Trump shutters DOJ's elite anti-graft unit that worked on 1MDB

Summary

• Investigative journalist Bradley Hope says the US government has closed down the Kleptocracy Initiative, a unit under the Department of Justice responsible for prosecuting the 1MDB scandal.

• He says the decision was quietly announced by new US Attorney-General Pam Bondi through an email on Feb 5.

• The decision, Hope claims, has something to do with gaining control of a multi-billion-dollar forfeiture fund.

The US Justice Department (DOJ) has just closed down its elite anti-corruption unit famous for prosecuting the 1MDB scandal, said investigative journalist Bradley Hope.

“(Donald) Trump’s DOJ just killed its elite anti-corruption unit, our sources say.

“The Kleptocracy Initiative - famous for seizing Russian oligarchs’ yachts and prosecuting the US$4.5B 1MDB fraud - was quietly disbanded (on Feb 5),” he said on X yesterday.

Elaborating, Hope said newly minted US Attorney-General Pam Bondi announced the decision on Feb 5 via an email, which includes closing down the Task Force KleptoCapture.

Both units recovered billions in stolen assets since 2010.

However, Hope claimed there was something more to Bondi’s recent decision.

“But here’s the real story: Sources say a key objective is gaining control of a multi-billion-dollar forfeiture fund - money seized from corrupt officials that was meant to be returned to victim countries.

“Where’s that money headed? Bondi’s memo cryptically mentions ‘other law enforcement purposes’. Multiple sources say this means funding new detention facilities in Guantanamo Bay and Texas.

“The timing is striking. This follows Bloomberg’s report that the DOJ’s foreign bribery unit (FCPA) has been gutted, now limited to cases involving drugs or trafficking,” he added.

New cases in limbo

Quoting a DOJ veteran, Hope said the decision had effectively neutralised the US’ entire anti-corruption apparatus, with no resolution to the cases being investigated now.

“The message to the world’s kleptocrats? America’s doors are now wide open for business,” he added.

Hope co-authored the book “Billion Dollar Whale” with fellow journalist, Tom Wright, detailing the 1MDB scandal. The duo probed the matter as journalists at The Wall Street Journal.

According to the weekly newsletter Whale Hunting, the Kleptocracy Initiative has recovered billions in stolen assets since its inception in 2010.

Apart from uncovering the 1MDB scandal involving former prime minister Najib Abdul Razak, it has also investigated former Nigerian dictator Sani Abacha’s enormous wealth, among others.

“The unit’s work was fundamental in the largest corruption case in history - the US$4.5 billion looting of Malaysia’s 1MDB fund, where money meant for development was used to buy everything from Van Gogh paintings to funding (the film) ‘The Wolf of Wall Street’,” it mentioned.

On Aug 23, 2022, the Federal Court sentenced Najib to 12 years in jail and a RM210 million fine for abuse of power, criminal breach of trust, and money laundering involving RM42 million belonging to SRC International Sdn Bhd, formerly a subsidiary of 1MDB.

However, on Feb 2, 2024, the Pardons Board reduced Najib’s imprisonment to six years, with the fine reduced to RM50 million.

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