Posts Tagged ‘1MDB Scandal


High Court orders Najib to enter defence in SRC case

High Court orders Najib to enter defence in SRC case

KUALA LUMPUR (Nov 11): Once Malaysia’s highest ranking politician, Datuk Seri Najib Razak has today been ordered by the High Court to enter his defence for the three criminal breach of trust, an abuse of power and three money laundering charges involving RM42 million of SRC International Sdn Bhd funds.

Justice Mohd Nazlan Mohd Ghazali in his decision found the prosecution has proven a prima facie case against the former premier.

The prosecution is led by Attorney General (AG) Tan Sri Tommy Thomas, appointed deputy public prosecutor (DPP) Datuk V Sithambaram, deputy head of the criminal division AG’s Chambers Datuk Ishak Mohd Yusof, Datuk Suhaimi Ibrahim and other DPPs.

Tan Sri Muhammad Shafee Abdullah along with lawyers Harvinderjit Singh, Farhan Read and others appeared for Najib.

Najib is charged with abuse of power under Section 23 of the Malaysian Anti-Corruption Commission of using his position as the prime minister and Finance Minister to commit bribery involving RM42 million when he participated in or was involved in a decision on behalf of the Malaysian government to provide government guarantees for loans from the Retirement Fund Incorporated (KWAP) to SRC International amounting to RM4 billion.

He is alleged to have committed the offence at the Prime Minister’s Office, Precinct 1, Putrajaya, Federal Territory of Putrajaya between Aug 17, 2011 and Feb 8, 2012. If convicted he can face a jail term of up to 20 years and a fine of not less than five times the amount or value received or RM10,000, whichever is higher.

The Pekan MP and former Umno president also faces three criminal breach of trust charges as the PM and finance minister and adviser emeritus to SRC, and in those capacities entrusted with the control of funds belonging to SRC totalling RM4 billion, having committed CBT to the sum of RM27 million, RM5 million and RM10 million.

All three offences under Section 409 of the Penal Code are allegedly carried out between Dec 24, 2014 and Feb 10, 2015 at AmBank Jalan Raja Chulan.

For CBT, the 66-year-old former is liable to a maximum of 20 years in jail, whipping and a fine if convicted. However, due to his age, the whipping would not be imposed.

With regard to money laundering, Najib is alleged to have received RM27 million, RM5 million and RM10 million respectively, which were proceeds from unlawful activities via Real Time Electronic Transfer of Funds and Securities (Rentas) into two AmIslamic Bank Bhd accounts of his, bearing the numbers 2112022011880 and 2112022011906 at AmIslamic Bank Bhd, AmBank Group Building, 55 Jalan Raja Chulan, Kuala Lumpur between Dec 26, 2014 and Feb 10, 2015.

If convicted, he stands to face a maximum of 15 years in jail, and a fine of up to RM5 million or five times the amount, whichever is higher, for each charge under Section 4 of the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds from Unlawful Activity 2001.

High Court orders Najib to enter defence in SRC case
November 11, 2019 –


Recovery of US$1 billion in assets associated with the 1MDB scandal by the US

United States Reaches Settlement to Recover More Than $700 Million in Assets Allegedly Traceable to Corruption Involving Malaysian Sovereign Wealth Fund

Wednesday, October 30, 2019

The Department of Justice has reached a settlement of its civil forfeiture cases against assets acquired by Low Taek Jho, aka Jho Low, and his family using funds allegedly misappropriated from 1Malaysia Development Berhad (1MDB), Malaysia’s investment development fund, and laundered through financial institutions in several jurisdictions, including the United States, Switzerland, Singapore and Luxembourg.

These assets, located in the United States, the United Kingdom and Switzerland, are estimated to be worth more than $700 million. With the conclusion of this settlement, together with the prior disposition of other related forfeiture cases, the United States will have recovered or assisted in the recovery of more than $1 billion in assets associated with the 1MDB international money laundering and bribery scheme. This represents the largest recovery to date under the Department’s Kleptocracy Asset Recovery Initiative and the largest civil forfeiture ever concluded by the Justice Department.

“As alleged in the complaints, Jho Low and others, including officials in Malaysia and the United Arab Emirates, engaged in a brazen multi-year conspiracy to launder money embezzled or otherwise misappropriated from 1MDB, and he used those funds, among other things, to engage in extravagant spending sprees, acquiring one-of-kind artwork and luxury real estate, gambling freely at casinos, and propping up his lavish lifestyle,” said Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division. “This settlement agreement forces Low and his family to relinquish hundreds of millions of dollars in ill-gotten gains that were intended to be used for the benefit of the Malaysian people, and it sends a signal that the United States will not be a safe haven for the proceeds of corruption.”

