The election of a new Prime Minster in Malaysia has heralded a potential investigation into the allegations of massive corruption carried out by the prior administration surrounding the country’s sovereign wealth fund, 1MDB.
The people of Malaysia are apparently fed up with the wide-ranging corruption pervasive in the country’s government. Last week, Malaysian citizens sent sitting Prime Minister Najib Razak into retirement by electing new Prime Minister Mahathir Mohamad. This is the first instance of a peaceful transition to new government in Malaysia since the country’s independence in 1957.
The election of the new Prime Minster, however, also heralded a potential investigation into the allegations of massive corruption carried out by the prior administration surrounding the country’s sovereign wealth fund, 1 MDB. One of the first things the new Prime Minister did was ban the old Prime Minister and his wife from leaving the country, increasing speculation that both former Prime Minister Razak and his wife will be investigated. Mahathir said at a press conference, “There are lots of complaints against him, all of which have to be investigated. We had to act quickly because we don’t want to be saddled with the problem of extradition from another country.” The new Malaysian government portends greater cooperation with U.S. authorities who have been attempting to recover monies stolen from the 1MDB fund and used to purchase goods and properties here in the United States.
At this time, it appears the new government will have a wide-ranging investigation on its hands. In addition to the former prime minister, all former government officials who aided and abetted the scandal by failing to investigate and/or clearing the former government of any and all wrong-doing in the 1MDB scandal will be closely scrutinized. Mahathir said, “the government has to place certain restrictions on people who may be involved in wrongdoing or making wrong decisions.”
If you worked for the former government, it might be a good time to consider an in-country vacation this year.