What was 1Malaysia Development Berhad (1MDB) formerly known as?

1Malaysia Development Berhad (1MDB) was formerly known as Terengganu Investment Authority (TIA). TIA was initiated in 2008 as a sovereign wealth fund with the goal of ensuring the economic development of the Terengganu state.

What type of company is 1MDB classified as, and who owns it?

1MDB is classified as a state-owned enterprise. It is wholly owned by the Minister of Finance (Incorporated) of Malaysia, indicating its direct connection to the Malaysian government.

When was 1MDB founded, and where is it headquartered?

1MDB was founded on June 25, 2009. Its headquarters are located in Menara IMC, No 8 Jalan Sultan Ismail, Kuala Lumpur, Malaysia.

What major scandal did 1MDB become the subject of in 2015?

In 2015, 1MDB became the focus of a significant international corruption scandal. This scandal involved allegations of money laundering, fraud, and theft.

According to the U.S. Department of Justice (DOJ), how much money was allegedly stolen from 1MDB?

A lawsuit filed by the U.S. Department of Justice (DOJ) alleged that at least US$3.5 billion was stolen from Malaysia's 1MDB state-owned fund. This amount was later raised to US$4.5 billion in September 2020.

How did the 1MDB scandal affect Malaysian Prime Minister Najib Razak?

The 1MDB scandal implicated former Malaysian Prime Minister Najib Razak, contributing to his party's loss in the 2018 general election and leading to his eventual trial and imprisonment for corruption charges related to the scandal.

What efforts have been made to recover misappropriated 1MDB funds?

Efforts to fight global kleptocracy have involved the recovery and repatriation of 1MDB funds by various countries. By August 2022, the U.S. Department of Justice had recovered and returned US$1.2 billion of these misappropriated funds to Malaysia.

What was the original purpose of the Terengganu Investment Authority (TIA)?

TIA was initiated in 2008 as a sovereign wealth fund with an initial fund of RM11 billion. Its purpose was to ensure the long-term sustainable economic development of Terengganu state and safeguard the economic well-being of its residents.

How did TIA transition into 1MDB?

In May 2009, TIA arranged a significant bond issuance advised by Jho Low. On July 31, 2009, the Minister of Finance (Incorporated) took over TIA, amended its name to 1Malaysia Development Bhd (1MDB), and expanded its scope to benefit all Malaysians, not just those in Terengganu.

What was the initial status of the Auditor General of Malaysia's report on 1MDB?

The Auditor General of Malaysia was assigned to audit 1MDB's financial statements to evaluate alignment with its objectives. However, the resulting report was classified as an Official Secret under the Official Secrets Act 1972 by the National Security Council in March 2016.

When and why was the 1MDB audit report declassified?

The 1MDB audit report was declassified on May 15, 2018, following the victory of Pakatan Harapan in the 14th general election. This declassification occurred at the request of the newly appointed Prime Minister, Mahathir Mohamad.

What was the initial joint venture 1MDB entered into with PetroSaudi Holdings (Cayman) Ltd?

On September 28, 2009, 1MDB established a joint venture named 1MDB-PetroSaudi Ltd with PetroSaudi Holdings (Cayman) Ltd. In this venture, 1MDB held a 41% stake with a US$1 billion cash contribution, while PetroSaudi contributed assets valued at least at US$1.6 billion.

What issues were identified with the 1MDB-PetroSaudi joint venture agreement?

The joint venture agreement lacked clauses to protect 1MDB's interests. Additionally, a US$700 million advance fee payment was transferred to a PetroSaudi subsidiary (Good Star Ltd) instead of a joint venture account, without the approval of the 1MDB board.

How did 1MDB's investment in the Segregated Portfolio Company (SPC) unfold?

1MDB invested US$2.318 billion into an SPC managed by Bridge Global Absolute Return Fund SPC, a newly formed company lacking a fund management license and experience. Later, these SPC funds were pledged to Deutsche Bank for a loan, and proceeds were used for purposes like terminating the 'Aabar option' without full board approval.

What was the initial funding for SRC International Sdn Bhd (SRC)?

SRC International Sdn Bhd (SRC) received funding from government grants, specifically RM15 million from the Economic Planning Unit (EPU). It also secured a RM2 billion financing from the Retirement Fund Incorporation (KWAP), guaranteed by the government.

What investment did SRC make in the Mongolian coal industry, and what concern was raised?

