This article first appeared in The Edge Financial Daily on September 20, 2018

KUALA LUMPUR: The Malaysian Anti-Corruption Commission (MACC) has arrested former prime minister Datuk Seri Najib Razak in relation to RM2.6 billion of 1Malaysia Development Bhd (1MDB)-linked money that was transferred into his personal account.

In a statement, MACC said the arrest was made at 4.13pm yesterday at its headquarters in Putrajaya.

“Najib will face several charges under Section 23 (1) of the Malaysian Anti-Corruption Commission Act 2009 after obtaining approval from the Attorney-General’s Chambers. Najib will be taken to the Kuala Lumpur Sessions Court on Sept 20 (today) at 3pm for his charge to be read in court.”  

MACC added that it will be working together with the Royal Malaysian Police to record Najib’s statement in relation to police investigation under the Anti-Money Laundering Act and Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001, before he is brought to court today.

According to civil suits initiated by the US Department of Justice, over US$4.5 billion from 1MDB has been laundered through a complex web of transactions and shell companies. It has also alleged that some US$681 million (RM2.6 billion according to exchange rates at the time) went into Najib’s bank account.

Najib, however, has always maintained that he has done no wrong and that the money he received were donations from the Saudi Arabia royal family, and which he said he has mostly returned.

But dogged by the financial scandals at the debt-strapped 1MDB, a strategic investment fund he founded in 2009, the Najib-led Barisan Nasional coalition went on to suffer a devastating defeat at the national polls on May 9.

Following his fall from power, the former premier has been slapped with seven charges of money laundering, criminal breach of trust and abuse of power in the past two months, in relation to RM42 million transferred from SRC International Sdn Bhd, a former unit of 1MDB, to his personal account. He has pleaded not guilty to all seven charges.

Prominent lawyer Tan Sri Muhammad Shafee Abdullah, who leads Najib’s defence team in the SRC case, was also charged last week with receiving RM9.5 million from the proceeds of illegal activities from Najib. Muhammad Shafee has pleaded not guilty to the charges.