Ex-BSI banker Kevin regrets pocketing US$6 mil in secret commissions
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Former BSI Singapore banker Kevin Swampillai (second from left) seen at the Kuala Lumpur High Court on Thursday, March 2, 2023 for the 1MDB-Tanore trial. (Photo by Patrick Goh/The Edge)

KUALA LUMPUR (March 2): Former banker Kevin Swampillai has admitted that he pocketed nearly US$6 million in commissions from his previous employer BSI Bank for his role in carrying out 1Malaysia Development Bhd (1MDB)-linked transactions with the bank.

He had, however, returned the money, Kevin claimed in his testimony at the 1MDB-Tanore trial in the High Court on Thursday (March 2).

Kevin, 58, who was the head of Wealth Management Services at BSI Singapore, testified on how he and his former colleague Yeo Jiawei managed to make profits for themselves.

Questioned by deputy public prosecutor Mohamad Mustaffa P Kunyalam on how he obtained the money and where it was now, Kevin said the money had been “disgorged” when Singapore authorities began investigations and questioned him about the money he received.

“I received benefits totalling almost US$6 million," he testified.

In October 2020, the Monetary Authority of Singapore (MAS) issued lifetime prohibition orders against Kevin for his role in the 1MDB scandal that saw him receive US$5 million in “secret profits”.

MAS had prohibited him permanently from performing any regulated activity under Singapore's Securities and Futures Act (SFA) and providing any financial advisory service under the Financial Advisers Act (FAA).

He was also permanently prohibited from taking part in the management, acting as a director, or becoming a substantial shareholder of any capital market and financial advisory services firm under the SFA and FAA.

MAS had said that Kevin, along with Yeo, had assisted 1MDB to restructure several of its joint venture interests.

In the course of this, Kevin and Yeo had channelled a portion of the fund's management fees or “secret profits” to an entity beneficially owned by Kevin.

On Thursday, Kevin explained that he and Yeo were not getting commissions which other bank officers were getting from certain 1MDB transactions. This included the banks’ relationship managers for the 1MDB-linked accounts.

“They (the relationship managers and other bankers) started receiving percentages of revenue from transactions initiated by 1MDB. They received bonuses that ran into millions. When that happened, my colleague Yeo and I felt we were involved in the transaction implementation and that we deserve a little more; we then approached our employer and asked for an increase, which was swiftly declined,” he said.

“We rather stupidly decided to seek these benefits ourselves. We negotiated commissions to be paid to us. That is how we received our benefits,” he said, adding that he and Yeo approached managers of the 1MDB accounts and negotiated to receive some profits from the managers’ commissions.

Kevin was then asked by Mustafa if his testimony was “coloured” (fabricated) in any way.

“Not at all. I never asked for a deal [with the authorities]. Neither was I offered a deal by law enforcements investigating 1MDB,” he said.

On trial is former prime minister Datuk Seri Najib Razak. After Mustafa finished his questioning, Najib’s lead counsel Tan Sri Muhammad Shafee Abdullah asked Kevin if he regretted his involvement in the scandal.

Shafee: You currently regret the way you were involved with the transactions?

Kevin: Yes, immensely.

Kevin added that the consequences of his involvement and actions had been severe and is a “source of regret”. He also wishes he had done things differently.

Returning to the subject of "secret profits" later in the proceedings, Kevin testified that he had "disgorged" the money back to the authorities in Singapore.

He added that Singapore had repatriated some funds related to the 1MDB scandal back to Malaysia, and he assumes that the monies he made were also part of this.

Kevin said some of the disgorged monies were in cash form in Malaysian banks, and others were invested overseas. He said he had returned all of it in total and voluntarily.

Najib is on trial on four counts of abuse of power and 21 counts of money laundering involving RM2.28 billion of 1MDB funds.

The trial before judge Datuk Collin Lawrence Sequerah is slated to continue on April 17.

The Edge is covering the trial live here.

Users of The Edge Markets app may tap here to access the live report.

Edited BySurin Murugiah & S Kanagaraju
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