TWO key collaborators in PetroSaudi International accused of stealing US$1.83 (RM8.6) billion of 1MDB funds through a bogus joint venture will be brought to trial today.
Tarek Obaid and Patrick Mahony are accused by Swiss prosecutors of having enriched themselves from the theft.
Saudi national Tarek, who is based in Switzerland, is due to appear today with PetroSaudi’s British chief investment manager Mahony in the Swiss Federal Court in Bellinzona, according to Sarawak Report.
Obaid gained US$580 million as a direct result of the thefts and at least US$225 million more indirectly through the enrichment of the PetroSaudi group. Before the alleged heist he boasted only a few thousand francs in his bank accounts.
The duo face a slew of charges in an indictment that runs to several hundred pages, including allegations of serious fraud, aggravated money laundering and multiple acts of obstruction.
Another major beneficiary of the alleged thefts, the Saudi Prince Turki bin Abdullah, has been imprisoned on separate charges in Saudi Arabia since 2017 with his whereabouts unknown.
He was previously a 50% shareholder in the group.
The indictment details how about US$77 million of the proceeds of the theft was paid to Prince Turki.
Xavier Justo, a key whistleblower in the affair, is among the people expected to attend the trial. The former PetroSaudi director was subjected to aggressive retaliation after he released documents from the company database revealing the fraud.
The 1MDB development fund was set up months after Najib Razak became prime minister in 2009. Investigators allege more than US$4.5 billion was stolen from the fund and laundered by Najib’s associates through layers of bank accounts in the United States and other countries to finance Hollywood films and extravagant purchases that included hotels, a luxury yacht, art and jewelry. More than US$700 million landed in Najib’s bank accounts.
Najib is serving a jail sentence for misappropriating funds from SRC International, formerly a subsidiary of 1MDB.
The former prime minister is also facing three other trials for his role in the scandal. Investigators have estimated that about US$4.5 billion was stolen and more than US$1 billion funnelled to accounts linked to the former premier, who has said he was misled by fugitive financier Low Taek Jho and other 1MDB officials over the source of the funds. – April 2, 2024.
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