Malaysia ex-PM faces corruption charges over $681mn balance

World

21 Sep 2018

Malaysia ex-PM faces barrage of charges over $681mn bank balance

Malaysia's ex-leader Najib Razak arrived in court yesterday to face a barrage of charges relating to $681mn of state funds that allegedly ended up in his personal bank account.

Razak, who suffered a shock election defeat in May, was arrested Wednesday by officials probing claims the former Prime Minister and his cronies looted billions of dollars from state fund 1MDB in an audacious fraud.

Money-laundering

Razak will face 21 money-laundering charges: Police

Razak will face 21 money-laundering charges: Police

Police say Razak will face 21 money-laundering charges related to the mysterious transfer of huge sums into his personal bank account, a key episode in the long-running scandal.

Razak has already been arrested twice and hit with several counts related to 1MDB since losing power, but observers say the latest charges represent a major step forward in efforts to bring him to justice.

Razak, his cronies pilfered huge sums from investment vehicle

Allegations that Razak and his cronies pilfered huge sums from the investment vehicle and spent them on everything from high-end real estate to artwork were a major factor in the defeat of his long-ruling coalition to a reformist alliance headed by Mahathir Mohamad.

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Investigation

Mohamad has ramped up probes in 1MDB scandal

Mohamad, 93, who is in his second stint as premier after coming out of retirement to take on scandal-mired Razak, has ramped up probes in the 1MDB scandal and vowed to have the ex-leader prosecuted.

The 64-year-old Razak was initially detained Wednesday by the Malaysian Anti-Corruption Commission over the alleged bank transfers, before facing further questioning by police yesterday morning.

Charges

Charges against Razak: 9 counts of receiving illegal money

Charges against Razak: 9 counts of receiving illegal money

Deputy National Police Chief Noor Rashid Ibrahim said in a statement that "as many as 21 charges involving $681 million have been prepared".

The charges include "nine counts of receiving illegal money, five counts of using illegal money and seven counts of transferring illegal money to other entities," he said.

However, the police statement did not mention 1MDB.

Allegedly, Razak pocketed $10 million from former unit of 1MDB

Razak has already been charged with money-laundering, criminal breach of trust and abusing his position over claims he pocketed some $10 million from a former unit of 1MDB. He denies any wrongdoing. But the latest charges relate to a key episode in the 1MDB scandal.

First reports

Reports related to money-laundering charges against Razak surfaced in 2015

When reports surfaced in 2015 that huge sums from 1MDB flowed into Razak's bank accounts before a hotly contested election, it dramatically ratcheted up pressure on the leader and his inner circle over the scandal.

The Attorney General later cleared Razak of any wrongdoing, saying the money was a personal donation from the Saudi royal family and closed down domestic investigations.

About 1MDB

1MDB was set up in 2009 and overseen by Razak

1MDB was set up in 2009 and overseen by Razak

As allegations surrounding the 1MDB fund multiplied, Razak became increasingly authoritarian, jailing political opponents, and introducing laws that critics said were aimed at stifling dissent.

1MDB was set up in 2009 and overseen by Razak, with the purported aim of promoting economic development in Malaysia, but accusations quickly mounted the fund was a vehicle for Razak and his cronies to loot state coffers.

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Malaysia

Najib Razak

64-year-old Razak

Attorney General

Deputy National Police Chief Noor Rashid Ibrahim

Mahathir Mohamad

Malaysian Anti-Corruption Commission

MDB

Noor Rashid Ibrahim

PM

Prime Minister

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