SRC International

Former Malaysian PM Najib Razak to Face 21 More Money Laundering Charges

Najib, who denies any wrongdoing, has faced intense scrutiny since losing a general election to Mahathir Mohamad, who reopened investigations into allegations that billions of dollars were stolen from a state fund 1MDB.

Kuala Lumpur: A total of 21 money laundering charges will be laid against former Malaysian prime minister Najib Razak over a $681 million transfer into his bank account, police said on Thursday, money that allegedly came from scandal-linked state fund 1MDB.

The money-laundering charges include nine counts of receiving illegal proceeds, five counts of using illegal proceeds and seven counts of transferring the proceeds to other entities, deputy inspector-general of police Noor Rashid Ibrahim said in a statement.

Najib, who denies any wrongdoing, was expected to be charged in court later on Thursday over the transfer of funds into his personal bank account. The case is linked to the disappearance of billions of dollars from heavily indebted state fund 1Malaysia Development Berhad (1MDB).

Najib, who founded 1MDB in 2009, has faced intense scrutiny since unexpectedly losing a general election in May to Mahathir Mohamad, who reopened investigations into allegations that billions of dollars were stolen from the fund.

Noor did not say whether the 21 money laundering charges related to 1MDB but lawsuits filed by the United States Department of Justice allege that $681 million made its way into Najib’s account from the fund.

Najib will face additional charges for offences involving the use of one’s office or position for gratification, officials said earlier.

Thursday’s charges will be the second batch levelled against the former premier for alleged crimes linked to 1MDB.

Najib was charged with money laundering, criminal breach of trust and abuse of power in July and August relating to funds of about 42 million ringgit ($10.14 million) that allegedly flowed from SRC International, a former 1MDB unit, into his personal bank account.

Najib has pleaded not guilty to all charges so far and has consistently denied wrongdoing. The SRC trial will begin in February.

1MDB is being investigated by at least six countries, including Singapore, Switzerland and the United States, over alleged money laundering and graft.

SRC had been the initial focus of Malaysian investigators because all the suspicious transactions involving it went through Malaysian entities.

(Reuters)

Former Malaysian PM Pleads Not Guilty to Corruption Charges

Razak 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 1MDB.

Kuala Lumpur: Malaysia’s former prime minister Najib Razak on Wednesday pleaded not guilty to criminal charges related to a probe into allegations of corruption at state fund 1Malaysia Development Berhad (1MDB), less than two months after he was ousted in election.

Razak, 64, 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 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”.

Razak was granted bail set at one million ringgit ($247,000).

“As a public official, which is prime minister and minister of finance, (Razak) used (his) position for self gratification (for a) total of 42 million ringgit,” attorney general Tommy Thomas said referring to the abuse of power charge.

The charges relate to funds that allegedly went from SRC International into Razak’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.

Razak has consistently denied wrongdoing in relation to 1MDB.

In a stunning fall from grace, Razak was arrested from his house on Tuesday as part of the investigations into 1MDB revived by his successor and mentor-turned-foe Mahathir Mohamad who succeeded Razak in the surprise May 9 election.

Razak, 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 prime minister, while some members of Razak‘s United Malays National Organisation party chanted and held up placards in support of their former leader. Some of Razak‘s children were also present in court.

Initial focus

Razak 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 Razak‘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 has been the initial focus of Malaysian investigators as all suspicious transactions involving SRC were made through Malaysian entities, unlike other 1MDB related transactions that went through foreign banks and companies.

A spokesperson for Razak said on Tuesday that the SRC charges and the 1MDB investigations were “politically motivated”, and that Razak would contest the charges and clear his name in court.

Mohamad told Reuters last month that embezzlement and bribery using government money were among the charges being considered against Razak, adding that his former protege was fully responsible for the 1MDB scandal.

Since his election loss, Razak 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.

In a pre-recorded message posted on Twitter after his arrest, Razak said that he was not perfect and that “not all the accusations against me and my family are true”.

“Let investigations be carried out. I have not had a chance to defend myself,” he added.

($1 = 4.0440 ringgit)

(Reuters)

Former Malaysian PM Najib Razak Arrested for Embezzlement

Since a shocking election loss to his mentor-turned-foe Mahathir Mohamad in May, Razak has been barred from leaving the country and has had millions of dollars of items seized from properties linked to him as part of the probe into 1MDB.

