Malaysia's former first lady was arrested in connection with a $4.5 billion graft scandal. Her stunning fall from grace follows that of her husband, who faces a litany of corruption charges.
Rosmah Mansor was arrested by Malaysia anti-corruption prosecutors on Wednesday, according to reporting from Malaysia newspaper «The Star» which was widely picked up in Asia.
Five months ago, Mansor was the first-lady of Malaysia. She was unpopular due to her perceived spendthrift ways including a penchant for high-end Italian and French handbags, ostentatious jewelry, and anti-aging treatments. Since the 66-year-old's husband, Najib Razak, was voted out in May, they have suffered a stunning fall from grace and reckoning in the scandal surrounding 1MDB scandal.
Najib, who says he is innocent, was already arrested and charged with more than two dozen counts including breach of trust, money-laundering and abuse of power. U.S. prosecutors believe than $4.5 billion was pilfered from the state fund and ultimately landed in private hands – including Najib's. Rosmah will reportedly be charged on Thursday.
$350 Mln Pink Diamond Collection
The trial of an ex-leader is unprecedented in Malaysia's 55-year-history. Raids at a luxury Kuala Lumpur condo linked to Najib's family turned up almost 300 boxes of designer handbags, 114 million Malaysian ringgit ($27.5 million) in cash and jewelry. The family has said the bags and baubles were wedding presents to his daughter.
Famously, Rosmah received a $27.3 million 22-carat pink diamond necklace from New York jeweler Lorraine Schwartz four years ago. She holds of the world's largest collections of rare pink diamonds, «The Wall Street Journal» reported on Wednesday.
Threat to Jho Low?
The newspaper cited a source – once an aide to the ex-first lady in buying diamonds, now state's witness – who estimated Rosmah's collection to be worth $350 million. The Lorraine Schwartz deal was reportedly orchestrated by Jho Low and paid for with stolen 1MDB money. U.S. prosecutors allege Low was at the heart of the 1MDB corruption scheme.
The still-AWOL Malaysian financier denies wrong-doing but acknowledges youthful mistakes, on a recently-launched website. Now stripped of his private jet as well as his $260 million yacht - the Equanimity, the threat of details that could emerge from Rosmah's or Najib's trial hangs over him.
