Former Malaysian premier Najib Razak summoned for questioning in 1MDB case

1MDB
Signage for 1Malaysia Development Bhd. (1MDB) is displayed at the site of the Tun Razak Exchange (TRX) project in Kuala Lumpur, Malaysia, on Friday, July 17, 2015. Photographer: Goh Seng Chong/Bloomberg

The Malaysian Anti-Corruption Commission has summoned former premier Najib Razak for questioning on alleged money laundering linked to 1MDB, according to a person familiar with the matter.

Najib must appear at the anti-graft agency on Tuesday to give his statement on the case relating to SRC International Sdn, a former unit of troubled state fund 1MDB, according to the person, who asked not to be identified as the matter is private. Najib pleaded not guilty to several counts of corruption and criminal breach of trust, also linked to SRC, when he was charged on July 4.

After toppling Najib from power in May, Prime Minister Mahathir Mohamad has revived domestic investigations into the state investment fund, which has spawned worldwide probes in countries from Switzerland to Singapore. U.S. investigators sought to seize $1.7 billion of assets that it said were illegally purchased using money diverted from 1MDB, among them a $250-million yacht that arrived in Malaysia on Tuesday.

The Attorney-General’s Chambers has “properly seized” the yacht as a result of mutual legal assistance treaties between Indonesia, Malaysia and the U.S., which were activated recently, the nation’s top prosecutor Tommy Thomas said in a statement.

Najib was released on a 1 million ringgit ($245,170) bail after he was served earlier charges in July. The case management date for those charges was set for Aug. 8.

The previous charges allege that between Dec. 24 to Dec. 29, 2014, at AmIslamic Bank Bhd., Najib as prime minister and finance minister was given the mandate to manage 4 billion ringgit of funds belonging to SRC International and that he committed a breach of trust on 27 million ringgit. Over the same period he’s alleged to have committed a second breach of trust on 5 million ringgit. And from Feb. 10 to March 2, 2015, he committed a third breach of trust on 10 million ringgit, the charges note.

The court also heard Najib allegedly used his position to gain gratification of 42 million ringgit for himself by granting a government guarantee on 4 billion ringgit of loans from Kumpulan Wang Persaraan (Diperbadankan) to SRC International between Aug. 17, 2011 and Feb. 8, 2012.

Bloomberg