'1MDB is but a glimpse into corrupt offshore financial system'

Although the 1MDB scandal is widely seen as one of the worst corruption scandals in recent history, Sarawak Report editor Clare Rewcastle-Brown said it is but a glimpse into the workings of global offshore financial systems and related enterprises that enable it.

She said corrupt proceeds – whether timber corruption in her home state of Sarawak, or those from the 1MDB scandal – are moot unless they can be “cashed in” all around the world, which global financial systems enable by turning a blind eye and helping to launder the money.

“So, I hope what is being revealed through this case study on 1MDB, which has provided what is still a rare glimpse into the inner workings of corrupt offshore finance and associated enterprises, will help open decision-makers' eyes and the eyes of ordinary folk of the very real dangers to our liberties that this represents.

“We are not just collectively responsible for what went wrong in Sarawak, and in cases such as 1MDB. We are all collectively threatened by it.

“Think how (fugitive financier) Low Taek Jho so nearly got away with it. Think what half of global businesspersons of various political backgrounds might have easily done with all that stolen money,” she said in her speech in Petaling Jaya to launch her book The Sarawak Report: The Inside Story of the 1MDB Exposé.

The launch was organised by Malaysiakini and KiniTV, together with the publisher Gerakbudaya and venue sponsor Sheraton Hotel.

Some 500 people turned up for the launch.

'Army of foreign helpers'

Rewcastle-Brown pointed out how in the 1MDB scandal, the culprits made sure to have the proceeds in US dollars, took it far from the scene of the crime, and used it to buy properties in New York and Los Angeles, yachts, jets, and works of art.

Such fraud is done with the help of a “huge army of willing foreign helpers,” she said, which include wealth managers, lawyers, tax consultants, public relations officers, and offshore incorporators. 

These systems, Rewcastle -Brown added, help the privileged hide wealth they do not want to admit to or cannot explain, and finance the exploitation of the worlds’ most vulnerable populations, including those in Sarawak.

These systems are badly in need of regulation, she said, as they also deprive national treasuries of funds.

“Why should all of us pay taxes and declare our ownerships, and allow just a few of the wealthiest – including the least deserving criminals in the world – to get away with avoiding both, just to give employment to a bunch of laundering outfits?”

'Strategic disinformation'

Another related enterprise are so-called “strategic communications providers” that help spread disinformation and run the fake news industry. 

Rewcastle -Brown said that over the course of her work, she had come under attack by such firms since 2011.

This includes SBC Media, which ceased operations once she exposed them, though warning there are many other firms just like it.

The author also told reporters at a press conference after the launch that she would be self-publishing her book in the UK.

This is because her UK publisher has backed down after being threatened with a lawsuit by Low’s lawyers in London.

“I ready for this sort of thing, so I’ve immediately become my own publishing house for the purposes and we are going ahead with the publication in the UK…

“The UK libel laws are quite notorious, but I’ve decided that I’m not going to be stopped from publishing just because my publisher is afraid,” she said.

Rewcastle -Brown said this means the UK book launch may be delayed until October, but books will still be sent out in the meantime to those who have already bought it. - Mkini