Najib charged for 1MDB crimes

Former PM charged with 21 counts of money laundering and 4 counts of corruption


Datuk Seri Mohd Najib Razak faces 25 charges including receiving billions in his personal account, channelling money to associates and misusing his power in what will be the largest money laundering trial in the country’s history.

The ousted former prime minister (PM) was charged yesterday afternoon at the Kuala Lumpur Sessions Court with 21 counts of money laundering involving RM4.3 billion and four counts of corruption involving RM2.3 billion, in relations to 1Malaysia Development Bhd’s (1MDB) funds which were deposited into his personal accounts.

He is charged under Section 23(1) of the Malaysian Anti-Corruption Commission (MACC) Act 2009 and Section 4(1) of the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001 (AMLA).

The 65-year-old Pekan MP pleaded not guilty to the charges, which were read out before Judge Azura Alwi.

Case management was set on Nov 16, 2018.

If found guilty, the country’s sixth PM could face a maximum jail term of not more than 20 years. The former PM was released after the judge set bail of RM3.5 million.

Former Federal Court Judge Datuk Seri Gopal Sri Ram led the prosecution, while Tan Sri Muhammad Shafee Abdullah led the defence team.

Najib said the charges will give him the chance to prove that he is innocent.

“I hope my journey in court will uphold the truth and out to rest this RM2.6 billion issue once and for all,” he said before leaving the court complex yesterday.

Najib is already facing seven charges of abuse of power, criminal breach of trust (CBT) and money laundering involving funds related to 1MDB’s former subsidiary, SRC International Sdn Bhd.

He was arrested and detained overnight by the MACC in Putrajaya on Tuesday, and was whisked to the Bukit Aman’s Commercial Crime Investigation Department at Menara KPJ, Jalan Tun Razak, yesterday morning to get his statement taken.

The former PM was alleged to have received a total of RM2.08 billion deposited to his account in nine tranches — RM155 million, RM155 million, RM155 million, RM188 million, RM231 million, RM138 million, RM152 million, RM304 million and RM602 million respectively.

The monies were transferred from Tanore Finance Corp’s account at the Falcon Private Bank Ltd’s Singapore branch.

Najid also faced charges for five transfers — RM656 million, RM326.8 million, RM327.3 million, RM181.8 million and RM545.8 million — to Tanore.

The Pekan MP had claimed that the money deposited from Tanore and other accounts, amounting to US$800 million (RM3.31 billion), was linked to a Saudi Arabian prince.

The US Department of Justice had previously asserted the US$681 million that made its way into Najib’s account was from Tanore, but that the funds were related to a bond issued by 1MDB in 2013.

The Monetary Authority of Singapore had shut down the Falcon Private Bank’s Singapore branch for serious breaches of anti-money laundering controls and improper conduct by senior management at the branch and its head office in Switzerland.

It was the second financial institution that had been forced to cease operation by the republic’s monetary authority after BSI Singapore. Both banks were alleged to have managed funds related to parties connected to 1MDB.

Najib had also been charged for using the money to make various payments including a RM20 million transfer to his political party Umno, RM100,000 to Batu Kawan Umno in Penang, RM246,000 to an individual Lim Soon Peng, RM2 million to ORB Solutions Sdn Bhd and RM303,000 to Semarak Konsortium Satu Sdn Bhd.

Najib was said to have received and used the illegal money during his term of office between 2011 and 2014.

The MACC has not discounted that more charges will be brought against the former PM, said deputy chief commissioner (operations) Datuk Seri Azam Baki.

“I don’t deny that there will be several other charges made against him (Najib),” he told reporters at the lobby of the Kuala Lumpur Court Complex yesterday.

When asked whether Najib’s wife, Datin Seri Rosmah Mansor, would also be charged, Azam did not deny it.

According to media report, Rosmah may face over 20 criminal charges, mostly on money laundering.


21 counts under AMLA

 1. Receiving monies in 9 tranches of RM155m, RM155m, RM155m, RM188m, RM231m, RM138m, RM152m, RM304m and RM602m from Tanore Finance Corp. *Each transaction carries its own charge.

2. Transferring monies in 5 transactions of RM656m, RM326.8m, RM327.3m, RM181.8m and RM545.8m to Tanore.
*Each transaction carries its own charge.

3. Paying RM20m to Umno.

4. Paying RM100,000 to Batu Kawan Umno

5 Paying RM246,000 to Lim Soon Peng.

6. Paying RM2m to ORB Solutions Sdn Bhd.

7. Paying RM303,000 to Semarak Konsortium Satu Sdn Bhd.

8. Transferring RM12.4m and RM150m in to his own accounts. *Each transaction carries its own charge.

4 charges under MACC Act

1. Using his position as Prime Minister, Finance Minister and chairman of 1MDB advisory board to obtain gratification in 2011 totalling rm60.63m involving the formation of 1MDB, the government guarantee of RM5b loans for the Terengganu Investment Authority, authorising 1MDB to invest US$1b (RM4.14b) in PetroSaudi Ltd, as well as approving investment of another US$1b in the same company later the same year.

2. Using these positions to obtain gratification of RM90.89m by approving 1MDB Energy Holdings Ltd to make a bid of RM10.6b for Tanjong Energy Holdings Sdn Bhd, approve the acquisition of Mastika Lagenda Sdn Bhd for RM2.75b, as well as approving 1MDB to issue US$1.75b loan notes.

3. Using these positions in 2013 to obtain gratification totalling RM2.08b by approving joint venture with Aabar Investments PJS and to approve the Government Letter of Support for 1MDB to raise bonds of US$3b.

4. Using these same positions to obtain gratification of RM49.93m in 2014 by directing the 1MDB board to approve that 1MDB Energy obtain a loan of US$975m from Deutsche Bank AG for the purpose of 1MDB Group IPO.