Economy Watch
APRIL 20, 2016
1Malaysia Development Berhad (1MDB), a strategic development company that the government of Malaysia owns, defaulted on a $1.1 billion loan from a United Arab Emirates wealth fund. Prime Minister Najib Razak founded 1MDB and has faced a string of corruption allegations surrounding the firm, and critics have called for his resignation. 1MDB is a developmental firm designed to commence infrastructure projects and attract foreign direct investment.
Razak’s development firm is embroiled in complex scandals regarding the outright looting of funds, and the prime minister’s problems are just the beginning as domestic and international investigations ensue.
Razak is directly tied to the scandals, with critics alleging that funds had been withdrawn from the firm and deposited into his account, and he did not do himself any favors by squashing domestic investigations and removing critics from his administration. Investigators allege that over $1 billion entered Razak’s personal accounts, and a great deal of those funds supposedly derived from 1MDB, notes The Wall Street Journal. Continue reading “Malaysia Defaults on Payment Deal: Trouble Abounds for Prime Minister”