MACC Officer Testifies She Didn't Ask Najib About $700 Million Transfer to Jho Low-Linked Entity in 1MDB Trial

In the ongoing RM2.27 billion 1MDB abuse of power and money laundering trial of former Malaysian Prime Minister Najib Razak at the Kuala Lumpur High Court, a Malaysian Anti-Corruption Commission (MACC) investigating officer testified that she did not ask Najib if he ordered the state investment fund to transfer US$700 million to an offshore entity linked to fugitive businessman Jho Low in 2009.

MACC officer Nur Aida Arifin, who was cross-examined by the defense, said she had only questioned former 1MDB CEO Datuk Shahrol Azral Ibrahim Halmi about the transfer of funds, which was part of 1MDB's joint venture with PetroSaudi International Limited. Nur Aida maintained that asking Shahrol was sufficient for her investigation and that it was not necessary to pose the same question to Najib.

The US$700 million in question was allegedly diverted from the joint venture to Good Star Limited, a company linked to Jho Low, instead of being used for its intended purpose. Of this amount, US$20 million was later traced to Najib's personal bank account.

Former Bank Negara Malaysia governor Tan Sri Zeti Akhtar Aziz had previously testified that the central bank only discovered the unauthorized transfer to Good Star in 2015, six years after the transaction occurred. According to Zeti, 1MDB had provided false information to Bank Negara in 2009 and failed to submit required updates to the central bank.

Najib's defense team argued that 1MDB's top management, including Shahrol, had conspired with Jho Low to siphon off the funds without Najib's knowledge. However, Nur Aida disagreed with the defense's claim that Shahrol was acting as Low's 'alter ego' and believed that every instruction from Low originated from Najib.

Why this matters: The testimony of the MACC investigating officer sheds light on the ongoing probe into the misappropriation of billions of dollars from 1MDB, a scandal that has implicated high-ranking officials and led to the downfall of the previous Malaysian government. The trial's outcome could have significant implications for Najib, who faces multiple charges related to abuse of power and money laundering.

Najib, who served as Malaysia's prime minister from 2009 to 2018, is currently facing 25 charges in total, including four counts of abuse of power and 21 counts of money laundering involving RM2.28 billion (approximately US$540 million) linked to 1MDB. The trial, which began in August 2019, has been closely watched by the Malaysian public and international observers. If convicted, Najib could face lengthy prison sentences and substantial fines.

Key Takeaways

• MACC officer did not ask Najib about $700M transfer to Jho Low's firm
• $20M from the $700M transfer was traced to Najib's personal bank account
• 1MDB provided false information to Bank Negara about the unauthorized transfer
• Najib's defense claims 1MDB management conspired with Jho Low without Najib's knowledge
• Najib faces 25 charges related to 1MDB, including abuse of power and money laundering