Money laundering and bribery claims as $4bn stolen from Malaysian fund

About $4bn (£2.8bn) appears to have been stolen from a fund owned by the Malaysian state. The cash has disappeared from 1Malaysia Development Berhad (1MDB), which was set up in 2009 to pay for major projects, according to Swiss investigators. The theft was  "a systematic course of action carried out by means of complex financial structures", the Swiss attorney general Michael Lauber said. He has asked the Malaysian authorities to help with a criminal investigation into alleged bribery of foreign officials, misconduct in public office, money laundering and criminal mismanagement at the fund.

The monies believed to have been misappropriated would have been earmarked for investment in economic and social development projects in Malaysia.

Swiss attorney-general Michael Lauber

1MDB, whose advisory board is chaired by prime minister Najib Razak, has already been investigated by Malaysian authorities following accusations of financial mismanagement and corruption. Earlier this week, Malaysia’s attorney general cleared Mr Najib of corruption, declaring that $681 million deposited into his personal bank account was a gift from Saudi Arabia’s royal family. The Swiss were called in last year after reports the fund had amassed more than $11bn of debt. They believe some of the money has been transferred to Swiss accounts held by former and current public officials from Malaysia and the United Arab Emirates. Investigators have also identified four companies alleged to be involved.

Without assistance from Malaysia, our investigation in Switzerland risks running into a dead-end

Mr Lauber

malaysia fund