China Offering Bail Out For Malaysia’s 1MDB Fund Can Backfire
A recent report published by the Wall Street Journal claims that China has offered a bail out for the ongoing investigation into 1MBD investigation. The report cited the minutes from meetings between Chinese top officials and their Malaysian counterpart.
As per the review, Chinese officials have assured Malaysians counterparts that they will use top influence to bail out from 1MDB investigation. Beijing said that it would ensure that countries like the United States and others drop probe against the then Malaysian Prime Minister Najib Razak.
China’s effort is not exactly a goodwill gesture for Malaysia, but a strategic association that will enable it to acquire important stakes in the country supporting the One Belt, One Road (OBOR) initiative. It has been reported that in return of the favor, Malaysians are eager enough to offer stakes in railway and pipeline projects supporting OBOR.
There has been no public response from the Chinese government information office as yet. However, as per the report published in Wall Street Journal, the Chinese Foreign Ministry had earlier denied any involvement of money to bail out 1MDB investigation.
1MDB acquired global attention as it involved claims of misappropriation and money laundering, with the US, Malaysia and Singapore probing on the case. Under the ongoing investigation, Nazib has been charged with corruption, criminal breach of trust and money laundering involving 1MDB deals.
Other than that, the ex-PM is also charged with altering report on government audit for protecting himself from criminal, civil or regulatory action. Till now he has denied all allegations.
In spite of the fact that 1MDB scandal has been on the global radar, China’s intrusion in the matter has the potential to provoke an outrage from some of the most powerful countries, including the US. China’s ongoing trade spat with USA can potentially worsen the matter since the report suggests that Beijing is pursuing this bail out to meet its ambitious plans of OBOR in Asia.
As per reports, China is actively involved in the bailout offering, but keeping it as a low-key affair. Beijing has offered to check on the houses of Wall Street Journal reporters in Hong Kong who were investigating the 1MDB case and find out their source of information.
Altogether, published media reports are certainly not in favor of both China and Nazib, as it can further worsen the situation.
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