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Australian police seize files over Malaysia property "kickback" deals

Xinhua, June 25, 2015 Adjust font size:

The Australian Federal Police (AFP) launched raids on Thursday as part of an international bribery and money-laundering investigation involving Malaysian officials.

Computers and files were seized from houses across Melbourne as federal agents launched their most public operation related to Australian property purchases linked to corruption.

Operation Carambola was launched by the AFP after the discovery of a scheme where Malaysians used multi-million dollar Australian properties to launder funds and return "kickbacks" to Asia, Fairfax Media reported on Thursday.

Thursday was the first time the AFP had launched a full-blown operation, months after Treasurer Joe Hockey said the government and various federal agencies would be closely analysing foreign investment purchases.

A student accommodation block in Melbourne was inflated by more than 3.6 million U.S. dollars to provide kickbacks to a group of Malaysian officials, Fairfax Media reported on Tuesday.

Another 60 million U.S. dollars of property, including office and apartment blocks in the center of Melbourne, are implicated in dealings with the group of high-ranking Malaysian officials.

The report sparked investigations from Malaysia on Wednesday after Prime Minister Najib Razak called for a full probe.

About 150 small Australian tradesmen claim they were not paid properly for building the property.

"This deal has ripped off Australians and involves serious corruption but no one has been held to account," window maker John Bond told Fairfax Media on Thursday.

According to confidential emails and property records, the Malaysian group, associated with a Malaysian government agency called MARA, was paid a 3.6 million U.S. dollar bribe via bogus invoices for non-existent services, including "professional advice" and "consultancy and advisory fees".

An Australian developer told the Victorian Supreme Court his Malaysian business partners were of "high rank" and "likely to be well connected".

Another party involved, dual Australian and Malaysian citizen Dennis Teen, told the court "we are not saints .. we just want a deal done." Endi