THE Pakatan Harapan government is investigating the flow of funds into Barisan Nasional parties for possible links to the 1Malaysia Development Bhd scandal, reports the Straits Times.

The report also said investigations are being carried out under the Anti-Money Laundering Act, and has extended to law firms with ties to the previous government. 

Bank accounts alleged to contain funds stemming from 1MDB could be frozen, pending investigation and trial, while MPs and elected representatives could face disqualification from their elected office if found guilty, the report said, citing government officials and finance executives.

Investigating BN component party finances could have wide implications on the country’s political landscape, the report said, as lynchpin party Umno and MCA have wide business interests.

Umno’s business interests under a private company Temasek Padu Sdn Bhd is estimated to be valued at roughly RM800 million.

The MCA’s business assets, estimated at more than RM3 billion, are under Huaren Holdings Sdn Bhd. Its investments include extensive property developments and control of Star Publications.

Government officials and bankers said any direct links between BN officials, who are also business nominees, with 1MDB-related funds could put these investment holdings at risk and disrupt Umno and MCA’s bid to regroup after the bruising they received at the May 9 polls.

By-elections that may be called as a result of the disqualification of elected representatives being found guilty of receiving 1MDB-related funds could further decimate BN’s ranks in Parliament. It now holds 57 seats – Umno with 54, MCA (1) and MIC (2).

Malaysian authorities under the previous government had insisted that there was no wrongdoing in 1MDB, even though the firm, founded by Najib Razak in 2009 to strategically invest the nation’s wealth, is under investigation in several jurisdictions worldwide, including the US, Singapore, Hong Kong and Switzerland.

In complaints filed in 2016 and 2017, the US Department of Justice alleged that as much as US$4.5 billion had been misappropriated from 1MDB, and used to line the pockets of high-ranking Malaysian officials and buy assets and luxury goods in the US.   

There is also speculation that the flow of funds through 1MDB was used to fill BN’s war chest ahead of the May 9 polls that saw Najib and the BN camp he led ousted from power. 

PH, under Dr Mahathir Mohamad, Najib’s former mentor, has vowed to track down those responsible for the 1MDB scandal, especially Najib confidant and financier Low Taek Jho.

Najib is expected to face charges related to the 1MDB debacle next month. – June 21, 2018