(Bloomberg) -- Malaysia is tracing the web of transactions linked to 1MDB and former premier Najib Razak's accounts as prosecutors seek to conclude his first proceeding by late June.
Najib is undergoing the first of what's set to be many trials. The current proceeding revolves around seven of the total 42 charges he faces over his role in 1MDB. The court is discussing allegations of abuse of power, money laundering and breach of trust against him linked to 42 million ringgit ($10 million) of funds and SRC International Sdn, a former unit of 1MDB. He has denied any wrongdoing.
Key Developments
- The court has heard from 30 witnesses, including an AmBank branch manager who detailed a series of transfers between and leading to Najib's accounts. Earlier witnesses included central bank investigators and recipients of checks from Najib
- Judge has ordered a central bank witness to produce email and phone transcripts of former SRC officers and Jho Low
- In a separate case, former Goldman Sachs Group Inc. banker Roger Ng was extradited to the U.S. to face 1MDB charges
Najib backed loan that breached pension fund rules (May 6)
The court heard from a former official at Kumpulan Wang Persaraan Diperbadankan, the retirement fund for civil servants known as KWAP. The witness said he was pressured by his superiors to expedite a 4 billion ringgit loan from KWAP for SRC. The first 2 billion-ringgit tranche of the loan was credited to SRC's account in August 2011, while the second in March 2012.
The funding came with a government guarantee signed by Najib, but the loans were in breach of KWAP's regulations. The size of the loans exceeded KWAP's limit of 10 percent of its income and funding given by the retirement fund should only be for working capital, and not for corporate social responsibility or political purposes, the witness said.
Further Reading
Earlier: Malaysia Expects to End Najib's First Trial by June: 1MDB Update
Lawyer to Trace 1MDB Money Trail to Argue Najib Was Manipulated
The Long List of Charges Against Najib as 1MDB Trial Kicks Off
The 1MDB Deals That Continue to Haunt Goldman Sachs: QuickTake
Malaysia Court Sets June for Next Goldman 1MDB Case Hearing
To contact the reporter on this story: Anisah Shukry in Kuala Lumpur at ashukry2@bloomberg.net
To contact the editors responsible for this story: Yudith Ho at yho35@bloomberg.net, Elffie Chew
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