1MDB trial: Najib Razak's first case ends, verdict due on July 28

The first of Najib Razak's five corruption trials wrapped up on Friday, with lawyers of Malaysia's former prime minister making the final arguments that he had been duped by the fugitive billionaire Jho Low and other "rogue bankers".

The trial judge, Justice Mohd Nazlan Ghazali, is now expected to analyse some 2,000 pages of submissions before coming to a verdict on July 28.

The case involves seven of the 42 criminal charges Najib is facing over his alleged role in the looting of some US$4.5 billion from the 1Malaysia Development Berhad (1MDB) state fund during his tenure as prime minister from 2009 to 2018.

The case that ended on Friday is referred to as the "SRC International trial", referencing the former 1MDB subsidiary that prosecutors say was on the receiving end of some 42 million ringgit (US$9.8 million) of misappropriated funds.

The milestone in the case comes amid unprecedented political turmoil in the country that has seen the multiracial Pakatan Harapan government that toppled Najib on an anti-corruption campaign now turfed out of power. In its place, Najib's Malay nationalist allies led by the new Prime Minister Muhyiddin Yassin are now back in office.

"We have raised reasonable doubt in all seven charges and pray that the court acquits [Najib] of all the charges," Najib's lawyer Shafee Abdullah told the judge.

The defence and prosecution have been making their final oral submissions over the last week.

Earlier, Shafee, one of the country's most prominent criminal litigators, sought to pin blame on wrongdoing at SRC International on the fugitive financier Jho Low and other key personalities who were named during the trial. These included Nik Faisal Ariff Kamil " SRC International's former chief executive who is currently on the run " and Joanna Yu, a bank relationships manager who managed Najib's personal bank account.

Malaysian-born Low was a close acquaintance of Najib and has been identified by prosecutors in Malaysia and the United States " where separate criminal investigations over the scandal are ongoing " as a central figure in the controversy.

The financier has previously rejected the allegations against him as politically motivated and said he has no plans to return to Malaysia to face justice. There are outstanding arrest warrants for him in Malaysia and neighbouring Singapore.

Fugitive financier Jho Low. Photo: AP alt=Fugitive financier Jho Low. Photo: AP

In the US, the Department of Justice last October struck a settlement with Low over a civil forfeiture case that saw him forfeit some US$1 billion without an admission of guilt or wrongdoing.

Pending criminal cases against him " for conspiring to violate the Foreign Corrupt Practices Act and for conspiring to make and conceal "foreign and conduit" campaign contributions in the 2012 US presidential elections " are expected to continue.

"Datuk Seri Najib was a victim of a scam by the likes of Jho Low, Nik Faisal and rogue bankers, if I may say, like Joanna Yu and other senior management of SRC," said Shafee on Thursday, according to a live blog of the trial by the local news portal The Edge Markets.

The defence's key assertion is that Najib was misled into thinking that the misappropriated funds in the account were part of political donations from the late Saudi monarch Abdullah Abdulaziz Al Saud.

V. Sithambaram, the lead prosecutor, in his final submissions on Wednesday said this argument was a fig leaf. "[The defence] are making a lot of hue and cry that the accused was misled to believe he still had Arab funds when he used up the 42 million ringgit," he was quoted as saying on Wednesday.

"This is nothing but a myth. The fact that 42 million ringgit came into his account is not disputed ... he is just saying that he did not know it was SRC money. This is ridiculous. Any reasonable person, in particular a man of finance, will know or ought to have known what was going on," he said.

On June 29, all eyes will next turn to the resumption of the so-called "1MDB-Tanore" trial, which involves illegal fund transactions facilitated by Tanore Finance Corp, a vehicle viewed as central to the theft. That case involves 25 of the 42 criminal charges Najib faces over the scandal.

A separate trial over alleged audit tampering will begin on June 15.

Prosecutors allege some US$4.5 billion were looted from the 1MDB state fund. Photo: AP alt=Prosecutors allege some US$4.5 billion were looted from the 1MDB state fund. Photo: AP

The former leader could also face contempt charges for comments he made in a Reuters interview suggesting the change in the country's leadership meant he was more likely to get a fair trial.

Outside court, Najib's fortunes have turned dramatically since the SRC trial began on April 3 last year " 10 years to the date of his swearing-in as Malaysia's sixth prime minister in 2009.

The trial followed months of ignominy for the 66-year-old, a member of one of the country's most prominent political families. Shortly after Najib was ousted in the May 2018 election, his homes were raided and the government led by Mahathir Mohamad " his arch-rival " blocked him and his wife Rosmah Mansor from leaving the country.

Police raids uncovered some US$275 million worth of luxury goods from their homes, including 284 boxes of designer handbags, 2,200 rings, 1,400 necklaces, 14 tiaras, 423 watches, and 234 pairs of designer sunglasses.

Rosmah, 68, is awaiting trial for separate charges involving allegedly corruption-tainted contract for the supply of solar energy to rural schools in the east Malaysian state of Sarawak.

Riza Aziz, stepson of Rosmah Mansor. File photo: AP alt=Riza Aziz, stepson of Rosmah Mansor. File photo: AP

Riza Aziz, Rosmah's stepson, was also facing a criminal trial for 1MDB-linked charges but prosecutors in May announced they had granted him a discharge not amounting to an acquittal.

In return, Riza agreed to forfeit some US$107.3 million worth of assets to the government.

Riza, one of the producers of The Wolf of Wall Street film, was alleged to have received US$248.2 million of funds from 1MDB.

Among the criticisms of the settlement are that the deal was made too early in the trial, and that the assets Riza had pledged to give up would have been forfeited anyway as they were seized by US authorities.

This article originally appeared on the South China Morning Post (SCMP).

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