'$4b missing from Malaysia state fund'

Switzerland's chief prosecutor said on Friday a criminal investigation into state fund 1Malaysia Development Berhad (1MDB) had revealed that about $4 billion appeared to have been misappropriated from Malaysian state companies.

The office of Swiss Attorney General Michael Lauber said it had formally asked Malaysia to help with its probes into possible violations of Swiss laws related to bribery of foreign officials, misconduct in public office, money laundering and criminal mismanagement at the fund.

It said it had identified four cases of alleged criminal conduct.

1MDB, whose advisory board is chaired by Malaysian Prime Minister Najib Razak, has been probed by Malaysian authorities following accusations of financial mismanagement and graft.

Earlier this week, Malaysia's attorney general cleared Najib himself of any criminal offences or corruption, declaring that $681 million deposited into his personal bank account was a gift from Saudi Arabia's Royal family.

The Malaysian attorney general's office said in a statement yesterday it would take all possible steps to follow up and collaborate with its Swiss counterpart.

Najib has consistently denied any wrongdoing, saying the funds were a political donation and he did not take any money for personal gain.

The Swiss authorities began investigations last August into 1MDB for suspected corruption of public foreign officials, dishonest management of public interests and money laundering.

Lauber's office said a small portion of the apparently misappropriated money had been transferred to accounts held in Switzerland by former Malaysian public officials and current and former public officials from the United Arab Emirates.