Former Malaysian Prime Minister Najib Razak could soon face criminal charges linked to the billion-dollar graft scheme at 1MDB. The move would represent a reversal of fortune since the former PM was voted out six weeks ago.
Investigators from the Malaysian Anti-Corruption Commission, or MACC, reportedly submitted a recommendation to the attorney general that charges be levied against former Prime Minister Najib Razak for money laundering and misappropriation, the «New Straits Times» reported, citing unidentified sources.
The emergence of charges would represent an abrupt reversal of fortunes for Najib: six weeks ago, the long-standing Malaysian leader was ousted by erstwhile mentor Mohamad Mahathir in a shock election result. Since then, the largely dormant probe into an alleged $4.5 billion graft scheme that the U.S.' top prosecutor has termed «kleptocracy at its worst» has received renewed impetus – signaling danger for Najib and associates such as Jho Low, an AWOL Malaysia financier.
Heavy Penalties
Most of the impetus has come from the U.S., which has led the investigation. Singapore and Switzerland, the financial centers where most of the money was routed, have also individually revisited Malaysia following the election result.
It will now be up to the newly-installed attorney general Tommy Thomas to decide whether to accept the recommendations to bring charges. Najib, who along with his reportedly spendthrift wife Rosmah Mansor has testified before the anti-corruption body, has denied knowledge of any wrongdoing. Penalties for money laundering in Malaysia are up to 15 years imprisonment, and fines run five times the value of the rinsed money.
Banks Wiped Out
Malaysian officials have wasted no time in probing scandal-tarnished wealth fund 1MDB, which wiped out BSI as well as Falcon Private Bank in Singapore. Among a growing list of accusations aimed at the previous administration are claims that Najib's government had used money raised from a deal with sovereign wealth fund Khazanah Nasional to pay for some 1MDB liabilities.
Najib as well as his family, who have been prevented from leaving the country, were reportedly spotted checking into a hotel in Langkawi this week. A swathe of Malaysian officials have left office as a result of Najib's exit. His stepson, film producer Riza Aziz, reached a $60 million pact with U.S. officials two months before the election over funding «The Wolf of Wall Street», a 2013 blockbuster directed by Martin Scorcese.
