KUALA LUMPUR (Oct 24): Imprisoned former prime minister Datuk Seri Najib Razak has apologised and expressed regret that the 1Malaysia Development Bhd (1MDB) scandal happened under his watch. 

His son, Pahang executive council member Datuk Mohamad Nizar Mohamad Najib, read out a statement from his father saying that it pained Najib to know that the multibillion-dollar scandal happened under his watch.

"After much reflection over the course of 26 months in prison, and following significant recent developments relating to 1MDB, I have decided to make the following statement. It pains me to know that the 1MDB debacle happened under my watch as the minister of finance and PM. I would like to apologise unequivocally to Malaysians," the statement read.

Najib however maintained — in line with his defence in his myriad of court cases — that he honestly believed that the funds received were from Saudi Arabia, and not misappropriated from the strategic state development fund. 

"As hard as it is for some people to fathom, I was advised and honestly believed at the time that the funds I received were political donations from Saudi Arabia. As established by court proceedings, there were indeed two confirmed large donations in 2010 from the government of Saudi Arabia. Those were not the subject of any criminal nor civil proceedings," he said.

He added: "I deeply regret what has taken place at SRC [International Sdn Bhd] and 1MDB. However, being held legally responsible for things that I did not initiate or knowingly enable is unfair to me, and I hope and pray that the judicial process will, in the end, prove my innocence."

He said that he had already been punished politically, and that he should not be further "victimised" by the courts as well.

Ex-finance minister Najib is already serving his prison sentence in the main SRC criminal case, after the apex court dismissed his appeal and review bid.

In February, the Pardons Board reduced his initial 12-year jail sentence and fine of RM210 million to six years and a RM50 million fine.

In his statement, Najib also quoted news reports by The Edge on PetroSaudi International Ltd (PSI) executives Patrick Mahony and Tarek Obaid.

On Aug 28, the Swiss Federal Criminal Court ruled that both Mahony and Obaid had deliberately deceived the 1MDB board into believing that PSI had links with the Saudi Arabian government, and that PSI would contribute significant oil assets to the companies' joint venture.

They were both convicted of fraud, criminal mismanagement and money laundering. They were indicted of defrauding 1MDB of US$1.8 billion to enrich themselves, with Obaid getting at least US$805 million and Mahony at least US$37 million.

Obaid was sentenced to seven years in prison, while Mahony received a sentence of six years. They were also ordered to pay back US$1.75 billion to 1MDB. Both are appealing against the decision.

"The Edge had reached a conclusion in their article that PSI and Jho Low (fugitive businessman Low Taek Jho) had collaborated to deceive me, that I was not aware that PSI was siphoning 1MDB funds, and that I did not knowingly receive any money from the funds sent by 1MDB to PSI," Najib said.

He added that with the benefit of hindsight, he should have "acted differently" when various people had raised questions about happenings at 1MDB.

He stressed — as he has in various of his court cases — that he believed in the company's management and board of directors.

Mohamad Nizar did not take any questions from reporters after reading out his father’s statement.

Najib still has three pending criminal trials.

Next Wednesday (Oct 30), the High Court is set to deliver its decision on whether Najib should enter his defence or be acquitted in the 1MDB-Tanore case.

In that trial, Najib faces a total of 25 charges, including four charges of abuse of power (predicate charges) of receiving gratification of RM2.27 billion, and 21 money-laundering charges.

Besides that, the ex-Umno president still has a pending case of criminal breach of trust of RM6.6 billion, involving International Petroleum Investment Company (IPIC), where he is charged alongside former Treasury secretary general Tan Sri Dr Mohd Irwan Serigar Abdullah. That trial is slated to start next month.

He also has a money-laundering trial involving RM27 million in SRC funds. That trial is set to begin in April next year.

SRC is a former subsidiary of 1MDB.

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