[Najib 1MDB Verdict] High Court: 2.3 Billion Transferred Directly to Najib's Account, Royal Saudi Donation Claim Unsubstantiated

(Kuala Lumpur, 26th) In the case involving RM2.3 billion from 1Malaysia Development Berhad (1MDB), the High Court ruled that former Prime Minister Datuk Seri Najib's claim that the money was a political donation from the Saudi royal family is completely unfounded.

The court pointed out that this claim is hard to establish because the funds were transferred directly into Najib’s personal bank account.

The verdict was read by then High Court judge Datuk Collin Lawrence, who has since been promoted to the Federal Court.

In his grounds of judgment, he noted that neither the government nor any political party had issued any receipt to confirm this so-called donation.

“At the same time, there is also no evidence at all to show that the government, any political party, or the defendant himself has ever formally thanked the alleged donor for this so-called donation.”

“Furthermore, the so-called Arab donation letter was sent to the defendant's private address, not to any official or party address.”

He also said that there are no official records, minutes, or evidence to prove the existence of this so-called donation or linking the so-called donor to any legitimate political activity.

Collin Lawrence pointed out that such a large sum being deposited directly into a private bank account, without proper and transparent accounting records, is not credible.

“At that time, the party led by the defendant was UMNO, which is Malaysia’s largest political party, with a history dating back to 1946. As Prime Minister, it is inconceivable that an organized party allegedly receiving such a huge amount would not maintain appropriate accounting records.”

He further elaborated that even if the funds were purported to be political donations, if the source was illegal, receiving or using it cannot be legitimized.

“The court emphasized that regardless of the intent for the donation, the actual use of the funds is key.”

“Finally, even if the funds were originally intended as political donations—though this has already been found to be entirely unsubstantiated—if the source is illegal, the use of the funds can never be legitimized by that fact, because the use does not determine legality.”

“For the reasons stated above, the defendant’s claim that the received funds were for political donations is untenable.”

By the time of writing, the judge was still delivering the grounds of judgment and indicated it would take about three more hours to complete.

The court then adjourned for Friday prayers and will resume reading the judgment at 3pm.
72-year-old Najib faces four charges of using his position to receive bribes totaling RM2.3 billion from 1MDB funds.

He is alleged to have committed the offenses between 24 February 2011 and 19 December 2014, at the AmIslamic Bank branch on Jalan Raja Chulan, Kuala Lumpur, in contravention of Section 23(1) of the Malaysian Anti-Corruption Commission Act, and is punishable under Section 24(1) of the same Act.

If convicted, he faces up to 20 years in prison and a fine of five times the bribe amount or RM10,000, whichever is higher.

The 21 money laundering charges allege that between 22 March 2013 and 30 August 2013, Najib committed the offenses at the same bank, involving the same amount.

He is charged under Section 4(1)(a) of the Anti-Money Laundering and Anti-Terrorism Financing Act, which carries a maximum fine of RM5 million and up to 5 years in prison, or both, upon conviction.

The Federal Court on 23 August 2022 dismissed Najib’s final appeal, upholding his conviction for misappropriating RM42 million from SRC International, and he was sent to Kajang Prison the same day to begin serving his sentence.

On 2 September 2022, Najib applied for a royal pardon, and was subsequently granted a commutation: his sentence was reduced from 12 years to 6 years, and the fine from RM210 million to RM50 million.