1MDB scandal yacht on its way to Malaysia
(The Australian) – Indonesia is to hand over to the Malaysian government one of the world’s most opulent super-yachts, which is linked to the multi-billion-dollar 1MDB financial scandal, a Malaysian government spokesman confirmed yesterday.
The $US250 million ($338m), Equanimity was seized by Indonesian authorities in February at the request of the US Justice Department, which has been investigating the alleged misappropriation of $US4 billion from the 1Malaysia Development Berhad investment fund set up by former prime minister Najib Razak.
Mr Najib was arrested last month and charged with corruption-related offences over his alleged involvement in the scandal, which helped end 61 years of unbroken rule by his United Malays National Organisation in May elections.
He has repeatedly denied any wrongdoing.
However, the new Malaysian government, led by 93-year-old former strongman Mahathir Mohamad, has vowed to bring all those responsible to justice and recover as much of the missing billions as it can.
“Some arrangements are being made with the Indonesian authorities responsible (to take over the yacht),” a spokesman for Dr Mahathir said yesterday.
“We will announce more once we have finalised the details.”
Daniel Silitonga, deputy director of economic crimes at Indonesia’s national police, confirmed the Cayman Islands-registered yacht was on its way to a border location, where it would be transferred to Malaysia.
The Equanimity is reportedly owned by fugitive businessman Low Taek Jho — also known as Jho Low — a close associate of Mr Najib and his wife Rosmah Mansor. Mr Low is alleged to have played a key role in the 1MDB money-laundering scam.
The US Department of Justice has alleged in a civil lawsuit that the 90m yacht is among assets collectively worth $US1.7bn, including US real estate and art, that were bought with stolen 1MDB funds. The suit also alleges Mr Low gave Australian model Miranda Kerr jewellery costing US$1.98m during a “multi-day excursion” on the yacht in 2014.
Malaysia’s Star newspaper reported the Equanimity left Tanjung Benoa in Bali on Thursday for Batu Ampar in Batam, in Indonesian waters but near Singapore, and would be handed over to Malaysian authorities today.
The yacht and its crew, including several Australians, have been held in Bali despite a Jakarta court ruling in April that the Equanimity had been wrongfully impounded and should be released to its owners.
Last month, however, Indonesian police seized the yacht again following a formal request for legal assistance from the US.
It is understood the decision to hand it over to Malaysia was made after a personal request by Dr Mahathir, who visited Indonesia in June.
Malaysia’s anti-corruption authorities have issued an arrest warrant for Mr Low.
Lawyers for the flamboyant playboy, whose whereabouts are unknown, condemned Malaysia’s actions as “politically motivated”.
“The action of the Mahathir government in illegitimately taking this asset shows just how quickly the rule of law disappears in Mahathir’s regime,” said a statement issued by his legal team. “Actions like this make it increasingly clear that there is no jurisdiction where the issues in this case can be subject to a fair hearing, thanks to a global media circus fuelled by politically motivated parties whose aim is to convict Mr Low in (a) public arena.”