SRC invested US$45.50 million in the coal industry in Mongolia through a joint venture. The auditor-general's report questioned this investment due to a lack of evidence showing feasibility studies for the project.

What real estate assets did 1MDB acquire between 2010 and September 2015?

Between 2010 and September 2015, 1MDB acquired five different property assets totaling RM2.111 billion. These included land for the Tun Razak Exchange (TRX) project, Bandar Malaysia project, land in Air Itam (Penang), Alor Gajah (Melaka), and Pulau Indah (Selangor).

What was the status of the Tun Razak Exchange (TRX) project's funding and land sales?

The TRX project relied heavily on the sale of land plots for funding infrastructure development. By September 2015, five plots were sold for RM1.358 billion, with plans to sell eleven more. However, the project faced negative cash flows, as receipts were insufficient to cover costs, and some funds from plot sales were diverted back to 1MDB instead of financing TRX.

What happened to the deal for the Bandar Malaysia project with the IWH-CREC Consortium?

1MDB announced the sale of 60% equity in Bandar Malaysia Sdn. Bhd. to the IWH-CREC Consortium in December 2015. However, this deal collapsed on May 3, 2017, due to the consortium's failure to meet payment obligations.

What were the challenges faced in developing the Air Itam land acquired by 1MDB?

The development of the Air Itam land faced difficulties due to incomplete finalization of the remaining 14.3% land ownership, lack of full support from the State Government, and the unresolved issue of approximately 2,000 squatters occupying the land.

What was the intended use of the Pulau Indah land purchased by 1MDB, and what was its fate?

The Pulau Indah land was purchased with the intention of expanding the energy sector, specifically for the development of Project 3B (a power plant). However, the project was relocated, and the land was put up for sale in July 2015 as part of 1MDB's rationalization plan, but it remained unsold.

What were 1MDB's initial energy sector investments, and why did they falter?

In its early stages, 1MDB invested in aluminium smelting in Sarawak, equities in GDF Suez SA, and construction proposals for re-gasification and gas-based power plants. These investments faltered due to a lack of energy resources and government policy restricting gas supply to independent power producers (IPPs) to only Petronas.

Who chaired 1MDB's board of advisors?

Najib Razak, the then-Prime Minister of Malaysia, chaired 1MDB's board of advisors. This board was part of the company's three-tier check-and-balance system.

What specific concerns did opposition leader Anwar Ibrahim raise about 1MDB in Parliament?

Anwar Ibrahim questioned the credentials of 1MDB, stating that company commission records showed it had no business address and no appointed auditor. He also questioned Prime Minister Najib Razak's role in involving 1MDB in the Tun Razak Exchange project.

What was the total accumulated debt of 1MDB by mid-2015, and what was the impact on its bonds?

By mid-2015, 1MDB's accumulated debts totaled RM42 billion (US$12 billion). This significant debt led major rating agencies like Standard & Poor's and Fitch Ratings to downgrade the fund's bonds to junk status.

What did the Malaysian Anti-Corruption Commission (MACC) confirm in August 2015 regarding allegations against the Prime Minister?

In August 2015, the Malaysian Anti-Corruption Commission (MACC) confirmed that no funds from 1MDB had been transferred to the Prime Minister's private accounts, contradicting earlier allegations made by The Wall Street Journal.

What was the conclusion of the Public Accounts Committee (PAC) in May 2016 regarding 1MDB's issues?

The Public Accounts Committee (PAC) of the Malaysian Parliament blamed the troubles of 1MDB on the state fund's board and its former chief. The committee stated that the board had failed to fulfill its responsibilities.

What was the outcome of Najib Razak's trial on July 28, 2020?

On July 28, 2020, the High Court convicted former Prime Minister Najib Razak on all seven counts of abuse of power, money laundering, and criminal breach of trust. He became the first Prime Minister of Malaysia to be convicted of corruption.

What action did the British National Crime Agency take in February 2021 related to 1MDB funds?

In February 2021, the British National Crime Agency served a warrant against the London law firm Clyde & Co on behalf of the U.S. Department of Justice. This action sought the recovery of US$330 million, alleged to be the remaining proceeds from the first phase of the 1MDB fraud.

What was the conviction of former Goldman Sachs banker Roger Ng in April 2022?

In April 2022, a U.S. jury convicted former Goldman Sachs banker Roger Ng on corruption charges. These charges were related to his role in facilitating the alleged looting of hundreds of millions of dollars from Malaysia's 1MDB development fund.

