KL court orders former Malaysian PM Najib to enter his defence in 1MDB-linked case

Former Malaysian prime minister Najib Razak leaving the Kuala Lumpur High Court complex yesterday. Najib has five court cases spanning 42 criminal charges for corruption and money laundering. PHOTO: EPA-EFE
Former Malaysian PM Najib Razak leaving the Kuala Lumpur High Court complex. Najib has five court cases spanning 42 criminal charges for corruption and money laundering. PHOTO: EPA-EFE

Malaysia's former prime minister Najib Razak will have to defend himself against allegations of abuse of power and money laundering in the misappropriation of RM42 million (S$13.8 million) from a former unit of state fund 1Malaysia Development Berhad (1MDB), a Malaysian court said yesterday.

The court had from July 4 heard testimonies from 57 witnesses, with the prosecution arguing that Najib had knowledge that the RM42 million deposited into his private accounts came from the former 1MDB unit, SRC International.

Najib has a total of five court cases - this one involving SRC International and four others related directly to 1MDB - spanning 42 criminal charges for corruption and money laundering.

Still, while Najib's alleged misappropriation of billions of dollars from 1MDB was a major cause for the ouster of his government in last year's general election, the anger felt by Malays over the scandal appears to have dissipated.

Though shocking details have emerged from the SRC International trial, and from a separate, ongoing 1MDB trial, the 66-year-old politician, who is now known as Bossku (My Boss), is mobbed by Malays wherever he goes.

Umno president Ahmad Zahid Hamidi said yesterday that Najib can still campaign in the Tanjung Piai by-election in Johor.

"He (Najib) came on Sunday night and the response was still extraordinary. Whoever wants to help us, we will give as much space as possible," Mr Zahid told reporters.

Najib will be in Johor again on Friday stumping for the Barisan Nasional candidate ahead of Saturday's polls.

Kuala Lumpur High Court Judge Mohd Nazlan Mohd Ghazali, delivering his decision on the SRC International case yesterday, said the prosecution has established a prima facie case for Najib to answer.

  • The charges

  • The seven charges against Najib Razak in the SRC International trial involves transfer of RM42 million (S$13.8 million) into his accounts:

    • Three counts of criminal breach of trust. If found guilty, he could be jailed between two and 20 years and fined.

    • Three counts of money laundering. If found guilty, he faces a 15-year jail term, a RM5 million fine or a minimum five times the value of the funds, whichever is higher.

    • One count of abuse of power. If found guilty, he is liable for up to 20 years in jail, a fine of RM10,000 or a minimum of five times the value of funds involved, whichever is higher.

"The accused had interest in SRC where he had total control, resulting in RM42 million being deposited into his accounts, which is a result of gratification," said the judge, adding that Najib had wielded enormous influence over SRC International when he was prime minister.

SRC International was a subsidiary of 1MDB before it was placed directly under the purview of the Finance Ministry, with Najib also the finance minister.

Founded in 2011, SRC International was listed as being involved in the energy sector.

SRC International obtained a RM4 billion loan in total from the civil servant pension fund KWAP in 2011 and 2012 with the government acting as the guarantor.

Of the RM42 million that was transferred into Najib's bank accounts, the court heard that RM3.3 million was used to pay off credit card bills in 2014 for jewellery and designer store purchases.

Money also allegedly went to political parties and Najib's home renovations.

During the hearing, witnesses testified that fugitive financier Low Taek Jho played an important role as an intermediary between Najib and company officials, and banks.

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A version of this article appeared in the print edition of The Straits Times on November 12, 2019, with the headline KL court orders former Malaysian PM Najib to enter his defence in 1MDB-linked case. Subscribe