Malaysia prosecutor gives clean chit to 1MDB officials on bank report

According to the AGC today, the bank’s probe on 1MDB was for an offence under paragraph (4)(b) of Part 1 of the Fifth Schedule to the Exchange Control Act 1953 namely, “knowingly or recklessly making a statement which is false in a material particular”.

The central bank’s move is a new blow to the fund, which was set up by Prime Minister Najib Razak in 2009 to develop new industries, but faces accusations of graft and mismanagement after it accumulated at least 42 billion ringgit ($10 billion) in debt. It was not immediately clear what has become of the $1.83 billion. “As an investigative authority, the bank is duty bound to conduct its investigations with the highest professional care and diligence”, it said.

The bank added that the decision to initiate criminal prosecution lies exclusively with the Attorney General.

The fund didn’t comment on the central bank’s claims it had given inaccurate information on the transfers.

The central bank’s statement comes just one day after the attorney general said it had seen a report of the central bank’s investigation and concluded that 1MDB officials had not committed any offense.

Critics of Mr. Najib question whether the donor exists.

Najib’s mortal threat definitely lies inside the party, where Muhyiddin Yassin – whom he dismissed as his deputy prime minister – lies in wait.

Tens of thousands of Malaysians have attended rallies across the country.

The police and the anti-corruption agency are also investigating the fund.

1MDB has been the subject of overlapping investigations amid allegations of financial irregularities. He says the money was a donation from the Middle East. Attempts to reach him haven’t been successful.

“The Attorney-General (AG) has been constantly monitoring and giving instructions to the relevant agencies whenever the investigations were referred to the AGC, including instructions to expedite investigations”.

This week, nine of the country’s sultans, who are titular heads of Malaysian states, waded into the issue, demanding a full investigation and blaming the scandal for hurting Malaysia’s global image.

“What is indisputable is that this is the first time in the nation’s history of close to six decades under six prime ministers that the Malay rulers have come out with a statement expressing their concerns, and on three issues – 1MDB, the rule of law and national unity in the country”, the Gelang Patah MP said. Those comments led to a rebuke from 1MDB, which issued a statement saying other reasons, including a strong dollar and falling oil prices, are to blame for the weak currency.