Kuala Lumpur: Malaysian anti-corruption agents arrested former prime minister Najib Razak on Tuesday following a probe into how money went missing from a state fund he founded almost a decade ago. Authorities said he would be charged in court on Wednesday.

The 92-year old Mohamad said in an interview with Reuters last month that embezzlement and bribery with government money were among the charges that Malaysia was looking to bring against Razak, adding they had “an almost perfect case” against him.

Razak‘s arrest was in relation to a probe into SRC International, a former 1MDB unit, a task force investigating the fund said on Tuesday. One source close to Razak’s family said he was expected to be charged with abuse of power at SRC.

Anti-graft agents picked up Razak from his home after serving him with a remand order, sources close to the family said. Spokesperson for Razak did not immediately have a comment but Razak has consistently denied wrongdoing.

Founded by Razak in 2009, 1MDB is being investigated in at least six countries for alleged money laundering and graft.

Civil lawsuits filed by the US Department of Justice allege that nearly $4.5 billion from 1MDB was laundered through a complex web of transactions and shell companies.

But the initial focus of the Malaysian Anti-Corruption Commission (MACC) investigation focused on how 42 million ringgit ($10.6 million) went from SRC International to Razak‘s account.

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

MACC has been able to track the money trail from SRC more easily because transactions were made through Malaysian entities, whereas most other transfers of 1MDB funds went through foreign banks and companies.

Malaysian police say they have seized nearly $275 million worth of jewellery, handbags, watches and cash from premises linked to Razak, while authorities have frozen more than 400 bank accounts as part of the 1MDB probe.

Razak‘s wife, Rosmah, has been quizzed by anti-graft investigators in relation to 1MDB and Razak‘s stepson, Riza Aziz, was also giving a statement to the MACC when news broke of Razak‘s arrest.

Riza is the co-founder of Red Granite Pictures, a company that US prosecutors say financed three Hollywood films, including the 2013 Martin Scorsese movie The Wolf of Wall Street, with funds misappropriated by 1MDB.

(Reuters)

Malaysia Issues Arrest Warrant for Financier Jho Low Over 1MDB Scandal

Jho Low as a close ally to former premier Najib Razak is seen as a central figure in the 1MDB scandal, which is the subject of multi-billion-dollar money laundering investigations underway in Malaysia and around the world.

Kuala Lumpur: Malaysia is seeking to arrest financier Low Taek Jho, believed to be residing abroad, over his involvement in a graft scandal at state fund 1Malaysia Development Berhad (1MDB), Prime Minister Mahathir Mohamad said on Friday.

Low, popularly known as Jho Low, was regarded as close to former premier Najib Razak and his family, and is seen as a central figure in the 1MDB scandal, which is the subject of multi-billion-dollar money laundering investigations underway in Malaysia and around the world.

“We are trying to arrest Jho Low, but he is not in the country, and we don’t have extradition rights in the country where he is staying,” Mahathir told reporters.

He did not say which country Low was in.

The Malaysian Anti-Corruption Commission (MACC) had issued an arrest warrant for Low, as well as Nik Faisal Ariff Kamil, a director of the former 1MDB unit SRC International, a source familiar with the matter had earlier told Reuters.

The MACC was also seeking assistance from authorities in countries where Low was believed to be staying, the source said, declining to be identified due to the sensitivity of the matter.

Low advised on investments and negotiated deals for 1MDB, though he never held any official role in the fund.

Warrants were also being prepared for Roger Ng, a former Goldman Sachs Group Inc banker, and 1MDB‘s ex-chief Shahrol Halmi, the source said.

1MDB was founded by Najib in 2009 and is the subject of money-laundering probes in at least six countries, including the US, Switzerland and Singapore.

The US Department of Justice has alleged that more than $4.5 billion was misappropriated from 1MDB, and about $700 million of that went to Najib’s personal bank accounts.

Najib has denied wrongdoing.

On Thursday, MACC issued a notice for Low and Nik Faisal to contact the commission immediately to help in its investigation. Low, through his lawyers, said he would cooperate.

Empowered by a new government elected last month, the agency has relaunched a probe into why $10.6 million from SRC was transferred into Najib’s bank account.

