KUALA LUMPUR, July 3 — The Malaysian Anti-Corruption Commission (MACC) today denied it is investigating claims that state-owned 1Malaysia Development Bhd (1MDB) had funnelled US$700 million (RM2.6 billion) into Prime Minister Datuk Seri Najib Razak’s personal accounts.
The anti-graft agency acknowledged that an investigation has been launched, but said it is focused on former 1MDB subsidiary, SRC International Sdn Bhd, which is now a unit directly under the Finance Ministry headed by Najib.
“Referring to media reports regarding investments by SRC International Sdn Bhd, the Malaysian Anti-Corruption Commission has gone through the issue and found elements that were raised fall under the MACC’s jurisdiction,” MACC deputy chief commissioner (operations) Datuk Seri Mohd Shukri Abdull said in a statement.
“Following the check that was done, it is found that there is basis for the MACC to begin investigations under the MACC Act 2009, and hence, an investigation has since been started.
“In line with legal provisions, the MACC will conduct investigations independently and professionally and comprehensively,” he added in the brief three paragraph statement.
Earlier today, the Wall Street Journal (WSJ) quoted an MACC official as saying that the agency “will look into the matter” of the US$700 million allegedly from 1MDB and moved between government agencies, banks and companies before ending up in Najib’s accounts.
“If there’s any corruption at all, we will investigate,” the international business paper quoted Rohaizad Yaakob, an MACC spokesman, as saying.
The story was a follow-up to the WSJ’s earlier expose on the case this morning, which it claimed was based on documents sourced from Malaysian investigators currently scrutinising the troubled 1MDB’s financials.
The paper claimed that the documents include bank transfer forms and flowcharts put together by investigators to shed light on 1MDB’s cash flow, adding that this is the first time a direct connection to Najib has been established in the probe on 1MDB.
SRC International was also implicated in the expose, with the WSJ claiming that it was the source of a purported transfer of RM42 million into Najib’s account at the end of 2014 and the beginning of 2015.
“The money moved through another company owned by SRC International and then to a company that works exclusively for 1MDB, and finally to Mr Najib’s personal accounts in three separate deposits, the government documents show,” the report said.
Both the Prime Minister’s Office and 1MDB have since denied the claims in the report.