Najib, Malaysia fund ex-CEO face fresh corruption raps

KUALA LUMPUR (Reuters) — Malaysian prosecutors yesterday filed new graft charges against former prime minister Najib Razak and the former chief executive of scandal-linked state fund 1Malaysia Development Berhad (1MDB), in the latest cases over alleged theft of billions of dollars from the fund.

Anti-graft investigators this week questioned Najib and the former fund official over accusations that the former premier’s office had tampered with a 2016 government audit into the fund, 1MDB.

The audit was commissioned amid reports of skyrocketing debt and financial mismanagement at the fund, founded by Najib in 2009.

Najib had “secured protection from disciplinary, civil or criminal action related to 1MDB” by directing for the audit report to be amended before it was finalized, according to a prosecutors’ charge sheet read to him at the court.

Najib pleaded not guilty to a charge of abusing his position as prime minister, a conviction on which carries a jail term of up to 20 years or a fine of 10,000 ringgit, or both.

The fund’s former chief executive, Arul Kanda Kandasamy, pleaded not guilty to abetting Najib.

Najib’s lawyer, Muhammad Shafee Abdullah, said his client could not have tampered with the audit, as he was only accused of having directed changes to a draft of the report, rather than the final version.

“In this charge, it’s quite clear that it is no longer the allegation...that he had in fact tampered with the audit report,” Muhammad Shafee told reporters.

Malaysian officials had said the audit report changes that Najib ordered had included removing a mention of the presence of financier Low Taek Jho at a 1MDB board meeting.

Low, who is at large and has previously denied wrongdoing, has been charged by both Malaysian and United States authorities, who describe him as a central player in the alleged theft of about $4.5 billion dollars from 1MDB.