Jho Low rubbishes report China offered to bail 1MDB out

Jho Low rubbishes report China offered to bail 1MDB out

Malaysia said Tuesday it was investigating alleged claims China offered to help bail out scandal-hit state fund 1MDB and get foreign probes into the controversy dropped in return for securing infrastructure deals.

Malaysiakini also quoted the embassy saying China was committed to working with Prime Minister Tun Dr Mahathir Mohamad to improve bilateral ties.

China offered to use its influence to persuade the USA and other countries to drop their investigations into the fund and then-Prime Minister Najib Razak, the Wall Street Journal reported on Monday.

The Chinese Embassy in Malaysia yesterday said both China and Malaysia had all along treated each other as "friendly neighbours and honest partners".

Huge sums of public money were purportedly stolen from state fund 1MDB and used to buy everything from yachts to artwork in a scheme that allegedly involved former premier Najib Razak and contributed to his government's shock election defeat in May. It further offered to bug the offices and homes of Journal reporters reporting on the fund and leak information, according to the newspaper.

"China never attaches political conditions on our cooperation with other countries".

The WSJ article also reported clandestine talks between then prime minister Najib and Chinese officials to allow naval ships from China to dock at Malaysian ports.

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Mahathir's finance minister Lim Guan Eng said the government would study the allegations made in the Journal report.

The factors are the Malaysian government's review of various infrastructure projects undertaken by Chinese companies and China's tighter currency control measures.

Malaysian prosecutors say there is no conflict between the American attempt to extradite Ng and the charges he faces in Malaysia, and suggest the United States will wait for proceedings in Malaysia to wrap up before moving forward with their case.

China's effort is not exactly a goodwill gesture for Malaysia, but a strategic association that will enable it to acquire important stakes in the country supporting the One Belt, One Road (OBOR) initiative. He pleaded not guilty and has consistently denied wrongdoing.

Goldman's role is under scrutiny as the Wall Street titan helped arrange $6.5 billion in bonds for 1MDB, with Kuala Lumpur accusing the bank and its former employees of misappropriating billions of dollars.

But according to the documents that WSJ saw, some of the projects were financed at above-market values, and Malaysian investigators tend to think that the surplus was utilized in Najib's political endeavors as well as to "cover maturing debts of 1MDB, a fund he set up in 2009 to finance local development".

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