Thursday 24 May 2018

The Story of Malaysia's 1MDB, the Scandal That Shook the World of Finance - Bloomberg

The Story of Malaysia's 1MDB, the Scandal That Shook the World of Finance - Bloomberg:

"Malaysia’s state-owned investment fund, 1MDB, was supposed to attract foreign investment. Instead, it has spurred criminal and regulatory investigations around the world that have cast an unflattering spotlight on financial deal-making, election spending and political patronage under former Prime Minister Najib Razak. A Malaysian parliamentary committee identified at least $4.2 billion in irregular transactions related to 1MDB. Najib was ousted from power in a May general election as the scandal contributed a voter backlash, ending his party’s 61 years of rule.

1. What is 1MDB?
It’s a government investment company -- full name, 1Malaysia Development Bhd. -- that took shape in 2009 under Najib, who went on to lead its advisory board. Its early initiatives included buying privately owned power plants and planning a new financial district in Kuala Lumpur. The fund proved better at borrowing -- it accumulated $12 billion in debt -- than at luring large-scale investment."



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