When did Najib Razak begin serving his jail sentence, and where?

Najib Razak began serving his 12-year jail sentence on August 23, 2022, at Kajang Prison for his involvement in the 1MDB scandal.

What legal claim did 1MDB initiate in December 2024, and against whom?

In December 2024, 1Malaysia Development Berhad (1MDB) initiated a legal claim against Amicorp Group for $1 billion. 1MDB accused Amicorp Group of facilitating the creation and management of shell companies used to divert funds from the state investment fund.

What was Amicorp Group's response to the lawsuit filed by 1MDB?

In response to the lawsuit, Amicorp Group announced its intention to 'vigorously dispute' the claims. The company asserted that it has consistently acted in accordance with applicable laws and regulations.

What is the official website listed for 1MDB?

The official website listed for 1MDB is www.1mdb.com.my. An archived version of the website is also available.

What was the initial fund amount of the Terengganu Investment Authority (TIA)?

The Terengganu Investment Authority (TIA) had an initial fund of RM11 billion, which was equivalent to approximately US$3.25 billion in 2008. This fund was derived from outstanding royalty income and bond issuances.

What was the role of Jho Low in the early stages of 1MDB?

Jho Low played a significant role as a special advisor to TIA. He was involved in arranging the RM5 billion bond issuance in May 2009, which proceeded despite warnings from the Terengganu state government.

What was the purpose of the RM700 million transfer from 1MDB into Good Star Ltd's account?

The RM700 million transfer was intended to repay an advance taken by the joint venture company, 1MDB-PetroSaudi Ltd. However, this payment was made into a non-joint-venture account belonging to Good Star Ltd, a PetroSaudi subsidiary, without the approval of the 1MDB board.

What was the nature of the 'Aabar option' mentioned in relation to 1MDB's finances?

The 'Aabar option' was an agreement where Aabar Ltd received an option in exchange for a guarantee from Abu Dhabi's International Petroleum Investment Co (IPIC). IPIC guaranteed US$3.5 billion in bond issuances via Goldman Sachs, and the termination of this option involved a significant payment from 1MDB funds.

What was the stated reason for 1MDB's investment in the energy sector?

1MDB embarked on energy sector investments with the aim of expanding its portfolio and undertaking projects such as aluminium smelting in Sarawak and developing clean energy projects. However, these initiatives faced challenges due to resource availability and government policies.

What was the outcome of the deal to sell 60% equity in Bandar Malaysia Sdn. Bhd. to the IWH-CREC Consortium?

The deal, valued at RM7.41 billion for 60% equity, was expected to be completed by June 2016. However, it collapsed on May 3, 2017, because the IWH-CREC Consortium failed to meet its payment obligations.

What did 1MDB's CEO, Arul Kanda, claim about the company's financial status and clearance?

In media appearances, 1MDB's CEO Arul Kanda claimed that the company had been cleared of all wrongdoing by the Malaysian Attorney General. He also stated that none of the company's accounts in Singapore had been frozen, countering media reports.

What was the total debt of 1MDB as of September 2020, according to a Malaysian government report?

As of September 2020, a Malaysian government report indicated that 1MDB's outstanding debts amounted to US$7.8 billion. This highlighted the significant financial burden the company carried.

What was the significance of Najib Razak's conviction on July 28, 2020?

Najib Razak's conviction on charges of abuse of power, money laundering, and criminal breach of trust made him the first former Prime Minister of Malaysia to be found guilty of corruption. He was sentenced to 12 years in prison and fined RM210 million.

What legal action did the Malaysian Government take in February 2021 concerning tax arrears?

In February 2021, the Malaysian Government filed a lawsuit against Jasmine Loo and Casey Tang, former associates of Jho Low and former senior 1MDB officials. The lawsuit sought the recovery of RM9.3 million in tax arrears from them.

1malaysia Development Berhad Wiki: 1MDB Unveiled: Anatomy of a Financial Scandal

Dive in with Flashcard Learning!

When you are ready...
🎮 Play the Wiki2Web Clarity Challenge Game🎮

1MDB: An Overview

Corporate Identity

1Malaysia Development Berhad (1MDB) was a Malaysian strategic development company, wholly owned by the Minister of Finance (Incorporated). Initially established as Terengganu Investment Authority (TIA) in 2008, it was later acquired by the Ministry of Finance and renamed in 2009.

