Daily Times

Malaysian anti-corruption agents arrested former Prime Minister Najib Razak on Tuesday following a probe into how money went missing from a state fund he founded almost a decade ago and authorities said he would be charged in court on Wednesday.

Since his shock election loss to 92-year-old Mahathir Mohamad in May, Najib has been barred from leaving the country and had his houses searched as part of the probe into 1Malaysia Development Berhad (1MDB).

Mahathir said in an interview with Reuters last month that embezzlement and bribery with government money were among the charges that Malaysia was looking to bring against 64-year-old Najib, adding they had “an almost perfect case” against him.

Najib’s arrest was in relation to a probe into SRC International, a former 1MDB unit, a task force investigating the fund said on Tuesday. One source close to Najib’s family said he was expected to be charged with abuse of power at SRC.

Anti-graft agents picked up Najib from his home after serving him with a remand order, two sources close to the family said.

A Najib spokesman did not immediately have a comment. Najib has consistently denied wrongdoing.

Founded by Najib in 2009, 1MDB is being investigated in at least six countries for alleged money laundering and graft.

Civil lawsuits filed by the US Department of Justice allege that nearly $4.5 billion from 1MDB was laundered through a complex web of transactions and shell companies.

But the initial focus of the Malaysian Anti-Corruption Commission (MACC) investigation focused on how 42 million ringgit ($10.6 million) went from SRC International to Najib’s account.

SRC was created in 2011 by Najib’s government to pursue overseas investments in energy resources, and was a unit of 1MDB until it was moved to the finance ministry in 2012.

MACC has been able to track the money trail from SRC more easily because transactions were made through Malaysian entities, whereas most other transfers of 1MDB funds went through foreign banks and companies.

Published in Daily Times, July 4^th 2018.