In an exclusive interview with SBS World News the former leader of Malaysia, Mahathir Mohamad - who ruled the country with an iron-grip for 22 years - said Australia was turning a blind eye to corruption over the 1 Malaysia Development Berhad (1MDB) state investment fund.
"Australia has been involved to a certain extent but it looks as if the government of Australia wants to avoid any involvement in this crime committed,” Dr Mahathir said.
Malaysia’s current prime minister, Najib Razak, has been embroiled in the scandal since reports first emerged in 2015, alleging $900 million siphoned from the fund was deposited into his personal bank accounts.
Mr Najib denied all allegations of corruption and said they were part of a conspiracy to topple his government.
His hand-picked Attorney-General, Mohamad Apani Ali, cleared the prime minister of any wrongdoing and said the bulk of the money in his accounts was a gift from the Saudi Arabian royal family.
But the allegation of international money laundering connected to the fund have prompted investigations in Switzerland, Singapore, the UK and the United States.
Last year the US Department of Justice seized $1.3 billion in assets held by close associates and relatives of Mr Najib allegedly siphoned from 1MDB. Singapore also jailed three bankers last year for money laundering connected to the fund.
In total, it has been alleged that between January 2011 and April 2013 more than $1.4 billion (AUD) was deposited into Mr Najib’s personal bank accounts at the Malaysian bank AmBank.
In late 2015 AmBank was fined more than $16 million by the Malaysian banking regulator for non-compliance regarding money laundering allegations.
But Dr Mahathir said Australian law enforcement authorities were turning a blind eye.
ANZ has been the single largest shareholder in AmBank for more than a decade, with a 24 per cent stake.
