A top-level investigation is under way into Malaysian officials who may have misappropriated $4 billion from the country's state-owned companies.
On Friday last week, the office of Swiss Attorney General Michael Lauber said it was opening a formal inquiry into Malaysian state accounts, after its investigation into Malaysian state investment fund 1Malaysia Development Berhad (1MDB) revealed possible wrongdoing.
The companies Switzerland says are linked to Malaysia’s 1MDB scandal https://t.co/cG3U3SYWAA pic.twitter.com/HMGvZUa6Dv— Wall Street Journal (@WSJ) February 1, 2016
Some money from 1MDB was transferred into accounts held in Switzerland, and belonged to various former Malaysian public officials and both former and current public officials from the United Arab Emirates.
The mishandling of funds may violate Swiss laws related to misconduct in public office and bribery of officials, and money laundering.
The $4 billion would have been earmarked for investment in economic and social development projects in Malaysia.
Following that, Lauber said Monday he would soon hand over "significant evidence" of illegal financial transactions to the Malaysian authorities, and was seeking cooperation from counterparts in the Asian country in the coming days.
Singapore also investigating 1MDB
Later on Monday night, Malaysia's neighbour Singapore seized a "large number" of bank accounts linked to 1MDB.
The authorities gave a statement to local media saying they had been investigating possible offences since the middle of 2015. They did not confirm if the accounts seized were connected to the Swiss investigation into 1MDB.
"Singapore does not tolerate the use of its financial system as a refuge or conduit for illicit funds," said the Commercial Affairs Department (CAD) and the Monetary Authority of Singapore (MAS), in a joint statement.
Malaysian prime minister's private donations
1MDB is headed by Malaysian Prime Minister Najib Razak, who was investigated by Malaysian authorities in 2015 for a $700 million deposit into his accounts.
Malaysia's attorney-general cleared Najib of any wrongdoing last week, and said the sum was a private donation from the Saudi royal family.
The attorney-general also stressed that the investigations into 1MDB are to be separate from Najib's private donations.
However, the decision clearing Najib has been met with public skepticism, and the Malaysian anti-corruption agency has appealed for him to reopen the investigation.
The most illogical end with this #1MDB and yet, without any shame, the people are stupidified consistently.— Hasrizal Abdul Jamil (@saifulislam) January 26, 2016
Oscar Award for two consecutive years 2015 and 2016 goes to #1MDB https://t.co/TI4ZrBuhxk— Anas Alam Faizli (@aafaizli) January 26, 2016
This confirms what many suspected: money in Najib's account came from Saudi royals. But unclear if its enough to end speculation about #1MDB— Una Galani (@ugalani) January 26, 2016
1MDB is currently mired in 42 billion ringgit ($10.1 billion) in debt and has been selling assets to clear its debts.
Additional reporting by The Associated Press.