1MDB Scandal Comes to Life with UMNO Back in Power
After the world witnessed one of the “greatest financial scandals”, it left traces that are still being dug into. The 1Malaysia Development Berhad (1MDB) scandal involved embezzlement of around $4.5 billion funds by the Chairman of the Malaysian state fund, Najib Razak, the then-Prime Minister of the United Malays National Organization (UMNO).
The political party was ousted in 2018, following the “Heist of the Century”. However, with Ismail Sabri Yaakob, UMNO has come back into power just after nearly 3 years. The 61-year-old new Prime Minister of Malaysia replaced Muhyiddin Yassin, who resigned from office in less than 18 months.
Muhyiddin stepped down on August 16, 2021, after facing escalated criticism over what the people of Malaysia viewed as terrible handling of the Covid-19 pandemic. His successor reportedly obtained 114 votes, which is more than the required majority of 111.
On August 27, Ismail Sabri Yaakob revealed his Cabinet. He skipped naming the Deputy, but appointed four people at the senior Ministerial posts. However, the choices of his Cabinet members had only few differences in comparison to the Cabinet of his predecessor.
Lawmakers of the opposition called it a mere recycling of the former government. Many raised quick concerns and voiced disappointment at the new PM’s selection. Despite a lockdown since June and a seven-month state of emergency, Muhyiddin’s government failed to control the pandemic situation.
Malaysia currently is amongst the world’s worst pandemic hit countries, with the highest infection rates. Opposition leaders said for Ismail, it was a “wasted opportunity” to initiate an actual change. However, the coronavirus effect on the country is not the only challenge that the new PM faces.
When it comes to leadership, Ismail’s intentions are majorly unpredictable, as his party is stained with tags of money laundering, breach of trust and abuse of power. The previous PM of UMNO, Najib Razak faces 42 criminal charges in five different trials related to the multibillion-dollar financial fraud.
In 2020, reports revealed that Najib sought help from the Abu Dhabi Crown Prince Mohammed bin Zayed Al-Nahyan to fake evidence, in an attempt to cover up the scandal around the Malaysian state investment fund. The audio clips released by the Malaysian Anti-Corruption Commission (MACC) confirmed there were calls between Najib, his wife, Rosmah Mansor, and Emirati and Malaysian officials.
The UAE’s name comes multiple times in the story of the 1MDB scandal, where the central conspirator of the fraud, Jho Low, and the Emirati ambassador to the US, Yousef Al Otaiba, were involved in the exchange of millions of dollars. Leaked emails revealed the details of meetings between Low and Otaiba’s Abu Dhabi-based business partner Shaher Awartani. Otaiba reportedly received $66 million from offshore companies, including those from 1MDB.
Now that the UMNO is back in power with Ismail, the doubt is not just hovering over the Covid-19 pandemic situation, but also around the scandal that still taints the reputation of Malaysia.
