4:15PM Jun 19, 2015
A Wall Street Journal (WSJ) report today claimed that 1MDB's funds were used to bankroll Prime Minister Najib Abdul Razak's campaign in the 13th general election.
The report said this was achieved by having 1MDB make overpriced purchase of power assets from Genting Group in 2012.
Genting then made a donation to a foundation controlled by Najib before the 13th general election and it claimed the funds were used for campaigning.
"The 1MDB fund in October 2012 acquired a Genting unit that owned a 75 percent stake in a 720-megawatt gas-fired power plant near Kuala Lumpur.
"The price, which was equivalent to about US$740 million at the time, came to RM2.3 billion.
"A few months after the sale, a unit of Genting called Genting Plantations Bhd made a donation of about US$10 million to a Najib-linked charity, according to a spokesperson for Genting Plantations," said the report.
The foundation, WSJ said, was Yayasan Rakyat 1Malaysia, which lists Najib as chairperson on its website.
"Though set up to help underprivileged Malaysians through education and sport, this charity soon got involved in spending that appeared designed to help Najib retain power in the May 2013 election," it said.
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