Zurich(Reuters) - Swiss prosecutors said on Tuesday they were investigating two officials from Saudi Energygroup PetroSaudi International as part of a wider inquiry into the suspected theft of assets from Malaysia's 1mdbstate fund.
PetroSaudi said on Tuesday it was not itself the subject of any criminal investigations, denied any wrongdoing linked to its joint venture with the Malaysian fund, and said none of its officials had been involved in misappropriating any funds.
The Newsof the Swiss investigations marked an escalation in international inquiries into the suspected thefts, piling pressure on Malaysia%27s Governmentin the build-up to May 9 national elections.
1mdbis at the centre of money-laundering probes in at least six countries, including Switzerland, the United Statesand Singapore A total of $4.5 billion was misappropriated by high-level officials of the fund and their associates, according to civil lawsuits filed by the U.s. Department Of Justice
The Swiss Attorney General's office said on Tuesday it had launched investigations into two officials from PetroSaudi - which ran an Energyjoint venture with 1mdbfrom 2009 to 2012.
The investigations, first launched in November 2017, were linked to "suspicions of criminal mismanagement, fraud, bribery of foreign public officials, aggravated money laundering and misconduct in public office," the Attorney General's office said.
"One of the two suspects is also suspected of document forgery," it added, without identifying either suspect. It said it had kept the inquiries under wraps to avoid jeopardising the investigation.
LOOMING ELECTIONS
Malaysian Prime MinisterNajib Razak, who set up 1malaysia Development Berhad(1MDB) in 2009 and served as chairman of its advisory board, has denied any wrongdoing. He is seeking re-election on May 9.
PetroSaudi's solicitors Carter-rucksaid the company was aware of an inquiry by Swiss authorities related to 1MDB, and was ready to cooperate fully.
"PetroSaudi denies any wrongdoing in connection with its Joint Venture with 1mdband it rejects any claims that it, or any of its officials, are involved in the misappropriation of funds from 1MDB," the Lawfirm said in an email.
The fund issued a statement calling for "all parties to refrain from politicising any alleged investigation by the Swiss authorities on non-Malaysian nationals, and, during this sensitive General Electionperiod, desist from trying to create links to 1mdbfor political gain."
"We wish to state in the strongest possible terms that 1mdbis not the subject of any criminal investigation either in Malaysiaor internationally," it added in a statement.
Swiss prosecutors are also reviewing a criminal complaint filed against two former colleagues and an alleged accomplice by Xavier Justo, a former Directorof Petrosaudi International Ltdand a key figure in the 1mdbaffair.
Justo has told Reutershe was trying to clear his name after being jailed in Thailandfor blackmailing his former employer over its ties to scandal-hit 1mdb
It was documents that Justo leaked after he left PetroSaudi in 2011 that triggered the international investigations.
(Reporting by Michael Shieldsin Zurich, additional reporting by Praveen Menonin Kuala Lumpur, Alexander Cornwell and Rania El-Gamal in Dubai; Editing by Andrew Heavens)
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