The French courts are investigating allegations of corruption in the purchase of two submarines and one
Agosta-class submarine from French naval dockyards unit, Direction des Constructions Navales International (DCNI), by the Malaysian Ministry of Defense in 2002. The $2 billion deal was brokered by Baginda who was at that time a defense analyst at the Malaysian Strategic Research Centre think-tank. The investigation is looking into bribes of $200 million involving companies belonging to Baginda and his family members, namely Perimekar, KS Ombak Laut Sdn Bhd and Terasasi (Hong Kong) Sdn Bhd.
Shaariibuugiin Altantuyaa, a Mongolian woman allegedly hired as a French translator to facilitate the purchase of the submarines and mistress to Baginda, was found murdered after she demanded a $500,000 commission on the deal. Baginda was acquitted of the charge of conspiracy of the murder of Altantuyaa by the Malaysian courts, and the father of Altantuyaa filed a RM100 million civil suit against Baginda, the two policemen accused of her murder and the Malaysian government. On 1 August 2017, according to a French judicial source, he was charged in France on July 18 with “active and passive complicity in corruption” and “misappropriation of corporate assets”. Four others including two former DCNI chairmen, Philippe Japiot and Dominique Castellan, and two former heads of Thales International Asia (Thint Asia), Bernard Baiocco and Jean-Paul Perrier were also charged. On August 23, 2018, the Shah Alam High Court allowed the government's application to strike out the suit filed by the family of Altantuyaa against the two police officers, the Malaysian government and Baginda. The Court of Appeals overturned that decision on March 14, 2018. On September 6, 2018, the federal government agreed to hear the government's leave to appeal against the Court of Appeal's decision to reinstate the lawsuit. == Personal life ==