1MDB should be prosecuted, says Malaysia Central Bank
Malaysia's Central Bank has recommended that the controversial state investment fund 1MDB should be prosecuted. The bank said the fund, which was set up by Malaysian Prime Minister Najib Razak, had invested nearly $1.83bn abroad without using proper procedures and that it should faced legal proceedings for its criminal behavior. It also wants the money brought back to Malaysia.
Military personnel aboard a Vietnamese Air Force aircraft, searching the sea for a missing Malaysia Airlines aircraft. Image credit: AFP PHOTO/Thanh Nien Newspaper
BNM headquarters in Kuala Lumpur; BNM stands for Bank Negara Malaysia (literally National Bank of Malaysia, officially Central Bank of Malaysia) and it is the Malaysian central bank
There has been a series of sensational revelations about 1MDB that have threatened Mr. Najib's position. For example, documents leaked in July indicated that Mr. Najib received some $700m in his private accounts from entities linked to the fund. Mr. Najib however has denied any wrong doing, and has claimed that the money was a donation from the Middle East.
Military personnel aboard a Vietnamese Air Force aircraft, searching the sea for a missing Malaysia Airlines aircraft. Image credit: AFP PHOTO/Thanh Nien Newspaper
Offices of Bursa Malaysia, an exchange holding company offering the complete range of exchange-related services including trading, clearing, settlement and depository services
Meanwhile, the fund has debts of 42 billion ringgit (S$15 billion) and is the subject of several investigations by different authorities, including the Central Bank.
The central bank's statement comes just a day after the country's attorney general, appointed to look into the matter by the prime minister, said he had seen a report of the central bank's investigation and judged that 1MDB officials had not committed any offence. However, according to the central bank, 1MDB had indeed gained permits for investment abroad, but these were based on inaccurate or incomplete disclosure of information.
Military personnel aboard a Vietnamese Air Force aircraft, searching the sea for a missing Malaysia Airlines aircraft. Image credit: AFP PHOTO/Thanh Nien Newspaper
Malaysian Prime Minister Najib addressing the Annual Meeting 2013 of the World Economic Forum in Davos, Switzerland, 25 January 2013
The political scandal has drawn in the former prime minister, Mahathir Mohamad, who has alleged that ruling party leaders accepted bribes and the police should take action. Dr Mahathir has also called for Mr. Najib to resign over the corruption allegations.
(All images - credit: Wikimedia Commons under Creative Commons licence)
