PMO blames ‘certain individuals’ behind WSJ report, calls it ‘political sabotage’

Datuk Seri Najib Razak’s office says today there are individuals who are out to undermine confidence in the Malaysian economy, tarnish the government and remove a democratically elected prime minister. – The Malaysian Insider file pic, July 3, 2015.Calling it political sabotage, Putrajaya said today the Wall Street Journal's expose about billions channelled into Datuk Seri Najib Razak bank accounts was the work of "certain individuals" to undermine confidence in the economy, tarnish the government and remove a democratically elected prime minister.

The Prime Minister's Office said in a statement that local media should not accept such documents as genuine unless verified by appropriate authorities after the Malaysian online media quoted the WSJ expose and that by whistle-blower site Sarawak Report.

"Despite the prime minister's successful stewardship of Malaysia's economy against global headwinds – as recognised this week by Fitch's upgrade – there have been concerted efforts by certain individuals to undermine confidence in our economy, tarnish the government, and
remove a democratically elected prime minister.

"These latest claims, attributed to unnamed investigators as a basis to attack the prime minister, are a continuation of this political sabotage," PMO said in a statement posted on its Facebook page.

The statement came after several ministers questioned the reports in the WSJ and Sarawak Report which said debt-ridden 1Malaysia Development Bhd (1MDB) had channelled money into Najib's accounts through other companies.

1MDB has denied the claims.

"It has been reported that criminal leaking of documents, doctoring and extortion has taken place to mislead the media and public.

"So it is incumbent on responsible members of the media not to accept documents as genuine unless verified by the appropriate authorities.

"Regarding the allegations themselves, it must be noted that 1MDB has already stated that the company never provided funds to the prime minister," PMO said.

WSJ and Sarawak Report claimed today that investigatons into 1MDB had allegedly uncovered billions of ringgit pumped into Najib's personal accounts.

The documents show that US$700 million (RM2.67 billion) was moved among government agencies, banks and entities linked to 1MDB and finally ending up in the prime minister's personal accounts in five separate deposits, WSJ said.

It said that the largest transactions were deposits of US$620 million and another one for US$61 million in March 2013, two months before the general election was held.

Both WSJ and Sarawak Report quoted from documents from the 1MDB probe carried out by the Malaysian government, with Sarawak Report claiming that the Attorney-General was also aware of the information.

Sarawak Report said RM42 million had gone into Najib's accounts from SRC International Sdn Bhd, the Finance Ministry-owned company that had taken a RM4 billion loan from the Retirement Fund Incorporated (KWAP).

"The money taken from SRC International is a particularly shocking revelation, because this was money lent by the public pension fund KWAP and never accounted for," the report said.

The Finance Ministry had said previously SRC invested the funds in Gobi Coal & Energy Ltd, a Mongolian-based company, but provided no other details than that.

A director of SRC, Nik Faisal Ariff Kamil, the report said, had power of attorney over Najib’s accounts, according to documents acquired from the investigation.

The latest transaction, the reports said, was in February this year. The documents show that SRC International had transferred RM10 million into an account under the name of “Dato’Sri Mohd Najib Bin Hj Abd Razak” at AmPrivate Bank in Kuala Lumpur.

WSJ also reported that SRC and the bank refused to comment on the matter.

1MDB is currently the subject of inquiries by a number of authorities, including the auditor-general, Bank Negara, police and the bipartisan Public Accounts Committee. – July 3, 2015.