This article first appeared in The Edge Financial Daily on June 27, 2018

KUALA LUMPUR: Datin Seri Rosmah Mansor, the wife of former prime minister Datuk Seri Najib Razak, has been described as a “political force and central actor” in the 1Malaysia Development Bhd (1MDB) corruption scandal that has caught global attention.

In a report yesterday, the Wall Street Journal (WSJ) cited people familiar with the investigations as saying that Malaysian investigators are scrutinising the 66-year-old Rosmah for a possible criminal indictment alongside Najib.

WSJ reported that Rosmah’s pursuit of the trappings of wealth played a crucial part in pushing Najib’s administration deeper into graft, ultimately leading to the government’s downfall in the 14th general election.

Neither has been charged so far, but the couple have been barred from leaving the country while investigations proceed.

“Rosmah has accumulated one of the world’s largest collections of pink diamonds, according to a Malaysian businessman who said he helped select some of the gems. One diamond she acquired was worth US$27 million, according to the US Department of Justice (DoJ). A man US investigators believe played a critical role in the 1MDB affair — and who has also described helping procure diamonds for Rosmah — has estimated her collection’s value at US$350 million (RM1.41 billion),” the report stated.

According to WSJ, 1MDB was set up by Najib in 2009 to promote economic development, but it soon became saddled with billions of dollars of debt. Officials in several countries probing the scandal have identified how much of that money was siphoned away and passed through companies in the Middle East, Seychelles, Caribbean, and the US.

Some prosecutors have cited Malaysia’s first family as major beneficiaries, the report added.

WSJ reported that it is not known whether investigators suspect Rosmah was involved directly with any of the complex transactions that over several years steadily drained cash from 1MDB.

“People who know Rosmah say she helped orchestrate the alleged involvement of a young Malaysian financier who the DoJ says helped set up the 1MDB fund and then oversaw its looting.

“The US agency is involved because it believes US assets were among those purchased with graft proceeds. The DoJ has filed civil lawsuits seeking to seize nearly US$2 billion of such assets, including a private jet, luxury homes on both coasts and a film production company headed by Rosmah’s son.

The suits target assets, not individuals, but they make extensive allegations against figures allegedly connected to the scheme. The suits say at least US$4.5 billion was misappropriated in all, which, if true, would make 1MDB one of the largest-ever financial heists,” said the WSJ report.

Najib, former chairman of the board of advisers of the fund at the heart of the matter, has denied any wrongdoing, as has 1MDB itself. While Najib was in power, the Malaysian attorney-general cleared him. Now, new investigations are under way.

WSJ also cited confidants as saying that Najib and Rosmah were devoted to one another, and drew closer when faced with criticism over various political scandals over the years.

“The forceful first lady, who took a work space and staff in the prime minister’s office, often prevailed over the less-decisive Najib, those close to them said. When Lee Kuan Yew, the founding father of Singapore, met prime minister Najib in 2009, Lee asked that Rosmah also attend, commenting to Singapore media that he’d heard the pair worked as a team.

“A Malaysian businessman who says he was dependent on Rosmah for annual renewals of his government licences said some of the Hermès Birkin handbags found in Rosmah’s residences were gifts from him.

“Another Malaysian businessman said he used to buy property from a state-owned company before flipping it to another public entity at a higher price, splitting the profits with Rosmah,” said the report.

WSJ also cited a daughter from Rosmah’s first marriage, Azrene Ahmad, as saying in her social-media posts in May that she had first-hand knowledge of her mother using bribes and side deals, sometimes behind Najib’s back, to acquire “steel safes full of jewels, precious stones, and cash”.

When reached for comment by WSJ, Azrene referred to her posts. The allegations were among those about which Rosmah’s lawyer declined to be interviewed.

According to WSJ, Rosmah’s taste for opulence raised eyebrows among Malaysians.

“One website tried to keep track of her appearances with Birkin handbags. As his wife’s public image deteriorated, said a family member, Najib urged caution about their spending, arguing in 2015 for a modest wedding celebration for the couple’s daughter, but was overruled by Rosmah,” reported WSJ.

“People who know Rosmah said a desire for international recognition drew her into an alliance nearly 10 years ago with a young Malaysian financier named Jho Low, who the DoJ has said was at the heart of the 1MDB scheme,” it added.

Low has denied wrongdoing. Malaysia has a warrant outstanding for his arrest. He is believed to be in China, said WSJ.

WSJ also said Rosmah expected Low to supply her with handbags and diamonds, citing people with knowledge of the relationship and to DoJ lawsuits.

“She used Najib’s credit cards, funded by 1MDB money, for purchases at Chanel in Hawaii and an Italian jewellery store, according to Malaysian investigative documents. Malaysia’s new attorney-general is reviewing those payments as part of its criminal investigation of Rosmah, said people familiar with the probe.”

WSJ also reported an incident in 2015 when investigations of events at 1MDB began making progress, saying Rosmah had pushed the prime minister’s office to state publicly that her wealth was in line with Najib’s “legacy family assets”. It did so.

“Najib’s four brothers responded with a statement saying they had been left little money by their father, who was famously frugal as prime minister. Rosmah reacted angrily, claiming the brothers would bring down the prime minister, said one family member,” said the report.

“Many Malaysians see their country’s investigation of Rosmah as a victory for democracy and the rule of law in the Southeast Asian nation, which was dominated by a single political party from independence in 1957 until the May election.

“The public is singling out Rosmah for much of the blame for the international 1MDB scandal,” reported WSJ.