinuations that have been made against the Prime Minister of criminal wrongdoing. At no point in the civil claims is the Prime Minister named as a defendant or has been alleged to have committed any criminal wrong doing.”

Weighing in on the matter, Mr Tengku Sariffuddin Tengku Ahmad, a long time aide of Mr Najib, said in a statement on Friday there have been numerous and extensive investigations by Malaysian authorities into 1MDB that concluded no crime was committed.

“1MDB is still the subject of an investigation by the Royal Malaysia Police. If there is evidence of wrongdoing, Malaysia will not hesitate to take action. Until then, unproven allegations should not be taken as facts,” he was quoted as saying by The Star Online.

“As the Prime Minister has always maintained, if any wrongdoing is proven, the law will be enforced without exception,” he added.

The US investigation into 1MDB is the largest set of cases brought by the DoJ’s Kleptocracy Asset Recovery Initiative, which seeks the forfeiture of the proceeds of foreign corruption.

Targeting assets ranging from valuable paintings and a private jet to the 2013 hit movie The Wolf of Wall Street and rights to popular songs, the civil lawsuit said US$3.5 billion (S$4.8 billion) was misappropriated from 1MDB.

The state fund stressed in a statement on Friday that it was not in any way linked to the latest lawsuits by the DoJ.

“1MDB notes that the civil lawsuit does not contain any appendices with documentary proof or witness statements to support the allegations made by the DoJ,” the statement said.

“As previously stated, 1MDB will fully cooperate with any foreign lawful authority, subject to international protocols governing such matters and the advice of the relevant domestic lawful authorities.” AGENCIES