1MDB Scandal Essay Example

The 1MDB scandal cost Malaysia billions of dollars of taxpayers' money. 1 Malaysia Development Berhad (1MDB) was created by the former Malaysian prime minister, Najib Razak, to promote economic development in the country. However, the organization was instead used as a platform to embezzle billions of dollars to the private accounts of the president and some of his close allies. The prime minister broke the trust that the members of the public had instilled upon him due to the greed and need for personal development. Even after the details of the scandal was revealed to the public, Najib Razak used his position of power to interfere and delay the process of investigation. The 1MDB scandal is a clear example of how leaders can use public offices for personal and selfish gains.

Is your time best spent reading someone else’s essay? Get a 100% original essay FROM A CERTIFIED WRITER!

Save 25%

The scandal discloses the social and ethical problems that affected Malaysia. When 1MDB was launched in 2009, the strategic development company was meant to carry out investments for the benefit of the Malaysian economy. The Advisory board chairman was entrusted with the responsibility to make crucial decisions on behalf of Malaysians, and in the event help, the country grows economically. However, given the turn of events, Najib Razak must have used his position of power and public influence to facilitate the development of oneself. As a leader, one has the social responsibility of putting public interests first. The 1MDB scandal is a clear instance that leaders ignore their obligation to the public and undertake actions for personal gains. The prime minister is an incompetent leader and a thief and was thus unqualified to occupy the office of power.

The main push factor for this scandal was greed and selfishness by the prime minister. For instance, in the case of the prime minister, money was wired into his personal bank account. Therefore, it only means that the prime minister's intention was to increase his personal wealth. Najib Razak was not a poor person. Therefore, his need for additional wealth was driven by greed. The leader was selfish not consider the poor Malaysians who will have to pay all the debts that 1MDB owed.

Although it was evident that 1MDB had lost a lot of money, progress in the investigation was affected because the perpetrators had the power to influence the investigation. Ideally, the prime minister should have resigned to allow for the investigation into the matter. However, when Najib Razak retained his public position, he quickly reshuffled the cabinet and fired some of the officials just to stall the investigation. He misused the power of the office to intimidate and directly influence the major player in the task force that was supposed to look into the allegation. The prime minister was arrested only after his exit from the office. Therefore, had the Najib Razak resigned, the investigation would have been completed earlier.

There was a criminal breach of trust by the former prime minister. The leader was entrusted with the responsibility to take care of the public interest. However, Najib neglected the responsibility placed upon him and worked towards personal benefits. While the office of the prime minister is supposed to ensure effective utilization of public fund, the prime minister got involved in a corruption scandal. Najib went against the functions of the office he occupied and misused his position as the prime minister and the advisory board chairman to benefit himself. The former prime minister was probably encouraged by his position of power. He felt protected from any form of prosecution or arrest. Even after the scandal and his involvement were known by the public, the leader used his powerful seat to influence the undertaking of investigators. The leader and his accomplices were only thinking of gaining financial benefits and get away with it.

The breach of trust had a significant effect on 1MDB and the public alike. 1MDB lost a lot of money and was left with many debts. The company's operation was affected due to the lack of capital in addition to the lost trust. The business relationship between 1MDB and other companies must have been strained because companies like to distance themselves from the attention that might affect their public relations. Although 1MDB claims to have reclaimed some of the embezzled funds, the unclaimed funds would be beneficial to the company's operation. Apart from the company, the public was also affected. 1MDB is a government-run company that aims to improve Malaysia's economy. Therefore, the corruption scandal, through the lost money and negative public reputation, affected the operations of the company thus its contribution to economic development.

The embezzlement of funds could have been averted had there been structures to keep watch of financial transactions. Being a government-run company, the legislative arm of government should have some influence on the approval of the financial operations. Additionally, the full disclosure of the company's operation to the public will have aided in preventing the occurrence of any corruption incidence. The public disclosure of 1MDB operations would have discouraged any form of breach or embezzlement due to the continuous public scrutiny.

The ethical theory of deontology explains the situations of 1MDB perfectly. According to this theory, people should adhere to their obligation and duties when taking part in decision making when ethics are in play. A person should uphold his responsibility to others or the society because upholding such duty is what is considered ethically correct. The former prime minister was supposed to fulfill his duty as allocated by the office but instead went against them. As the prime minister, he was supposed to ensure that the public funds are used appropriately. He, however, opted to take advantage of his position for personal benefits. A deontologist is expected to keep his promises and follow the law. A person who follows the deontological theory is expected to produce consistent decisions since they are based on an individual's set decision. In the case of the former prime minister, he went against his oath of office as well as the promise he made to the people during the election. The actions by the prime minister went against the theory of deontology.

Conclusion

In summary, the 1MDB scandal is a perfect example of ethical problems in the society. The former prime minister of Malaysia took advantage of the trust that the society had given him and used it for his personal benefit. Greed and selfishness are the main driving force behind the scandal. Had the government put in place various structures to prevent the occurrence of corruption or embezzlement, maybe the scandal would have been avoided. According to deontological ethical theory, the prime minister should have upheld his duty and obligation to the public. The ethical problem in this situation was as a result of violation of the duties as allocated by the office in addition to breaking the law.