Former Malaysian leader arrested, to be charged in graft inquiry

Reporting from KUALA LUMPUR, Malaysia —  Former Malaysian Prime Minister Najib Razak was arrested Tuesday by anti-graft investigators and will be charged over his alleged role in the multibillion-dollar looting of a state investment fund.

A government task force probing alleged theft and money laundering at the 1MDB state investment fund said Najib’s arrest was linked to a suspicious transfer of 42 million ringgit ($10.6 million) into his bank account from SRC International, a former 1MDB unit, using multiple intermediary companies.

It said in a brief statement that Najib will be brought to court on Wednesday to be charged, but didn’t give details of the charges against him.

Najib’s arrest comes nearly two months after his coalition’s stunning rejection by voters in a May 9 general election.

The new government has reopened investigations into 1MDB that were stifled under Najib’s rule. Najib and his wife, who have been questioned over the SRC issue by the anti-graft agency, have been barred from leaving the country. Police have also seized jewelry and valuables valued at more than $272 million from properties linked to Najib, who has denied any wrongdoing.

The anti-corruption agency earlier Tuesday questioned Riza Aziz, Najib’s stepson and a Hollywood film producer, as it stepped up its inquiry into 1MDB. Riza was solemn as he arrived at the anti-graft office and didn’t speak to reporters.

U.S. investigators say Riza’s company, Red Granite Pictures Inc., used money stolen from 1MDB to finance Hollywood films including the Martin Scorsese-directed “The Wolf of Wall Street.” Red Granite in March agreed to pay the U.S. government $60 million to settle claims that it benefited from the 1MDB scandal.

The civil suit against Red Granite was part of an effort to recover some of the $4.5 billion that U.S. prosecutors say was stolen from 1MDB. They say hundreds of millions from 1MDB landed in Najib’s bank accounts.