Why Malaysia's prime minister's bank account is frozen
Malaysian investigators have frozen six bank accounts in their probe of how $700 million from a government fund appear to have ended up with Prime Minister Najib Razak. At least one of the frozen accounts belongs to the prime minister.
Malaysia's Prime Minister Najib Razak speaks to the media at a mosque outside Kuala Lumpur on Sunday. Najib said on Sunday that he had referred "wild allegations" against him to lawyers and would decide any legal steps in a few days.
Olivia Harris/Reuters
Malaysian authorities said Tuesday they have ordered six bank accounts to be frozen in connection with an investigation into Prime Minister Najib Razak鈥檚 finances,聽听谤别辫辞谤迟别诲.
At least one of the frozen accounts belongs to Mr. Najib, according to a source cited by the Journal.
Investigators have also seized documents relating to 17 accounts from two banks, said leaders who are carrying out the probe 鈥� among them an attorney general, the central bank, the police department, and Malaysia鈥檚 national anti-corruption agency 鈥� in a joint statement. The identities of other account holders have not been released.
The government is looking into how almost $700 million in deposits from a troubled state investment fund made their way into what appear to be Najib鈥檚 personal bank accounts. The investigation intensified on Thursday after documents the prime minister, who founded the fund, 1Malaysia Development Bhd. (1MDB).
Speaking out Sunday for the first time at a mosque outside Kuala Lumpur, Najib slammed the accusations as 鈥渁 vile allegation鈥� and 鈥減olitical sabotage,鈥� .
鈥淚 have referred this matter to my lawyers and they will advise me on what legal action I should pursue both in Malaysia and abroad,鈥� Najib said. 鈥淕od willing, I will make a decision in the next few days on what action I will take against this malicious allegation.鈥�
The prime minister also threatened legal action against The Wall Street Journal, who and have published
Najib鈥檚 political secretary, Sinar Harian, has described the reports as 鈥渃riminal defamation,鈥� according to .
Critics have long questioned where the proceeds in the debt-ridden 1MDB fund are going. A earlier this year about Jho Low, a Malaysian investor and 1MDB鈥檚 unofficial consultant, discussed how the money was in 2011 directed to a Cayman Islands company and 鈥渕anaged by an investment firm that 1MDB only recently identified.鈥� It was later returned to 1MDB amid rising public outcry.
The probe comes just months after by-elections in Malaysia indicated a dip in approval ratings for the prime minister鈥檚 Barisan Nasional party, . Najib鈥檚 own approval numbers had slid to around 40 percent amid unpopular new economic measures, including a consumption tax introduced this year.
Deputy Prime Minister Muhyiddin Yassin emphasized the gravity of the investigation as he spoke to reporters Saturday. 鈥淭hese allegations are serious because they can affect the credibility and integrity of Mr. Najib as prime minister and the leader of the government,鈥� he , according to the Wall Street Journal.
Also over the weekend, Malaysia鈥檚 currency plummeted, and has fallen to a record low since the Asian financial crisis, according to
鈥淭he ringgit is Asia鈥檚 worst-performing currency this year, down 8.2 percent against the dollar,鈥� The reported Monday.
To regain some public trust, local election watchdog Bersih 2.0 said the task force would have to continue to be transparent with the ongoing investigation.
While the civil rights group worries about the 鈥渋mpartiality鈥� of the investigations, it has no choice but to rely on the authorities, Chairwoman Maria Chin Abdullah .
鈥淚f after a month nothing happens, and none of the public institutions want to tell us what is happening, everyone will be furious,鈥� Ms. Chin Abdullah at a press conference on Monday.