Swiss state prosecutors seek decade jail term for duo in US$1.8bil 1MDB fraud

Prosecutor dismisses Obaid’s claims of secret Saudi missions as baseless fantasies

The trial, commencing on 2 April and scheduled until month-end, is under the jurisdiction of three judges.

Daniel Zappelli, Obaid’s defence counsel pointed out the absence of former Malaysian prime minister Datuk Seri Najib Razak and Jho Low in the case and underscored discrepancies in the laundered amounts alleged against the defendants.

Obaid’s startling assertions included his purported role as a clandestine envoy for the former Saudi King, under whose directives he allegedly facilitated the misappropriation of Malaysian funds alongside Jho Low and Prime Minister Najib Razak.

When questioned on critical matters, such as the ownership of Good Star, which purportedly received the majority of the embezzled US$1.83 billion, both defendants frequently claimed memory lapses, despite holding contracts with the company and receiving substantial kickbacks.

The prosecutor unequivocally rejected Obaid’s assertions as baseless fantasies, particularly his claims of conducting secret missions for the highest echelons of Saudi authority, which he cited security concerns for not elaborating on.

Similarly, the prosecutor dismissed their assertions of owning oil assets worth billions, revealing that they had merely secured loans using assets of negligible value, like a pasture in Argentina, and lacked proper licensing for their alleged prized asset in Turkmenistan.

The trial revisited Najib’s involvement, with the prosecutor describing his collaboration with Jho Low in orchestrating a meticulously planned scheme, as reported by local newspaper Le Temps.

Acknowledging efforts to discredit whistleblowers like Xavier Justo and the Sarawak Report, the prosecutor highlighted previous attempts to undermine revelations with false investigations and news reports, along with the unjust prosecution of Justo in Thailand.

The prosecutor emphasized the falsity of evidence presented by the defendants and cautioned that only a fraction of the embezzled funds remained seized in Switzerland, providing ample incentive for the defendants to abscond before sentencing, thus advocating for their immediate incarceration.

1MDB scandal led to the downfall of the Najib-led Barisan National Govt in 2018

The sprawling 1MDB financial scandal has spurred criminal investigations worldwide, with probes underway in the United States, Switzerland, and Singapore.

Billions of dollars are alleged to have been siphoned from the fund, officially known as 1Malaysia Development Berhad, by multiple individuals, funding extravagant purchases from artwork to a luxury yacht.

Najib has been imprisoned since 23 August 2022, following the Federal Court’s confirmation of his convictions for criminal breach of trust, abuse of power, and money laundering related to the misappropriation of SRC International Sdn Bhd’s funds, accompanied by an RM210 million (approximately US$44.5 million) fine.

On 2 February, the Pardon’s Board reduced Najib’s sentence from 12 to six years for misappropriating funds amounting to RM50 million (approximately US$10.6 million), potentially enabling his release on 23 August 2028.

Najib is also the former president of UMNO, having led both the party and the ruling coalition Barisan Nasional.

However, he faced defeat in the 2018 Malaysian General Election primarily due to the 1MDB scandal.