KUALA LUMPUR (March 10): DAP has called upon Bank Negara Malaysia (BNM) along with other authorities to investigate Low Taek Jho and his associates for possible money laundering in the acquisition of Utama Banking Group Bhd (UBG), using funds allegedly obtained from 1Malaysia Development Bhd (1MDB).

DAP National publicity secretary Tony Pua said the complicated structure of the acquisition of UBG via PetroSaudi International (Secychelles) Limited (PSI Seychelles) in 2010, has raised sufficient suspicions for the Malaysian authorities to initiate investigation for money laundering under the Anti-Money Laundering and Anti-Terrorism Financing (Amendment) Act 2013 (AMLA).

“Bank Negara Malaysia, as the competent authority under the AMLA, in collaborations with the other investigation agencies including the Police and Malaysian Anti-Corruption Commission (MACC), must immediately commence investigations into the above highly-suspicious transactions, for all relevant offences under the Act,” Pua said in a statement released at the Parliament lobby today.

Citing the reports by the Sarawak Report and The Edge Malaysia, Pua, who is also the Petaling Jaya Utara MP, said Low had acquired UBG through a complicated structure involving a few of Low’s companies, to disguise the origin of the funds utilised for the acquisition.                                                            

Low was also reported to have used US$700 million from the 1MDB-PetroSaudi joint venture to buy out UBG — a company owned by Sarawak Governor Tun Taib Mahmud.

“Therefore given that the entire 1MDB-PetroSaudi joint venture was designed specifically for Jho Low and his associates to siphon billions of ringgit from the Ministry of Finance owned subsidiary, and how in collusion with their foreign counterparts in PetroSaudi, they designed highly sophisticated layering transactions to disguise the audit trail and provide anonymity,” Pua said.

Meanwhile, DAP secretary general Lim Guan Eng raised concern as to whether Malaysia’s credit ratings would be jeopardized, should 1MDB unravel and default.

“For this reason, it is crucial that 1MDB and the Finance Ministry come clean on the whole scandal, so that everyone knows the true cost, should a worst-case scenario happens,” Lim said in a statement today.

He noted that the Kuala Lumpur Composite Index (KLCI) will continue its abysmal record in 2014, as the worst performing stock market in Asia Pacific this year, if the authorities did not deal with various multi-billion scandals involving 1MDB and Port Klang Free Zone.

“Urgent action by a reputable independent body is crucial to restore confidence in our capital markets. Or else, Malaysia will suffer the indignity of an anomaly and paradox of recording high economic growth rates and yet the worst performing stock market in the region,” Lim added.