Malaysia ‘won’t say yes or no’ to reports China offered to bail out 1MDB and spy on journalists in return for infrastructure deals

The Malaysian government struck a note of caution on Tuesday in response to a report China offered to bail out the scandal-plagued 1MDB fund in return for the approval of infrastructure projects.

“[The government] knew that the price [of certain projects] was inflated, but whether there was such a deal, I have to check,” said Lim Guan Eng, the Malaysian finance minister. “I do not wish to say yes or no. I need to check the records to see if there were details explicitly mentioned.

“If this was something explicitly said, black and white evidence on deals, then we will pursue it.”

In the latest twist in the long-running scandal, The Wall Street Journal reported Chinese leaders offered to help derail investigations into 1Malaysia Development Berhad (1MDB), in exchange for the approval of infrastructure projects under Beijing’s multibillion-dollar “Belt and Road Initiative”, which involves the construction of roads, ports, railways and pipelines in more than 50 countries.

Citing the Malaysian government’s summary of the minutes from private, undisclosed meetings between senior officials, the Journal claimed Beijing promised to influence the US and other countries into dropping 1MDB-related probes, and also offered to spy on reporters investigating rumours of mismanagement and money-laundering within the fund. Specifically, the article claimed China’s domestic security force surveilled the paper’s office in Hong Kong at Malaysia’s request – this included wiretapping and data retrieval.

Lim promised the government would investigate these claims, particularly if the debts mentioned were factored into the East Coast Rail Link (ECRL) and the Trans Sabah Gas Pipeline, controversial projects which were backed by China.