PM will sue WSJ over ‘malicious’ 1MDB embezzlement report, aide says

(Malay Mail Online) – Datuk Seri Najib Razak will initiate legal action against US daily Wall Street Journal (WSJ) over its latest report directly linking the prime minister as the final recipient of US$700 million (RM2.6 billion) allegedly moved out of 1 Malaysia Development Berhad (1MDB), Sinar Harian reported today.

The latest development is the first stern action in the wake of damaging allegations against the embattled leader surrounding his financial links to the debt-riddled state investment firm.

“The report was most malicious and unsubstantiated with weak and dubious sources.

“We will take action according to the law,” Datuk Muhammad Khairun Aseh, political secretary to the prime minister, told Sinar Harian.

He reportedly called the action a criminal offence.

Citing documents from Malaysian investigators currently scrutinising the troubled 1MDB’s accounts, WSJ claimed in its report yesterday that a money trail shows that some US$700 million were moved between government agencies, banks and companies before it ended up in Najib’s personal accounts.

These documents, the international business paper claimed, include bank transfer forms and flowcharts put together by investigators to shed light on 1MDB’s cash flow.

The paper said this is the first time a direct connection to Najib has been established in the probe on 1MDB.

Following the purported expose, Dr Mahathir asked the Inland Revenue Board yesterday evening to state the amount of taxes that 1MBD executives as well as personalities linked to the firm have paid and to examine what he categorised as their lavish lifestyles.

1MDB is currently under investigation by at least four federal agencies.