|
 Najib was buffeted last year by allegations of graft and
mismanagement at the debt-laden state fund 1Malaysia Development
Berhad (1MDB) and by a revelation that about $681 million was
deposited into his personal bank account.
But Attorney-General Mohamed Apandi Ali said the transfer was a gift
from Saudi Arabia's royal family, adding that no further action
needed to be taken on the matter.
Opposition party leaders denounced the finding, saying the
appointment of the attorney-general by the prime minister in the
midst of the crisis suggested a conflict of interest. But analysts
said it was a victory for Najib that would allow him to focus on
winning the next election in 2018.
"The AG's statement today pretty much allows the government to move
on ... As far as things are legally concerned, the prime minister is
in the clear," said Ibrahim Suffian, director of independent opinion
polling firm Merdeka Center.
 Apandi told a news conference no criminal offense had been committed
by Najib in relation to three investigations submitted by Malaysia's
anti-graft agency.
"I am satisfied with the findings that the funds were not a form of
graft or bribery," he said.
"There was no reason given as to why the donation was made to PM
Najib, that is between him and the Saudi family," he said.
The involvement of the Saudi royal family is an unexpected twist in
the saga over the funds transfer and the troubles of 1MDB, whose
advisory board Najib chairs.
Najib denied any wrongdoing and said he did not take any money for
personal gain. His office declined to make any comment on the
attorney-general's findings.
The Malaysian Anti-Corruption Commission (MACC) had earlier said
only that the funds were a political donation from an unidentified
Middle Eastern benefactor.
Apandi said $620 million was returned to the donor in August 2013,
about five months after the transfer, because it had not been
utilized.
He did not clarify what happened to the remaining $61 million that
was not returned or explain why it had taken so long for news of the
return of the funds to be released. SKEPTICAL PUBLIC
Najib, the son of a former prime minister, enjoys the backing of
most of the powerful division chiefs in the ruling United Malays
National Organization (UMNO) party. Even his fiercest internal
critics, such as influential former Prime Minister Mahathir Mohamad,
accept that he cannot be unseated.
[to top of second column] |
Najib now needs to put aside the scandal and build support ahead of
the 2018 election, after scraping to only a narrow victory in the
last polls.
"There is still a large public opinion out there that is still
skeptical and critical of government," Suffian said.
The scandal has shaken investors in Southeast Asia's third-biggest
economy and rocked confidence in the coalition led by UMNO, which
has held power since independence in 1957.
The ringgit slumped by more than 20 percent in 2015 and has
continued its slide this year, weighed down by global oil prices and
political uncertainty.
"The attorney-general is satisfied with the findings, but it remains
to be seen whether the public is satisfied and will put the 1MDB
scandal to rest," said Hak Bin Chua, ASEAN economist at Bank of
America Merrill Lynch.
After the scandal broke in mid-2015, then attorney-general Abdul
Gani Patail - who had led investigations of 1MDB - was replaced by
Apandi, a former judge with strong ties to UMNO.
"The attorney-general should not have been involved in the decision
affecting the PM because he was appointed by the PM," said Lim Kit
Siang, parliamentary leader of the opposition Democratic Action
Party.
Two of the anti-corruption commission papers that Apandi reviewed
related to SRC International, a former 1MDB subsidiary that is being
investigated for an alleged misappropriation of funds.
1MDB is under investigation by law enforcement agencies in
Switzerland, Hong Kong and the United States, media and other
sources have said.
(Additinal reporting by A.Ananthalakshmi, Joseph Sipalan and Umesh
Desai; Writing by John Chalmers and Praveen Menon; Editing by Robert
Birsel)
[© 2016 Thomson Reuters. All rights
reserved.]
Copyright 2016 Reuters. All rights reserved. This material may not be published,
broadcast, rewritten or redistributed. |
