1MDB: The playboys, PMs and partygoers around a global financial sca... https://www.bbc.

com/news/world-asia-46341603

Home News Sport Weather Shop Reel Travel More

Home Video World UK Business Tech Science Stories

Asia China India

1MDB: The playboys, PMs and partygoers around a global

financial scandal
By Heather Chen, Mayuri Mei Lin and Kevin Ponniah
BBC News

2 April 2019

1MDB corruption scandal

GETTY IMAGES

It is one of the world's greatest financial scandals.

Billions of dollars from a state fund meant to help the Malaysian people went missing,
disappearing into the shadows of the global financial system.

According to US and Malaysian prosecutors, the money lined the pockets of a few powerful

1 di 20 02/04/2019, 18:29
1MDB: The playboys, PMs and partygoers around a global financial sca... https://www.bbc.com/news/world-asia-46341603

individuals and was used to buy luxury real estate, a private jet, Van Gogh and Monet
artworks - and to finance a Hollywood blockbuster.

Outcry over the alleged looting of 1MDB has reverberated around the world, with authorities
in at least six countries probing a vast web of financial transactions stretching from Swiss
banks to island tax havens to the heart of South East Asia.

The scandal even led to the toppling of the political party that governed Malaysia for all of its
history as an independent nation.

Goldman Sachs, one of Wall Street's most powerful banks, is facing criminal charges in
Malaysia - which it says it intends to vigorously defend. Meanwhile a fugitive playboy charged
in the US and Malaysia remains on the run - his infamous $250m luxury super yacht now in
the hands of authorities.

All eyes are now on the Malaysian capital Kuala Lumpur, where former prime minister and ex-
chairman of 1MDB's advisory board Najib Razak is going on trial in the first of several cases
against him.

The cast of characters around the 1MDB scandal paints a picture of a truly global saga - from
the journalists who doggedly followed the money to the international elite alleged to have
profited.

Najib Razak

GETTY IMAGES

At the centre of this story is Malaysia's former prime minister: the once untouchable man who
set up a "bold and daring" sovereign fund in 2009 to propel his nation's economic

2 di 20 02/04/2019, 18:29
1MDB: The playboys, PMs and partygoers around a global financial sca... https://www.bbc.com/news/world-asia-46341603

development - only to see it bring him and his political dynasty down in disgrace nine years
later.

To truly understand Najib Razak is to examine his roots. The eldest son of Malaysia's second
prime minister, Abdul Razak, and also the nephew to its third, he descends from political
aristocracy. When he finally became prime minister in 2009 - as the head of the party which
dominated Malaysian politics for half a century - it seemed he was finally taking a pre-
ordained role.

An Anglophile, Mr Najib completed his secondary school education at the UK's Malvern
College, a prestigious private school, before studying industrial economics at the University of
Nottingham.

That background and his rhetoric about the importance of "moderate" Islam made him a
natural fit with Western contemporaries including David Cameron and Barack Obama.

GETTY IMAGES

But there were clouds above him from the very beginning of his premiership. Questions over a
French submarine deal made in 2002 when he was defence minister dogged the new PM. It
was alleged that some $130m in kickbacks had been paid as part of the $1.2bn deal - which
Mr Najib has always denied.

The grisly murder of a Mongolian model who served as an interpreter for the submarine
deal raised further questions. A French investigation continues while the new Malaysian
government recently re-opened its probe. Mr Najib insists he never met the woman.

AFP

3 di 20 02/04/2019, 18:29
1MDB: The playboys, PMs and partygoers around a global financial sca... https://www.bbc.com/news/world-asia-46341603

Najib Razak established 1MDB in 2009 as a way to manage resource-rich Malaysia's wealth
with strategic investments. Major red flags were raised in 2015 when it missed payments due
for some of the $11bn (£8.3bn) it owed to banks and bondholders - although investigators and
journalists had long been on the case.

