Sarawak Report challenges Najib Razak’s claim of innocence in 1MDB scandal

MALAYSIA: Investigative journalism website Sarawak Report has cast doubt on former Malaysian Prime Minister Najib Razak’s assertions of innocence in the 1Malaysia Development Berhad (1MDB) scandal.

Najib, who is currently serving a prison sentence, apologised on 25 October for his role in the scandal but reiterated his stance that he was unaware of the financial misconduct allegedly orchestrated by fugitive financier Jho Low.

In a recent statement, Sarawak Report criticised Najib’s claim, contending that “for those who have followed the facts, the impossibility of Najib’s claim that he was an innocent who was tricked by Jho Low and knew nothing of his thefts is plain to see.”

This assertion comes as Najib’s apology has drawn scrutiny, particularly regarding his insistence that he was uninformed about misappropriated funds.

The 1MDB fund, which Najib co-founded in 2009 during his tenure as both prime minister and finance minister, has become one of the largest corruption cases in recent years.

Authorities in at least six countries have investigated the fund, tracing the alleged embezzlement of over US$4.5 billion by high-ranking officials and their associates.

The scandal has implicated several prominent figures, including Low and two executives from Saudi oil company Petrosaudi, who are believed to have colluded in diverting millions from 1MDB.

Both Low and the Petrosaudi executives, who were convicted in a Swiss court in August 2024 for embezzling funds from 1MDB, have denied wrongdoing.

In 2022, Malaysia’s highest court upheld Najib’s conviction on charges of corruption and money laundering related to SRC International, a former 1MDB subsidiary, sentencing him to 12 years in prison.

Despite Apology, Najib Maintains Innocence, Denies Direct Involvement in 1MDB Illegal Activities

While the original sentence was later reduced through a royal pardon, Najib, 71, has continuously denied any involvement in illegal activities.

He maintains that the funds he received were political donations from Saudi Arabia, a claim many have disputed as authorities have linked these funds to 1MDB transactions, including a substantial transfer of US$681 million in 2013.

Najib’s apology also followed Malaysia’s recent government proposal to introduce house arrest as an alternative sentencing option in certain cases, starting in 2025.

Najib has advocated for serving the remainder of his sentence under house arrest, citing a royal order that purportedly accompanied his pardon. He has sought clarification from the government regarding the specifics of this order.

At a press conference on 25 October, Najib’s son, Mohamad Nizar Mohd Najib, read a letter from the former prime minister in which he expressed regret over the scandal.

Najib stated, “It pains me every day to know that the 1MDB debacle happened under my watch as minister of finance and prime minister.”

However, he stopped short of admitting to direct involvement, instead acknowledging that he could have acted differently when concerns about 1MDB first surfaced.

Najib further claimed in his letter, later shared on his official Facebook page, that he prioritised the fund’s stability and diplomatic relations over investigating criminal activities.

Malaysian anti-corruption investigators have since revealed that attempts to investigate 1MDB under Najib’s administration were obstructed, with witnesses reportedly facing intimidation and death threats to prevent cooperation.

In its critique, Sarawak Report questioned Najib’s reluctance to reveal Jho Low’s role within 1MDB.

The site argued that Najib’s insistence on secrecy regarding Low’s involvement indicated deeper knowledge of the financier’s actions.

According to Sarawak Report, Najib refrained from publicly acknowledging Low’s influence within the fund, even as Low acted as a “shadow proxy,” coordinating with 1MDB’s board and other parties through clandestine channels.

The investigative site further noted that 1MDB’s former CEO Shahrol Halmi testified to Low’s exclusive communications practices, which involved coded messages and secret instructions purportedly endorsed by Najib.

Sarawak Report argues Najib’s inaction suggests awareness of 1MDB dealings

Sarawak Report asserted that if Najib were indeed unaware of these dealings, he would likely have confronted Halmi upon discovering significant fund transactions and high-profile partnerships.

Despite the weight of Sarawak Report’s allegations, Najib continues to express hope that the judicial process will ultimately absolve him of all charges.

He has also referenced recent media reports alleging that Low and Petrosaudi executives Patrick Mahony and Tarek Obaid diverted funds without his knowledge in 2009 and 2010.

Sarawak Report, however, remains critical, pointing to Najib’s refusal to address certain allegations, including the transfer of over US$1 billion linked to 1MDB.

Beyond his current sentence, Najib is facing multiple other corruption trials.

On 30 October 2024, a Malaysian court is set to rule on whether he will be required to defend himself in a separate 1MDB-related case involving additional money laundering and corruption charges.