“A staggering amount of money embezzled from 1MDB at the expense of the people of Malaysia was laundered through the purchase of big-ticket assets in the U.S. and other nations. Thanks to this settlement, one of the men allegedly at the center of this massive scheme will lose all access to hundreds of millions of dollars,” said U.S. Attorney Nicola T. Hanna of the Central District of California. “The message in this case is simple: the United States is not a safe haven for pilfered funds. Our strict anti-money laundering controls are effective, and we will seize assets used by criminals to conceal ill-gotten gains.”

“Today’s settlement with Jho Low demonstrates the continued commitment of the FBI to root out the fraud and selfishness of the corrupt individuals who conspired to pay bribes and launder funds which belong to the Malaysian people,” said FBI Assistant Director Terry Wade of the Criminal Investigative Division. “The FBI’s dedicated International Corruption Squads will continue to combat foreign corruption which reaches our shores. We will not allow criminals, foreign or domestic, to use the United States in furtherance of their criminal activities.”

“The action announced today will allow the United States government to deny Mr. Low the use of the assets purchased with this extraordinarily large sum of money he allegedly misappropriated from 1MDB and the people of Malaysia,” said Chief Don Fort of IRS Criminal Investigations (IRS-CI). “Mr. Low allegedly attempted to launder these funds through multiple international jurisdictions and a web of shell corporations, but his greed finally caught up with him. This case is a model for international cooperation in significant cross-border money laundering investigations”

According to the civil forfeiture complaints, from 2009 through 2015, more than $4.5 billion in funds belonging to 1MDB were allegedly misappropriated by high-level officials of 1MDB and their associates, including Low, through a criminal conspiracy involving international money laundering and bribery. 1MDB was created by the government of Malaysia to promote economic development in Malaysia through global partnerships and foreign direct investment, and its funds were intended to be used for improving the well-being of the Malaysian people.

Under the terms of the settlement, Low, his family members, and FFP, a Cayman Islands entity serving as the trustees overseeing the assets at issue in these forfeiture actions, agreed to forfeit all assets subject to pending forfeiture complaints in which they have a potential interest. The trustees are also required to cooperate and assist the Justice Department in the orderly transfer, management and disposition of the relevant assets. From the assets formerly managed by FFP, the United States will release $15 million to Low’s counsel to pay for legal fees and costs. Under the agreement, none of those fees may be returned to Low or his family members. The assets subject to the settlement agreement include high-end real estate in Beverly Hills, New York and London; a luxury boutique hotel in Beverly Hills; and tens of millions of dollars in business investments that Low allegedly made with funds traceable to misappropriated 1MDB monies.

Low separately faces charges in the Eastern District of New York for conspiring to launder billions of dollars embezzled from 1MDB and for conspiring to violate the Foreign Corrupt Practices Act (FCPA) by paying bribes to various Malaysian and Emirati officials, and in the District of Columbia for conspiring to make and conceal foreign and conduit campaign contributions during the United States presidential election in 2012. The charges in the indictments are merely allegations, and defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law. This agreement does not release any entity or individual from filed or potential criminal charges.

The assets being forfeited subject to this settlement are in addition to the nearly $140 million in assets the U.S. previously forfeited in connection with Low’s investment in a business entity related to the Park Lane Hotel in New York, as well as a super-yacht, valued at over $120 million, seized by law enforcement authorities in Indonesia at the request of the Justice Department and recovered by Malaysian authorities directly from Indonesia. Following conclusion of today’s settlement, several civil forfeiture complaints arising out of the 1MDB criminal conspiracy remain pending against assets associated with other alleged co-conspirators.

The FBI’s International Corruption Squads in New York City and Los Angeles and the IRS-CI are investigating the case. Deputy Chief Woo S. Lee and Trial Attorneys Kyle R. Freeny, Joshua L. Sohn, Barbara Levy and Jonathan Baum of the Criminal Division’s Money Laundering and Asset Recovery Section and Assistant U.S. Attorneys John Kucera, Michael R. Sew Hoy and Steven R. Welk of the Central District of California are prosecuting the case. The Criminal Division’s Office of International Affairs is providing substantial assistance.

The Department also appreciates the significant assistance provided by the Attorney General’s Chambers of Malaysia, the Royal Malaysian Police, the Malaysian Anti-Corruption Commission, the Attorney General’s Chambers of Singapore, the Singapore Police Force-Commercial Affairs Division, the Office of the Attorney General and the Federal Office of Justice of Switzerland, the judicial investigating authority of the Grand Duchy of Luxembourg and the Criminal Investigation Department of the Grand-Ducal Police of Luxembourg.

