Former Malaysian PM Najib Razak Arrested in 1MDB Probe.
QUEST: Malaysia's sovereign wealth fund was meant to make the lives of average Malaysians better. Today, the country's former prime minister was once again arrested as part of a scandal that saw billions of dollars siphoned out of the government coffers. This time, officials are alleging that Najib Razak tried to tamper with the audit report on 1MDB. Sections of the report were apparently deleted. Now, Najib was released on bail after about two and a half hours questioning. The missing sections have to do with the Jho Low. Now, who is Jho Low? Jho Low is a fugitive who's suspected of helping to steal the money. What did the money go on? The money went on some extraordinary things. For example, this giant yacht which has just been sold cost $250 million, and it was found in Bali. And then you have this, this is useful. The see-through piano reportedly given to a super model now in her home in Malibu. I'm not sure if she -- it includes the ivories. And then there's the Bombardier business jet valued at $35 million, and the plane was located in Singapore -- oh, yes, a condo in this very building, in Time Warner Center, $30 million in cash was paid for it. Last month, I sat down for an exclusive interview with Malaysia's Prime Minister in- waiting Anwar Ibrahim, he told me the entire system had failed to prevent this scandal. And Ibrahim wants those responsible, especially the bank accused of money laundering, Goldman Sachs, you know, he says to pay up.</s>ANWAR IBRAHIM, PRESIDENT, PEOPLE'S JUSTICE PARTY: If it is purely a business transaction and you lose, it is a fault, but it's not a crime. Here, you actually squander the money.</s>QUEST: What were they doing with it?</s>IBRAHIM: Well, they bought whatever you can imagine, monarch's painting, huge apartments in New York, planes and ship, yachts, whatever they can find, and diamonds and every -- and all of this is recorded. You cannot imagine -- that is why I think people make reference to this as one of the greatest scandals involving a government. But again, what does it show? The entire system has failed. The elites were compromised. It's not just the institutions, the elite, the ruling elite, the vast numbers, the professors, the scholars, the academicians, the corporate leaders were all either complicit or muted, and that's why we are landed in this fiasco now.</s>QUEST: So how much are you looking for?</s>IBRAHIM: That I will leave it to the Ministry of Finance.</s>QUEST: You must have a number in mind, 1 billion, 3 billion, 5 billion.</s>IBRAHIM: Well, it should at least be double of this certainly.</s>QUEST: Really?</s>IBRAHIM: Yes.</s>QUEST: Ten billion.</s>IBRAHIM: No, I mean, the number of what we lost.</s>QUEST: Oh, so you're talking about over a billion?</s>IBRAHIM: Yes --</s>QUEST: And if they don't pay, what will you do?</s>IBRAHIM: Go to the courts --</s>QUEST: What about --</s>IBRAHIM: In every country possible, where they were involved. You know, but here in Malaysia, in the United States, sure.</s>QUEST: So you're determined to make as much trouble for them as you can?</s>IBRAHIM: No, we want -- we want enough resources back to serve our people. I don't believe that the country must suffer or the people must suffer just because of the greed of some of this corporate leaders.</s>QUEST: Bradley Hope is the co-author of "Billion Dollar Whale", a book on Jho Low. He's in London. I just started reading the book, sir, flying back from San Francisco, it's a superb book and it raises the question when you hear Najib Razak arrested again today, how much of this scandal do we know?</s>BRADLEY HOPE, AUTHOR: Well, this was just really one of the smallest parts of the scandal. I was kind of tampering with a document in Malaysia, and I think the full extent of this whole thing, it'll take years to understand, even just getting to where we are now, we kind of understand some of the big flows of money that they -- thefts, and some of the outrageous spending. But we don't know a lot of detailed stuff.</s>QUEST: There was -- I suppose there's two ways to look at it. There's outrageous spending which you can dress up as being, you know, acceptable because you have put in a receipt, and -- or you've done it through the company books properly, even though you shouldn't have spent that money. And then you've got simply money out of the till, into your back pocket, cash on the way out. How much of that was going on?</s>HOPE: Well, this fund raised about $13 billion in debt, and of that, the estimates go from between $5 billion and $7 billion were outright stolen.</s>QUEST: Why have they not managed to catch Jho Low?</s>HOPE: Well, Jho Low is believed to be hiding in China. He's been there since late 2015, and also around Asia, and it's believed that he has protection from the Chinese government. He's played this sort of crucial role as an intermediary between Malaysia and China at a time when Malaysia was very vulnerable by the very scandal he created. He kind of created an opening for China to take a more decisive role in Malaysian affairs and in shifting them towards China.</s>QUEST: But he will not be able to raise his head again, will it? I mean, if he turns up in any reputable market-based rule of law jurisdiction, he'll be -- he'll be -- he'll be locked up.</s>HOPE: Yes, I mean, there's several -- he's been indicted in Malaysia, he's been indicted in the United States and there's Interpol request from all of these countries including Singapore. I think if he shows up anywhere using his real name, he'll immediately be arrested especially any country that participates in Interpol. But it seems like that will be unlikely for him to do that for a while. I mean, he's probably going to try to have to lay low.</s>QUEST: Good to see you, sir, thank you, come back and talk more about this. It is a fascinating and we're going to need your help to understand it, thank you.</s>HOPE: Thank you.</s>QUEST: Last few moments of trade on Wall Street. And well, look at that, I thought we were going to be green for the day, of course we've still got another five minutes to go. I think the graph basically shows you the day, the fluctuations throughout the day. Up at the open heavily down around 11 O'clock on some Brexit fears, comes back to the afternoon and literally bouncing around at the moment. It is up at the moment, up 62 points, just a quarter of 1 percent. But there are losers, the banks are down, JPMorgan, Amex, Goldman and energy stocks are also having a difficulty. If you look down here, JPMorgan is the biggest loser of the day. Chase, ExxonMobil is down, Goldman Sachs, Chevron, and yet showing the interesting nature of the undercurrents, the tech at the top is up. We'll have a profitable moment after the break.