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Najib Razak apologises to Malaysians for 1MDB scandal but maintains innocence

Former Malaysian Prime Minister Najib Razak apologised for the 1MDB scandal but denied involvement in illegal transfers. Sentenced for corruption in 2022, Najib expressed regret yet maintained his innocence. His apology follows the government’s plan to introduce house arrest as a sentencing option in the 2025 budget.

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MALAYSIA: Former Malaysian Prime Minister Najib Razak, currently serving a prison sentence, issued a rare apology for his role in the 1Malaysia Development Berhad (1MDB) financial scandal.

Despite expressing remorse, Najib continued to assert that he was unaware of any illegal transfers connected to the now-defunct sovereign wealth fund.

The 1MDB fund, co-founded by Najib in 2009 during his tenure as prime minister and finance minister, has been embroiled in global corruption investigations.

Authorities in at least six countries have examined the alleged misappropriation of over US$4.5 billion by top officials and their associates.

The case has made headlines for its scale, involving high-profile figures such as fugitive businessman Jho Low and two executives from Saudi oil firm Petrosaudi, all of whom have faced legal action.

In 2022, Malaysia’s highest court upheld Najib’s conviction for corruption and money laundering, sentencing him to 12 years in prison.

He was found guilty of receiving approximately US$10 million from SRC International, a former subsidiary of 1MDB.

Although the initial sentence was later reduced by a royal pardon, Najib, 71, has continuously denied any wrongdoing.

On Wednesday (25 October), Najib’s son, Mohamad Nizar Mohd Najib, read a letter from the former leader at a press conference, in which Najib expressed his regret for the scandal.

“It pains me every day to know that the 1MDB debacle happened under my watch as minister of finance and prime minister,” Najib wrote.

“For that, I would like to apologise unreservedly to the Malaysian people.”

Despite Apology, Najib Maintains Innocence, Denies Direct Involvement in 1MDB Illegal Activities

Although Najib maintained his innocence, claiming he was not directly involved in the illegal activities surrounding the 1MDB funds, he acknowledged that he could have acted differently when concerns about the fund first arose.

In his latest statement, which was also shared on his official Facebook page, Najib admitted that his focus at the time was on the fund’s financial stability and the potential diplomatic fallout rather than on investigating potential criminal activities.

Anti-corruption investigators in Malaysia have stated that attempts to probe 1MDB during Najib’s administration were hindered.

They revealed that witnesses were intimidated, with some even facing death threats, in an effort to block investigations.

The controversy surrounding the fund has had deep political and economic repercussions for Malaysia, tarnishing the country’s international reputation.

Najib’s Apology Follows Government Proposal for House Arrest as New Sentencing Option in 2025 Budget

Najib’s apology comes just days after Malaysia’s government announced its intention to introduce a new law as part of its 2025 budget plans, which would allow house arrest as an alternative punishment for certain crimes.

The former prime minister has been advocating to serve the remainder of his sentence under house arrest, citing an alleged royal order that he claims accompanied his pardon.

He is seeking confirmation from the government regarding the terms of the order.

In his letter, Najib reiterated his shock over the 1MDB scandal and expressed hope that the judicial system would eventually clear him of all charges.

He referenced a news report that suggested Jho Low and the two Petrosaudi executives, Patrick Mahony and Tarek Obaid colluded to siphon SRC funds without his knowledge in 2009 and 2010.

Both Low and the executives, who were convicted in a Swiss court in August 2024 for embezzling 1MDB funds, have denied any wrongdoing.

Najib also reiterated his long-standing defence, claiming the funds he received were political donations from Saudi Arabia, rather than embezzled funds from 1MDB.

He did not, however, address allegations of receiving over US$1 billion, which authorities have linked to 1MDB transactions, including a US$681 million transfer in 2013.

Najib has consistently denied these allegations.

In addition to his current sentence, Najib faces multiple other corruption trials.

On 30 October 2024, a Malaysian court is scheduled to decide whether to acquit him or require him to defend himself in a separate 1MDB-related case involving charges of money laundering and corruption.

Defense

171 military assets in Malaysia over 30 years old, reveals Defence Minister

A total of 171 military assets in Malaysia are over 30 years old, Defence Minister Khaled Nordin stated in a written parliamentary reply on 21 October. Of these, 108 belong to the army, 29 to the air force, and 34 to the navy. Khaled clarified that the age limit for these assets varies based on their specific functions, addressing concerns raised by Member of Parliament.

