Malaysia's Najib unmoved after U.S. lawsuits linked to 1MDB scandal

Although U.S. prosecutors say billions of dollars were stolen from a state investment fund that Malaysian Prime Minister Najib Razak founded and oversaw, his government was unmoved on Thursday by the allegations.

U.S. prosecutors said on Wednesday over $3.5 billion was diverted from the 1Malaysia Development Berhad (1MDB) fund that Najib founded in 2009 shortly after coming to power. The U.S. civil lawsuits are seeking to seize $1 billion of the allegedly embezzled assets that were transferred into the United States using shell companies.

The lawsuit does not name Najib but refers to a "Malaysian Official 1" - described as a high-ranking government official - who received some of the misappropriated funds, including $681 million in March 2013. A source familiar with the investigation later confirmed that "Malaysian Official 1" is Najib.

Political risk consultants Eurasia said since Najib was not directly named in the lawsuits that "will afford him protection".


"Najib has become accustomed to weathering international investigations," Eurasia said in a note to clients.

"Najib supporters placed in key positions across government (including in the Attorney General's office and the anti-corruption commission) will continue to shield the prime minister from any probe by blocking access to information or evidence that could implicate him," the note said.

Read more on Reuters

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