This article first appeared in The Edge Financial Daily on January 6, 2020
KUALA LUMPUR: 2019 was the year Datuk Seri Najib Razak’s legal tribulations began in earnest. Trials for three out of four of the criminal cases involving the sixth prime minister and former finance minister — namely SRC International Sdn Bhd, 1Malaysia Development Bhd (1MDB)-Tanore and the 1MDB audit report tampering cases — started last year, and are set to resume as early as today after a break during the festive season.
Meanwhile, the International Petroleum Investment Company (IPIC) case is slated to begin in February.
If Najib is found guilty in any of the cases, he could be jailed for up to 20 years.
He is also the subject of a suit by the Inland Revenue Board seeking RM1.69 billion in tax arrears from him, as well as forfeiture proceedings by the government to recover funds from 1MDB.
SRC
Although the amount of money — RM42 million — Najib had allegedly taken from SRC pales in comparison to the gargantuan sum he is accused of pilfering from its former parent 1MDB, it is still a historic case as it was the first time a former prime minister is faced with criminal charges and testified as a witness in his own defence.
The SRC trial, which is expected to conclude in the first quarter of 2020, may resume today with Najib’s legal team calling other witnesses to aid in his defence.
After concluding his defence, both sides will then make their submissions for the court’s consideration, following which Justice Mohd Nazlan Mohd Ghazali will rule on whether Najib would be found guilty and is to be sentenced or acquitted of the seven charges of money laundering, abuse of power and corruption involving the company’s funds.
If convicted, Najib could again make history as the first Malaysian ex-premier to go to jail. He could also be liable to a fine of up to RM10,000 or five times the amount of gratification, whichever is higher.
1MDB-Tanore
The trial — which is still in the early part of the prosecution stage — faced several delays, namely Najib’s bouts of conjunctivitis and prosecution witness 1MDB chief executive officer (CEO) Datuk Shahrol Azral Ibrahim Halmi falling sick. Dates for this case were eventually vacated for SRC’s proceedings as it was deemed a priority.
The cross-examination of Shahrol is far from complete. This case is expected to take up a major part of 2020 and could spill over to 2021 if Najib is called to enter his defence.
The hearing began on Aug 28, 2019 and had gone on for more than 30 days with nine prosecution witnesses having testified so far.
High Court Justice Collin Lawrence Sequerah had set dates for the case up until August this year.
Najib is facing 25 counts of money laundering and abuse of power for allegedly receiving RM2.28 billion of 1MDB funds into his account. He faces a fine of up to RM5 million or up to five years in jail, or both, upon conviction.
1MDB audit report tampering
This trial produced one of the most unlikely stories of 2019. Nor Salwani Muhammad, a director of the National Audit Department, became a hero overnight after testifying that she had placed a digital voice recorder inside a pencil box belonging to her superior that was taken into a meeting involving top government officials to discuss the 1MDB audit report.
The then chief secretary to the government Tan Sri Ali Hamsa had called for the meeting after Najib complained that he was not happy with the contents of the 1MDB audit report and wanted it sorted out.
Nor Salwani explained how she had been directed to attend the meeting by her boss, then auditor general Tan Sri Ambrin Buang, to take minutes. However, she was told to leave at the last minute, which was why she had slipped the recorder into her boss’ pencil case.
The audio recording of the meeting contains the decisions taken to remove portions of the audit report.
In this case, Najib is jointly tried together with former 1MDB CEO Arul Kanda Kandasamy. The pair face up to 20 years in jail and a fine of not less than five times the amount of the gratification, or RM10,000, whichever is higher, if found guilty.
Proceedings stopped on Nov 28 to make way for Najib’s other trials. The case will resume tentatively in January, with additional dates in March and April also set aside for the trial.
IPIC
In his last criminal trial, Najib is jointly charged with former treasury secretary-general Tan Sri Dr Mohd Irwan Serigar Abdullah for six counts of criminal breach of trust involving RM6.64 billion in government funds.
Judge Mohd Nazlan has vacated dates set earlier for the IPIC trial to give priority to SRC. He has fixed Feb 27 to set new dates.
Deputy public prosecutor Datuk Jamal Aripin will lead the prosecution while Tan Sri Muhammad Shafee Abdullah will lead the defence. Meanwhile, Datuk K Kumaraendran appeared for Mohd Irwan.
If found guilty, Najib and Mohd Irwan could face a jail term of two to 20 years, whipping and a fine for each offence.