A bombshell, if ever there was one.
Read the full statement from the Swiss attorney general’s office here. The actual headline of the Swiss statement starts with “1MDB case”.
The criminal investigation conducted by the Office of the Attorney General of Switzerland (OAG) has revealed serious indications that funds have been misappropriated from Malaysian state companies. The monies believed to have been misappropriated would have been earmarked for investment in economic and social development projects in Malaysia. So far four cases involving allegations of criminal conduct and covering the period from 2009 to 2013 have come to light in this connection (relating to Petrosaudi, SRC, Genting/Tanjong and ADMIC), each involving a systematic course of action carried out by means of complex financial structures.
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. To date, however, the Malaysian companies concerned have made no comment on the losses they are believed to have incurred.
The Wall Street Journal quotes the Swiss attorney general:
“We are very concerned,” Swiss Attorney General Michael Lauber told The Wall Street Journal on Friday. “We have found evidence of suspicious money transfers linked to 1MDB going through Swiss financial institutions, and we believe that it is very important that it is shared with the Malaysian authorities.”