In July 2016 the US Department of Justice filed a civil lawsuit alleging that more than
$3.5bn had been plundered. (It later upped the figure to more than $4.5bn.)

"A number of corrupt officials," said then-US Attorney General Loretta Lynch, "treated this
public trust as a personal bank account".

Malaysia's tainted political aristocrat

The lawsuit named alleged perpetrators but left a "Malaysian Official 1" unnamed. MO1, later
confirmed to be Najib Razak by his own government, was alleged by US prosecutors to
have received $681m in stolen funds but to have returned most of it.

He was cleared of all wrongdoing by Malaysian authorities while he was in office but after
his party's shock defeat at last year's general elections, the tide has dramatically shifted.

Several of his apartments were raided and police seized a trove of luxury goods and
$28.6m (£21.3m) in cash. There are currently 42 charges levelled against him for alleged
corruption, money laundering and abuse of power. He has pleaded not guilty to all charges
and maintained his innocence - including through a soul ballad released weeks before
his trial.

Rosmah Mansor

4 di 20 02/04/2019, 18:29
1MDB: The playboys, PMs and partygoers around a global financial sca... https://www.bbc.com/news/world-asia-46341603

GETTY IMAGES

The spending habits of Najib Razak's wife have been compared to those of Imelda Marcos
and Marie Antoinette. Since her husband lost power, Rosmah Mansor, 67, has been formally
charged with money-laundering and tax evasion, to which she has pleaded not guilty.

Ms Rosmah's expensive tastes have been widely mocked in Malaysia, where she is harshly
criticised for being out of touch with ordinary people who struggle to make ends meet. In
2018, very public police raids on properties linked to her and her husband lit up social media
as images of supermarket trolleys packed with more than 500 luxury handbags, hundreds of
watches, and 12,000 items of jewellery said to be worth up to $273m confirmed Malaysians'
suspicions that their first family had been living wildly extravagant lives.

Malaysia politics: $4 sandals vs luxury Birkin bags

1MDB: Seized tiaras, cash and Hermes bags 'worth $273m'

With Rosmah Mansor's larger than life persona and much noted penchant for Hermes Birkin
bags, her court appearances are highly scrutinised.

"She isn't rude but she also isn't particularly friendly or bubbly. In person, she comes across
as being imperious," says Reuters news agency's Malaysia correspondent Rozanna Latiff.
"On days Rosmah Mansor is called in for questioning, there is a lot of interest in her outfits
and bags."

Mahathir Mohamad

GETTY IMAGES

5 di 20 02/04/2019, 18:29
1MDB: The playboys, PMs and partygoers around a global financial sca... https://www.bbc.com/news/world-asia-46341603

It's a political comeback story like no other: at 93, Mahathir Mohamad, the man who
dominated Malaysian politics as prime minister in the 1980s, 1990s and early 2000s, is back
in form and leading Malaysia.

His return to the political fray was motivated by one clear desire - to unseat Najib Razak, his
former protégé.

"I apologise to everyone, that I am the one who elevated him, the biggest mistake in my life. I
want to correct that mistake," Mr Mahathir said on the campaign trail in early May 2018 after
defecting to the opposition to take on Mr Najib.

Corruption, money and Malaysia's election

Malaysian PM hopes to get back lost 1MDB funds

A few days later he shocked the world by defeating his former party, which had run Malaysia
for more than half a century.

Mr Mahathir's return has resonated well with Malaysians, many of whom champion their new
government's efforts in bringing those who allegedly looted 1MDB to justice. But political
observers note that the elderly statesman not only paved Mr Najib's path to power but also
stood accused of authoritarianism during his own long tenure at the top.

Jho Low

6 di 20 02/04/2019, 18:29
1MDB: The playboys, PMs and partygoers around a global financial sca... https://www.bbc.com/news/world-asia-46341603

A Chinese-Malaysian financier from the bustling island of Penang, Low Taek Jho - more
famously known as Jho Low - is portrayed by Malaysian and US investigators as one of the
masterminds of the 1MDB scam.

