The 1Malaysia Development Bhd (1MDB) controversy which has hogged headlines since early this year has done nothing to help Penang’s investment climate, said Chief Minister Lim Guan Eng.

 

This is because one of the main personalities implicated in the alleged financial scandal is businessman Low Taek Jho.

 

Lim lamented that he has much explaining to do when he meets foreigners and investors abroad as Low, better known as Jho Low, is from Penang.

 

“Whether you like it or not, when we have headlines on how he (Jho Low) used his position for his own benefit, it attracts a lot of attention,” Lim said at a press conference when asked to comment if the 1MDB issue has affected investment in Penang.

 

“We have to distinguish Penang as a state that fights corruption, unlike another government that appears to condone corrupt practices. 

 

“Penang is well-known for fighting corruption and we have to stress that we are the only government in Malaysia history that practises transparency,” stressed the DAP secretary-general. 

 

Lim was referring to the state’s CAT (competency, accountability and transparency) principles which he introduced when he took over Penang in 2008.

A close ally

 

Asked if would urge Jho Low to come clean on his business deals to clear his name and that of Penang’s, Lim shot back; “There is no point for me to do so. He will not listen to me. He listens to one person only”.

 

Jho Low is reportedly a close ally of embattled Prime Minister Najib Razak, who is currently facing claims that RM2.6 billion (US$700 million) was transferred into his private accounts before the 2013 national polls.

 

Najib has yet to deny the claims which were published in the The Wall Street Journal on July 13, although he is mulling legal action against the US-based financial paper.

 

In a report in The Edge Financial Daily yesterday, Jho Low was alleged to have connived with PetroSaudi International to siphon RM1.83 billion from 1MDB.

 

The money was allegedly siphoned through the 1MDB-PetroSaudi joint venture company.

 

1MDB has denied the claims in the report as “unsubstantiated and recycled allegations”.