This article first appeared in The Edge Financial Daily on October 26, 2018

KUALA LUMPUR: Defence counsel Tan Sri Muhammad Shafee Abdullah (pic) argued yesterday that the his client Datuk Seri Najib Razak’s action of redirecting government funds for other purposes was an “executive decision”. Muhammad Shafee claimed that such practice is carried out even today by the present government.

He confirmed that the former premier indeed reallocated the funds — but to pay off debts and contractual obligations of government-linked companies.

“These six charges relate, basically, to putting certain finances to prioritise their payment to something else which have taken over in terms of priority. It is an executive decision.

“These charges call into question executive decision-making process of [former] minister of finance [Najib Razak] and [former] sec-gen of the ministry of finance [Mohd Irwan],” he said after Najib and former Treasury secretary-general Tan Sri Mohd Irwan Serigar Abdullah were charged in court yesterday.

The two men face six charges of criminal breach of trust (CBT) for allegedlly misappropriating RM6.636 billion of government funds.

When asked if the diversion of the funds by Najib and Irwan breached any procedures, Muhammad Shafee said: “Not from my client’s perspective. This has been done many, many times before, even today.

“At least two payments have been made by the current government to IPIC. So how did they meet the deadline?” questioned Muhammad Shafee.

“If you don’t meet the deadline by taking money that is available to meet the deadline, you will be blamed for being negligent… but [my client] made a management call and for that, he is being charged.”

Separately, Najib told a press conference at the court complex that the action was to avoid a national default amid numerous contractual obligations.

“My conscience is clear,” Najib said. “The decisions taken were taken for the interest of the nation, in the context of when you receive certain money you have to pay back.

“Otherwise, we will be at default and it will lead to collapse of the bond market. That will be very serious,” he added.

Including the six fresh charges Najib now carries 38 charges — five counts of abuse of power, nine CBT counts, and 24 counts of money laundering — involving misappropriation of around RM9.5 billion.

On July 4, Najib was slapped with one count of abuse of power for receiving RM42 million kickbacks from SRC International Sdn Bhd, a unit of 1MDB; and three CBT counts over the transfer of the monies into his personal bank account.

On Aug 8, he was charged with three counts of money laundering for receiving the RM42 million.

On Sept 20, he faced another 21 counts of money laundering and four counts of abuse of power over the transfer of some RM2.3 billion through his personal bank account.

The charges fall under three laws: Penal Code, Malaysian Anti-Corruption Commission Act 2009 and Anti-Money Laundering, Anti-Terrorrism Financing and Proceeds From Unlawful Activities Act 2001.