Malaysia's Second Chance at Probing 1MDB on Its Own

Investigators in at least 10 countries had been looking at the Malaysian state investment fund known as 1MDB since 2015 and whether it was used for embezzlement or money laundering. The U.S. said more than $4.5 billion flowed from the fund, through a complex web of opaque transactions and fraudulent shell companies, to finance spending sprees by corrupt officials and their associates. U.S. Attorney General Jeff Sessions called it “kleptocracy at its worst.” Yet at home, Malaysia’s government joined 1MDB in insisting all funds were accounted for. That’s changing, with a new administration in power.

The company -- full name, 1Malaysia Development Berhad -- took shape in 2009 under former premier Najib Razak and its early initiatives included buying privately-owned power plants and planning a new financial district in Kuala Lumpur. The fund proved better at borrowing -- it accumulated $12 billion in debt -- than at luring large-scale investment.