Corruption is Everywhere - Certainly in Malaysia Where Superyachts Go for Half Price

Former Malaysia PM pleads 'not guilty' in 1MDB corruption trial

By Clyde Hughes

Former Malaysian prime minister Najib Razak (L) leaves the Kuala Lumpur High Court, Malaysia Wednesday.
Photo by Fazry Ismail/EPA-EFE

(UPI) -- Former Malaysian Prime Minister Najib Razak pleaded not guilty Wednesday to charges of corruption at his trial in Kuala Lumpur.

Prosecutors have charged Razak with criminal breach of trust, abuse of power and money laundering in connection with $14 million from SRC International, a former unit of the state-run 1Malaysia Development Berhad, or 1MDB.

Razak answered the charges in an appearance Wednesday.

Authorities in Malaysia and the United States believe $731 million of the money was funneled to Razak's private bank accounts. The amount is a small part of what prosecutors actually think Razak, 65, actually received. The former leader has denied wrongdoing throughout his prosecution, saying the charges are politically motivated.

"Evidence will establish that the personal checks were issued for, among others, payment for renovation works carried out at [Razak's] residence at Jalan Langgak Duta and residence in Pekan, Pahang and ... component political parties," Malaysian Attorney General Tommy Thomas said in court Wednesday.

Thomas argued that Razak wielded "near-absolute power" during his time as prime minister, between 2009 and 2018, and the former leader believed he was above the law.

Malaysian financier Jho Low, who's believed to be the mastermind behind the 1MDB case, faces charges in Malaysia and the United States. He is believed to be living in China, beyond the reach of U.S. and Malaysian authorities.

Malaysians voted Razak out of office last year in favor of rival Tun Dr Mahathir Mohamad.

Authorities in Malaysia have also filed criminal charges against Goldman Sachs in the case, arguing it helped 1MDB raise more than $6 billion from investors through what they say were false and misleading statements. The U.S. investment firm has worked to distance itself from the case and has apologized for the role of a former partner who pleaded guilty to charges related to the scandal.

Superyacht linked to Malaysia’s state fund looting scandal

sold for $126 million

A superyacht purchased with money pilfered from the Malaysian state fund 1MDB has been sold to casino operator Genting Malaysia Berhad.

The 91.5-meter luxury yacht Equanimity was bought on Wednesday, according to Malaysia’s Attorney General Tommy Thomas as cited by the Star newspaper.

The price offered by Genting was the best it had received since the yacht was put up for sale last year, he said. Genting will pay for it by end of the month.

Equanimity © AFP / Sonny Tumbelaka

“This judicial sale at USD$126 million (RM514.14 million), is historic, by any measure,” said Thomas. The deal “records a high-water mark for our judicial system in ensuring that market value is secured for a vessel sold through the processes of Court, without any discount.”

He added that “It is even more commendable that this is achieved in a very sophisticated high-end superyacht sale, where the pool of buyers is extremely small.”

Equanimity was among assets allegedly bought by Malaysia’s fugitive financier Low Taek Jho and his associates with money stolen from the fund. It was allegedly purchased for $250 million and was outfitted with a helipad, swimming pool, movie theatre, spa and sauna.

The US has filed forfeiture lawsuits against $1.7 billion of assets that were allegedly acquired with money embezzled from 1MDB, including a $1.29 million heart-shaped diamond and a $3.8 million diamond pendant that Low gave to Australian model Miranda Kerr. A $3.2 million Picasso painting was gifted by Low to actor Leonardo DiCaprio. Both celebrities have since handed the gifts over to US authorities.

Low, who has repeatedly maintained his innocence, faces charges including money laundering in Malaysia. He has been charged in absentia amid suspicions that he is hiding out in China.

The scandal with the Malaysian state fund has been making headlines for years and is being investigated in at least six countries. It involves high-ranking Malaysian officials including former Prime Minister Najib Razak who have been accused of helping to loot billions from the fund.

Malaysia also wants $7.5 billion in reparations from Wall Street investment bank Goldman Sachs, which it accuses of covering up the looting of the nation’s state fund. Malaysia filed criminal charges against the US bank and two of its key bankers, accusing them of misappropriating money, bribing officials and giving false statements when helping to arrange bond sales for 1MDB. The bank has denied the allegations, claiming it fell victim of the previous corrupt Malaysian government.