The Kleptocracy Asset Recovery Initiative is led by a team of dedicated prosecutors in the Criminal Division’s Money Laundering and Asset Recovery Section, in partnership with federal law enforcement agencies, and often with U.S. Attorney’s Offices, to forfeit the proceeds of foreign official corruption and, where appropriate, to use those recovered assets to benefit the people harmed by these acts of corruption and abuse of office. In 2015, the FBI formed International Corruption Squads across the country to address national and international implications of foreign corruption. Individuals with information about possible proceeds of foreign corruption located in or laundered through the U.S. should contact federal law enforcement or send an email to (link sends e-mail) or

A civil forfeiture complaint is merely an allegation that money or property was involved in or represents the proceeds of a crime. These allegations are not proven until a court awards judgment in favor of the United States.

United States Reaches Settlement to Recover More Than $700 Million in Assets Allegedly Traceable to Corruption Involving Malaysian Sovereign Wealth Fund
October 30, 2019 – DOJ


ECRL and pipeline projects meant to bail out 1MDB, says Najib’s ex-aide

ECRL, two pipeline projects meant to bail out 1MDB, says Najib’s ex-aide

KUALA LUMPUR, Sept 4 — The East Coast Rail Link (ECRL), the Trans-Sabah Gas Pipeline and the Multi-Product Pipeline (MPP) that sought investments from China were proposed projects to bail out debt-riddled 1Malaysia Development Berhad (1MDB) and its former subsidiary SRC International Sdn Bhd, the High Court heard today.

Datuk Amhari Efendi Nazaruddin who formerly worked as special officer to Datuk Seri Najib Razak testified in the latter’s 1MDB trial that the ex-prime minister had made offers to the China-owned companies while clearly aware of the Malaysian sovereign investment firm’s financial woes.

“Datuk Seri Najib offered state enterprise companies to be involved in these infrastructure projects, while at the same time solving the issue of 1MDB and SRC International’s debts.

“The sentence ‘while simultaneously completely resolving 1MDB and SRC (International) debts’ clearly meant that Datuk Seri Najib intended to send the message that this cooperation would also aid 1MDB and SRC International through the bailouts of 1MDB’s debts,” Amhari said, referring to talking points of a meeting he attended in capacity as Najib’s special envoy with Chinese representatives in June 2016.

Ahmari went on a diplomatic visit to China that year together with Low Taek Jho, better known as Jho Low.

The former Najib aide said he and Low were the only representatives for Malaysia in those meetings with Chinese representatives, but added that Low did most of the talking as the conversations were in Mandarin.

Other documents presented in court today included one that Amhari said was a debt resolution plan for 1MDB and SRC International and prepared by Low titled “Action Point: China-Malaysia Economic Programme”.

ECRL, two pipeline projects meant to bail out 1MDB, says Najib’s ex-aide
4 September 2019 – Malay Mail


Only Najib and Jho Low knew ‘full picture’ of 1MDB plan

Only Najib and Jho Low knew ‘full picture’ of 1MDB plan – former aide

NAJIB TRIAL | Only then-prime minister Najib Abdul Razak and financier Jho Low had the “full picture” of manoeuvrings in relation to 1MDB dealings at the time, a former senior aide to Najib told the Kuala Lumpur High Court today.

Testifying on the third day of the 1MDB criminal trial of his former boss, Amhari Efendi Nazaruddin (above), also labelled Low a “master manipulator” when dealing with local and foreign parties, and that much of this was known to Najib.

Amhari, 43, was testifying in front of judge Collin Lawrence Sequerah on 1MDB’s joint ventures with PetroSaudi International (PSI) and Aabar Investments PJS BVI (Aabar BVI).

Reading from his witness statement, Amhari explained that he began serving as Najib’s special officer, on loan from Bank Negara Malaysia, from 2008 when the latter was still deputy prime minister.

The eight witness explained that, among others, part of his duties when Najib became premier in 2009 was to coordinate programmes related to 1MDB, under the supervision of the late Azlin Alias, then the economy division director under the Prime Minister’s Office (PMO).

Azlin was also Najib’s private secretary at the time.

“Throughout my experience dealing with Jho (Low), I found that he is smart and manipulating when dealing with officers of various levels and ranks, from Malaysia or overseas, most of which was known to Najib.

“Therefore, only Jho and Najib have the fullest picture on the manoeuvrings they were planning.

