Former Malaysian Prime Minister Razak Arrested

More than three years after the Wall Street Journal blew the lid off the 1MDB scandal when it reported a suspicious payment of $681 million into a bank account controlled by then-Malaysian Prime Minister Najib Razak, the hammer has finally come down on the former head of state and scion of one of the country's most influential political families.

Razak
Najib Razak

According to the Financial Times, Razak has been arrested and will be charged Wednesday morning with misuse of the funds after some $4.5 billion allegedly disappeared from 1MDB's coffers. The charges are related to SRC International, the former subsidiary of 1MDB that Razak and his family used as a personal piggybank of sorts.

Mr Najib was arrested at his personal residence in Malaysia’s capital and will be charged at the Kuala Lumpur Court at 8:30am on Wednesday. He will be spending the night at the Malaysian Anti-Corruption Commission headquarters, said a Malaysian Anti-Corruption Commission spokesperson.

After Najib initially claimed that the suspicious payment was a "gift" from Saudi royals, the full extent of his family's graft was laid bare in the following months, prompting US officials to seize more than $1 billion in embezzled Malaysian assets, which Goldman Sachs - the same bank that helped Razak set up the slush fund - helped buy.

The other conspirators in this scheme include Riza Aziz, Razak's stepson, "party boy" Jho Low and former Abu Dhabi sovereign wealth fund director Khadem Al Qubaisi.

The arrest could also be bad news for Goldman, which, under the guidance of former Southeast Asia head Tim Leissner (who was barred from the US securities industry late last year) helped finance 1MDB with three separate bond issues that netted the bank some $600 million. Those bond issues are now being investigated by prosecutors in Singapore, regulators in New York and the FBI after 1MDB defaulted back in 2016, as it is rumored that Razak directly pocketed some of the gross proceeds.

The arrest marks the peak in Razak's change in fortune. He initially looked set to weather the storm when he resisted calls to resign. But after his shocking electoral defeat at the hands of former leader Mahathir Mohamed last month, it appeared that Razak would finally face consequences for the immense graft that was apparently carried out by him and his family. Mahathir promised to hold his former rival "accountable." Ironically, it appears that it is Razak that will now be accounting to the people, and a long prison sentence could be waiting on the other side unless Razak throws some even bigger names under the bus.

Comments

Cloverfield-Z Tue, 07/03/2018 - 07:46 Permalink

If you're going to embezzle the public finances at least have the common sense to pay off the people watching your back. Mahathir was as corrupt as Razak and jailed his one time deputy, Anwar Ibrahim, on trumped up sodomy charges. A trick then repeated by Razak once Anwar's political star began to rise again.  And there's not a snowball's chance in hell that Goldman will face any serious reprimand or investigation. 

Idiocracy's Not Sure Idiocracy's Not Sure Tue, 07/03/2018 - 07:57 Permalink

you have to look at what they don't want you to criticize, what they do want you to criticize, what they don't want you to talk about, and what they do want you to talk about and realize they are corrupt, full of shit, and don't give a fuck about you, so you should do the opposite. JFK was open to debate, and wanted to be up front about their errors in order to fix them, but our current 2party(really one party) system is the exact opposite 

 

In reply to by Idiocracy's Not Sure

Kalymnian Tue, 07/03/2018 - 08:00 Permalink

Another pack of fillthy dogs busted.

How many ceo's and political hacks have either resigned or have been charged recently ?

Seems to be happening alot since Trump and the patriots have seized control and still 40,000 sealed indictments to go

 

GoldmanSax Tue, 07/03/2018 - 08:22 Permalink

"600 million" Goldman will just pay operating fee - problem solved. No one will go to jail, as usual. No one has "jurisdiction" to persue a case. You'll see. EM are gonna feel the shock from this and the other shoe. 

brooklinite8 Tue, 07/03/2018 - 08:23 Permalink

Wow. One month and the guy got him arrested? If you are a project manager this is the guy you want on your team. Timelines, successful execution. Looks like Malaysia is in good hands. He should go to the next level and sanction Goldman not to work in his country. That would be a good nail on the coffin. 

1033eruth Tue, 07/03/2018 - 08:28 Permalink

Apparently he thought he was bullet proof, otherwise he would have left the country with his ill gotten gains.  Something went wrong with his game plan.  

Is there ANY country, any at all that doesn't have leaders feeding at the public trough until they are morbidly obese?

Cloverfield-Z Tue, 07/03/2018 - 08:41 Permalink

Razak is also the same man who had two Malaysian police officers murder an ex-lover who threatened to blow the lid not on their affair, but on the fact that he took a massive kick-back from a French military submarine deal while defence minister.  They shot the poor girl and then blew her up with plastic explosives. Nice clean hit. 

MarcusAurelius Tue, 07/03/2018 - 09:55 Permalink

Have to agree with the ZH'ers who say, "nothing will happen". This will be tied up for years. Perhaps decades. How many of these guys are drifting around out there? Lots. They are all connected. Fucking the people is what they do. I had the pleasure of seeing this guys "son in law" in action when I was in KL a couple of years back. A real asshole to say the least. Spoiled and arrogant as hell. Thought he was really something because of his fancy car and money. Petronas dollars magically were finding their way into his bank account? Go figure! 

RTUT Tue, 07/03/2018 - 12:19 Permalink

Maybe republicans can watch how it is done and jail the corrupt democrats, NSA, FBI, DOJ, and IRS of the Obama administration.

SmittyinLA Tue, 07/03/2018 - 15:07 Permalink

1MDB is a NOT a sovereign wealth fund, it's a bribery slush fund for US and EU politicians, it was created to buy Islamic invasion and green energy (kill coal) from Western politicians, the entire fund should be seized and confiscated.

Paris Hilton can keep the diamond encrusted platinum vibrator.