Despite never holding a formal position with the fund, he is alleged to have played a crucial
role in its activities. And it was his savvy networking and shrewd business sense that allowed
him to thrive, say journalists Bradley Hope and Tom Wright in their 2018 best-seller Billion
Dollar Whale, which recounts Jho Low's alleged exploits.

"Jho Low is the most interesting person in the 1MDB affair, a mysterious master of
ceremonies," Hope told the BBC. "It became clear very early on he was the connecting point
between everyone involved in the 1MDB fund - and the only one with a 360-degree view of
the multi-billion dollar scheme."

US prosecutors say Mr Low leveraged his powerful political connections to win business for
1MDB through the payment of hundreds of millions of dollars in bribes. Billions, they say,
were laundered through the US financial system and used to buy some of the world's
most expensive real estate, coveted artwork, and finance Hollywood films.

GETTY IMAGES

7 di 20 02/04/2019, 18:29
1MDB: The playboys, PMs and partygoers around a global financial sca... https://www.bbc.com/news/world-asia-46341603

This was a man known for mixing business with a great deal of pleasure. Lavish parties and
high-profile friendships with Arab royalty and A-list celebrities fuelled his quick rise to the top.
Britney Spears even popped out of his birthday cake at a 2012 Vegas bash.

The reporters speculate in their book that at one point, Jho Low may have had access to
more liquid cash than almost anyone else on earth.

1MDB: The United States v The Wolf of Wall Street

But the fall of Najib Razak's government proved to be bad news for Mr Low. Criminal charges
were filed and he is now wanted in several countries. His current whereabouts are unknown
but he maintains his innocence through statements on his official website. His lawyers
say he cannot get a fair trial in Malaysia.

"Jho Low is driven but he is also both meticulous and terribly sloppy. He was frantically
building an empire with money that wasn't his and in the end, his whole scheme became
desperate and unsustainable," Mr Hope said.

Timothy Leissner

GETTY IMAGES

This slick German banker represented one of the world's most powerful financial institutions,

8 di 20 02/04/2019, 18:29
1MDB: The playboys, PMs and partygoers around a global financial sca... https://www.bbc.com/news/world-asia-46341603

Goldman Sachs, at a time that the bank was charging into Asia.

In the aftermath of the 2008 financial crisis, Timothy Leissner's deal-making in South East
Asia (Malaysia in particular) netted the bank significant revenues and he rose to become the
company's chairman in the region.

But the biggest deals would come when he crossed paths with Jho Low - alleged to be the
power player behind 1MDB.

Goldman had previously rejected Mr Low as a client, after compliance officials raised
concerns about the source of his money. But, according to a US indictment, Mr Leissner and
another Goldman banker, Roger Ng, used Mr Low's powerful connections to obtain business
for Goldman.

The bank is alleged to have earned an eye-popping $600m in fees for arranging and
underwriting three bond sales to raise $6.5bn for 1MDB in 2012 and 2013.

Mr Leissner has pleaded guilty to US charges of conspiring to launder money and violating
anti-corruption laws by bribing foreign officials.

Goldman's role in the 1MDB scandal in 300 words

Goldman boss: 'We apologise to the Malaysian people'

Malaysia has also filed charges against him, Mr Ng and Goldman Sachs itself. Mr Ng, who left
Goldman in 2014, denies all the charges against him.

Goldman Sachs, which denies any wrongdoing, called the charges "misdirected" and vowed
to "vigorously defend them". It has sought to portray Mr Leissner, who it suspended in
2016, as having gone rogue and has apologised for his behaviour.

But the Malaysian government has rejected the apology and called for the bank to cough up
$7.5bn in reparations.

The stars

GETTY IMAGES

9 di 20 02/04/2019, 18:29
1MDB: The playboys, PMs and partygoers around a global financial sca... https://www.bbc.com/news/world-asia-46341603

Money talks but does the power of celebrity speak louder?