“Jho was a master manipulator and in this situation, I can now say that I was used for insincere purposes,” Amhari told the court.

It was reported that Aabar BVI was a company set up to appear as Aabar, a legitimate subsidiary of the International Petroleum Investment Company (IPIC).

Instead, Aabar BVI was controlled by rogue Aabar officials in coordination with Low (photo).

Amhari further testified that he and Azlin only knew of alleged misappropriation involving the sovereign wealth fund after media reports began surfacing from 2014, as the duo allegedly worked in “silos”.

Only Najib and Jho Low knew ‘full picture’ of 1MDB plan – former aide
3 Sept 2019 – malaysiakini


1MDB had PM’s written approval clause (Article 117) inserted before name change from TIA

Najib’s trial: 1MDB had PM’s written approval clause inserted before name change from TIA

KUALA LUMPUR, Aug 29 — The Terengganu Investment Authority (TIA) Berhad had a new clause inserted — known to effectively give the prime minister the power to have the final say — into the company’s constitution, even before it was renamed as 1Malaysia Development Berhad (1MDB), documents produced today in court confirmed.

Rafidah Yahaya, assistant company registrar of the Companies Commission of Malaysia (CCM), today confirmed more than 150 documents lodged with CCM by several companies related to Datuk Seri Najib Razak’s corruption trial over illegal funds allegedly originating from 1MDB.

Among other things, Rafidah verified TIA’s Memorandum and Articles of Association (M&A) dated February 27, 2009 — the company constitution which established the company.

Apart from the February 27, 2009 document which formed TIA and which had 116 Articles then, Rafidah went on to confirm a separate document dated September 2, 2009 which related to the insertion of clause Article 117.

Deputy public prosecutor Mohamad Mustafa P. Kunyalam had asked Rafidah to confirm the September 2, 2009 document, which he noted was an amendment to TIA’s Memorandum and Articles of Association and that “in this amendment Article 117 was inserted into 1MDB or TIA’s M&A”.

“True,” Rafidah had replied when testifying during the trial.

The witness was not asked to elaborate on Article 117, but reports have previously shown that it requires a written approval from the prime minister before 1MDB can decide on a wide range of issues.

Rafidah also confirmed a separate document dated September 4, 2009, which contained information on TIA’s change of name to become 1MDB.

The notification for TIA’s name change to be 1MDB was just days after Article 117 was inserted.

Rafidah is the seventh prosecution witness in this trial, and will resume her testimony before High Court judge Collin Lawrence Sequerah next Tuesday.

Yesterday, which was also the first day of trial, the first prosecution witness Datuk Farizah Ahmad had verified a long list of administrative positions held by Najib during his political career, including his role as deputy prime minister from 2004 until 2009.

Najib became prime minister and finance minister from April 2009 until May 2018.

In this trial, Najib is facing four counts of abusing his position for his own financial benefit totalling almost RM2.3 billion from the sovereign investment fund and the resulting 21 counts of money-laundering.

Hearing dates have already been fixed for this trial stretching from September until November 14.

About Article 117

At the start of Najib’s trial, lead prosecutor Datuk Seri Gopal Sri Ram had in reading the prosecution’s opening statement said the case involves the funds of 1MDB which was originally TIA, adding that Najib was allegedly “instrumental in changing” the name to 1MDB.

Sri Ram had also said then that Najib had allegedly caused amendments to the company’s articles “to place himself in sole control of important matters” of the company, and that he was also 1MDB board of advisers’ chairman.

“He used that position and that of prime minister and minister of finance to do certain acts and to exert influence over the board of 1MDB to carry out certain abnormal transactions with undue haste,” Sri Ram had said when outlining what the prosecution would seek to prove, adding that Najib’s ultimate aim was allegedly to obtain self-gratification.

In the Public Accounts Committee’s (PAC) report on 1MDB that was released in April 2016, the bipartisan parliamentary committee stated that Article 117 of 1MDB’s M&A outlined three categories of decisions that require the prime minister’s written permission.

The decisions includes any changes to 1MDB’s M&A, and any appointment and removal of 1MDB directors and top management, the report said.

According to the PAC report, the third category of decisions needing the PM’s written nod under Article 117 also cover any financial commitment, investments and restructuring by 1MDB.

The third category is also stated as covering “matters relating to guarantees issued by the Federal Government of Malaysia for the company’s interests, national interests, national security” or any federal government policy.

The federal government is the one that will finalise what amounts to “national interest”, “national security” or policy of the federal government, according to the PAC report’s explanation of Article 117.

