KUALA LUMPUR – Kevin Michael Swampillai, the former head of the wealth management services department of BSI Bank Ltd’s Singapore branch (BSIS), said he was sidelined from handling transactions of 1Malaysia Development Bhd (1MDB) and its subsidiaries since 2013, following information leaks on financial improprieties surrounding the firm.
Testifying against former prime minister Datuk Seri Najib Razak in his main 1MDB trial, Swampillai told a high court here today that fugitive businessman Low Taek Jho had begun to exclude him from pertinent information on any fiduciary transactions offered by BSI Bank.
Swampillai added that Low had begun to rely heavily on his then subordinate at the bank, Yeo Jiawei, for any transactions.
“I had been effectively sidelined and removed from the information flow as Low had started to develop concerns over leaks, given the extent of information that started to appear in the media at that time.
“I was suspected of being a potential source of these leaks and therefore sidelined.”
Yeo, a former BSI Singapore wealth planner, was sentenced to 54 months in jail by the Singapore High Court in 2017 for money laundering and cheating in relation to funds allegedly misappropriated from 1MDB.
He was alleged to have amassed S$23.9 million (RM79.66 million) in slightly over a year, garnered through referral fees from helping Low in his business deals.
Swampillai was also issued a lifetime prohibition order by the Monetary Authority of Singapore (MAS) in 2020.
From 2012 to 2013, MAS said, Swampillai and his then subordinate Yeo had helped 1MDB restructure several of its joint venture interests.
In the course of doing so, Swampillai and Yeo had channelled a portion of the fund management fees or “secret profits” to an entity beneficially owned by Swampillai, without BSIS’ knowledge and authorisation.
In total, Swampillai received about US$5 million (RM22.36 million) in secret profits at the expense of, and without the knowledge of BSIS.
In the proceedings today, Swampillai said Low appeared to be the ultimate decision maker as his supposed associates Jasmine Loo, Terence Geh, and Azmi Tahir had often referred to Low in their decision-making.
In 2013, Goldman Sachs had helped 1MDB raise US$3 billion in bond sales to cover new investment opportunities between Malaysia and Abu Dhabi.
In the ongoing trial, Najib faces four charges of using his position to obtain bribes totalling RM2.3 billion from 1MDB funds and 21 charges of money laundering involving the same amount. – The Vibes, March 1, 2023
