Malaysian police unaware of new 1MDB probes in US

KUALA LUMPUR — The Malaysian police are unaware whether the United States has opened two investigations on Prime Minister Najib Razak and those associated with him, Deputy Police Chief Noor Rashid Ibrahim said yesterday amid increasing international scrutiny over a multi-million-dollar corruption scandal revolving around sovereign wealth fund 1Malaysia Development Bhd (1MDB).

Mr Noor Rashid said he could not be certain of the authenticity of the reports. “As far as I’m concerned, these outside parties have not contacted PDRM (Royal Malaysia Police) yet,” he told reporters yesterday.

“If they are indeed conducting investigations, we would have surely been contacted by now,” he said.

Mr Noor Rashid’s statement yesterday came on the back of a Wall Street Journal report on Sunday that the US Federal Bureau of Investigation was investigating entities connected to 1MDB for money laundering, followed by a New York Times report on Monday that a US federal grand jury is examining allegations of corruption involving Mr Najib and people close to him.

The latter inquiry, being run by a unit of the Justice Department that investigates international corruption, focuses on properties in the US purchased in recent years by shell companies that belong to Mr Najib’s stepson, Mr Riza Aziz, as well as other real estate connected to a close family friend, Mr Jho Low, said people knowledgeable about the case. The properties could be seized if a case could be made that they were purchased with the proceeds of corrupt practices.

Investigators are also looking at a US$681 million (S$969 million) payment made by 1MDB-linked entities to what is believed to be Mr Najib’s personal bank account, reported The New York Times. The amount has been declared by Malaysian investigators as a political donation to Mr Najib from the Middle East.

Mr Najib’s office did not comment on the Justice Department inquiry. A representative for his stepson told The New York Times that Mr Riza was not involved in any investigation, adding that “there has never been anything inappropriate” about his business activities. A spokesman for Mr Low said that he had not been notified that he was the subject of any investigations, and that his business “adheres to all relevant regulatory requirements”.

The details of the corruption allegations involving Mr Najib and people connected to him are complex and multifaceted, with the scope of investigations widening globally.

Swiss authorities said this month they had frozen funds in Swiss banks amid probes into 1MDB. Hong Kong authorities also said they were investigating a complaint related to the firm.

Despite calls for him to step down, Mr Najib has held fast, denying the corruption allegations and saying the US$681 million payment, first reported in July by The Wall Street Journal, was not improper.

His office told The Times this year that he was not involved in the American properties connected to his stepson and to Mr Low.

Mr Najib has struck back at his questioners and accusers, dismissing several members of his administration, and barring several opponents from leaving Malaysia. AGENCIES