Although without official position within 1Malaysia Development Berhad (1MDB), the businessperson Jho Low is regularly consulted about its actions, according to the New York Times ( NYT ).

The paper today quoted three unnamed persons who supposedly had regular dealings with 1MDB making the claim, saying that the trio had requested anonymity to preserve relationships.

It also quoted Low downplaying his role within 1MDB, which he had helped found.

He reportedly told NYT that he had given 1MDB his opinion on matters “from time to time and without receiving compensation”.

The report added that a close friend of Low’s father became a director in the company, while two of Low’s friends joined 1MDB’s staff. However, it did not name these individuals.

The NYT report is part of an ongoing series of articles exposing shell companies being used to purchase luxury properties in New York City.

Today’s article places the spotlight on Low, whose real name is Low Taek Jho, as well as his ties to the family of Prime Minister Najib Abdul Razak.

Shell companies are held by nominees on behalf of their real owners, hence making it difficult and often impossible to uncover their identities or trace the money transacted through the companies.

Although shell companies are used in legitimate transactions and investment strategies, they are also used to transfer illicit funds due to the lack of transparency in the process.

In response, Low’s spokesperson was quoted telling the NYT that Low had never purchased real estate for Najib’s family or “engaged in any wrongful conduct regarding any financial matters for the prime minister and his family”.

The report said Low was studying at the elite Harrow School in London when he became friends with Najib’s stepson Riza Aziz ( left in photo ), when the latter was studying at the London School of Economics.

He also reportedly became close to Riza’s mother and Najib’s wife Rosmah Mansor during this time.

In 2009, NYT said Low began pitching the idea of setting up a sovereign wealth fund tied to Sultan Mizan Zainal Abidin of Terengganu, who was also the Yang di-Pertuan Agong at the time.

This became to be known as the Terengganu Investment Authority.

‘Wealth fund morphed into a new one’

“Mr Low’s business romance with Malaysia’s king, it turned out, was short-lived. But the new prime minister, Mr Najib, was happy to have a way to benefit the nation writ large, and the sovereign wealth fund soon morphed into a new one, called 1Malaysia Development Berhad,” the report said.

Soon after its creation, NYT said 1MDB entered a US$1 billion (RM3.56 billion) joint venture with the oil-drilling company PetroSaudi International.

In 2011 however, 1MDB pulled out of the joint venture but the proceeds of the deal went into a Cayman Islands-based fund manager instead of immediately being returned to Malaysia.

1MDB had announced in January that the funds have been “fully redeemed” including interest, but its opponents such as former prime minister Dr Mahathir Mohamad and PKR vice-president Rafizi Ramli continue to question about the money’s whereabouts.

While the joint-venture lasted, NYT said a PetroSaudi subsidiary purchased a Malaysian company UBG, where Low and his investors held a “substantial stake”.

It quoted corporate documents saying that one of PetroSaudi subsidiary’s directors, Geh Choh Hun, is a close friend of Low.

However, NYT said PetroSaudi had said that the deals were unrelated, while Geh and Low said Geh was not representing Low’s interest at the time.