SINGAPORE (July 7): Two years ago, when the idea of his return as prime minister of Malaysia seemed all but impossible, Dr Mahathir Mohamad criticised the way Singapore was handling the alleged embezzlement and money laundering of funds from 1Malaysia Development Bhd (1MDB).
He accused Singapore authorities of failing to take action against the key culprits.
“It affects Singapore’s reputation as a financial centre,” he said.
Now, Singapore as well as other countries around the world might finally be able to do more about the epic financial scandal that started in Malaysia.
On July 3, Najib Razak, the disgraced former Malaysian prime minister, was arrested. He appeared in court the next day and pleaded not guilty to charges of corruption and criminal breach of trust related to 1MDB funds. His trial has been set for next year, starting in February.
See: The 1MDB-linked charges Najib faces
This could be the beginning of Malaysia taking further action against Najib and other players in the 1MDB scandal, including Low Taek Jho, better known as Jho Low, the chubby Penang-born businessman who is widely said to have engineered most of the misappropriation.
See: Jho Low and Eric Tan still on Wanted List: Singapore Police
But the question on everyone’s mind is: What role will Singapore play in Malaysia’s prosecution of the 1MDB case?
See: Singapore's 1MDB-related probes ongoing, says Menon of MAS
A substantial chunk of the 1MDB funds that were allegedly embezzled by Najib and his associates flowed through financial institutions here, which led to the arrest of former BSI Bank wealth planner Yeo Jiawei and MAS shutting down BSI Bank Singapore and Falcon Private Bank Singapore.
Several other local banks were also fined for breaches of anti-money laundering regulations.
But could the local authorities really have done more? And what prevented them from doing so?
Find out more in this in this week’s issue of The Edge Singapore (Issue 838, week of July 9), on sale now at newsstands.
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