The US$700 million question: can Najib Razak ride out 1MDB storm?
The Malaysian leader is trying to survive a scandal over claims a huge amount of cash ended up in his account, but public anger is growing
It's Malaysia's US$700 million question: who transferred massive amounts of cash into Prime Minister Najib Razak's personal bank accounts, and where is the money now?
Malaysians have been transfixed by months of allegations that hundreds of millions of dollars disappeared from deals involving heavily indebted state investment company 1Malaysia Development Berhad (1MDB).
On July 2, the Wall Street Journal reported that nearly US$700 million was deposited into Najib's personal bank accounts beginning in early 2013. Najib initially rejected the Journal report, and both he and 1MDB vehemently deny any wrongdoing.
But members of his cabinet and Malaysia's anti-graft agency now acknowledge the transfers, calling them "political donations" from unidentified Middle Eastern sources, saying there was nothing improper but giving no further details.
The accounts have since been closed and the whereabouts of the money is unknown. The official explanations are widely rejected by the public, said Malaysia politics researcher James Chin. "Najib's credibility is destroyed. None of these explanations are believed, so he is digging his heels in," he said.
