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Corporate  |  JANUARY 30, 2016 5:37AM

Swiss AG suspects US$4b misappropriated, seeks M’sia help

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1mdbSwitzerland’s chief prosecutor said yesterday he has formally asked Malaysia for help with his probe into possible violations of Swiss law by the state-owned fund 1Malaysia Development Berhad (1MDB), saying suspected misappropriations amounted to about US$4 billion (RM16.6 billion).

The office of Swiss attorney-general Michael Lauber said the request pertained to possible violations of Swiss laws related to bribery of foreign officials, misconduct in public office, money-laundering and criminal mismanagement at 1MDB.

Earlier this week, Malaysia’s attorney-general cleared Prime Minister Najib Razak of any criminal offences or corruption, declaring that US$681 million deposited into his personal bank account was a gift from Saudi Arabia’s royal family.

1MDB, whose advisory board is chaired by Najib, was being examined by Malaysian authorities investigating accusations of financial mismanagement and graft.

The fund has been dogged by controversy over its US$11 billion debt and alleged financial mismanagement.

The Swiss statement said Lauber’s investigation had already “revealed serious indications that funds have been misappropriated from Malaysian state companies.”

Najib Abdul Razak

Najib Abdul Razak

Those funds “would have been earmarked for investment in economic and social development projects in Malaysia,” the Swiss official said.

“So far four cases involving allegations of criminal conduct and covering the period from 2009 to 2013 have come to light in this connection (relating to Petrosaudi, SRC, Genting/Tanjong and ADMIC [Abu Dhabi Malaysia Investment Company]), each involving a systematic course of action carried out by means of complex financial structures.”

The Swiss prosecutor said the misappropriated amount was suspected to be around US$4 billion.

He said a small portion of the 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 statement said the prosecutor wanted legal assistance from Malaysian companies involved to try to find out whether “losses on this scale have been sustained.”

‘M’sia official asked Swiss AG to drop probe’

1MDB project - Tun Razak Exchange site 01The Swiss attorney-general’s office opened criminal proceedings last August against two former 1MDB officials as well as “persons unknown.”

The statement yesterday said Lauber had discussed the 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 that the Malaysian official strongly urged Lauber to abandon his 1MDB-related investigation.

Malaysia’s anti-graft agency said on Wednesday it will seek a review of a decision by the attorney-general to clear Najib.

1MDB is also under investigation by law enforcement agencies in Hong Kong and the United States, media and other sources have said.

In response 1MDB today in a statement said it has not been contacted by any foreign legal authorities but that it is ready to cooperate “subject to advice from the relevant domestic lawful authorities” and protocols.



 
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