Otago Daily Times

Not guilty plea in corruption case

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KUALA LUMPUR: Malaysia’s former prime minister, Najib Razak, pleaded not guilty to criminal charges yesterday related to a probe into allegation­s of corruption at state fund 1MDB, less than two months after he was ousted in a stunning election.

Najib (64) nodded as he was charged with abuse of power and three counts of criminal breach of trust as part of an investigat­ion into a transactio­n involving SRC Internatio­nal, a former unit of 1Malaysia Developmen­t Berhad (1MDB).

Each of the four charges carries a prison sentence of up to 20 years. The abuse of power charge carries a fine of not less than five times the ‘‘value of gratificat­ion’’.

Najib was granted bail set at 1 million ringgit ($NZ365,000).

‘‘As a public official, which is prime minister and minister of finance, [you] used your position for selfgratif­ication [for a] total of 42 million ringgit,’’ Attorneyge­neral Tommy Thomas said, referring to the abuse of power charge.

The charges relate to funds that allegedly went from SRC Internatio­nal into Najib’s personal bank account, but are only a fraction of the billions of dollars the US Department of Justice has said was misappropr­iated from 1MDB.

Najib has consistent­ly denied wrongdoing in relation to 1MDB.

In a stunning fall from grace, Najib was arrested at his home on Tuesday as part of the investigat­ions into 1MDB revived by his successor and mentorturn­edfoe Mahathir Mohamad since the surprise May 9 election.

Some of Najib’s children were present in court.

Najib, who spent the night in detention, arrived at the court complex in the capital, Kuala Lumpur, wearing a dark blue suit and a red tie.

Crowds of media and onlookers jostled to catch a glance of the former premier, while some members of Najib’s UMNO party chanted and held up placards in support of their former leader.

Najib came to power in 2009 and soon founded 1MDB, which is being investigat­ed in at least six countries for alleged money laundering.

SRC, created in 2011 by Najib’s government to pursue overseas investment­s in energy resources, was a unit of 1MDB until it was moved to the finance ministry in 2012.

SRC was the initial focus of Malaysian investigat­ors as all the suspicious transactio­ns involving the firm were made through Malaysian entities, unlike other 1MDBrelate­d transactio­ns that went through foreign banks and companies.

A spokesman for Najib said on Tuesday the SRC charges and the 1MDB investigat­ions were ‘‘poli tically motivated’’, and Najib would contest the charges and clear his name in court.

Since his election loss, Najib has been barred from leaving the country and investigat­ors have seized luxury handbags, jewellery and other items worth millions of dollars from properties linked to his family. — Reuters

 ?? PHOTO: REUTERS ?? Facing the music . . . Former Malaysian prime minister Najib Razak arrives in court in Kuala Lumpur, Malaysia, yesterday.
PHOTO: REUTERS Facing the music . . . Former Malaysian prime minister Najib Razak arrives in court in Kuala Lumpur, Malaysia, yesterday.

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