The 1MDB scandal hasn't just been about powerful politicians and financiers: fugitive
businessman Jho Low often partied with Hollywood's A-list.

None of them are accused of any wrongdoing whatsoever, but their social connections with
Mr Low have been the subject of media reports.

That Leonardo DiCaprio movie

The Oscar-winning actor starred in 2013's The Wolf of Wall Street, co-produced and financed
by Riza Aziz, son of Rosmah Mansor and Najib Razak's step-son. The Martin Scorsese film
about greed and corruption bagged DiCaprio a prestigious Golden Globe award for Best
Actor, in which he thanked both Mr Aziz and Mr Low.

GETTY IMAGES

US prosecutors said misappropriated 1MDB money was used to finance the film, and the
production company Red Granite has settled a civil lawsuit with the US government.

The company denies any wrongdoing. DiCaprio, meanwhile, has pledged to assist US
authorities and has handed over a Picasso painting allegedly gifted to him by Mr Low.

10 di 20 02/04/2019, 18:29
1MDB: The playboys, PMs and partygoers around a global financial sca... https://www.bbc.com/news/world-asia-46341603

Musician friends Kasseem Dean (aka Swizz Beatz) and Alicia Keys

The ambitious record producer and his superstar wife were once part of Jho Low's inner
circle, often photographed at his notoriously swanky parties. Dean performed at Mr Low's
infamous 31st birthday celebrations (the one with Britney in the cake).

GETTY IMAGES

The musician is also credited with introducing Mr Low to the moneyed art world, where he is
alleged to have bought works including a Van Gogh drawing and two Monet paintings with
1MDB funds.

Partying with Paris Hilton

Another member of the famed inner circle, the hotel heiress reportedly met Mr Low in 2009.
They were often seen together in paparazzi pictures (and selfies), partying it up around the
world - from the gambling tables of Vegas to the ski slopes of Whistler and balmy Saint-
Tropez.

Romancing Miranda Kerr and Elva Hsiao

What do an Australian supermodel and a Taiwanese singer and actress have in common?
Both women were once linked to Jho Low.

After a series of extravagant dates (including sailing around Europe for 10 days) Mr Low
showered Miranda Kerr, one of the world's highest-paid supermodels, with out-of-this-world
gifts: an acrylic, see-through grand piano (worth up to $1m) and an 11-carat diamond
necklace and matching earrings. She has since turned over millions in jewellery to US
prosecutors.

11 di 20 02/04/2019, 18:29
1MDB: The playboys, PMs and partygoers around a global financial sca... https://www.bbc.com/news/world-asia-46341603

Mr Low took Taiwanese singer Elva Hsiao on a million-dollar date to Dubai, where they dined
on a private beach, according to Billion Dollar Whale.

The reporters
The 1MDB saga would never have come to light without the tenacious work of journalists who
pursued the story for years, breaking bombshell after bombshell and forcing the fund's
dealings into scrutiny.

AFP/WALL STREET JOURNAL

Clare Rewcastle-Brown, The Sarawak Report

More than a decade ago this Malaysian-born, British journalist began investigating Malaysia's
political elite from her kitchen counter in London after putting the kids to bed. Her Sarawak
Report website was initially focused on shadowy dealings in one Malaysian state. But when
one of 1MDB's early deals was made in Sarawak, her attention began to shift to what seemed
like "a highly suspect outfit".

At the end of 2013, she received a tip-off that Najib's step-son had produced The Wolf of Wall
Street. "That's when I started digging," she says. "Just really because I couldn't resist such an
obviously significant story." As she followed the money trail, the scoops began to roll in,
captivating Malaysians whose domestic media were mostly unable or unwilling to pursue the
story.

In early 2015, Rewcastle-Brown received a trove of more than 200,000 documents from

12 di 20 02/04/2019, 18:29
1MDB: The playboys, PMs and partygoers around a global financial sca... https://www.bbc.com/news/world-asia-46341603

Swiss whistleblower Xavier Justo and made a stunning allegation: that $700m had been
dropped directly into a bank account belonging to a Jho Low-controlled company as part of a
1MDB deal.

