Former PM Najib charged with money-laundering
KUALA LUMPUR: Malaysia’s former prime minister Najib Razak was hit with new charges on Wednesday linked to a multi-billion dollar financial scandal that contributed to his shock election defeat in May.
Appearing at a court in Kuala Lumpur, Najib was charged with three counts of money-laundering over claims he pocketed 42 million ringgit ($10.3 million) from a former unit of scandal-hit sovereign wealth fund 1MDB.
These are in addition to the charges he faced last month after he was first arrested — three for criminal breach of trust and a separate count that he abused his position to take the money.
The 65-year-old, who is free on bail, has denied all the charges.
Malaysia’s new government is probing allegations that billions of dollars were looted from 1MDB, which was set up and overseen by Najib, in an audacious fraud that spanned the globe.
Allegations of massive corruption were a major factor behind the electoral earthquake in May that toppled Najib’s long-ruling coalition and ushered in a reformist alliance headed by his 93-year-old former mentor Mahathir Mohamad. In a packed courtroom, the three new charges were read out to Najib. Asked if he understood them, Najib — dressed in a dark blue suit and looking tired — said he did.
His case was transferred to another court, where he entered not guilty pleas, meaning he will stand trial. Trial dates will be fixed on Friday, the judge said.
As he left court, a handful of supporters shouted “long live Najib” while his lawyer Muhammad Shafee Abdullah said the toppled leader believed the case was driven by politics. Najib is facing a long time behind bars if found guilty — the moneylaundering charges carry maximum jail terms of 15 years each, while the other four charges carry sentences of 20 years each.
The money-laundering charges allege 42 million ringgit stemming from illegal activities was transferred to Najib’s bank accounts between December 2014 and February 2015.
All the charges relate to fund transfers from SRC International, an energy company that was originally a subsidiary of 1MDB.
The sums involved are just a fraction of the $681 million that was mysteriously transferred to Najib’s personal bank accounts several years ago, sparking uproar in Malaysia. 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.