1Malaysia Development Berhad scandal

The 1Malaysia Development Berhad Scandal is an ongoing political scandal occurring in Malaysia. In 2015, Malaysia's Prime Minister, Najib Tun Razak, was accused of channelling over RM2.67 billion (nearly USD 700 million) from 1MDB, a government-run strategic development company, to his personal bank accounts. The event triggered widespread criticisms among Malaysians, with many calling for Najib's resignation – including former Malaysian Prime Minister Tun Dr. Mahathir Mohamad. Opposition leader, Anwar Ibrahim, has openly questioned the credentials of 1MDB. He told Parliament that according to the records held by the companies commission, the company "has no business address and no appointed auditor." According to its publicly filed accounts, 1MDB has nearly RM42 billion (USD11.73) in debt. Some of this debt resulted from a $3 billion state-guaranteed 2013 bond issue led by Goldman Sachs, who is believed to have made as much as $300 million in fees from that deal alone, although it disputes this figure.Conference of Rulers in Malaysia has called for the investigations by the government to be completed as soon as possible, saying that the issue is causing a crisis of confidence in Malaysia.

The RM425 million profit between 25 September 2009 and 31 March 2010 raised many criticisms and controversies on the lack of transparency given to 1MDB's accounts. Tony Pua, DAP Member of Parliament for Petaling Jaya Utara questioned Prime Minister Najib, 1MDB advisory board chairman, whether the figures were the result of an asset injection into 1MDB by the government such as the transfer of land rights to the company.

During the October 2010 parliamentary session, 1MDB explained that its accounts had been fully audited and signed by KPMG, and closed as of 31 March 2010. Deloitte was involved in the valuation and analysis of the portfolio, while Ernst & Young provided tax advice for 1MDB.

1MDB raised attention by asking for a six-month extension on the annual report meant to be filed in with the CCM by 30 September 2013. In the meantime, the change of three auditors since its inception in 2009 was considered suspicious. It also said that 1MDB has lodged the necessary information, including its registered address, with the Companies Commission of Malaysia as required by the law.

...
Wikipedia