Kleptocracy Through Weak Governance at State-Owned Corporations
1Malaysia Development Berhad (1MDB), a state-owned company purportedly established for the benefit of the Malaysian people, was a vehicle for former Prime Minister Najib Razak to steal billions of dollars over close to nine years. Called “kleptocracy at its worst” by then-U.S. Attorney General Jeff Sessions, the scandal raised the question of why Malaysian corporate law, modeled on international standards, failed to safeguard against expropriation of such magnitude. In my new article, I explore this question, highlighting how corporate governance frameworks can be strengthened to guard against similar debacles.
The Doing Business 2020 index ranks Malaysia as second highest … Read more