Foreign governments pile pressure on Malaysia over mysterious money moves

Malaysia may have absolved its prime minister in a huge corruption scandal, but foreign authorities investigating suspicious global fund flows are making clear the affair is far from over and that the net may be tightening.

Malaysia’s attorney general last week cleared premier Najib Razak of wrongdoing in accepting a mysterious US$681 million payment from overseas, sparking accusations of a cover-up in a case that has shaken Najib’s government to its core.

But within days, authorities in Switzerland and Singapore upped the pressure, pointedly responding that investigations into an array of Malaysian money movements were forging ahead and releasing new information.

READ MORE: 1MDB money-laundering probe: Singapore seizes ‘large number’ of bank accounts

The Swiss attorney-general’s office on Saturday revealed that it believed US$4 billion had been pilfered from Malaysian state companies, and on Monday Singapore announced it had seized a “large number of bank accounts” as part of investigations into a company closely linked to Najib, 1Malaysia Development Berhad (1MDB).

Observers said the timing and tone of the Swiss and Singaporean statements appeared to indicate concern that Malaysia may seek to bury the issue.

“The Swiss and Singaporeans are obviously worried that (clearing Najib) looks detrimental to their ongoing investigations,” said Cynthia Gabriel, head of C4, a Malaysian anti-graft NGO.

“But this is definitely far from over and looks like the noose is tightening on Najib,” she added, referring to the new details announced by the Swiss and Singaporeans.