That was a reader’s comment left on the website of the Wall Street Journal. The Swiss were renown for their banking secrecy, but even they couldn’t keep mum over this.
The sum suspected to have been misappropriated amounts to around US$4bn; its intended purpose is the subject of further investigations. So far it has been ascertained that a small portion of the money was transferred to accounts held in Switzerland by various former Malaysian public officials and both former and current public officials from the United Arabic Emirates.
So thanks to the Switzerland attorney general’s office, we now know there is a ‘black hole’ out there amounting to US$4bn (RM17bn), involving several firms that have links to 1MDB.
In my piece, The black hole of 1MDB, I noted that 1MDB stood to make at least RM12bn in property revaluation gains. This would come in handy for 1MDB to fill up its own black hole by paying off its debts, (incurred on what?) and papering over its losses.
Of this RM12bn, RM5bn had already been booked into 1MDB’s account up to 31 March 2014, leaving another RM7bn or so as a cushion. Now, this RM12bn or so is the people’s money from land belonging to the public. It was never meant to be used to help pay off debts.
I am waiting to see how much more 1MDB is going to book in from its property gains when auditor Deloitte finally signs off on its long overdue financial statements for the year ended 31 March 2015.
The Sydney Morning Herald has a piece Troubles resurface for Malaysia’s Najib in Europe:
The Swiss attorney-general’s office said a decision by Malaysia’s attorney-general to shut down an investigation of almost $US700 million that turned up in Mr Najib’s personal bank accounts in 2013 could hamper its own investigations into the matter.
“There appears to have been a sizeable fraud taking place here, and we believe [the investigation] should not be allowed to drop like this,” Andre Marty, spokesman of the Office of Attorney-General was quoted telling the Wall Street Journal.
“Without assistance from Malaysia, our investigation in Switzerland risks running to a dead-end … We are very concerned.”