Financial Status

As of recent reports, 1MDB is classified as an insolvent entity. The company became the epicenter of a major international corruption scandal, involving allegations of significant financial impropriety.

Global Impact

The scandal implicated numerous international financial institutions and individuals, leading to extensive investigations by authorities in multiple countries, including the United States Department of Justice (DOJ).

Historical Context

Genesis: TIA

1MDB originated as the Terengganu Investment Authority (TIA), a sovereign wealth fund established in 2008 by the Menteri Besar of Terengganu. Its initial capital was RM11 billion, intended for the long-term development of the state.

Federalization

In July 2009, following a deal arranged by AmInvestment Bank Bhd and advised by Jho Low, TIA was acquired by the Minister of Finance (Incorporated) and rebranded as 1Malaysia Development Berhad (1MDB). This transition occurred shortly after Najib Razak became Prime Minister.

2009: TIA established with RM11 billion.
May 2009: RM5 billion raised via Islamic medium term notes, advised by Jho Low.
July 2009: TIA acquired by Ministry of Finance, renamed 1MDB.
September 2009: Joint venture established with PetroSaudi Holdings (Cayman) Ltd.
March 2015: Auditor General's report on 1MDB initiated.
May 2018: Audit report declassified following a change in government.

Audit and Scrutiny

The company's financial activities drew significant scrutiny. An initial audit report by the Auditor General of Malaysia was classified under the Official Secrets Act in 2016 but was later declassified in 2018. PricewaterhouseCoopers was appointed to conduct a further review.

Investment Portfolio

PetroSaudi JV

In 2009, 1MDB entered a joint venture with PetroSaudi Holdings, contributing US$1 billion for a 41% stake. Investigations later revealed irregularities, including the transfer of US$700 million to a PetroSaudi subsidiary without board approval.

Real Estate Ventures

1MDB invested significantly in real estate, acquiring land for projects like the Tun Razak Exchange (TRX) and Bandar Malaysia. These acquisitions, totaling RM2.111 billion by 2015, faced challenges related to funding, land status, and project execution.

Tun Razak Exchange (TRX): Acquired land for RM302.8 million; joint venture with Aabar Investments failed to materialize.
Bandar Malaysia: Acquired land for RM368.72 million; faced delays and a collapsed deal with a Chinese consortium.
Other land acquisitions in Penang, Melaka, and Selangor also encountered difficulties.

Energy Sector

Initial ventures into the energy sector through partnerships with Chinese and Qatari entities did not proceed as planned due to policy constraints and resource availability. Later, 1MDB agreed to sell its energy assets to China General Nuclear Power Group in 2015.

Organizational Framework

Governance Structure

1MDB operated with a three-tier system: a Board of Advisors (chaired by Najib Razak), a Board of Directors, and a senior management team. The Board of Advisors included figures like Bernard Arnault of LVMH during certain periods.

Operational Challenges

The company faced significant operational challenges, including frequent auditor changes and difficulties in publishing annual reports on time. By mid-2015, accumulated debts reached RM42 billion, leading to bond downgrades.

Key Personnel

Prominent figures associated with 1MDB include Prime Minister Najib Razak (Chairman of the Board of Advisors) and Jho Low (Consultant). Arul Kanda Kandasamy served as President and CEO, later dismissed for dereliction of duty.

The 1MDB Scandal

Allegations of Misappropriation

The scandal centers on allegations of massive fraud, money laundering, and theft, with estimates suggesting billions of dollars were misappropriated. The US DOJ filed lawsuits alleging at least US$3.5 billion was stolen from the fund.

International Investigations

The scandal triggered investigations across multiple jurisdictions, including the United States, United Kingdom, Australia, Hong Kong, and Singapore. Banks facilitating transactions faced probes for their roles.

United States: DOJ investigations into money laundering and asset recovery.
United Kingdom: National Crime Agency served warrants related to alleged asset recovery.
Other Nations: Probes into financial institutions involved in 1MDB transactions.

Kleptocracy and Consequences

Jeff Sessions, former US Attorney General, described the situation as "kleptocracy at its worst." The scandal contributed significantly to the political downfall of Najib Razak's administration in the 2018 Malaysian general election.

Legal Actions & Recovery

Najib Razak's Conviction

In July 2020, former Prime Minister Najib Razak was convicted on seven charges related to abuse of power, money laundering, and criminal breach of trust concerning funds linked to SRC International, a 1MDB subsidiary. He was sentenced to 12 years imprisonment.

