Kuala Lumpur: Malaysia on Monday set up a task force to probe allegations that billions of dollars were looted from sovereign wealth fund 1MDB in an audacious fraud overseen by ousted leader Najib Razak.
New Prime Minister Mahathir Mohamad led a reformist alliance to a shock victory at the May 9 polls over Najib’s coalition, which had governed Malaysia uninterrupted for over six decades.
A major reason for the success of 92-year-old Mahathir was public disgust at allegations of endemic corruption among the country’s ruling elite, and in particular an explosive scandal surrounding state fund 1MDB.
The fund, 1Malaysia Development Berhad, was set up in 2009 ostensibly to promote the development of the Malaysian economy.
But it is alleged that Najib, his family and cronies looted the investment vehicle in a massive fraud stretching from the Cayman Islands to New York, with stolen funds used to buy everything from real estate to artworks.
Since Najib’s ouster, Malaysians have been gripped by a series of police raids on properties linked to the ex-leader, which have yielded a stash of hundreds of luxury handbags believed to belong to his despised wife Rosmah Mansor, as well as suitcases stuffed with cash and jewels. — AFP
Oman Observer is now on the WhatsApp channel. Click here
