Malaysia is said probing if Najib used China fund for debt: WSJ

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NEW YORK (Aug 1): Malaysian officials are investigating whether the government of former Prime Minister Datuk Seri Najib Razak used funds from China-backed infrastructure program to help pay almost US$700 million of debt owed by state investment fund, 1Malaysia Development Bhd, Wall Street Journal reports, citing two unidentified government officials involved in reviewing the projects.

* Officials suspected cash intended for China’s One Belt One Road initiative was diverted through offshore shell companies and used to pay for 1MDB debt

* “Chinese companies may be involved in round tripping of major infrastructure projects in Malaysia that siphons off funds from these projects to help 1MDB”: Malaysia’s new Finance Minister Lim Guan Eng told WSJ

** China’s foreign ministry didn’t respond to WSJ’s request for comment

* NOTE: Earlier, 1MDB Lawyer Who Worked With Goldman a Target in Swiss Probe (1)