The Prime Minister’s Office dismissed an expose on how 1Malaysia Development Bhd purportedly banked US$700 million (RM2.5 billion) into a company linked controversial high roller Jho Low as "politically-motivated".

 

"Views expressed by certain quarters concerning 1MDB should be examined in light of political motivation.

"However, if any wrongdoing is proven, the law will be enforced without exception,” it told the UK Sunday Times.

PMO added that PM Najib Abdul Razak (below) , who chairs 1MDB’s board of advisors, does not run 1MDB’s day-to-day operations and that 1MDB’s accounts are audited by Delloite.

The Sunday Times in collaboration with Sarawak Report today published a series of articles on 1MDB, citing internal emails between Low, his officer Li Lin Seet, PetroSaudi officer Patrick Mahony and then 1MDB CEO Shahrol Halmi.

The emails date to 1MDB’s early days in 2009, before it signed a deal with the little-known oil and gas Saudi Arabian company.

The leaked emails illustrate how Low was heavily involved in preparing the deal between 1MDB and PetroSaudi.

In one email, Low claimed to have received clearance from Najib for the deal and was in the know even before 1MDB’s CEO got clued in about PetroSaudi.

The deal involved 1MDB footing a purported loan for PetroSaudi, and the US$700 million (RM2.5 billion) was banked into a company called Good Star, which the whistleblower website said is linked to Low.

Low is reported to have initiated the formation of 1MDB, transforming it from Terengganu’s sovereign wealth fund Terengganu Investment Authority in a federal investment firm.

Mahathir not amused

The report did not amuse former prime minister Dr Mahathir Mohamad (below) .

"Somebody must be doing something stupid to part with US$700 million (RM2.5 billion) for no very good reason as far as I can see," he told the UK newspaper.

He also reiterated his urging for greater transparency of 1MDB's dealings.

A report was earlier lodged against 1MDB with the Malaysian Anti-Corruption Comission.

1MDB has always maintained that Low is not on its payroll and that all its dealings are disclosed in audited accounts.

Contacted by Malaysiakini today, 1MDB president Arul Kanda reiterated that the firm has redeemed all the funds it put into the PetroSaudi deal, plus a profit of $US488 million (RM1.76 billion).

Arul Kanda remained mum on allegations that Low "siphoned" some US$700 (RM2.5 billion).

PetroSaudi said the all funds 1MDB invested into the deal were channeled to PetroSaudi firms and that the news reports are "malicious", Bernama reported.

Malaysiakini has contacted Low's public relations representative for a response.

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