Dr Mahathir behind WSJ report: Najib

KUALA LUMPUR — Malaysian Prime Minister Najib Razak has accused Dr Mahathir Mohamad of working with foreigners to produce a Wall Street Journal news report which alleged that US$700 million (S$944 million) was funnelled from state-owned investment fund 1Malaysia Development Bhd (1MDB) into the premier’s personal bank account.

In arguably the most direct attack against his most vocal critic, Mr Najib said the latest allegation against him was just another in the series of claims made by Dr Mahathir to sabotage and remove him as prime minister.

“In recent months, various allegations – all unsubstantiated, and many simply outrageous – have been directed against me and my family,” said Mr Najib in a Facepost post yesterday evening, adding that these attacks began when he refused to implement former prime minister Dr Mahathir’s personal demands.

“I refused, because I do not believe it is right for Malaysia to be ruled by proxy,” Mr Najib wrote.

“The latest allegation is that I have taken state-linked funds for personal gain. I believe Tun, working hand in glove with foreign nationals, including the now discredited political attack blog Sarawak Report, is behind this latest lie.”

Mr Najib maintained that he has never taken money for personal gain as alleged by his political opponents. “It is now clear that false allegations such as these are part of a concerted campaign of political sabotage to topple a democratically elected Prime Minister,” he wrote.

“At no point have those making these allegations offered any evidence. All we have heard is that these allegations are based on leaked documents and unnamed investigators.”

In its report today, the WSJ, citing documents from a preliminary Auditor-General’s report on 1MDB that would be presented to the bipartisan parliamentary Public Accounts Committee later this month, claimed that the money trail shows that some US$700 million (S$) were moved between government agencies, banks and companies before it ended up in Mr Najib’s accounts.

The investment firm, which is said to have amassed RM42 billion (S$15 billion) in debt, has been under investigation over its dealings and Dr Mahathir has repeatedly called for Mr Najib’s resignation over the issue.

Citing the leaked documents, WSJ reported that there had been five separate deposits into Mr Najib’s account. Two of the largest transactions, worth US$620 million and US$61 million each, were made in March 2013, two months before the last Malaysian general elections.

However, The Journal noted that the original source of the funds was unclear and that the probe did not show what had happened to the money after it had been deposited into Mr Najib’s account.

The paper said this is the first time a direct connection to Mr Najib has been established in the probe on 1MDB.

“As we now know, a number of the documents on which recent allegations have been based were reportedly doctored,” Mr Najib wrote last night, referring to the Thai police’s arrest of a former IT executive Xavier Justo from PetroSaudi International (PSI) who had purportedly tampered with information linked to 1MDB.

“Those who continue to mount these attacks should be prepared to face the consequences of their actions,” said Mr Najib.

“These gutter tactics – in some cases criminal tactics - to overthrow the government will fail.”

His comments echoed those issued by his office earlier in the day that the allegations are part of a “political sabotage”.

Following the WSJ report, an 1MDB spokesman has stressed that the company had never provided any funds to the Prime Minister. “To suggest otherwise is highly irresponsible and a deliberate attempt to undermine the company,” 1MDB said in a press statement.

In a blog released earlier yesterday, Dr Mahathir made no mention of the WSJ report and instead made allegations about people in power dodging taxes, adding that he wondered whether the Inland Revenue Board had investigated how much taxes Mr Najib and top 1MDB executives had paid.

Dr Mahathir said Mr Najib’s “lavish lifestyle must cost a packet”.

“It must be more than what I saved after 29 years in government ... It is a secret, of course. But I just want to ask, have the income-tax people investigated the source of the money and the tax paid?” he wrote.

The allegations have also led to calls from all three opposition parties for Mr Najib to respond to the claims or be suspended, pending the results of investigations into the troubled firm.(AGENCIES)