POLICE have confirmed they are investigating wanted businessman Low Taek Jho’s links with the Terengganu Investment Authority (TIA) and a RM5 billion (US$1.2 billion) bond sale in 2009 by the entity that later became 1Malaysia Development Bhd (1MDB).

Commercial Crime Investigation Department acting director Saiful Azly Kamaruddin said police were trying to ascertain whether Low, also known as Jho Low, had profited from the bond issue that involved local banking group AMMB Holdings Bhd and a Thai brokerage, Country Group Securities.

In confirming this to The Malaysian Insight, Saiful Azly, however, declined to elaborate when asked about the flow of funds to Low through TIA.

Bloomberg yesterday reported that authorities had begun probing into the 2009 bond sale and financial gains Low could have made from the exercise.

Quoting sources, Bloomberg said the investigation was focused on tracing the money flow to Low, and to officers at TIA and AMMB “who may have abetted Low in the dealings”.

AMMB, which owns AmBank, had helped TIA raise RM5 billion, according to Bloomberg, before selling off RM3.8 billion in TIA notes to the Thai brokerage and RM700 million to a Singapore-based company.

Of the total amount raised, AmBank is also believed to have bought “RM500 million for itself”, Bloomberg’s sources told it.

The TIA notes were bought at a discounted price and were resold for profit on the same day – drawing investigators’ suspicions.

Low, who has consistently denied any wrongdoing with 1MDB and who has never held a formal position there, had been an adviser to TIA before it became 1MDB.

Bloomberg’s sources said Low had been involved in discussions on the bond issuance.

Low, along with an associate, Eric Tan, are also beneficiaries of the Singapore-based ACME Time Ltd, which signed a put option agreement with the Thai brokerage.

Low and Tan are believed to have made a profit of RM522 million in illicit funds from the bond issue.

Both were jointly charged in absentia last month with two money-laundering offences for receiving the said amount in ACME Time’s bank account in Singapore from an AmBank account in Kuala Lumpur. – January 25, 2019.