Malaysia’s beleaguered Prime Minister Najib Razak used state funds to buy luxury goods worth $15 million and pay out millions more to political figures ahead of the 2013 elections, according to a media report.
The Wall Street Journal reported that Mr. Najib’s brother, CIMB Group chairman Nazir Razak, confirmed he had received about $7 million from Mr. Najib for distribution to the ruling coalition of Barisan Nasional politicians.
The report also claimed to have seen Malaysian investigation documents which allegedly indicate that the majority of the funds in the accounts of the 62-year-old Najib originated from 1 Malaysia Development Bhd.
“The entire amount was paid out in cash to various recipients according to the instructions of the ruling party (Umno) President (Najib) and the account was closed with a zero balance,” the premier’s brother was quoted as saying in the report.
Meanwhile, online news portal Malaysiakini said Mr. Najib spent a total of $15 million on holidays, shopping and jewellery. The spending was allegedly done at stores in the U.S., Malaysia, Italy and elsewhere between 2011 and 2014, according to Malaysian investigation documents.
However, Malaysia’s state fund 1 MDB denied paying any funds into the personal accounts of Mr. Najib.
“Following extensive investigations, this has been corroborated by multiple lawful authorities, who have confirmed that these funds came from Saudi Arabia. Despite this, the Wall Street Journal continues to repeat the same allegations, without providing any concrete evidence to justify these claims,” 1MDB said.
It also questioned the timing of the WSJ ’s “new round of attacks” as its report came just days after 1MDB announced it had successfully completed the share sale and purchase agreement for Edra Global Energy Bhd.
