US criticised for handing 1MDB cash to Malaysian government

(AFP) – Malaysia’s opposition has expressed concern Wednesday (Apr 15) that the United States had returned US$300 million in funds stolen from the scandal-hit 1MDB state fund to an “unelected” government.

On Tuesday the US Justice Department announced it had sent US$300 million stolen from the fund to Malaysia – and that it had now returned or helped the Southeast Asian nation recover more than US$1 billion in funds and assets lost in the fraud.

The Center to Combat Corruption and Cronyism (C4), a Malaysian activist group, welcomed the return of the funds, but said it was worried they were in the hands of an “unelected” government which had “ruthlessly seized power from the people”.

“It is imperative for Prime Minister Muhyiddin Yassin and his cabinet to show a maximum level of transparency,” the group said in a press statement.

“Malaysians have that fundamental right to know and to participate in the return of stolen assets.”

The Malaysian activists urged the government to be clear about how the money would be used.

“The people of Malaysia are the rightful owners of the returned funds,” the activists said.

The administration voted-in at the 2018 election, in the country’s first change of power for six decades, fell apart several weeks ago amid bitter infighting and a new coalition took power without fresh polls.

The new government includes Najib’s party, the United Malays National Organisation, and there has been widespread anger that his scandal-mired political vehicle has returned to office.

Najib, who denies wrongdoing, is on trial over the 1MDB scandal.

Malaysia’s new government has vowed to fight corruption, and insists high-profile graft trials will continue.