KUALA LUMPUR (June 3): After the prosecution closed its 1Malaysia Development Bhd-Tanore (1MDB-Tanore) case last Friday (May 31), former prime minister Datuk Seri Najib Razak will be in court again on Tuesday (June 4), with former Treasury secretary general Tan Sri Mohd Irwan Serigar Abdullah, to face another trial.
This is in relation to six counts of criminal breach of trust (CBT) of over RM6.6 billion of government funds to International Petroleum Investment Co (IPIC).
The trial, which will be presided over by judge Datuk Muhammad Jamil Hussin, will be the fourth out of five trials faced by Najib, who has already been found guilty of seven counts of CBT, money laundering, and abuse of power with regards to SRC International Sdn Bhd funds.
However, the former PM’s sentence had been halved to six years in jail and a fine of RM50 million, or in default another year in jail, following a pardon granted on Jan 29.
Last year, Najib, 71, had been acquitted in the 1MDB audit report tampering case by the High Court, and the prosecution later dropped its appeal against the acquittal.
Najib is scheduled to face a second SRC money laundering trial involving a fund of RM27 million in September.
The IPIC charges
In the IPIC case, Najib and Mohd Irwan are jointly charged in their capacity as the then finance minister and Treasury secretary general respectively with committing CBT on the following:
- a RM1.2 billion government fund
- RM655 million belonging to the Malaysian government
- RM220 million under “Belanja Mengurus di bawah Maksud B11 Perkhidmatan Am Perbendaharaan, Aktiviti 021700 KL International Airport Bhd (KLIAB)” that was entrusted to them
- RM1.3 billion allocation under the Federal Consolidated Fund under “Maksud B11 Perkhidmatan Am Perbendaharaan, Aktiviti 020500 Subsidi dan Bantuan Tunai”, belonging to the Malaysian government
- 1.95 billion yuan (RM1.26 billion), belonging to the Malaysian government, and
- RM2 billion, belonging to the Malaysian government.
Najib and Mohd Irwan are jointly accused of committing all the offences at the Finance Ministry Complex, Putrajaya between Dec 21, 2016 and Dec 18, 2017.
The duo are charged under Section 409 of the Penal Code, read together with Section 34 of the same code, which provides for a maximum of 20 years in jail and whipping, as well as a fine if convicted.
The prosecution in this case will be led by deputy public prosecutor Muhammad Saifuddin Hashim Musaimi, who is the deputy prosecution head II of the Attorney General's Chambers (AGC).
Tan Sri Muhammad Shafee Abdullah will lead Najib’s defence team, while senior lawyer Datuk K Kumaraendran will lead Mohd Irwan’s defence.
Sources from the prosecution, court and Mohd Irwan’s defence team have separately confirmed with The Edge that the trial will begin this week.
Jamil, however, is scheduled to retire next year.
Najib’s justification of the charges
When Najib and Mohd Irwan were charged at the Sessions Court in September 2018, the matter was then transferred to the High Court the year after.
Despite this, Najib, who was also former finance minister, said that after he was charged in 2018, his actions were to avoid a national default amid numerous contractual obligations.
He explained that the sum was diverted from its original intent and instead used to repay obligations involving 1MDB, the East Coast Rail Link (ECRL) project, and two gas pipeline projects.
“My conscience is clear. The decisions taken were taken in the interest of the nation, in the context of when you receive certain money, you have to pay [it] back.
“Otherwise, we will be in default and it will lead to the collapse of the bond market. That will be very serious,” he explained after he was charged, adding that the charges were unjustified.
1MDB had borrowed US$1.2 billion from IPIC in 2015. The sum was repaid by 1MDB under a settlement agreement inked in 2017. 1MDB said at that time that it raised the funds for repayment via asset sales but did not give details.
In February 2023, IPIC and its subsidiary Aabar Investments PJS agreed to pay the Malaysian government US$1.8 billion (RM8.26 billion). The settlement was in respect of the legal proceedings in the London Court of International Arbitration and the London High Court.
Notably, Najib and Mohd Irwan had also sent representation letters to the AGC with the intention for the prosecution to either drop or reduce the charges.