Malaysia's central bank seeks prosecution of 1MDB amid graft scandal
The state fund is the subject of several probes by different authorities, including Malaysia's central bank
PUBLISHED : Friday, 09 October, 2015, 10:16pm
UPDATED : Friday, 09 October, 2015, 10:16pm
Reuters in Kuala Lumpur
Malaysia's central bank said on Friday it had urged the country's attorney general to begin criminal prosecution of troubled fund 1MDB after completing its investigation, piling more pressure on Prime Minister Najib Razak who chairs the fund's advisory board.
At the centre of a political crisis over its debt of nearly 42 billion ringgit (HK$79.1 billion) and alleged financial graft, 1MDB is the subject of several probes by different authorities, including Malaysia's central bank.
The central bank's statement comes a day after the attorney general said it had seen a report of the central bank's investigation and concluded 1MDB officials had not committed any offence.
The attorney general, appointed by the prime minister in late July, also said it had rejected a central bank request for a review of the decision.
In its statement, the central bank also said 1MDB had secured permits for investment abroad based on inaccurate or incomplete disclosure of information, breaching domestic regulations.
Prime Minister Najib Razak, who chairs the fund's advisory board, is under mounting pressure over graft allegations. Photo: Reuters
The central bank added it revoked three permits granted to 1MDB for investments abroad totalling US$1.83 billion and ordered the state fund to repatriate the funds to Malaysia.
1MDB did not respond to a request for comment.
In July, the Wall Street Journal reported that investigators looking into 1MDB had identified a payment of nearly US$700 million into a bank account under Najib's name.
Najib has denied taking money for personal gain.
The central bank did not specify which permits were revoked or where it believed the US$1.83 billion was being held.
The bank's statement came as a detained Malaysian lawyer went on a hunger strike after being arrested over his involvement in efforts to expose the 1MDB scandal.
Matthias Chang was arrested on Thursday under a tough domestic security law that allows detention for up to a month without trial.
Chang had been representing Khairuddin Abu Hassan, a former ruling party member who was detained last month under the same security law after he launched a global campaign to highlight alleged graft by Najib.
Chang released a statement calling his and Khairuddin's arrests "a heinous tactic" to silence those speaking out "against the tyranny and corruption of the Najib regime", and announced he had begun refusing food.
Additional reporting by Agence France-Presse
