TEMPO.CO, Jakarta – The seizure of the luxury yacht Equanimity at Benoa Harbor, Bali, is a slap in the face for the government of Malaysian Prime Minister Najib Razak. Thought to have been bought from the proceeds of embezzlement from the government investment institution 1Malaysia Development Berhad (1MDB), the yacht was seized by Indonesian police acting on a request from the United States Federal Bureau of Investigation (FBI).
The 1MDB saga began with the establishment of the Terengganu Investment Authority, a financial institution of Malaysia’s Terengganu State, in January 2009. Less than a year later, Prime Minister Najib Razak took control of the institution and positioned it under the central government with Najib as chair of the advisory board. At the time, 1MDB was involved in many major investments, including infrastructure construction and the energy sector.
1MDB, which funded these projects from selling bonds, began to come under the spotlight in the last