FILE - In this Feb. 28, 2018, file photo, the luxury yacht Equanimity is seen in the Benoa harbor in Bali, Indonesia. KUALA LUMPUR, Malaysia -- Malaysia's government said Wednesday that a luxury yacht allegedly bought with money stolen from a troubled state investment fund will be sold to casino operator Genting Berhad for $126 million, half its original price.
U.S. investigators say the $250 million yacht was bought with funds diverted from the 1MDB by fugitive Malaysian financier Low Taek Jho, better known as Jho Low, believed to be a key figure in the theft and international laundering of $4.5 billion from 1MDB. Former Prime Minister Najib Razak set up 1MDB when he took power in 2009 but it accumulated billions in debts. The 1MDB fiasco led to Najib's shocking electoral defeat last May and ushered in the country's first change of power since independence from Britain in 1957.
Thomas said the Genting offer was the highest since the government opened bids for the 300-foot yacht. Although the estimated market value was $130 million, he said there was a saving of $4.4 million in agency commission as the sale was negotiated directly with the government.