Led by sprightly nonagenarian Mahathir Mohamad, the opposition coalition scored an unexpected victory in Malaysia’s general election. What will it mean for 1MDB?
Malaysia’s former leader made a staggering return to seize power after his opposition alliance defeated sitting Prime Minister Najib Razak’s Barisan Nasional party. Early results indicated Mahathir’s coalition had taken 112 seats, a sufficient number to form a simple majority in the country’s 222-seat legislature.
Concerns over scandal hit wealth fund 1Malaysia Development Berhad or 1MDB, and the promise by Mahatir of more intense scrutiny of Chinese foreign direct investment in Malaysia appear to have influenced voters. A defeat for Najib and his party was predicted to expose what has until now remained under cover on 1MDB.
Kleptocracy at its Worst
The shock election upset by Malaysia's opposition could now translate into renewed momentum in the hunt for billions that U.S. prosecutors allege was pilfered from 1MDB.
While America's top prosecutor Jeff Sessions called 1MDB «kleptocracy at its worst» last year, officials haven't made as much headway as might be expected – largely because until now, official Malaysia hasn't cooperated with the investigation.
When U.S. prosecutors first alleged that $5 billion had been pilfered in 2016, a report by Malaysia's attorney general on the scandal was reportedly stifled. Regulators have successfully taken banks like Banca della Svizzera Italiana, or BSI, Falcon Private Bank, DBS, UOB, and Swiss giants UBS and Credit Suisse to task, but not gotten to the heart of the scandal.
Loose Pocketbook
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