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WORLD NEWS Wednesday 6 June 2018

Wife of ex-Malaysia PM questioned, new graft scandal unfolds

By EILEEN NG social media late Tuesday
Associated Press that the projects were ne-
KUALA LUMPUR, Malaysia gotiated on a government-
(AP) — Anti-corruption in- to-government basis and
vestigators questioned the that all procedures and
wife of former Malaysian laws were complied with.
Prime Minister Najib Razak He said he welcomed trans-
on Tuesday about alleged parent investigations into
theft and money-launder- the projects and urged the
ing involving the 1MDB state government not to make
investment fund, as officials "politically motivated" al-
announced a probe into legations that could harm
other suspicious multibillion- diplomatic and trade ties
dollar transactions under with China.
Najib's leadership. Najib was grilled last month
The prosecution of Na- over why an additional 42
jib and his wife Rosmah million ringgit ($10.6 mil-
Mansor over the 1MDB lion) was transferred into his
scandal, which helped bank account from SRC In-
lead to Najib's stunning ternational, a former unit of
ouster in May 9 national the 1MDB fund, using mul-
elections, could be sped tiple intermediary compa-
up with the government's nies. Rosmah is being ques-
appointment Tuesday of a Rosmah Mansor, wife of Malaysian Prime Minister Najib Razak, arrives at Anti-Corruption Agency tioned in the same case.
new attorney-general. for questioning in Putrajaya, Malaysia, Tuesday, June 5, 2018. Police have seized 114 mil-
The appointee, distin- Associated Press lion ringgit ($28.7 million)
guished lawyer Tommy in cash and hundreds of
Thomas, is the first person but it accumulated billions last year had paid nearly "red flags" raised in other expensive designer hand-
from outside Malaysia's in debts. U.S. investigators all the $2 billion-plus proj- parts of the government, it bags and jewelry from
Malay majority to hold the say Najib's associates stole ect funds to the Chinese said. Najib's home and other
powerful position in more and laundered $4.5 billion developer despite less than Najib said in a statement on properties.q
than half a century. His Na- from the fund from 2009 to 15 percent of the pipeline
jib-appointed predecessor 2014, some of which land- work being completed as
had stifled investigations. ed in Najib's bank account. of March.
Rosmah, accompanied They say $27.3 million was The state company was set
by her daughter and son- used to buy a rare diamond up by the "same people"
in-law, didn't speak to necklace for Rosmah. who established a 1MDB
reporters as she was es- New Prime Minister Maha- subsidiary that Malaysian
corted into the Malaysian thir Mohamad reopened investigators allege was
Anti-Corruption Commis- investigations into 1MDB used to funnel state funds
sion office, where she was that were suppressed un- to Najib's bank account,
questioned for three hours. der Najib's rule. He has also according to the state-
She was summoned nearly banned the couple from ment. It said the state com-
two weeks after Najib was leaving the country. The pany's president is also a
questioned twice by the country's new anti-graft director of a company tied
agency. chief has said Najib, who to Low Taek Jho, a Najib as-
In another blow to the for- denies any wrongdoing, sociate who U.S. investiga-
mer first couple, their law- could soon face criminal tors allege masterminded
yer M. Puravelan told The charges. the looting of 1MDB.
Associated Press that he is On Tuesday, officials an- The statement said the
no longer representing Ros- nounced they had alerted contracts were negotiated
mah and Najib. He said an- the anti-graft commission by the prime minister's de-
other prominent lawyer Yu- to at least $2 billion worth of partment without involving
sof Zainal Abideen had also government-related trans- treasury officials who would
withdrawn. He said they actions that are "highly sus- normally vet such transac-
didn't quit because of dis- picious." tions. The projects, which
agreement over legal strat- The Finance Ministry said relied largely on Chinese
egies for the 1MDB case in a statement that a state loans backed by the Ma-
but declined to elaborate. company overseeing gas laysian government's re-
Najib set up the 1MDB fund and petroleum pipeline payment guarantee, pro-
when he took power in 2009 projects that began in April ceeded despite numerous