International practice faces scrutiny over alleged 1MDB-linked transactions
KUALA LUMPUR: The Malaysian Anti-Corruption Commission (MACC) is intensifying investigations into an international law firm over its alleged involvement in financial transactions linked to illicit proceeds from 1Malaysia Development Berhad (1MDB).
Sources said the MACC is seeking additional information connected to several ongoing 1MDB-related cases, including allegations that the law firm played a role in transactions involving misappropriated funds.
“The firm is believed to have been involved in the diversion of about US$1bil linked to 1MDB, including the transfer of about US$700mil to an offshore entity beyond 1MDB’s control,” a source said.
The MACC is also investigating and gathering further information on Tang Keng Chee, also known as Casey Tang, a former 1MDB executive director for business development.
He is suspected of being linked to funds misappropriated in the 1MDB case, the source added.
Sources said the investigations were based on intelligence and information obtained through meetings and discussions with several countries, particularly involving cross-border financial transactions and the role of professional parties in dealings related to 1MDB.
The MACC is also believed to be seeking more information on several other individuals as part of efforts to facilitate asset recovery for the country.
Earlier this month, the United States’ Department of Justice (DOJ) agreed to return 12 artworks worth more than US$30mil, part of the recovery of assets linked to 1MDB.
This followed two rounds of official meetings by Malaysian authorities led by the MACC with the Federal Bureau of Investigation and DOJ in Washington, DC and New York on Dec 9 and 11.
“Among the key matters discussed was the repatriation of high-value artworks linked to former 1MDB associate Jasmine Loo.
“It is estimated that 12 artworks, with a combined value exceeding US$30mil, are currently under the custody of the US DOJ and held by auction houses Christie’s and Sotheby’s in the United States.
“The artworks include Pablo Picasso’s L’Ecuyère et les clowns (1961), Joan Miro’s Composition (1953), William H. Bailey’s Still Life, Alexander Calder’s Studies for Sculpture and Henri Matisse’s Femme Assise.
“Following the discussions, the MACC agreed to facilitate the return of these artworks to Malaysia,” the MACC said in a statement on Dec 13.
The talks also covered developments in the US involving rapper Pras Michel, who was sentenced to 14 years’ imprisonment for receiving US$120mil, part of which was linked to 1MDB and related shell companies, it added.
