Did China offer to bail out Malaysia’s 1MDB?

Clay Curtis
January 9, 2019

It further offered to bug the offices and homes of Journal reporters reporting on the fund and leak information, according to the newspaper.

"We do not accept any groundless accusations made against China", the embassy said.

A recent report published by the Wall Street Journal claims that China has offered a bail out for the ongoing investigation into 1MBD investigation. It has been reported that in return of the favor, Malaysians are eager enough to offer stakes in railway and pipeline projects supporting OBOR.

In a statement in response to the Journal report, the Chinese embassy in Kuala Lumpur said China never attached political conditions to its cooperation with other countries.

"China has all along adhered to the principle of non-interference in the internal affairs of any other country".

Malaysia's Finance Minister Lim Guan Eng said on Tuesday (Jan 8) that the government was unaware of the discussions detailed in the WSJ report.

Huge sums of public money were purportedly stolen from state fund 1MDB and used to buy everything from yachts to artwork in a scheme that allegedly involved former premier Najib Razak and contributed to his government's shock election defeat in May.

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In 2015, it was reported that $681 million of funds originating with 1MDB - formally 1Malaysia Development Bhd. - went to Mr. Najib's personal bank accounts, masterminded by an alleged playboy conman named Jho Low.

Goldman Sachs has consistently denied wrongdoing, saying that certain members of the former Malaysian government and 1MDB had lied to it about the proceeds of the bond sales.

The Najib administration was said to have inflated the value of the projects to divert money to 1MDB, which was struggling to pay its debts.

"If there is anything that explicitly states this in black and white, we will pursue the case", he was cited as saying.

After Pakatan Harapan formed the federal government, Prime Minister Tun Dr Mahathir Mohamad swiftly put the Chinese projects on hold.

The U.S. Justice Department has estimated that a total of $4.5 billion was misappropriated by high-level 1MDB fund officials and their associates between 2009 and 2014, including some of the funds that Goldman Sachs helped raise. New terms are reportedly being negotiated.There are many other juicy details in the piece, including that Xiào Yàqìng 肖亚庆, chairman of China's State-owned Assets Supervision and Administration Commission, had said at a meeting on June 28, 2016 that Xi Jinping had personally approved the infrastructure initiatives. A news report today alleges that the contract to build the ECRL was awarded to a Chinese firm in exchange for a bailout for 1MDB.

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