Najib’s stepson allegedly used US$50m from 1MDB funds to buy US properties

The money used for the two properties in New York and Los Angeles was part of at least US$238 million allegedly transferred via an intermediary to a company wholly-owned by stepson Riza Aziz

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Malaysian Prime Minister Najib Razak’s stepson Riza Aziz.

Published: 9:51pm, 12 May 2016Updated: 9:51pm, 12 May 2016

The stepson of Malaysian Prime Minister Najib Razak allegedly used funds diverted from a state investment company to buy properties in the US, the Wall Street Journal reported.

Riza Aziz spent about US$50 million on two properties in New York and Los Angeles, deals the US Federal Bureau of Investigation is investigating, the paper reported, citing documents and people it didn’t identify. The money was part of at least US$238 million allegedly transferred via an intermediary to a company wholly-owned by Riza, it said.

The funds that went to Riza’s Red Granite Capital originated from 1Malaysia Development Bhd, the Wall Street Journal said. The troubled Malaysian investment company remains at the centre of multiple global probes amid claims of money laundering and embezzlement. Its advisory board, now dissolved, had been chaired by Najib.

Najib’s family has been entangled in various alleged links to 1MDB funds, alongside a separate donation scandal that has caused nearly a year of political tension in Malaysia. While Najib has so far retained the support of powerful divisional chiefs in his ruling party, the protracted investigations are a distraction as economic growth slows and voters – including his key support base of ethnic Malays – face increased living costs.

The New York Times reported in February 2015 on the same property purchases that took place through a shell company Riza controlled. The homes were bought from a company connected to Malaysian financier Jho Low, the paper said. Low has had ties to 1MDB, describing his role to the media as informal consulting work that didn’t break any law.