Former Malaysia PM faces new money-laundering charges
Malaysia’s former prime minister Najib Razak faced with new charges yesterday linked to a multibillion-dollar financial scandal that contributed to his shock election defeat in May.
Appearing at a court in Kuala Lumpur, Mr Najib was charged with three counts of money laundering over claims he pocketed 42 million ringgit (Dh37.9m). He pleaded not guilty. He faces up to 15 years in jail for each charge.
These are in addition to the charges he faces after being arrested last month – three for criminal breach of trust and a separate count that he abused his position to take the money.
He faces up to 20 years in jail for each of those charges, which he has also denied.
Malaysia’s new government is investigating allegations that billions of dollars were looted from state fund 1MDB, which was set up and overseen by Mr Najib, in what is alleged to be an audacious fraud that spanned the globe.
Allegations of corruption were a major factor behind the electoral earthquake in May that toppled Mr Najib’s ruling coalition and ushered in a reformist alliance headed by his former mentor, Mahathir Mohamad, 93.
His case was transferred to another court, where he entered not guilty pleas, meaning he will stand trial.
The new charges allege 42 million ringgit stemming from illegal activities was transferred to a bank account between December 2014 and February 2015.
All the charges relate to SRC International, an energy company originally a subsidiary of 1MDB. According to an investigation by The Wall
Street Journal, about $10m (Dh36.7m) originating from SRC was transferred to Mr Najib’s personal bank accounts.
This is only a fraction of the $681m mysteriously transferred to Mr Najib’s personal bank accounts several years ago, sparking uproar in Malaysia.
The attorney general at the time cleared Mr Najib of wrongdoing.
Mr Najib, who has consistently denied any wrongdoing, and his allies are accused of plundering billions of dollars from 1MDB to buy everything from US real estate to artworks.
The US Department of Justice, which is seeking to recover items allegedly bought with stolen 1MDB cash in America, estimates that $4.5bn was looted from the fund.
After Mr Najib’s election defeat, police seized a vast trove of items – including expensive handbags and jewellery – with an estimated value of up to $273m from properties linked to him.
Investigations into 1MDB have been moving swiftly.
On Tuesday, a luxury yacht allegedly paid for with about $250m stolen from 1MDB arrived outside Kuala Lumpur after being handed over by Indonesian authorities, who impounded it.