China offered to bail out 1MDB in return for Belt and Road deals

Updated 5 years ago · Published on 8 Jan 2019 9:30AM · 8 Comments

Construction of the East Coast Rail Link project in Bentong, Pahang. The ECRL project was grossly overvalued to fund other needs, says an American business paper today. – The Malaysian Insight file pic, January 8, 2019.

CHINA offered to bail out former prime minister Najib Razak’s brainchild 1MDB in return for sweetheart deals linked to its ambitious Belt and Road Initiative (BRI) in 2016, reports The Wall Street Journal today.

The Najib administration signed a loan from the Export-Import Bank of China for US$2.3 billion (RM9.3 billion) in 2016, which was supposed to fund the construction two gas pipelines.

The Barisan Nasional government also signed the RM95 billion East Coast Railway Link (ECRL) project, undertaken by the China Communications Construction Co Ltd (CCCC Ltd).

Citing minutes from a series of previously undisclosed meetings, WSJ said funds from these projects were used to bail out the debt-racked 1Malaysia Development Bhd, which was set up in 2009.

These projects are now under review following Pakatan Harapan’s win at the 14th general election last May.

Some of the infrastructure projects were financed at above-market values to enable Najib and BN to use the excess cash for other needs, said WSJ.

The current government believes the funds were used to finance the elections last year and to cover 1MDB’s debts.

Former prime minister Najib Razak faces multiple charges in relation to 1MDB. The latest trial is this month. – The Malaysian Insight file pic, January 8, 2019.

Last month, Najib and former 1MDB chief executive Arul Kanda Kandasamy were charged separately with altering the auditor-general’s report on 1MDB before it was confirmed and tabled to the Public Accounts Committee (PAC).

Najib, who has denied any wrongdoing, also faces 25 charges of corruption, money-laundering and abuse of power in relation to 1MDB.

RM2.6 billion or US$681 million was deposited into the former prime minister’s bank accounts in 2013 and the unexplained source of the money was one of the factors which led to BN’s defeat at GE14.

Najib has always maintained that the RM2.6 billion was a donation from a Saudi prince, adding that he would reveal the donor.

A number of Najib’s former aides – including his special officer Amhari Efendi Nazaruddin – have also been arrested as part of investigations into 1MDB. – January 8, 2019.

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Comments

  • Minutes of 'previously undisclosed meetings' and other documents shown to the WSJ investigators should be tabled in Parliament and made accessible to the Malaysian public.

    Posted 5 years ago by Boo Teik Khoo · Reply

  • Shouldn't Najib be charged for treason?

    Posted 5 years ago by Awang Bilis · Reply

    • Hang him now !!!!!. Let's not dilly dally on his charges. He is guilty as hell!!

      Posted 5 years ago by Lee Lee · Reply

  • Pengkhianat yg utama sekali di negara kita.

    Posted 5 years ago by Tanahair Ku · Reply

  • Unfortunately there are many stupid idiots of one bangsa and religion who still believe that Najib is innocent.

    Posted 5 years ago by Jackal Way · Reply

  • Again, we have to rely on investigations and exposes by a foreign paper, in this case wsj. We know it was the DoJ which had started off the enquiries and investigations of 1MDB, besides Sarawak Report, etc. These are all foreign bodies. Their investigative journalists are more interested in pursuing scandals made in malaysia. In the meantime, our journalists are fighting over each other to report on singers domestic quarrels, and maharaja lawak. Oh god. Please save our country.

    Posted 5 years ago by Chu Bhs · Reply

  • Shame on China, Najib cahoot with EMPEROR XI to unleash China Debt Trap policy on Malaysia thru lopsided contracts of ECRL & TGPS?? Najib should be charged with economic sabotage & treason! PH govt should ordered a full probe on ECRL & TGPS! For ECRL there is absolutely NO VIABLE ECONOMIC business model to support the huge construction cost. Why are Malaysia at the MERCY of CHINA?

    Posted 5 years ago by SUARA RAKYAT MSIA · Reply

  • balls caught between your legs

    Posted 5 years ago by Teruna Kelana · Reply