The reported arrest of fugitive financier Low Taek Jho, a key witness in the 1MDB corruption scandal, caused confusion among Malaysian officials. What do we know?
Jho Low was arrested after leaving Hong Kong for the mainland, investigative site «The Sarawak Report» on Thursday reported on its website, citing a Hong Kong radio station.
The news threw Malaysian officials: new Prime Minister Mahathir Mohamad welcomed the report but could not confirm Low's arrest. «All I know is that he is jumping from place to place,» Mahathir said according to local media picked up internationally. «I hope he is arrested,» he added.
Malaysia's top law enforcement officer said he believed Low is in Macau, China or Hong Kong, but hadn't verified whether the financier has been picked up by Chinese officials.
The Missing Link
U.S. prosecutors allege the baby-faced Malaysian financier is the brain behind billions which have disappeared at the sovereign wealth fund. Low has rarely surfaced since being pegged by investigators two years ago.
Low's Malaysian passport was cancelled earlier this month following a request from the Malaysian Anti-Corruption Commission (MACC) as it ramped up its investigations into the corruption-plagued 1MDB fund. Another prominent figure in 1MDB, ex-Goldman Sachs heavyweight and Low associate Tim Leissner, is reportedly cooperating in the probe.
China Hopes
Low may be travelling on a Caribbean passport. He is alleged to hold citizenship in St. Kitts and Nevis, a tiny island in a string of Caribbean countries between Cuba and South America with a liberal citizenship-by-investment scheme. China is under no obligation to hand Low over: Malaysia and China don't have an extradition treaty.
Mahathir said Beijing could «always give him back to us» regardless of the missing legal framework. This seems unlikely, given the tougher line Mahathir took on China during his campaign. He is scheduled to visit China next month.
