KUALA LUMPUR – Malaysia ex Prime Minister Najib Razak approved a plan to bail out problematic state fund 1Malaysia Development Berhad (1MDB) by offering big infrastructure projects to Chinese firms in return for money.
Former special officer Amhari Effendi Nazaruddin told the court that he began receiving special instructions from Najib regarding the plan bail out. He was secretly sent to China in June 2016 to further boost ties and investment between the two nations.
Among the deals offered to Chinese companies to fund the bailout were the two pipeline projects (the Trans-Sabah Gas Pipeline (TSGP) project, and the Multi-Product Pipeline (MPP) project) and the $20 billion East Coast Rail Link.
The ECRL, which is part of Beijing’s One Belt One Road initiative, was among several Chinese-financed projects Prime Minister Mahathir are probing into 1MDB. He said the investigators are looking into the link of projects that was allegedly used to repay the 1MDB debts. Najib’s trial continues on Thursday.