THE attorney-general (A-G) can no longer dismiss the US Department of Justice’s (DoJ) findings as frivolous and politically motivated, following a move to initiate a criminal probe into money allegedly stolen from debt-ridden state investor 1Malaysia Development Berhad (1MDB), an anti-graft group said. 

Cynthia Gabriel, executive director of the Centre to Combat Corruption and Cronyism (C4), said the news was a much-awaited development as the stolen funds seized were criminal in nature. 

“And the persons behind the thievery must face criminal proceedings.

“He (A-G) is duty bound to cooperate and help solve this grand corruption scandal as obliged under the UNCAC,” she said, referring to the United Nations Convention against Corruption. 

DoJ officials yesterday asked a Los Angeles court to freeze civil forfeiture suits on assets acquired by Malaysian financier Low Taek Jho, also known as Jho Low, as pursuing these may have “an adverse effect” on its ability to conduct the criminal investigation.

In its civil cases, the DoJ alleged that between 2009 and 2015, more than US$4.5 billion belonging to 1MDB was diverted by high-level officials of the fund and their associates.

Last year, DoJ filed a civil asset forfeiture suit to seize more than US$1 billion in assets bought using funds allegedly misappropriated from 1MDB.

A year later in June,  DoJ filed another suit to seize US$540 million in assets (RM2.31 billion), including a US$165 million yacht – Equanimity – owned by Jho Low, a US$27.3 million necklace for “the wife of Malaysian Official No. 1” (MO1) and rights to comedy movie Dumb and Dumber To produced by Red Granite, a production house co-owned by Riza Aziz, the stepson of Prime Minister Najib Razak.

The Malaysian Insight contacted A-G Mohamed Apandi Ali today on the DoJ’s latest move but he declined to comment.

Cynthia said that even though “MO1” was not named, the person “must face up to this criminal probe involving 1MDB and answer the people”.

Barisan Nasional minister Abdul Rahman Dahlan had previously said that MO1 is Najib. The prime minister, however, has denied any wrongdoing.

Lawyers for Liberty executive director Eric Paulsen, meanwhile, said the case has now escalated into something more serious as the US authorities are looking at 1MDB from a criminal point of view. 

He said those who knew about the movement of the money could be detained for interrogation, as in the cases linked to the 1MDB in Singapore, where investment banker Yeo Jiawei has been sentenced to 4½ years in prison for money laundering. 

“All the people involved, the perpetrators can be arrested. If they are US citizens, they can be arrested. If they are based there, they can be found, interrogated, detained and charged in court for whatever criminal wrongdoings they have done. 

“For foreigners who step foot on US territories, they can similarly be arrested as well. But if they are outside of the country, they will be subjected to all international laws. (The US) could cooperate with Interpol but it really depends on how far the US authorities try to pursue it,” Paulsen said, adding that by working with Interpol, a red alert notice could be issued. 

Besides the US, authorities in several countries, including Singapore and Switzerland, are investigating cases linked to the Malaysian state investor that was founded by Najib.

The Singaporean probe has revealed a complex web of transactions that Jho Low used to funnel RM4 billion from 1MDB to companies controlled by him or his proxies. Low has denied accusations of wrongdoing.

Malaysian authorities have consistently claimed that no wrongdoing occurred in 1MDB’s transactions, and said Najib should not be blamed despite the prime minister having served as chairman of its advisory board. – August 11, 2017.