A few months later - under the headline "SENSATIONAL FINDINGS!" - she published details
alleging that nearly $700m had been deposited in the prime minister's bank accounts in 2013.
The Malaysian authorities blocked her website and issued a warrant for her arrest.

"I had people all over the world who would contact me with information. Obviously it would be
my job to stand it up if I could," she said. "At the height of this there were people being hired
to muscle me in London, follow me and photograph me... I had to go to the police."

Tom Wright and Bradley Hope, The Wall Street Journal

Their 2018 offering Billion Dollar Whale meticulously detailed Jho Low's alleged exploits and
became an instant bestseller in Malaysia.

But Tom Wright and Bradley Hope have been investigating the 1MDB money trail for years at
the Wall Street Journal.

"News stories don't typically go beyond 2,000 words and it felt like we were cutting out a lot of
fascinating details [from the saga]," said Hope. "We knew people were having a hard time
following the scandal and there was a bigger, more colourful story to do about Jho Low
specifically."

Hope said their book crystallised how bad the scandal was for Malaysia.

"There was so much noise and misinformation out there," he said. "To see it all laid out in one
place, fact by fact, made it very clear that 1MDB had become one of the world's biggest
financial scandals. Billion Dollar Whale shows how it developed chronologically and brought
the issue home for many Malaysians."

The book may have also increased global pressure in the search for Jho Low (now wanted in
several countries).

"Readers have sent us letters and politicians [Prime Minister Mahathir Mohamad and Finance
Minister Lim Guan Eng] have even used and referenced our book to explain the issues
surrounding 1MDB," Hope said. "Billion Dollar Whale is starting to filter through around the
world and people who have never heard of 1MDB tell us they were utterly engrossed by it."

The Edge Malaysia

If you read nothing but Malaysian newspapers and only watched local TV news reports at the
height of the 1MDB scandal in 2015, you'd be fooled into believing all was well in the country.
Malaysian journalists and editors learned quickly that reports about the sovereign fund's
scandals courted danger and would risk their operating licences.

But there were those who persisted and paid the price. The Edge Media Group was one.

13 di 20 02/04/2019, 18:29
1MDB: The playboys, PMs and partygoers around a global financial sca... https://www.bbc.com/news/world-asia-46341603

The Edge's newspapers published investigations into 1MDB's activities and had its
newspapers' publishing licences suspended over what was deemed as "reporting that could
affect public order".

"This is nothing more than a move to shut us down in order to shut us up," publisher Ho Kay
Tat said at the time.

Tony Pua

Leading the charge against 1MDB in Malaysia is lawmaker Tony Pua, who raised constant
questions while in opposition under Najib Razak's government.

His party is now in power but Mr Pua remains unashamedly vocal in his disdain for the former
PM.

"Najib Razak is the ultimate culprit. When confusion arises over his statements I will pop in to
steer things in the right direction," he told the BBC on the sidelines of a visit in Singapore.

Also political secretary to Malaysia's finance minister, who is leading 1MDB investigations, Mr
Pua said he remains focused on "fixing damage done to the economy".

"The financial scandal is in the past and there are no more shenanigans, it's the clean-up
process now," he said. "We need to bring about economic growth and closing the 1MDB
chapter is a big part of that."

The 'great-grandmother of financial scandals' comes to China

14 di 20 02/04/2019, 18:29
1MDB: The playboys, PMs and partygoers around a global financial sca... https://www.bbc.com/news/world-asia-46341603

A Malaysian political drama, worthy of Shakespeare

The colourful politician, who hails from Johor state, often takes to YouTube to lament the
scandal. "I know the facts and I articulate them," he said. "I get information from documents
and informants and piece them together to tell the story of what's actually happening."

But he says Mr Najib's trials are "just the beginning" and the judicial process could go on for
years. "The jigsaw is almost complete but there are a few missing pieces. And I believe Najib
Razak's trial will reveal some."

