Sunday, July 01, 2012

Sensational Malaysian submarine scandal resurfaces...

A scandal linking Malaysia's leader, a young woman's murder and alleged kickbacks in a French submarine deal has resurfaced as a potential danger for the government as elections loom.

Even by the corruption-prone standards of Malaysia's long-ruling coalition, which since 2009 has been headed by Prime Minister Najib Razak, the Scorpene case is explosive.

It centres on allegations that French submarine maker DCNS paid commission of more than 114 million euros (US$142 million) to a purported shell company linked to Abdul Razak Baginda, a former close associate of Najib.

Malaysia's opposition claims the payments were kickbacks to top officials involved in a US$1.1 billion deal for Kuala Lumpur to buy two Scorpene-class attack submarines.

Abdul Razak's Mongolian mistress, who was said to have demanded a payoff for working as a language translator in the deal, was shot dead and her body blown up with plastic explosives near the capital in 2006.

But the extraordinary affair sank off the radar in 2008 when a Malaysian court cleared Abdul Razak of abetting the murder, sparking an outcry and opposition allegations of a huge cover-up. Full story...

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