Anti-graft agents have questioned both Najib and his wife, Rosmah Mansor, following his shock election defeat last month to former mentor-turned-foe Mahathir.

Goldman Sachs had helped 1MDB raise $6.5 billion in three bond sales in 2012 and 2013 to invest in energy projects and real estate to boost the Malaysian economy.

Instead, more than $2.5 billion raised from those bonds was misappropriated and used to buy artwork, luxury properties in New York and London, and to pay off gambling debts in Las Vegas, the US Justice Department has alleged.

(Reuters)

Malaysia’s Anti-Graft Agents Seeks Explanation From Ex-PM Over 1MDB Affair

Agents also met with Xavier Justo, a Swiss national who was the first whistleblower in the 1MDB corruption allegations.

Kuala Lumpur: Former Malaysian premier Najib Razak, whose near 10-year rule ended two weeks ago, returned to an anti-graft agency on Thursday to resume his explanation for the suspicious transfers of $10.6 million dollars into his bank account.

The sum represents just a fraction of billions of dollars that went missing from 1Malaysia Development Berhad (1MDB), a state fund founded by Najib, in a scandal that was a key reason why voters dumped him in an election on May 9.

Entering the Malaysian Anti-Corruption Commission, the embattled 64-year-old Najib appeared relaxed, smiling and waving as he walked through a throng of journalists.

Elsewhere in the building, agents met with Xavier Justo, a Swiss national who was the first whistleblower in the 1MDB affair. Journalists saw Justo in the lobby half an hour before Najib arrived.

Najib began making his statement on Tuesday to explain the transfers of 42 million ringgit ($10.6 million) into his bank account that investigators tracked back to a former unit of 1MDB.

Convinced that his former protege was corrupt, 92-year-old Mahathir Mohamad, who had quit as prime minister in 2003 after leading Malaysia for 22 years, came out of retirement to join the opposition and defeat Najib.

Mahathir has barred Najib and his wife, Rosmah Mansor, from leaving the country, and ordered the anti-graft agency to investigate where 1MDB’s money went.

On Sunday, Mahathir met Justo. It was documents leaked by the former director of energy group PetroSaudi International, which ran an energy joint venture with 1MDB from 2009 to 2012, that triggered investigations in at least six countries.

Mahathir has also accused Najib’s government of understating Malaysia’s national debt, saying the true figure is 1 trillion ringgit ($250 billion), equivalent to 65 % of the gross domestic product, whereas Najib put the figure at 50.9 %.

In a late night Facebook post on Wednesday, Najib said Mahathir and his finance minister’s “alarming and confusing” remarks about the country’s debts and 1MDB liabilities “tell half the story” and had caused the stock market to fall.

“While you may want to slander and put all the blame on me to give a perception of a dire financial position to justify why you cannot deliver on your manifesto promises…you must remember that the country and our people comes first,” he wrote.

Najib has consistently denied any wrongdoing at 1MDB.

Investigators have already searched Najib’s home and several properties, seizing cash, jewellery and luxury items estimated to be worth millions of dollars.

The Star newspaper reported on Thursday that the cash found totalled 130 million Malaysian ringgit (nearly $33 million).

Just the start

The initial focus of the Malaysian Anti-Corruption Commission’s probe into 1MDB is on transfers of 42 million ringgit from SRC International to Najib’s account.

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

In a separate development, Malaysia’s central bank said on Thursday that it has given the anti-graft investigators details of a government land sale transaction. Two sources with knowledge of the matter told Reuters that Najib’s government gave the 2 billion ringgit proceeds to cover some of 1MDB’s liabilities.

Two sources also told Reuters that Najib’s government had used money raised from a deal with sovereign wealth fund Khazanah Nasional Berhad to pay off some of 1MDB’s liabilities.

Khazanah paid the government 1.2 billion ringgit ($301.05 million) in mid-2017 in exchange for redeemable shares that the finance ministry owned, the sources said, adding that the funds were used to pay some of 1MDB’s dues to Abu Dhabi fund IPIC.

1MDB had agreed to pay $1.2 billion to IPIC as part of a settlement agreement reached in April 2017 after 1MDB defaulted on its bonds.

The finance ministry did not immediately respond to requests for comment.

($1 = 3.9860 ringgit)

(Reuters)