BOMBSHELL – MAHATHIR & GUAN ENG WEREN’T LYING ABOUT NAJIB: PREVIOUSLY UNDISCLOSED MINUTES OF SECRET MEETING CONFIRM CHINA OFFERED TO BAIL OUT 1MDB FOR SWEETHEART DEALS LINKED TO ITS PRIZED BRI

The secret discussions show how China uses its political and financial clout to bolster its position overseas

CHINA offered to bail out former prime minister Najib Razak’s brainchild 1MDB in return for sweetheart deals linked to its ambitious Belt and Road Initiative (BRI) in 2016, reports The Wall Street Journal today.

The Najib administration signed a loan from the Export-Import Bank of China for US$2.3 billion (RM9.3 billion) in 2016, which was supposed to fund the construction two gas pipelines.

The Barisan Nasional government also signed the RM95 billion East Coast Railway Link (ECRL) project, undertaken by the China Communications Construction Co Ltd (CCCC Ltd).

Citing minutes from a series of previously undisclosed meetings, WSJ said funds from these projects were used to bail out the debt-racked 1Malaysia Development Bhd, which was set up in 2009.

These projects are now under review following Pakatan Harapan’s win at the 14th general election last May.

Some of the infrastructure projects were financed at above-market values to enable Najib and BN to use the excess cash for other needs, said WSJ.

The current government believes the funds were used to finance the elections last year and to cover 1MDB’s debts.

Former prime minister Najib Razak faces multiple charges in relation to 1MDB. The latest trial is this month. – The Malaysian Insight file pic, January 8, 2019.

Last month, Najib and former 1MDB chief executive Arul Kanda Kandasamy were charged separately with altering the auditor-general’s report on 1MDB before it was confirmed and tabled to the Public Accounts Committee (PAC).

Najib, who has denied any wrongdoing, also faces 25 charges of corruption, money-laundering and abuse of power in relation to 1MDB.

RM2.6 billion or US$681 million was deposited into the former prime minister’s bank accounts in 2013 and the unexplained source of the money was one of the factors which led to BN’s defeat at GE14.

Najib has always maintained that the RM2.6 billion was a donation from a Saudi prince, adding that he would reveal the donor.

A number of Najib’s former aides – including his special officer Amhari Efendi Nazaruddin – have also been arrested as part of investigations into 1MDB.

THE MALAYSIAN INSIGHT