1Malaysia Development Berhad scandal

The involvement of 1MDB in the multi-billion ringgit Tun Razak Exchange development project barely a year after its establishment has drawn criticisms from the opposition. Opposition leader and Member of Parliament for Permatang Pauh, Anwar Ibrahim, has openly questioned the credentials of the company. He told Parliament that according to the records held by the companies commission, 1MDB "has no business address and no appointed auditor." He further questioned the Prime Minister's interest in the approval given to 1MDB on this matter.
The RM 425 million profit between September the 25th 2009 and March the 31st 2010 raised many criticisms and controversies on the lack of transparency given to 1MDB's accounts. Tony Pua, DAP Member of Parliament for Petaling Jaya Utara questioned Prime Minister Datuk Seri Najib Razak, 1MDB advisory board chairman, whether the figures were the result of an asset injection into 1MDB by the government such as the transfer of land rights to the company.
During the October 2010 parliamentary session, 1MDB explained that its accounts had been fully audited and signed by KPMG, and closed as of 31 March 2010. Deloitte was involved in the valuation and analysis of the portfolio, while Ernst & Young provided tax advice for 1MDB.
1MDB raised attention by asking for a six-month extension on the annual report meant to be filed in with the CCM by September the 30th 2013. In the meantime, the change of three auditors since its inception in 2009 was considered suspicious.
It also said that 1MDB has lodged the necessary information, including its registered address, with the Companies Commission of Malaysia as required by the law. The business address is also available on the company’s website, www.1mdb.com.my.
The Sungai Besi airport land transfer took place on June 2011 will be developed as Bandar Malaysia, a mixed integrated development of commercial, residential and hi-tech green environment.
It was reported that 1MDB has accumulated debts totaling RM42 billion, causing the bonds issued by the fund to be downgraded to junk status by ratings agencies such as Standard and Poor and Fitch Ratings. It was reported that the Malaysian cabinet had rejected a RM3 billion cash injection for 1MDB narrowing its options to pay off its debts on time.
It was reported by news portal Sarawak Report and British newspaper The Sunday Times using leaked email correspondences that Penang-based financier Jho Low, who has ties with Najib's stepson was able to siphon US$700 million from a joint venture deal between 1MDB and the leading oil exploration and production company PetroSaudi.http://www.freemalaysiatoday.com/category/nation/2015/03/01/revealed-jho-lows-hand-in-1mdb-petrosaudi-deal/ An email revealed that Jho Low had the loan approval from Prime Minister Najib for US$1 billion without getting any approval from Bank Negara.
It was claimed through a report by the Wall Street Journal that 1MDB made overpriced purchases of power assets in Malaysia through Genting Group in 2012. Genting then allegedly donated this money to a foundation controlled by Prime Minister Najib Razak, who used these funds for election campaign purposes during the 2013 general elections.
Further allegations were made by the Wall Street Journal that US$700 million were transferred from 1MDB and deposited in AmBank and Affin Bank accounts under Najib's name. A task forced that was tasked to investigate these claims have frozen 6 bank accounts linked to Najib and 1MDB. According to highly placed sources, three of the bank accounts that have been frozen belongs to Najib. The Wall Street Journal revealed the bank account details online to rebut denials by Najib and his supporters.