The collapse of Barisan Nasional government in the 14th General Election (GE14) on May 9 opened the door wider to one disclosure after another of the 1Malaysia Development Berhad (1MDB) scandal.
Although the investigation into the world’s biggest financial case is being carried out by several countries including the United States, the United Kingdom, Singapore, Switzerland and Indonesia, Malaysia only began the probe after Pakatan Harapan took over the government, ending 61 years of BN rule.
The May 15 declassification by the National Audit Department of 1MDB documents which had been kept under the Official Secrets Act since January 2016 was akin to opening a can of worms.
The executive summary of the documents, among others, revealed that 1MDB needed about RM42.26 billion to pay the principal sum and matured loan interest between November 2015 and May 2039.
Two days later, police conducted a raid on four luxury condominiums in the capital linked to former prime minister Datuk Seri Najib Tun Razak and his family.
The raid shocked Malaysia when the police revealed they had seized 72 bags containing jewellery, various types of currencies and valuable items and nearly 300 boxes filled with luxury handbags of various brands linked to 1MDB and estimated to be worth between RM900 million and RM1.1 billion.
Subsequently, a 1MDB Special Investigation Team was formed on May 21 to conduct a thorough investigation on the Ministry of Finance strategic development company, including coordination of investigations and detection of misappropriated money both inside and outside the country.
On June 29, the special team confirmed that it had frozen a number of accounts belonging to individuals and several organisations, including Umno and political parties allegedly involved in the 1MDB case .
On July 4, Najib was charged in the Kuala Lumpur High Court on three counts of criminal breach of trust and a charge under the MACC Act over the misappropriation of RM42 million linked to SRC International Sdn Bhd, a subsidiary of 1MDB.
To date, Najib faces 39 charges of corruption, criminal breach of trust, abuse of power and money laundering in connection with the misappropriation of 1MDB funds. He has pleaded not guilty to all the charges.
The irregularities in 1MDB were first disclosed by Petaling Jaya Utara (now Damansara) MP Tony Pua in the Dewan Rakyat in 2010. The attempts by the opposition at that time to raise the issue were suppressed by the BN.
Despite the allegations and disclosures, Najib, the former Finance Minister and chairman of the 1MDB Advisory Board, has insisted that he has no knowledge of the alleged wrongdoing at the company.
The investigation into 1MDB recorded another significant development when the Malaysian government regained ownership of the luxury yacht Equanimity belonging to Low Taek Jho or Jho Low, which was allegedly bought with 1MDB funds.
The RM1-billion luxury ship arrived at Port Klang on Aug 7 after the Indonesian government handed it to Malaysia following its seizure in waters near Bali, Indonesia, earlier in the year. The boat was put up for auction.
In the United States, investigations by the country’s Department of Justice (DOJ) also led to the prosecution of Goldman Sachs former managing director Roger Ng in a US court for involvement in a conspiracy to launder money belonging to 1MDB.
On Nov 24, Auditor-General Tan Sri Dr Madinah Mohamad revealed that the 1MDB Final Report tabled in Parliament in 2016 was amended at Najib’s behest.
She said the important information excluded or amended in the report included the presence of Jho Low at a meeting of the 1MDB board of directors and the real financial status of the company.
Meanwhile, where Jho Low, said to be the mastermind of the 1MDB crisis, is remains a mystery.
Although Jho Low had been charged in absentia with money laundering, the efforts of the authorities to track and extradite him to Malaysia have not borne fruit.
Since it is a complicated case involving many parties within and outside the country, the legal process and prosecution of the parties involved in the misappropriation of 1MDB public funds are expected to take a long time.
However, despite the challenges, the process should continue.
In fact, Finance Minister Lim Guan Eng stated in the Dewan Rakyat that the government would continue to investigate the alleged misdeeds regarding 1MDB to give justice to Malaysians.- Bernama
