Marked “For Internal Use Only” an Appendix to a Term Sheet due to be approved by the Malaysian Cabinet tomorrow (27th July) lays out in detailed figures how Najib plans for over US$7 billion in accumulated 1MDB/Jho Low company debts to be wiped out by taxpayers in a secret deal between his Ministry of Finance and the Chinese state company CCCC (China Communications Construction Company).
The scandal surrounding Malaysia’s state development fund 1MDB has gripped the country for years. Now the US has said it is moving to seize more than $1bn (£761m) in assets, ranging from plush properties to a private jet, from people connected to the country’s Prime Minister Najib Razak. The asset seizure by the US would be the largest ever by the Justice Department’s anti-corruption unit. This is how the story has played out so far.
Malaysia’s sovereign fund scandal has exposed shortcomings in Goldman Sachs’ post-crisis overhaul of its business practices. Five years ago, the Wall Street firm led by Lloyd Blankfein went to great lengths to assure regulators, investors and clients that it was tightening up standards. But its dealings with the now disgraced 1Malaysia Development Berhad (1MDB) cast doubt on the depth of Goldman’s changes.
Tim Leissner was at one time the golden boy of Wall Street titans Goldman Sachs. After working his way from an associate to vice president at JP Morgan, the 45-year-old German jumped ship to Lehman Brothers, a decade before financial giant collapsed under the weight of its worthless asset-backed securities in 2009.
Sarawak Report is an investigative journalism online news resource that offers “an alternative vision of justice, transparency and a fairer future in Sarawak.” It is based in London. Sarawak Report’s website was blocked by Malaysia’s internet regulatory body, Malaysian Communications and Multimedia Commission (MCMC), in the summer of 2015, approximately two weeks after the website started to reported on the 1Malaysia Development Berhad scandal. Sarawak Report continued to reach the Malaysian public through Medium.com, but that was also blocked in January 2016
FAQ About 1MDB
Q1. Is 1MDB a sovereign wealth fund?
No. 1MDB is a strategic development company, wholly owned by the Government. However, unlike sovereign wealth funds, which are funded by and act as investment holding arms of the Government, we raise and invest our own capital.
1MDB’s mission is to drive the sustainable long-term economic development and growth of Malaysia by forging strategic global partnerships and attracting foreign direct investment into the country. 1MDB also participates in strategic sectors that ultimately help drive the country’s socio-economic growth.
Kuala Lumpur – Malaysian Prime Minister Datuk Seri Najib today says that MACC has cleared him on corruption charges over a $700 USD million or RM 2.6 billion that was transfered to his personal account over an UMNO division meeting at Bandar Tun Razak Today.
1Malaysia Development Berhad
The starting point of 1Malaysia Development Berhad or 1MDB for short began way back in the year 2008, and it was known at that time as Terengganu Investment Authority (TIA). The name was later on changed to what it is right now, 1MDB, a company owned entirely by the Malaysian Government. One of the main reasons for the establishment of 1MDB in Malaysia was solely to push towards strategic planning along with initiatives for fostering partnerships and to promote foreign direct investment. 1MDB is independently operated and funded by the decisions that are driven by the national economy at its best interest. 1MDB for better understanding, is a huge wealth fund that has only once received RM1 million in equity at the time when the company was just starting out.