Malaysia’s extraordinary 1MDB corruption scandal allegedly saw top officials loot billions from a state fund and go on a worldwide spending spree — buying up super-yachts, paintings by Van Gogh and Monet, and financing a Hollywood blockbuster.
The controversy has had a huge impact in Malaysia, contributing to the downfall of a coalition that had ruled the country since its independence from Britain in 1957.
Malaysia’s disgraced former leader Najib Razak goes on trial Wednesday over the scandal, facing seven charges of corruption and money laundering over the alleged theft of some 42 million ringgit ($10.3 million) from SRC International, a former 1MDB unit.
It is only a fraction of the money allegedly stolen from 1MDB — and only the first of several trials over Najib’s alleged involvement in the looting of the fund. Hundreds of millions of dollars are believed to have ended up in Najib’s accounts alone.
Here is a look back at the saga:
What is 1MDB?
1Malaysia Development Berhad (1MDB) is a state investment fund which Najib Razak launched in 2009 shortly after becoming Malaysia’s prime minister.
Its portfolio has included power plants and other energy assets in Malaysia and the Middle East, and real estate in Kuala Lumpur.
The fund was closely overseen by Najib.
Whistle-blowers say Low Taek Jho — commonly known as Jho Low, a jet-setting Malaysian financier close to Najib but with no official positions — helped set up 1MDB and made key financial decisions.
Concerns escalated in 2014 as 1MDB slid into an $11-billion debt hole, and intensifying public scrutiny led to a string of revelations concerning missing funds.
The issue exploded in July 2015 when The Wall Street Journal published documents showing Najib received at least $681 million in payments to his personal bank accounts.
Rich living
The US Department of Justice launched a probe due to claims that stolen Malaysian public money was laundered through the US financial system, and filed lawsuits seeking some $1.7 billion in assets allegedly purchased with the cash.
In its civil suits, the department said more than $4.5 billion was stolen from 1MDB by high-level officials at the fund and their associates between 2009 and 2015.
Tens of millions of dollars in stolen money was used in 2012 by Najib’s stepson Riza Aziz, an aspiring film producer, to fund the Hollywood film “The Wolf of Wall Street”, starring Leonardo DiCaprio.