Daniel Halliday
May 15 · Last update 8 days ago.
What happened in the Malaysian 1MDB corruption case?
The 1Malaysia Development Berhad development company was a government run fund to drive strategic initiatives to act as a long-term boost to the Malaysian economy, by driving direct foreign investment. However suspicion surrounding the company’s transactions finally led to numerous investigations internationally, with former President Najib Razak and many individuals linked to him largely implicated in money laundering, criminal breach of trust and abuse of power. What are the implications and significance of this scandal and what can be done regarding the fallout from it?
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Fault of the government
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One of the biggest corruption scandals in history
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Fault of the government

Regardless of the actions of Najib Razak such scandals can only occur due to the failure of the usual checks and balances in a country with a long-term history of corruption. Although vital institutions were rendered defenceless as the country was robbed the scandal has caused a crisis of confidence in the Malaysian government and voters are recoiling against such practices which could rejuvenate the democratic process in the country. Currently PricewaterhouseCoopers (PwC) are auditing 1MDB, but further government oversight is obviously needed in Malaysia and better stricter auditing rules for funds and companies seems an obvious first step and a necessary step in the right direction for a less corrupt Malaysia.

aljazeera.com/news/2015/10/royal-rulers-deplore-malaysia-crisis-confidence-151007064312312.html

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One of the biggest corruption scandals in history

Najib Razak was arrested in 2018 by the Malaysian Anti-Corruption Commission over a suspicious transaction of over $10 million in his personal bank account from 1MDB sovereign fund. Thanks to whistle-blower Xavier Justo a fuller picture of this scandal came to public attention. Justo, a former employee of PetroSaudi released documents that showed the company was part of a money laundering web of companies that helped associates of Najib in siphoning off over $700 million from the 1MDB fund, the fund itself with a debt of $11.73 billion by this time. Such large sums of money are unprecedented even for a country with a history of corruption like Malaysia, causing many journalists to refer to this as the biggest heist in history.

theguardian.com/world/2016/jul/28/1mdb-inside-story-worlds-biggest-financial-scandal-malaysia

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