MALAYSIA should seek China’s assistance to investigate allegations of money-laundering involving 1Malaysia Development Bhd and the East Coast Rail Link (ECRL) project, said DAP lawmaker Tony Pua.

The Industrial & Commercial Bank of China (ICBC) allegedly handled funds originating from 1MDB to International Petroleum Investment Corporation (IPIC) in Abu Dhabi through several countries, said the Damansara MP.

The transactions are related to China Communications and Construction Company (CCCC), the turnkey contractor for the ECRL project, and reported by whistle-blower website Sarawak Report.

Putrajaya, via Foreign Affairs Minister Hishammuddin Hussein, should request Beijing’s assistance to probe into such claims, Pua said.

Billions of renminbi were transferred from ICBC Hong Kong to ICBC Kuwait to ICBC Kuala Lumpur to ICBC Abu Dhabi in a matter of three days.  

“The transactions, carried out entirely in Chinese yuan, were obviously meant to circumvent anti-money-laundering detection of US dollar transfers in the light of international scrutiny over 1MDB,” Pua said in a statement on the allegations reported by Sarawak Report.

The transactions in yuan allegedly took place in August 2017 and involved transfers to various companies that included a company based in Kuwait and an engineering firm belonging to CCCC.

Part of the funds eventually came to a local firm said to be owned by the Ministry of Finance and involved in 1MDB’s Air Itam land.

Another portion of the same funds was also moved to IPIC Abu Dhabi.

Pua said the Finance Ministry and Bank Negara Malaysia must look into these claims, while Putrajaya must use its close relationship with Beijing. – July 21, 2020.