A Case Of You Imdb

[Jacinto Dieujuste]

The1Malaysia Development Berhad scandal, often referred to as the 1MDB scandal or just 1MDB, is an ongoing corruption, bribery and money laundering conspiracy in which the Malaysian sovereign wealth fund 1Malaysia Development Berhad (1MDB) was systematically embezzled, with assets diverted globally by the perpetrators of the scheme.[1] Although it began in 2009 in Malaysia, the scandal's global scope implicated institutions and individuals in politics, banking, and entertainment, and led to criminal investigations in a number of nations. The 1MDB scandal has been described as "one of the world's greatest financial scandals"[2][3] and declared by the United States Department of Justice as the "largest kleptocracy case to date" in 2016.[4]

A 2015 document leak reported in The Edge, Sarawak Report, and The Wall Street Journal showed that Malaysia's then-Prime Minister Najib Razak had channeled over RM 2.67 billion (about US$700 million) into his personal bank accounts from 1MDB, a government-run strategic development company.[5] The alleged mastermind of the scheme, Jho Low, was central in the movement of 1MDB funds internationally through shell companies and offshore bank accounts. As of 2018, the U.S. Department of Justice found that Low and other conspirators including officials from Malaysia, Saudi Arabia and the United Arab Emirates diverted more than US$4.5 billion from 1MDB.[6] These funds were used to purchase luxury items and properties, including superyacht Equanimity, and finance the American film company Red Granite Pictures and the production of The Wolf of Wall Street and other films.[7] 1MDB funds supported lavish lifestyles for Low, Najib and his wife Rosmah Mansor, and established Najib's stepson Riza Aziz in Hollywood. Attempts were also made for embezzled funds to be put towards political donations and lobbying in the United States.[8]

The revelations became a major political scandal in Malaysia, triggering protests and backlash. After several Malaysian investigations were opened, Najib responded by dismissing several of his critics from government positions, including his deputy Muhyiddin Yassin and attorney-general Abdul Gani Patail. Charges against Najib were subsequently dismissed.[9] Among Najib's critics was former ally and Malaysia's fourth Prime Minister Mahathir Mohamad,[10] who chaired the Malaysian Citizens' Declaration, bringing together political figures and other organisations in calling for Najib Razak's resignation or removal. The Malaysian Conference of Rulers called for prompt investigation of the scandal, saying that it was causing a crisis of confidence in Malaysia.[11][12]

Outside of Malaysia, investigations into financial and criminal activity relating to 1MDB opened in at least six countries.[7] According to its publicly filed accounts, 1MDB had nearly RM 42 billion (US$11.73 billion) in debt by 2015.[13] Some of this debt resulted from a $3 billion state-guaranteed 2013 bond issue led by the American investment bank Goldman Sachs, which had been reported to have received fees of up to $300 million for the deal, although the bank disputes this figure.[14] Nevertheless, Goldman Sachs was charged under the Foreign Corrupt Practices Act and agreed to pay over $2.9 billion in a settlement with the U.S. Department of Justice (DOJ).[15] American rapper Pras, former Goldman Sachs chairman Tim Leissner and fundraiser Elliott Broidy were among those charged in the United States in connection with 1MDB.

After the 2018 election, the newly elected prime minister, Mahathir Mohamad, reopened Malaysian investigations into the scandal.[16] The Malaysian Immigration Department barred Najib[17] and 11 others[18] from leaving the country, while the police seized more than 500 handbags and 12,000 pieces of jewellery estimated to be worth US$270 million from property linked to Najib, the largest seizure of goods in Malaysian history.[19] Najib was later charged with criminal breach of trust, money laundering and abuse of power, while alleged mastermind Jho Low, by then an international fugitive, was charged with money laundering.[20] Najib was subsequently found guilty of seven charges connected to SRC International, a 1MDB subsidiary, and was sentenced to twelve years' imprisonment.[21]

In September 2020, the alleged amount stolen from 1MDB was estimated to be US$4.5 billion and a Malaysian government report listed 1MDB's outstanding debts to be at US$7.8 billion.[22] The government has assumed 1MDB's debts, which includes 30-year bonds due in 2039.[23] In August 2021, the United States had recovered and returned a total of US$1.2 billion of 1MDB funds misappropriated within its jurisdiction,[24] joining countries such as Singapore and several others which have also initiated recovery or that have already repatriated smaller recovered amounts.[25]

