White House calls for transparency from Malaysia over 1MDB fund scandal
The White House urged Malaysia on Thursday to demonstrate good governance and a transparent business climate, a day after US prosecutors sued to try and seize US$1 billion in assets they said were bought with money stolen from a state development fund.
It has been a concern of a lot of people for a long time
The civil lawsuits present a potentially thorny issue for the two countries that have grown closer during the administration of President Barack Obama, who has visited the southeast Asian nation twice in the last two years.
The lawsuits will likely affect relations, but they did not come as a surprise, said a US congressional aide. “It has been a concern of a lot of people for a long time. Corruption in Malaysia is a huge problem,” the aide said.
No criminal charges have been filed in the scandal surrounding Malaysia’s 1MDB sovereign wealth fund, which was overseen by Malaysian Prime Minister Najib Razak.
Obama spoke generally with Najib on a visit to Malaysia last year about the need for transparency and good governance, White House spokesman Josh Earnest said at a news briefing.
“For business interests who are considering doing business in Malaysia, they’re going to be looking for signs that there is good business climate,” Earnest told reporters.
The Malaysian government “should be conspicuous about making clear that they’re committed to transparency and good governance, and the kind of rules that will encourage people who are considering investing in Malaysia’s fast-growing economy to have confidence that they can do so fairly”. Earnest said.