In May 2016, the Finance Ministry announced that the 1MDB’s sole shareholder Minister of Finance Incorporated had agreed to fully implement the PAC report’s recommendations, including to dissolve 1MDB’s board of advisers, to remove Article 117 and change all references of “prime minister” to “minister of finance” in 1MDB’s M&A.

Najib’s trial: 1MDB had PM’s written approval clause inserted before name change from TIA
29 August 2019 – Malay Mail


The 25 charges Najib is facing in the 1MDB trial

(Graphic source: Malay Mail)

1MDB charges


Prosecutor’s opening statement at Najib’s 1MDB trial

Sri Ram’s opening statement at Najib’s 1MDB trial

KUALA LUMPUR (Aug 28): The following is appointed prosecutor Datuk Seri Gopal Sri Ram’s opening statement at Najib’s 1MDB trial, reproduced in full:

1. This case concerns the monies of a company called 1Malaysia Development Berhad, widely known as 1MDB. It was originally called Terengganu Investment Authority or TIA. The accused was instrumental in changing its name to 1MDB. He also caused amendments to be made to the articles of the company to place himself in sole control of important matters concerning the business and affairs of the company. In short, he was its plenipotentiary. Additionally, he was the chairman of the company’s board of advisers. He used that position and that of Prime Minister and Minister of Finance to do certain acts and to exert influence over the board of 1MDB to carry out certain abnormal transactions with undue haste. The ultimate aim of the accused was to obtain gratification for himself. He succeeded in achieving that aim.

2. An elaborate charade was employed. It was acted out in four phases in which several characters played a part. But it was the accused who played the pivotal role. His objective was to enrich himself.

3. Although this case concerns four phases, the events in respect of them are to be considered as part of a consecutive story because of the pre-arranged plan by the accused to enrich himself.

4. An important character in the charade is a man called Low Taek Jho or Jho Low. He is a fugitive from justice. He was involved in TIA and later in 1MDB. The prosecution will prove that the accused by his words and conduct made it clear to 1MDB’s officers, its board and others that Jho Low was his alter ego. In truth, Jho Low was the accused’s mirror image. The prosecution will establish facts which will give rise to an irresistible inference that Jho Low and the accused acted as one at all material times.

5. The four charges under section 23 of the MACC Act are in respect of each of the four phases. In respect of these charges the prosecution will prove, through direct and circumstantial evidence that the accused, first in his capacity as the Deputy Prime Minister and Minister of Finance, and later as Prime Minister of Malaysia and Minister of Finance took several steps that led to part of 1MDB’s funds being channelled into his account through a circuitous route to prevent detection of its source. The accused thereby used his position for gratification. In each of the phases the accused acted as one with Jho Low.

6. The first phase concerns the scenario of a so-called joint venture created by the accused (acting through Jho Low and one Tarik Obaid, a close associate of Jho Low). It was a false scenario of a joint venture between 1MDB and a company called PetroSaudi International Ltd or PSI. It was called Project Aria. In the first phase the scheme worked in the following way.

7. 1MDB borrowed USD1 billion purportedly to invest in a joint venture company called 1MDB Petro Saudi Ltd. The money was to be paid into the account of the joint venture company. Petro Saudi International was to take up 60 percent of the shares in the alleged joint venture by injecting certain assets of dubious value. The USD1 billion was to represent 1MDB’s contribution for its 40 percent shareholding. But the so-called Joint Venture Agreement was entered into not with PSI but with a company called Petro Saudi Holdings (Cayman) Ltd. And it was Tarik Obaid who executed the agreement on behalf of PetroSaudi Holdings (Cayman) Ltd. Evidence will be led to show the abnormality of the so-called joint venture which close scrutiny will reveal to be a mere device to siphon 1MDB’s money for the accused’s benefit.

8. The prosecution will, through oral and documentary evidence, prove that USD700 million of the USD1 billion, instead of being paid into the joint venture company’s account was diverted into the account of a company called Good Star Ltd which in truth had nothing whatsoever to do with the joint venture. It was incorporated in the Seychelles on 18 May 2009 that is to say 5 months before the joint venture agreement was entered into. It was a company owned and controlled by Jho Low.

9. The payment to Good Star was made in great haste and without approval from 1MDB’s board of directors and in defiance of its directions. Good Star was falsely described as the wholly owned subsidiary of PSI. The payment to Good Star, was vouched for by the accused through Jho Low as monies owed by the joint venture to PetroSaudi International (PSI). The joint venture agreement referred to a loan payable by the joint venture company to PetroSaudi Holdings (Cayman). The prosecution will through documents show that the so-called loan was a sham employed to justify the payment to Good Star.