Najib Razak became Prime Minister of Malaysia in 2009. In his first year in office, he established 1Malaysia Development Berhad (1MDB), a sovereign wealth fund, which sought out to make strategic investments and alleviate poverty, as part of his economic liberalisation policy and trademark 1Malaysia program.[2] The fund had a budget of $1 billion to invest, with Najib having the sole authority to sign off investments and manage the personnel on its board and management team.[26] His wife is Rosmah Mansor, whose son is Riza Aziz from a previous relationship.[2]

Jho Low is a Malaysian businessman and financier from Penang. Despite not having a formal position at 1MDB, Low supported its establishment and was given extensive access to the fund due to high-profile political connections in Malaysia and the Middle East, and entertainment connections in the United States. Low joined high-level meetings and facilitated numerous deals.[2]

The US DOJ described the scheme as involving three phases. In August 2009, Najib and Low met with representatives of private oil company PetroSaudi on a yacht in Monaco to discuss 1MDB's first investment. This included Saudi royal Turki bin Abdullah Al Saud and Saudi national Tarek Obaid. During a subsequent visit to Saudi Arabia, Najib signed a $2.5 billion joint venture between PetroSaudi and 1MDB. The DOJ later said this was used as a "pretence" to move $1 billion into a Swiss bank account.[26]

An additional $1.4 billion was then raised by Goldman Sachs in a bond issue and misappropriated into a bank account in Switzerland. An additional $1.3 billion from Goldman Sachs was also diverted into a bank account in Singapore.[26] US authorities say that Goldman Sachs, particularly Roger Ng, were central with orchestrating the scheme, particularly the laundering of money from the fund, some of which was used to pay bribes to officials in Malaysia and the United Arab Emirates.[27]

Low allegedly used 1MDB funds to support a lavish lifestyle in the United States. The DOJ traced $100m from the PetroSaudi deal to the purchase of properties in Hollywood and $40m to apartments in New York.[2] He established friendships with musicians Swizz Beats, Alicia Keys and Pras, was pictured partying with socialite Paris Hilton, and used funds to purchase luxury items for model Miranda Kerr and singer Elva Hsiao, with whom he was romantically involved.[2]

Hollywood film production company Red Granite Pictures, co-founded by Riza Aziz and Joey McFarland in 2010, also reportedly received misappropriated funds. The DOJ suggested these were put towards the production of The Wolf of Wall Street, Daddy's Home and Dumb and Dumber To, and by 2017 had seized royalties from all three films.[28] Jho Low was personally thanked in the credits of The Wolf of Wall Street.[28]

The RM 425 million profit declared between 25 September 2009 and 31 March 2010 raised many criticisms and controversies about the lack of transparency in 1MDB's published accounts. Tony Pua, DAP Member of Parliament for Petaling Jaya Utara, questioned Najib, 1MDB's advisory board chairman, as to whether the figures were the result of an asset injection into 1MDB by the government such as the transfer of land rights to the company.[29][30]

During the October 2010 parliamentary session, 1MDB explained that its accounts had been fully audited and signed off by KPMG, and closed as of 31 March 2010. Deloitte was involved in the valuation and analysis of the portfolio, while Ernst & Young provided tax advice for 1MDB.

1MDB eventually rang alarm bells by asking for a six-month extension on the filing of its annual report with the Companies Commission of Malaysia (CCM) due by 30 September 2013. At the same time, the change of three auditors since its inception in 2009 was considered suspicious.[31][32] Responding to earlier criticism, CCM said that 1MDB had responded and lodged the necessary information, including registering an address, as required by law.[33]

The Sungai Besi airport land transfer took place in June 2011 as a precedent for the development known as Bandar Malaysia, a mixed integrated project of commercial, residential, and hi-tech green environment.[34] Prior to this, there had been questions in parliament by the opposition regarding the lack of progress on Bandar Malaysia even though 1MDB had already raised RM 3.5 billion in loans and Islamic bonds to fund the project and take ownership of the land.[35][36] In April 2013, 1MDB finally awarded a RM 2.1 billion contract to Perbadanan Perwira Harta Malaysia (PPHM), a subsidiary of Lembaga Tabung Angkatan Tentera (LTAT) to develop eight sites for the relocation of Pangkalan Udara Kuala Lumpur, the military base on the Sungai Besi land that was to be developed.[37] The construction of Bandar Malaysia was set to commence following the completion of this relocation. As part of its debt rationalisation plan, on 31 December 2015, 1MDB signed an agreement with a consortium comprising Iskandar Waterfront Holdings and China Railway Engineering Corporation to sell 60% of its stake in Bandar Malaysia Sdn Bhd.[38] However, this deal eventually fell through.[39]

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