1MDB Probe: Managing Director Remanded For 5 Days

It is believed that the 39-year-old director was arrested Monday as the Kuala Lumpur global Airport as he was about to board a flight. He was represented by lawyer Tan Sri Muhammad Shafee Abdullah.

Shafee told reporters the MACC had asked for a seven-day remand order but the magistrate gave four days.

The daily said that in the first deal, PetroSaudi was supposed to put in non-cash assets of US$1.5 billion to make it a US$2.5 billion joint venture.

It named Low Taek Jho (Jho Low), Tarek Obaid and Patrick Mahony, abetted by a few 1MDB top executives, as the people behind the scam which started in 2009 with an initial US$1 billion investment by 1MDB that grew to US$1.83 billion by 2011.

The Edge Financial Daily’s latest report on 1MDB today denied the allegation that it was part of a political conspiracy, and instead recounted an alleged scheme by tycoon Jho Low and PetroSaudi worldwide (PSI) to steal billions from Malaysia.

It said they were surprised that these unproven allegations were being recycled yet again when multiple ongoing investigations were being conducted by the lawful authorities pertaining to issues raised on 1MDB’s dealings.

In the statement titled “Irresponsible reporting”, 1MDB said any party which could assist investigators should do so under the purview of the law, without resorting to such irresponsible and unnecessary sensationalism.

In the article’s footnote, the newspaper’s publisher stated that the content was based on evidence corroborated by documents that included bank transfers and statements, which would be handed over to the relevant authorities. He said this would likely be the last report on the matter and that it would be handing over whatever it had to the agencies investigating 1MDB.

1MDB has come under the public scrutiny mainly because of the whopping RM42 billion debts that it has racked up in the past five years.

The Home Ministry on Jun 1 had issued a show-cause letter to The Edge over its reports in the financial daily on 1MDB.