10. In March 2010, 1MDB entered into a so-called Murabaha financing agreement under the terms of which alleged USD 1 billion equity in the joint venture company was converted into useless Murabaha notes and 1MDB was required to make available to the joint venture company a sum of USD1.5 billion. In September 2010, a sum of USD500 million was sent to the joint venture company. This money has gone missing. Then in May 2011, a further sum of USD 330 million which was supposed to be the second tranche of the investment into the Murabaha financing, was diverted to Good Star. The accused took positive steps to put through this transaction.

11. From the original sum of USD700 million sums of money were disbursed by Good Star to several persons including one Prince Faisal, a close associate of the accused, Jho Low and one Prince Turki. Prince Turki, the accused and Jho Low were so close that they holidayed together on a yacht in the south of France. Prince Faisal received USD12,500,000 from Good Star on 18 February 2011. He received a further sum of USD 12 million from Good Star on 10 June 2011 which came from the Murabaha scam. From these sums he transmitted USD20 million to the accused’s personal account in two tranches of USD10 million each. The first tranche was received by the accused on 24 February 2011, that is to say, six days after Faisal received the money. The accused received the second tranche on 14 June 2011, that is to say, four days after Faisal received the money. The USD 20 million amounts to an equivalent of RM60,629,839.43. This forms the subject matter of the first charge.

12. The first phase came to an end in 2012 with 1MDB holding worthless pieces of paper. The scam having been achieved, Good Star was wound up on 2 May 2014 and PetroSaudi International was wound up on 8 April 2015.

13. The second phase concerns the acquisition of assets of dubious value by 1MDB. The accused using his position and acting through his mirror image, Jho Low took positive steps and caused 1MDB to enter into two transactions as a result of which the accused obtained a sum of RM90,899,927.28 as gratification. This forms the subject matter of the second charge.

14. These two transactions concerned the acquisition of two independent power producers namely, Tanjong Energy Holdings Sdn Bhd and Mastika Lagenda Sdn Bhd. Mastika owned 75% shares in Genting Sanyen Sdn Bhd. To make the purchase, 1MDB acted through its subsidiaries 1MDB Energy Holdings Ltd, 1MDB Energy Ltd and 1MDB Energy (Langat) Ltd (all Labuan companies) as well as through Malaysian registered companies, namely, 1MDB Energy Sdn Bhd and 1MDB Energy (Langat). These companies were used to raise finance for both acquisitions.

15. I now take each acquisition separately. A local bridging loan of RM 6.17 billion was raised for the acquisition of Tanjong Energy. An additional sum of USD1.75 billion was raised through the issue of 10 year structured loan notes. Goldman Sachs were appointed as lead arranger for the issuance of these Notes.

16. Of the USD 1.75 billion, USD 786 million went to Tanjong Energy. Of the balance, a sum of USD907 million was paid into the account of 1MDB Energy Ltd with Falcon Bank in Hong Kong. Of this sum approximately USD 577 million in round figures went to Aabar Investments PJS Ltd (BVI). This payment was purportedly as a security deposit for Aabar’s holding company IPIC issuing a guarantee guaranteeing the Notes. In addition to the security deposit Aabar was also given an option to take up 49% shares owned by 1MDB Energy Ltd in 1MDB Energy Sdn Bhd. On 22 May 2012 USD 295 million was paid by Aabar to a company called Blackstone Asia. Blackstone is a company controlled by Jho Low through his associate Tan Kim Loong also known as Eric Tan. He is also a fugitive from justice. Additionally, on 25 July 2012 a further sum of USD 133 million was transferred by Aabar to Blackstone. These monies remained with Blackstone until October 2012. Goldman Sachs were paid USD 192.5 million as arranger’s fee for this bond issuance.

17. For the Mastika acquisition, the alleged purchase price was RM 2.75 billion. The money for this came from two sources. First, another 10 year structured loan Notes of USD1.75 billion. For this 1MDB paid Goldman Sachs USD 110 million as arrangers’ fee. So, 1MDB got a nett sum of USD 1.64 billion. This sum was paid into 1MDB Energy (Langat) Ltd’s account with Falcon Bank, Hong Kong. The second was a local loan of RM700 million. The total loan raised from these two sources was about RM 6.16 billion. There was therefore available an excess of RM3 billion. This excess was almost wiped out by a payment on 23 October 2012 to Aabar Investment PJS (BVI) of a sum of approximately USD 790 million in round figures as security deposit for Aabar’s holding company IPIC for allegedly guaranteeing the repayment of the notes. As additional security Aabar was given an option to take up 49% shares owned by 1MDB Energy (Langat) Ltd in 1MDB Energy (Langat) Sdn Bhd. For the Mastika acquisition, Genting Power was paid USD 710 million. The loan raised through the Notes for the Mastika purchase came into 1MDB Energy (Langat) Ltd’s account on 19 October 2012