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MALAYSIA: A total of 171 assets belonging to the Malaysian armed forces are more than 30 years old, Defence Minister Khaled Nordin revealed in a written parliamentary reply.

According to Khaled, 108 of these assets belong to the army, 29 to the air force, and 34 to the navy.

He, however, clarified that the maximum age limit for military assets varies depending on their function.

This statement was in response to Lim Lip Eng, a Member of Parliament for Kepong, who had asked the minister to disclose the number of ships, submarines, tanks, and aircraft in the armed forces’ possession that exceed 30 years in service.

Lim also inquired about the losses incurred by the ministry following the sinking of the navy vessel KD Pendekar in August, after it suffered a major leak and flooding.

Khaled noted that the losses will only be determined upon the completion of an internal investigation into the incident.

The KD Pendekar, a 45-year-old vessel, sank off the coast of Johor on 25 August after experiencing severe flooding, likely due to a leak caused by a collision with an underwater object.

Fortunately, all 39 crew members were rescued without injury. The cause and contributing factors behind the vessel’s sinking are still under investigation.

The ship was successfully refloated on 12 October and is currently undergoing initial repairs at the Tanjung Belungkor naval shipyard.

The future of the vessel will be decided as part of the navy’s ‘phasing in-phasing out’ plan for obsolete ships, aligned with the Navy Transformation Plan.

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Crime

M’sia opposition politician linked to corruption probe; Funds allegedly used in Singapore

The Malaysian Anti-Corruption Commission has raided two safe houses and seized US$74,500 in currencies during its investigation into Menteri Besar Selangor Incorporated. Chief commissioner Azam Baki revealed that some of the funds were allegedly used for investments in Singapore. Earlier, on 13 October, MACC discovered RM5 million in foreign currency linked to a prominent opposition politician.

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MALAYSIA: The Malaysian Anti-Corruption Commission (MACC) on 14 October has raided two safe houses, including an office, and seized RM321,000 (US$74,500) in both foreign and local currencies as part of its investigation into a case involving Menteri Besar Selangor Incorporated (MBI), a body established to administer the assets and investments of the state government.

MACC chief commissioner Azam Baki announced on 15 October 2024, that RM78,000 was found in the office, while the remaining S$74,000 (about RM243,000)  was located at the other safe house.

“We also received information that a certain amount of money was used for investments in Singapore, but I cannot disclose the full amount or its owner,” Mr Azam told the media when attending a convention in Kota Kinabalu.

The case also reportedly involves a prominent politician.

Earlier, on 13 October, it was reported that the MACC discovered RM5 million (approximately US$1,164,075) in foreign currency during a raid at a condominium unit in Kuala Lumpur, also linked to the prominent politician involved in the corruption probe.

According to local media, MACC stated that one of the suspects arrested revealed that the condominium unit was used as a safe house to store the proceeds of corruption, while the money was also used to fund political activities.

It is believed that the prominent politician instructed a businessman to store the money, which was given by an unidentified individual at the apartment, as reported by Free Malaysia Today.

Former MBI Senior Executive Among Two Arrested in Sand Mining Concession Probe

Previously, Sinar Harian reported that a former MBI senior executive was among the two individuals arrested by MACC in an investigation into a sand mining concession granted by a subsidiary of the state investment body.

The two arrested individuals—one being a businessman—were allegedly linked to a prominent opposition leader with political influence in Selangor, according to local media.

When asked whether the anti-graft agency had summoned the politician involved for its investigation, Mr Azam stated on 14 October that this would only occur when sufficient evidence is available.

“I certainly will not reject or deny that he will be called in, but only after my team or the investigating officer is satisfied with several more findings, including related documents and funds. ”

“As of now, around 15 witnesses have already been called, and I expect many more will be summoned for the investigation,” he said.

Mr Azam also did not disclose whether the individual is currently in government or if more politicians are involved.

“We think we will discover more at the other ‘safe houses’. We are still conducting investigations. Other ‘safe houses’ may have potentially been used to store the proceeds,” Mr Azam was quoted as saying by Harian Metro.

He added that the two suspects who were detained have already been released. One of them is a 43-year-old male driver, while the other is a 46-year-old former financial officer at a firm that secured the sand mining concession several years ago, according to Free Malaysia Today.

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