Muhyiddin: 1MDB could've been a Temasek, but turned out a scam

Reminiscing on the early days of 1MDB’s establishment, Bersatu president Muhyiddin Yassin has described the state investment fund as a get-rich-quick scheme for certain individuals.

At a ceramah in Senggerang, Batu Pahat last night, the former deputy prime minister said he thought 1MDB was founded on the same goals as Temasek Holdings, the Singapore state-owned enterprise that now holds S$275 billion (RM816 billion) in assets.

“I though his (Prime Minister Najib Abdul Razak’s) intent was good. Malaysia has a lot of wealth that would be used to create more wealth.

“Temasek Holdings was founded during (late Singapore former prime minister) Lee Kuan Yew’s time, and at the time Singapore had a sizeable reserve. With good management, it was invested in various sectors to generate (returns many times over),” he told an audience of about 300 people.

1MDB, previously known as the Terengganu Investment Authority, was founded by Najib who also served as its advisory board chairperson.

However, it then became embroiled in allegations of wrongdoing and misappropriation.

The scandal returned to the media spotlight late last month when Indonesian authorities seized the superyacht Equanimity, which was allegedly purchased using funds misappropriated from 1MDB.

1MDB insists, however, that all its money is accounted for.

Meanwhile, Muhyiddin said the seemingly honest intent behind the investment entity turned out to be a scam for several individuals to make a quick buck.

“It was founded with only RM1 million in capital but then borrowed billions in loans. The intent had changed – a company for generating wealth (for the nation) had become a get-rich-quick scheme.

“Just as there are ‘Pak Man Telo’ schemes… and there are laws to control such schemes, those responsible must be arrested and punished.

“That is 1MDB. It’s goal was to generate wealth but in reality is a trickery. Unfortunately, the person behind it is Najib,” he said.

Najib had admitted that there were lapses in 1MDB’s governance, but claimed that this had been played up by certain parties. He had also repeatedly denied wrongdoing and was exonerated by attorney-general Mohamed Apandi Ali.

Pak Man Telo, the nickname given to Osman Hamzah, had masterminded a get-rich-quick scheme that was popular in the 1970s and 1980s, until he was raided by Bank Negara authorities in 1989. He reportedly scammed nearly 50,000 investors.

In his speech, Muhyiddin said he heard of Pak Man Telo in Kedah when he was the domestic trade and consumerism minister between 1999 and 2003. -Mkini