BC’s Gas Export Hopes Face ‘Scandal that Ate Malaysia’
Asian nation’s PM, key to $36 billion LNG bid by Petronas, in corruption probe.
The prime minister of Malaysia, who is central to British Columbia’s liquefied natural gas development ambitions, is the subject of a major financial corruption scandal rocking his country.
Earlier this month The Wall Street Journal, citing documents from government probes, reported that investigators suspected that almost $700 million in cash had been wired through state agencies, banks, and companies linked to 1Malaysia Development Berhad (1MDB).
The company is a state-owned development vehicle chaired by Malaysian Prime Minister Najib Razak, who also serves as the country’s treasury minister.
Investigators believe the $700 million eventually found its way into Najib’s personal accounts and served as a slush fund for the last election. Malaysia has few rules on campaign donations or election spending.
Najib is the top authority overseeing Malaysia’s state-owned oil company Petronas, whose massive potential investment in B.C. liquefied natural gas (LNG) was greenlit by the provincial legislature earlier this month.
Now, The Australian and other news sources are saying reports of corruption have paralyzed the Malaysian government. “The scandal that ate Malaysia” is how U.S. business news agency Bloomberg is dubbing the financial brouhaha.
The debacle threatens to undermine the nation’s economy, according to an expert writing for East Asia Forum: “Malaysia’s international credibility is on the line, as is its currency, access to foreign capital and future economic prosperity.”
To date a task force investigating the 1MDB allegations has already frozen half a dozen bank accounts in Malaysia.
Petronas key to Clark’s LNG ambitions
In May of 2014, Premier Christy Clarksat for a photograph with Najib, central to any deal she sought with Petronas. The meeting was part of an eight-day trip to Malaysia and Hong Kong to promote LNG development after Clark made election campaign promises that LNG would create 100,000 jobs and erase the province’s debt.
…click on the above link to read the rest of the article…