18. On 23 October 2012, Aabar paid a sum of approximately USD 291 million in round figures to Cistenique Investment Fund or CIF. On the same day Aabar paid USD 76 million to Enterprise Emerging Markets Fund (EEMF). On 23 October 2012 Aabar paid USD 75 million to Blackstone. This was part of the USD 790 million paid to Aabar. Later, on 5 November 2012 Aabar paid a further sum of USD 96 million to EEMF. Soon after CIF and EEMF received the monies in question they paid it over to Blackstone. These monies were then channelled by Blackstone into the accused’s account as follows.

19. On 30 October 2012, a sum of USD 5 million was paid into the accused’s account at AmPrivate Bank. Then, on 19 November a sum of USD 25 million was paid into the accused’s account. The total sum received by the accused in the second phase is set out in the amended second charge. Evidence will be led to show how financial layering took place to provide a false justification for the movement of the monies. So much for the second phase.

20. The third phase concerns another purported joint venture between 1MDB and Aabar in equal shares. The joint venture company was called ADMIC. This forms the subject matter of the third charge. The purpose of this alleged joint venture was to develop TRX or the Tun Razak Exchange in Kuala Lumpur. IPIC was to guarantee Aabar’s investment. The Ministry of Finance of which the accused was Minister guaranteed 1MDB’s investment by way of a letter of support. A loan of USD 3 billion was raised for this alleged purpose. Goldman Sachs acted as the arranger of the loan.

21. On 14 March 2013 the accused signed a letter of support to raise a loan through the issue of bonds by 1MDB from the Bank of New York Mellon Group in the sum of USD 3 billion. On 19 March 2013 a sum of USD 2.721 billion was disbursed into the account of 1MBD Global Investment Limited with BSI Bank at Lugano in Switzerland. The balance went to pay the fee of Goldman Sachs.

22. From the USD 2.721 billion, a sum of USD 1,060,606,065 was paid into account of two fiduciary funds, namely, Devonshire Funds Ltd and EEMF. Devonshire received USD 646,464,649 in five tranches over two days, that is to say, on 20 and 21 March 2013. EEMF received USD 414,141,416 in three tranches, also within two days, that is, on 20 and 21 March 2013.

23. On 21 March 2013, Devonshire transferred USD 430 million to Granton Property Holding Ltd which is a company controlled by Eric Tan, Jho Low’s shadow. On the same day Granton transferred the whole of that sum to Tanore Finance also a company controlled by Eric Tan. Also, on the same day, that is to say, 21 March 2013, Devonshire transferred a sum of USD 210 million to Tanore Finance Corporation. Then, between 22 March 2013 and 25 March 2013, EEMF transferred USD 250 million to Tanore which therefore by that date had USD 890 million in its hands.

24. Between 21 March 2013 and 10 April 2013 Tanore transferred USD 681 million to the accused’s account. In terms of our currency this amounted to RM2,081,476,926. This sum forms the subject matter of the amended third charge.

25. Based on the evidence that the prosecution will adduce, the so-called joint venture never took off. There was no investment and there was no true joint venture. It was all a sham. This concludes the third phase.

26. The fourth phase concerns the purchase of the Aabar options by 1MDB. These are the options that were given to Aabar in 2012 as alleged part consideration for IPIC’s guarantee for the notes that raised USD 3.5 billion forming part of the second phase.

27. In May and August 2014, 1MDB through its subsidiary 1MDB Energy Holdings Ltd obtained two loans totalling USD 1.225 billion from Deutsche Bank Singapore. The accused approved this transaction. The loans were secured by guarantees provided by 1MDB Energy and 1MDB Langat. There was a bridging loan of USD 250 million and a facility loan of USD 975 million. The first loan of USD 250 million was made available on 26 May 2014. From this amount a sum of USD 239,939,970 was paid into 1MDB Energy Holdings Ltd’s account with Falcon Bank Hong Kong on 28 May 2014. Of this sum, Energy Holdings paid Aabar Investments PJS Ltd BVI USD 175 million to its account in BSI Lugano, Switzerland allegedly to part redeem the option given as additional security that was mentioned earlier when dealing with the second phase.

