Greens Senator Lee Rhiannon has called on the federal government to instruct authorities and the banking royal commission to investigate Australian links to Malaysia’s 1MDB corruption scandal.
The call comes as Malaysia’s former prime minister Najib Razak was charged with three counts of criminal breach of trust on Wednesday, after allegedly siphoning millions out of 1MDB, a sovereign wealth fund he established in 2009.
Senator Rhiannon told SBS News that Australia should follow the lead of the United States and Singapore, who have both launched major investigations and asset recovery initiatives connected to the fund.
"There is a role for Australia using AUSTRAC [Australia's financial intelligence agency] and possibly the Australian banking royal commission that is on right at the moment, to determine what happened, and to ensure that money, if it has been abused and funneled to people inappropriately, that it is returned to the people of Malaysia," she said.
The charges in Malaysia may shine a new light on Australian links to the scandal, with banking giant ANZ drawn in by its connection to a Malaysian bank.
Mr Najib’s bank accounts connected to the alleged money laundering were held with the Malaysian bank AmBank, of which ANZ is the single largest shareholder, holding a 24 per cent stake.
That stake purchased in 2006 enabled ANZ to appoint key management positions in the bank, as well as hold four seats on the 12-seat board.
ANZ’s current CEO Shane Elliott sat on the board of AmBank during the period from 2013 and 2015.
ANZ has denied any wrongdoing and said none of its staff had anything to do with 1MDB or alleged money laundering at AmBank.
Last year SBS News exclusively revealed the full AmBank board, including three ANZ representatives, were briefed on the suspicious transactions into Mr Najib’s accounts between September 2014 and November 2014.
After the briefing, the board then instructed AmBank CEO Ashok Ramamurthy to report the suspicious transactions to the Malaysian banking regulator.
Mr Najib suffered a shock election loss in May, as Malaysia’s ruling coalition was ousted after governing the country since independence in 1957.
The elections swept the opposition coalition, headed by 92-year-old former premier Mahathir Mohamad, to power.
On election night Dr Mahathir told reporters the new government would not seek “revenge” on the former ruling coalition.
“What we want is to restore the rule of law,” Dr Mahathir said.
In the two months since the election, Dr Mahathir has established a special task-force to investigate 1MDB and reinstated former prosecutors who were dismissed by Mr Najib.
Mr Najib has denied any wrongdoing and released a pre-recorded social media video hours after his arrest defending himself against the accusations.
"I am not perfect but believe me, that the accusations against me and my family are not all true,” he said.
Do you know more? Email jarni.blakkarly@sbs.com.au
