Najib Razak Not Questioned About Ordering US$700 Million Transfer in 1MDB Case, Investigating Officer Testifies

In a significant development in the ongoing 1Malaysia Development Bhd (1MDB) case, a Malaysian Anti-Corruption Commission (MACC) investigating officer revealed that former Prime Minister Najib Razak was not questioned about instructing the transfer of US$700 million to a company linked to fugitive businessman Low Taek Jho, also known as Jho Low. The officer, Nur Aida Arifin, testified in the High Court that she had interrogated 1MDB's former chief executive officer Datuk Shahrol Azral Ibrahim Helmi about the transaction but did not question Najib about ordering the transfer.

The controversial US$700 million transfer was part of 1MDB's joint venture with Saudi Arabia-based PetroSaudi International Ltd. Of the US$1 billion that 1MDB had injected into the joint venture, US$700 million was diverted into Good Star Ltd, a company linked to Jho Low. Nur Aida stated that she felt it was not critical to ask Najib about the transaction and considered the information obtained from Shahrol Azral adequate for her investigation.

During cross-examination, Najib's counsel, Wan Azwan Aiman Wan Fakhruddin, suggested that Shahrol Azral was the 'alter ego' to Jho Low. However, Nur Aida disagreed, stating that Shahrol Azral had believed that all instructions from Jho Low were from Najib. The prosecution's 49th witness also admitted that Najib did not instruct Shahrol Azral and the company's former executive director of business development, Casey Tang Keng Chee, to conceal the US$700 million transaction from the board of directors.

Why this matters: The 1MDB scandal has been a major political and financial controversy in Malaysia, with far-reaching implications for the country's governance and international reputation. The ongoing court proceedings aim to uncover the truth behind the alleged misappropriation of billions of dollars from the state investment fund.

Najib, who is currently serving a 12-year jail sentence for the misappropriation of SRC International's RM42 million funds, faces multiple charges in the 1MDB case. These include four counts of abuse of power for using his position as prime minister, finance minister, and 1MDB board of advisers chairman to receive gratification worth RM2.28 billion, as well as 21 counts of money laundering involving over RM4.3 billion.

As the 1MDB trial continues, the testimony of key witnesses, such as the MACC investigating officer, sheds light on the complex web of transactions and alleged wrongdoings surrounding the state investment fund. The court's findings will have significant implications for Najib Razak and others implicated in the scandal,

Key Takeaways

• MACC officer did not question Najib on $700M transfer to Jho Low's company
• $700M was diverted from 1MDB's joint venture with PetroSaudi to Jho Low's firm
• Shahrol Azral believed Jho Low's instructions were from Najib, but Najib did not order concealment
• Najib faces multiple charges in 1MDB case, including abuse of power and money laundering
• 1MDB trial aims to uncover misappropriation of billions from state investment fund