Former PM Malaysian PM Najib faces biggest 1MDB trial

Malaysia’s former prime minister Najib Razak will have to fight 21 charges of money laundering and four of abuse of power for receiving illegal transfers of about 2.3 billion ringgit between 2011 and 2014. (AFP)
Updated 16 August 2019

Former PM Malaysian PM Najib faces biggest 1MDB trial

  • Najib Razak, who lost a general election last year, has been hit with 42 criminal charges of graft and money laundering
  • 1MDB, founded by Najib in 2009, is being investigated in at least six countries

KUALA LUMPUR: Malaysia’s former prime minister, Najib Razak, on Monday faces the biggest of five trials linked to a multi-billion-dollar scam at state fund 1MDB, although lawyers are seeking a delay to allow time for the completion of a previous trial.
Najib, who lost a general election last year, has been hit with 42 criminal charges of graft and money laundering at 1Malaysia Development Berhad (1MDB) and other state entities.
1MDB, founded by Najib in 2009, is being investigated in at least six countries, and the US Department of Justice says about $4.5 billion was misappropriated from the fund.
In his second trial at the Kuala Lumpur High Court, Najib will have to fight 21 charges of money laundering and four of abuse of power for receiving illegal transfers of about 2.3 billion ringgit ($550.8 million) between 2011 and 2014.
He has pleaded not guilty and says the charges are politically motivated.
On Friday, prosecutors handed to the defense thousands of pages of documents related to the case, government lawyer Ahmad Akram Gharib told Reuters.
“Under the rules, a trial can only begin at least two weeks after all the related documents are handed over,” he said, adding that about 60 witnesses were expected to be called in the second case.
The first trial, which began in April and revolves around former 1MDB unit SRC International, was adjourned on Aug. 14 after Najib contracted an eye infection, halting the cross-examination of the prosecution’s final witness.
That case is also expected to resume on Monday, and lawyers from both sides hope the second trial can be delayed to allow prosecutors to wrap up the first.
“The accused can only be at one place at a time,” Najib’s lawyer, Harvinderjit Singh, said. “We are hoping the judge will allow us some leeway in this matter.”
After the shock election loss, Najib and his wife Rosmah Mansor were barred from leaving Malaysia and their luxurious lifestyle came under scrutiny, with the discovery of nearly $300 million worth of goods and cash at properties linked to him.
Rosmah, known for her designer handbags and jewelry, has also been charged with corruption. She has pleaded not guilty.
Najib’s lawyers say he had no knowledge of the transfers into his accounts and was misled by Malaysian financier Low Taek Jho and SRC’s former chief executive, Nik Faisal Ariff Kamil, who are both at large.
Low, who faces charges in the United States and Malaysia over his alleged central role in the 1MDB case, has consistently denied wrongdoing. A spokesman for Low did not respond to a request for comment.
Nik Faisal, who has never publicly commented on the matter, could not be reached for comment.


Lebanon central bank reassures foreign investors about deposits

Updated 33 min ago

Lebanon central bank reassures foreign investors about deposits

  • Khalaf Ahmad Al-Habtoor asked if there was any risk to dollar deposits
  • The heavily indebted country’s crisis has shaken confidence in banks

BEIRUT: Lebanon’s central bank said on Saturday there would be no “haircut” on deposits at banks due to the country’s financial crisis, responding to concerns voiced by a UAE businessman about risks to foreign investments there.

Emirati Khalaf Ahmad Al-Habtoor, founder of the Al-Habtoor Group that has two hotels in Beirut, posted a video of himself on his official Twitter account asking Lebanon’s central bank governor if there was any risk to dollar deposits of foreign investors and whether there could be any such haircut.

“The declared policy of the Central Bank of Lebanon is not to bankrupt any bank thus preserving the depositors. Also the law in Lebanon doesn’t allow haircut,” the Banque Du Liban (BDL) said in a Twitter post addressed to Al-Habtoor, from Governor Riad Salameh.

“BDL is providing the liquidity needed by banks in both Lebanese pound and dollars, but under one condition that the dollars lent by BDL won’t be transferred abroad.”

“All funds received by Lebanese banks from abroad after November 17th are free to be transferred out,” it added on its official Twitter account.

The heavily indebted country’s crisis has shaken confidence in banks and raised concerns over its ability to repay one of the world’s highest levels of public debt.

Seeking to prevent capital flight as hard currency inflows slowed and anti-government protests erupted, banks have been imposing informal controls on access to cash and transfers abroad since last October.

A new government was formed this week, and its main task is to tackle the dire financial crisis that has seen the Lebanese pound weaken against the dollar.

Al-Habtoor had asked Salameh for clarity for Arab investors concerned about the crisis and those thinking of transferring funds to Lebanon to try to “help the brotherly Lebanese.”