Najib used state funds to buy luxury goods: media report

Malaysia's beleagured Prime Minister Najib Razak used state funds to buy luxury goods worth USD 15 million and pay out millions more to political figures ahead of the 2013 elections, according to a media report.
The Wall Street Journal reported that Najib's brother, CIMB Group chairman Nazir Razak, confirmed he had received about USD 7 million from Najib for distribution to the ruling coalition of Barisan Nasional politicians.
The report also claimed to have seen Malaysian investigation documents which allegedly indicate that the majority of the funds in the accounts of the 62-year-old Najib originated from 1 Malaysia Development Bhd.

"The entire amount was paid out in cash to various recipients according to the instructions of the ruling party (Umno) president (Najib) and the account was closed with a zero balance," the premier's brother was quoted as sayin in the report.
Meanwhile, online news portal Malaysiakini quoting WSJ saidNajib spent a total of USD 15 million on holidays, shopping and jewellery. The spending was allegedly done at stores in the United States, Malaysia, Italy and elsewhere between 2011 and 2014 according toMalaysian investigation documents.
However, Malaysia's state fund 1 MDB denied paying any funds into the personal accounts Najib.

"Following extensive investigations, this has been corroborated by multiple lawful authorities, who have confirmed that these funds came from Saudi Arabia.

"Despite this, the Wall Street Journal continues to repeat the same allegations, without providing any concrete evidence to justify these claims," 1MDB said in a statement.
1MDB also questioned the timing of the Wall Street Journal's "new round of attacks" as its report came just days after 1MDB announced it had successfully completed the share sale and purchase agreement for Edra Global Energy Bhd.
It added that the state fund will repay a portion of its debts in the coming weeks, which will remove all short-term debt from the company's balance sheet.
"These actions reflect the significant success 1MDB has made with its rationalisation plan, and we remain committed to ensuring the conclusion of this process, despite the repeated attacks against the company," it said.

On Tuesday, Australian Broadcasting Corporation (ABC) published a letter from a Saudi prince who pledged USD 375 million for Najib.
Najib was last year also accused of siphoning USD 1 billion from 1Malaysia Development Berhad (1MDB).
Najib has repeatedly denied that the money was siphoned off from 1MDB and says he is the victim of a political conspiracy.
But the Journal has reported that documents it has reviewed indicate the funds came from 1MDB and totalled more than USD 1 billion.
Najib at first denied reports last year that he had received the overseas payments. But his government now acknowledged that he received USD 681 million.

The government says it was a gift from the Saudi royal family -- most of which was given back -- to "promote moderate Islam".