After several delays, the first trial of Najib Razak will finally begin on 3 April.

Trial dates have already been set for two further cases.

If found guilty of the many offences he is charged with, Mr Najib could spend decades in
prison. Jho Low remains at large.

Graphics by Davies Surya and Arvin Supriyadi in Jakarta.

Related Topics

1MDB corruption scandal Mahathir Mohamad Kuala Lumpur Malaysia

Goldman Sachs

Share this story About sharing

More on this story

1MDB: Malaysia's global corruption scandal

3 July 2018

The 'great-grandmother of all scandals' comes to China

16 July 2018

Malaysia politics: $4 sandals vs luxury Birkin bags

18 May 2018

Corruption, money and Malaysia's election

15 di 20 02/04/2019, 18:29
1MDB: The playboys, PMs and partygoers around a global financial sca... https://www.bbc.com/news/world-asia-46341603

11 May 2018

Asia

1MDB scandal: The playboys, PMs and partygoers

1 April 2019

Australia's Prince Harry superfan dies, 99

2 April 2019 Australia

16 di 20 02/04/2019, 18:29
1MDB: The playboys, PMs and partygoers around a global financial sca... https://www.bbc.com/news/world-asia-46341603

Nasa: India missile test could threaten ISS

2 April 2019 India

More Videos from the BBC

Recommended by Outbrain

Ten films to watch this The man who hacks his The hidden figures
April own body revealed by art

The 12-year-old who can The Dirt: Nikki Sixx on The truth about family
lift 120 pounds the Mötley Crüe biopic estrangement

Elsewhere on BBC
Recommended by Outbrain

17 di 20 02/04/2019, 18:29
1MDB: The playboys, PMs and partygoers around a global financial sca... https://www.bbc.com/news/world-asia-46341603

BBC.com BBC Culture

How are universities creating the Eight TV shows to watch in April
change agents of tomorrow?

BBC News BBC.com

How lunch with a friend caused years If India is a Book, Each Page is an
of trauma Adventure

BBC News BBC Travel

'Duck-eating' fish removed from lake The Holocaust memorial of 70,000
stones

18 di 20 02/04/2019, 18:29
1MDB: The playboys, PMs and partygoers around a global financial sca... https://www.bbc.com/news/world-asia-46341603

From Around the Web

Promoted content by Outbrain

Jetzt verfügbar: Innovatives In-Ear Klangwunder mit

beyerdynamic Blue BYRD
beyerdynamic

Jobless in Germany? Find out how to get your course fee

covered by the Arbeitsagentur.
CareerFoundry

Chiropractors Baffled: Simple Stretch Relieves Years of

Back Pain (Watch)
healthbenefits.club

Zwischen diesen A4 liegen 15.000 Euro - Jetzt den richtigen

in Frankfurt Am Main finden!
gebrauchtwagen.auto…

22 Surprising Facts About Clint Eastwood

Work+Money

Top 10 Highlights in Graz: Schlossberg, Kunsthaus,

Zeughaus & Co #visitgraz
GRAZ | Urlaub online …

Why you can trust BBC News

BBC News Services

On your mobile

On your connected tv

Get news alerts

19 di 20 02/04/2019, 18:29
1MDB: The playboys, PMs and partygoers around a global financial sca... https://www.bbc.com/news/world-asia-46341603

Contact BBC News

Explore the BBC

Home News

Sport Weather

Shop Reel

Travel Capital

Culture Future

Sounds CBBC

CBeebies Food

Bitesize Arts

Make It Digital Taster

Nature Local

TV Radio

Terms of Use About the BBC

Privacy Policy Cookies

Accessibility Help Parental Guidance

Contact the BBC Get Personalised Newsletters

Advertise with us Ad choices

Copyright © 2019 BBC. The BBC is not responsible for the content of external sites. Read about our
approach to external linking.

20 di 20 02/04/2019, 18:29