Malaysian task force freezes 6 bank accounts linked to PM Najib Razak amid 1MDB probe

A task force investigating Malaysia’s troubled state investment fund 1MDB said today that it had frozen six bank accounts following a media report that nearly US$700 million had been transferred to an account of Prime Minister Najib Razak.

The Wall Street Journal (WSJ) reported last week that investigators probing the debt-laden 1MDB had traced nearly US$700 million to bank accounts they believed belonged to the prime minister.

Najib has denied taking any money from 1MDB or any other entity for personal gain and is considering legal action.

The special task force said it had frozen six bank accounts in relation to the allegations, but it did not specify whose accounts they were or the banks involved. The team also took possession of documents related to 17 accounts from two banks to help with the investigations.

1MDB, whose advisory board is chaired by Najib, has debts of nearly US$11.6 billion. Even before the WSJ report it was the subject of separate investigations by the central bank, auditor general, police and the parliament’s Public Accounts Committee.

Former prime minister Mahathir Mohamad, who was once Najib’s patron and remains highly influential in the country's politics, weighed in on the scandal today, saying Najib had shamed Malaysia.

“Truly, the one who shamed the country is Najib with his 1MDB. Prior to this, the country has never been insulted by unanswered allegations, unlike now,” Mahathir said in a blog.