28. From the sum of USD 175 million a sum of USD 19 million was paid by Aabar to the account of a company called Affinity Equity International Partners Ltd. The payment was made on 18 June 2014. The account was held at DBS Bank Ltd Singapore. Affinity Equity is controlled by Eric Tan. Of the USD 19 million, a sum of USD 1.89 million was transferred to a company called Blackrock Commodities (Global) Ltd at its account held in DBS. Blackrock is a company controlled by Eric Tan. On 23 June 2014, a sum of GBP 750,000 was transferred to the accused’s account. This works out to RM 4,093,500.

29. I now turn to the second loan of USD 975 million which was made available on 1 September 2014. Of this sum USD 250 million was utilised to discharge the bridging loan. That left USD 725 million. On 3 September a sum of USD 223,333,000 was transferred to Aabar Investments PJS Ltd (incorporated in Seychelles) at its account with UBS Singapore. Then, on 30 September 2014, USD 457,984,607 was paid to Aabar Investments PJS Ltd (incorporated in Seychelles) at its account with UBS Singapore. Between 16 October 2014 and 17 November 2014 Aabar transferred a sum of USD 226 million to Aabar International Investment PJS Ltd to its account in Barbados. Between 16 October 2014 and 17 November 2014, Aabar Barbados transferred USD 225,500,000 to Vista Equity International Partners Ltd (Barbados), a company owned and controlled by Eric Tan. Between 23 October 2014 and 19 December 2014 Vista Equity through five tranches in sterling currency transferred a sum equivalent to RM 45,837,485.70 to the accused’s account. This sum together with the RM 4,093,500 earlier mentioned forms the subject of the fourth charge. It follows that part of the sum alleged to be used to redeem the option ended up in the accused’s account. So much for the fourth phase.

30. I now turn to the twenty-one charges for money laundering offences. These are the AMLA charges. The first nine charges relate to receiving of the RM2,081,476,926 which forms the subject matter of the amended third charge. The monies fell into the accused’s account ending 9694 with AmIslamic Bank. Between 2 August 2013 and 23 August 2013, the accused transferred a sum of RM2,034,350,000 to Tanore Singapore. Simultaneously, the accused used the balance of RM22,649,000 to pay four entities and one individual. The prosecution’s case is that all these payments benefitted the accused.

31. After making these payments, the accused transferred the balance into a new account ending 1880 with AmBank through two transfers amounting RM162,436,711.87. He closed his account ending 9694.

32. The tenth charge and charges sixteen to nineteen relate to the transfers made by the accused to Tanore involving RM2,034,350,000.

33. Charges eleven to fifteen concern the use by the accused of the funds earlier referred to through payments to the four entities and one individual. All these payments were made by cheques signed by the accused.

34. Charges twenty and twenty-one concern the transfer of funds from the 9694 account to the 1880 account.

35. In this latter part of the case, the prosecution will establish the AMLA charges through direct and circumstantial evidence. It will be proved that in all the circumstances of the case, the accused committed the offence of money laundering contrary to Section 4(1)(a) of the Anti-Money Laundering and Anti-Terrorism Financing Act 2001 (“AMLATFA”).

36. After the 1MDB scandal broke in early July 2015, the accused with his mirror image Jho Low took steps to cover his tracks. Sham documents were produced to pretend a donation from an Arab Prince. Among these were letters and four cheques each for a sum of USD 25 million purportedly written out by a person said to be the Arab donor. But these cheques were never meant to be encashed and were never encashed.

37. The prosecution will also produce evidence to show that the accused took active steps to evade justice. He interfered with the course of investigation of this case which has come to be known as the 1MDB Scandal. He took active steps to effect a cover up of his criminal acts. The prosecution will rely on all this evidence to show that the accused had the requisite mens rea when the offences with which he is charged were committed.

Sri Ram’s opening statement at Najib’s 1MDB trial
August 28, 2019 –

The dawn of A Better Malaysia!
Rafidah Aziz, Hannah Yeoh, Ambiga at TTDI ceramah


Mahathir in Putrajaya ceramah


What happened to 1MDB’s money? – CNBC Video
Nuclear lessons for Malaysia (Part 1) (Part 2)
BN govt is directing attention to distant past and distant future, in order to distract people from present misdeeds and poor governance
Felda - A picture is worth a thousand words
How the 1MDB Scandal Spread Across the World (WSJ)
We cannot afford ridiculously expensive RM55 Billion ECRL!
All that is necessary
for the triumph of evil
is for good men
to do nothing.

- Edmund Burke
When the people
fears their government,
there is TYRANNY;
when the government
fears the people,
there is LIBERTY.

- Thomas Jefferson
Do you hear the people sing?