(Aug 28): Malaysia’s former leader Najib Razak appeared in court Wednesday to stand trial to 25 money-laundering and corruption charges linked to 1MDB, his biggest case related to the troubled state fund.
The charges revolve around 1MDB’s multibillion-dollar bond sales and acquisitions. That includes accusations he received 2.08 billion ringgit ($687 million) of bribes related to a letter of government support for US$3 billion of 1MDB bonds in 2013, as well as allegations he accepted 49.9 million ringgit linked to a US$975 million loan facility from Deutsche Bank AG. He has pleaded not guilty to all the charges.
The start to the proceeding was postponed many times as it clashed with Najib’s first 1MDB trial, which involved local transactions by the state fund’s former unit. The delays point to the massive task Prime Minister Mahathir Mohamad has ahead of him in getting to the bottom of the 1MDB scandal. Since wresting power from Najib last year, the prime minister has prioritized investigations into the scandal, as well as recouping funds believed to be lost through the scandal-ridden fund.
Goldman Sachs Group Inc.’s lawyer is also present in court to hold a watching brief. Malaysia has charged three of the bank’s units as well as 17 of its current and former directors over US$6.5 billion of bond in bonds the bank arranged for 1MDB in 2012 and 2013.
Multiple Charges
Here are a few of the charges Najib faces today:
- He allegedly received 90.9 million ringgit linked to 1MDB deals, including:
- Joint venture with PetroSaudi International Ltd. costing US$1 billion and subsequent 1 billion ringgit investment in the JV
- 10.6 billion ringgit bid for Tanjong Energy Holdings Sdn.
- 2.75 billion ringgit purchase of Syarikat Mastika Lagenda Sdn. shares
