A guide to the charges against Najib

KINIGUIDE | Former premier Najib Abdul Razak has claimed trial to four charges, three under Section 409 of the Penal Code and one under Section 23 of the MACC Act.

The first three charges were the same which Malaysiakini had on July 27, 2016 reported that the MACC recommended to the Attorney-General's Chambers to bring against Najib, who was at the time still the prime minister. 

Then attorney-general Mohamed Apandi Ali had a day before cleared Najib of wrongdoing on the grounds that the latter had no knowledge that SRC International Sdn Bhd's funds had flowed into his bank account. 

What is SRC International Sdn Bhd?

SRC International Sdn Bhd (SRC) was founded as a "strategic resource company" on Jan 7, 2011.

It was set up at the recommendation by then 1MDB chief executive director (CEO) Shahrol Azral Ibrahim to Najib on Aug 24, 2010.

The 1MDB subsidiary's purpose was to invest in strategic interest involving natural resources such as coal, uranium, natural gas, oil, steel and aluminium.

By August 2011, SRC had Nik Faisal Ariff Kamil as CEO while its non-executive directors were Shahrol, Suboh Md Yassin, Che Abdullah @ Rashidi Che Omar, Vincent Beng Huat Koh while the chairperson was Ismee Ismail, who also sat on the 1MDB board.

SRC International took a loan of around RM4 billion from the Retirement Fund Incorporated (KWAP) in two tranches between August 2011 and January 2012.

The loan was provided on condition of a government guarantee, which the cabinet agreed to provide, according to the auditor-general's report.

SRC was later taken out of 1MDB and placed under the Minister of Finance Incorporated.

Suboh, who was previously on the run, had reportedly cooperated with investigators and is receiving witness protection. Nik Faisal remains at large. 

What is the prosecution alleging against Najib?

The auditor-general's report detailed SRC's questionable investments abroad with the RM4 billion it received, including putting money into ventures that did not have feasibility studies.

However, the charges against Najib are specific to transactions done locally.

According to the charge sheets, they alleged that Najib received RM42 million from SRC's funds.

Najib allegedly received the sum in three tranches of RM27 million, RM5 million and RM10 million.

The sum is similar to what was reported by Sarawak Report, which claimed SRC's fund passed through Gandingan Mentari Sdn Bhd and Ihsan Perdana as intermediaries before arriving at two of Najib's bank accounts at Ambank.

What are the specifics of the charges?

Section 23 of the MACC Act

The charge under Section 23 of the MACC Act focusses on Najib's alleged decision to grant government guarantees for SRC's RM4 billion loan.

It alleged that he used his position as prime minister and finance minister to approve government guarantees for SRC's RM4 billion loan in exchange for RM42 million.

The timeline for the approvals was placed at between Aug 17, 2011 and Feb 8, 2012.

Section 23(1) of the MACC Act states: "Any officer of a public body who uses his office or position for any gratification, whether for himself, his relative or associate, commits an offence".

If found guilty, Najib is liable to a prison term not exceeding 20 years and a fine of not less than five times the sum or value of the gratification

Section 409 of the Penal Code

The prosecution brought three charges under this section which focusses on the RM42 million that allegedly entered Najib's Ambank accounts from SRC International.

They claimed that Najib in his capacity as prime minister, finance minister and SRC adviser emeritus had power over SRC's RM4 billion loan but committed criminal breach of trust with regard to the RM42 million.

The three charges were essentially identical, with one charge for each transaction - RM27 million and RM5 million between Dec 24 to Dec 29, 2014 and RM10 million between Feb 10 and March 2, 2015.

Section 409 of the Penal Code states: "Whoever, being in any manner entrusted with property, or with any dominion over property, in his capacity of a public servant or an agent, commits criminal breach of trust in respect of that property, shall be punished with imprisonment for a term which shall not be less than two years and not more than twenty years and with whipping, and shall also be liable to fine".

With the exception of those convicted of rape, men aged 50 and above are exempted from whipping. Najib will be 65 this year. - Mkini