After years on the run, 1MDB fugitive Jasmine Loo returned to Malaysia in a covert government op

Loo’s return marks an important breakthrough in the ongoing 1MDB investigations and asset recovery campaign. 

Loo is a key member of fugitive financier Low’s elite cabal of lawyers and financiers turned fraudsters. Together with Casey Tang Keng Chee, Tan Kim Loong and Geh Choh Heng, Loo has long been part of Low’s inner circle and all of the collectively played central players in the multi-billion-dollar embezzlement scandal at 1MDB.

Against the backdrop of Loo’s return, some questions have been raised about whether Low, who is better known as Jho Low, would now consider approaching the Malaysian government for settlement negotiations.

Officials are not discounting anything as it moves to resolve all outstanding matters related to the 1MDB scandal. “We are taking things one at a time. This (Loo’s return) is a good outcome and we will see how matters develop from here,” noted a senior administration official close to Home Minister Saifuddin.

Loo, who studied law in the United Kingdom, was a long-time associate of Low. She worked as a senior compliance officer at UBG Group, a corporation that was at one time controlled by Low, before joining 1MDB as senior legal counsel sometime in late 2011. She played central roles in 1MDB’s diversification into the power generation business, purchasing facilities owned by Malaysian listed entities, Tanjong Plc, which is controlled by tycoon Ananda Krishnan, and gaming powerhouse Genting Bhd.

1MDB’s push into the power generation business was financed by bond issues amounting to US$6.5 billion that were arranged by Goldman Sachs. Loo served as the chief liaison officer with the US bank. The 1MDB bond issues were also guaranteed by the Abu Dhabi government through its state-owned entities and the transactions were subject to theft and embezzlement. 

According to the US Justice Department, which called the 1MDB fiasco the worst form of kleptocracy in recent history, over US$1.37 billion was siphoned from 1MDB during the three Goldman-underwritten bonds in 2012 and 2013 and references were made to a so-called “1MDB Officer 3”, which Malaysian government investigators acknowledge is Loo. Of the total amount siphoned, the Justice Department said that about US$10 million ended up in a Swiss bank account held under the name River Dee International SA. “1MDB Officer 3” was identified as the ultimate beneficiary of the account.    

Shortly after former premier Najib Razak was removed from power in the May 2018 general election, Loo and Low’s other cohorts left the country. Low’s key lieutenants were believed to be travelling in China, Macau, and also in Kuwait and Abu Dhabi. 

Loo turned up on the Malaysian radar again when the national graft watchdog Malaysian Anti-Corruption Commission (MACC) began negotiating a settlement agreement with another 1MDB suspect, Kee Kok Thiam, who used to be employed by 1MDB.