Malaysia Central Bank Warned Government in 2014 of 1MDB Risks
- Central bank governor Zeti speaks in interview in Washington
- 1MDB has been subject of probes in Malaysia and abroad
The Tun Razak Exchange (TRX) project, developed by 1Malaysia Development Bhd. (1MDB), foreground, stands under construction as buildings stand illuminated in the distance at dusk in Kuala Lumpur, Malaysia, on Friday, July 17, 2015. As Malaysia Prime Minister Najib Razak faces an investigation sparked by a Wall Street Journal report that $700 million may have wended its way into his personal bank accounts, the ruling coalition has swiftly closed ranks around him. The probe has sparked a raid on the state investment company 1MDB whose advisory board Najib chairs, and spurred calls to resign from opposition lawmakers.
Photographer: Goh Seng Chong/BloombergMalaysia’s central bank warned the government as early as 2014 of risks to the financial system from debt-ridden state investment company 1Malaysia Development Bhd., Governor Zeti Akhtar Aziz said.
Bank Negara Malaysia issued two memorandums to the finance ministry, the sole shareholder of 1MDB, flagging the dangers of the fund’s mounting debt, Zeti said in an interview in Washington on Saturday. She didn’t say how the ministry responded.