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Malaysia Pm Feels Heat From Colleagues Over Graft Claim

05.07.2015 13:33

Task force investigating claims that $700 million linked to debt ridden 1MDB ended up in PM's personal accounts.

Officials from Malaysia's government and civil society have urged Prime Minister Najib Razak to prove his innocence amid allegations that $700 million of public funds were channeled to his personal bank accounts.



A deputy prime minister expressed concern Sunday that the serious allegations could dampen Malaysia's image worldwide, calling on Razak to challenge the publications that reported that he pocketed funds from indebted state-owned investment arm 1Malaysia Development Bhd (1MDB).



"I urge the Central Bank, the police and the Anti-Corruption Commission to take necessary step in investigating into the allegations," Muhyiddin Yassin said in a statement.



"As it involves the Prime Minister personally, I'm also requesting him to come out public in a more convincing explanation," he added.



The Wall Street Journal and whistle blower site Sarawak Report released reports Friday "ing documents they alleged were from an ongoing 1MDB probe that claimed that the $700 million moved among 1MDB-linked government agencies, banks and entities, before ending up in the prime minister's personal accounts in five separate deposits.



Malaysia's attorney-general, Gani Patail, announced late Saturday that a special task force had been assigned to investigate the documents that allegedly implicate Razak of receiving bank transfers from 1MDB.



While confirming that he had seen the alleged documents, Patail said the task force has conducted several raids at 1MDB and its former subsidiary, Finance Ministry-owned SRC International, to secure some crucial documents.



Defense Minister Hishamuddin Hussien has expressed shock at the latest revelation, but insisted that Razak should not be punished based on unsubstantiated claims.



"We must allow the task force to do their duty and then we can conclude on who is right or wrong," Hussien, also vice president of the Razak-led UMNO political party, said in a statement.



"The parties which made the revelation must also prove the credibility of their claims because what and who have been accused in this case is not a small matter," he stressed.



The premier has insisted that he has not taken funds for personal gain as alleged by political opponents, whether it is from 1MDB, SRC International or other entities.



"At no point have those making these allegations offered any evidence. All we have heard is that these allegations are based on leaked documents and unnamed investigators," Razak said strongly worded statement issued in a Facebook posting Saturday.



He also blamed Mahathir Mohamad -- Malaysia's longest serving prime minister who was in office for 29 years -- of orchestrating the allegations as "part of a concerted campaign of political sabotage to topple a democratically elected prime minister."



Meanwhile, opposition parties have invited members of the ruling Barisan Nasional coalition and non-governmental organizations "disgusted with corruption" to join them for an emergency meeting in parliament Tuesday.



Democratic Action Party leader Lim Kit Siang said in a statement that the meeting would "consider the impact, implications and Malaysia's future as a result of the WSJ allegation and the Attorney-General's confirmation on the existence of document from a government special task force probe." 



People's Justice Party (PKR) leader Wan Azizah Wan Ismail, who called the meeting on Lim's behalf, said Malaysians were worried about the allegations.



"While we wait for a full report on the case, we should also prepare to face any eventuality," she said in a separate statement. - Kuala Lumpur



 
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