Asset Recovery Efforts

Efforts to recover misappropriated funds are ongoing. The US DOJ has recovered and returned substantial amounts to Malaysia. In late 2024, 1MDB initiated a $1 billion legal claim against Amicorp Group, alleging facilitation of fraudulent activities.

Fugitives and Claims

Key figures like Jho Low and former 1MDB associates Jasmine Loo and Casey Tang are subjects of ongoing investigations and legal actions. Malaysia has filed lawsuits seeking recovery of tax arrears and other assets linked to them.

Teacher's Corner

Edit and Print this course in the Wiki2Web Teacher Studio

Edit and Print Materials from this study in the wiki2web studio

Click here to open the "1malaysia Development Berhad" Wiki2Web Studio curriculum kit

Use the free Wiki2web Studio to generate printable flashcards, worksheets, exams, and export your materials as a web page or an interactive game.

True or False?

Test Your Knowledge!

Gamer's Corner

Are you ready for the Wiki2Web Clarity Challenge?

Learn about 1malaysia_development_berhad while playing the wiki2web Clarity Challenge game.

Unlock the mystery image and prove your knowledge by earning trophies. This simple game is addictively fun and is a great way to learn!

Play now

Explore More Topics

Discover other topics to study!

mediterranean games

harry selby hunter

thomas moore british army paymaster of the forces abroad

jesus in christianity

ugandan sign language

References

A full list of references for this article are available at the 1Malaysia Development Berhad Wikipedia page

Feedback & Support

To report an issue with this page, or to find out ways to support the mission, please click here.

Disclaimer

Important Notice

This page was generated by an Artificial Intelligence and is intended for informational and educational purposes only. The content is derived from publicly available data and may not be exhaustive or entirely up-to-date.

This is not financial or legal advice. The information provided herein should not substitute professional consultation regarding financial matters, investment strategies, or legal proceedings. Always consult with qualified professionals for specific advice tailored to your situation.

The creators of this page assume no liability for any errors or omissions, or for any actions taken based on the information presented.

1MDB Unveiled

💡 Dive in with Flashcard Learning! 💡

1MDB: An Overview ℹ️

🏢 Corporate Identity

💰 Financial Status

⚖️ Global Impact

Historical Context 📜

🚀 Genesis: TIA

🏛️ Federalization

🔍 Audit and Scrutiny

Investment Portfolio 📈

⛽ PetroSaudi JV

🏢 Real Estate Ventures

⚡ Energy Sector

Organizational Framework ⚙️

👨‍💼 Governance Structure

📉 Operational Challenges

👤 Key Personnel

The 1MDB Scandal 🚨

💸 Allegations of Misappropriation

🌍 International Investigations

⚖️ Kleptocracy and Consequences

Legal Actions & Recovery ⚖️

🧑‍⚖️ Najib Razak's Conviction

💰 Asset Recovery Efforts

🏃 Fugitives and Claims

Further Reading 📚

📖 Key Publications

🔗 Official Resources

Teacher's Corner 🧑‍🏫

Edit and Print this course in the Wiki2Web Teacher Studio

True or False? 🤔

❓ Test Your Knowledge! ❓

Gamer's Corner 🎮

Are you ready for the Wiki2Web Clarity Challenge?

Explore More Topics

📜 Discover other topics to study!

References

📜 References

Feedback & Support 👍

To report an issue with this page, or to find out ways to support the mission, please click here.

Disclaimer ⚠️

📜 Important Notice

Dive in with Flashcard Learning!

1MDB: An Overview

Corporate Identity

Financial Status

Global Impact

Historical Context

Genesis: TIA

Federalization

Audit and Scrutiny

Investment Portfolio

PetroSaudi JV

Real Estate Ventures

Energy Sector

Organizational Framework

Governance Structure

Operational Challenges

Key Personnel

The 1MDB Scandal

Allegations of Misappropriation

International Investigations

Kleptocracy and Consequences

Legal Actions & Recovery

Najib Razak's Conviction

Asset Recovery Efforts

Fugitives and Claims

Further Reading

Key Publications

Official Resources

Teacher's Corner

True or False?

Test Your Knowledge!

Gamer's Corner

Discover other topics to study!

References

Feedback & Support

Disclaimer

Important Notice