KUALA LUMPUR – Lawyer Tan Sri Muhammad Shafee Abdullah, who is representing former prime minister Datuk Seri Najib Razak in the SRC International Sdn Bhd case, has asserted that the nation did not suffer losses from the 1Malaysia Development Bhd (1MDB) financial scandal.
Shafee instead claimed that the country is benefitting from the penalties imposed on banks or institutions found to have been involved in misdeeds relating to sovereign wealth fund 1MDB.
“We are getting more money in return (compared to) all the money lost by 1MDB and (its subsidiary) SRC International.
“This is because the banks (such as) Goldman Sachs and BSI Bank are being punished and they have to pay penalties.
“In terms of (financial) losses, we are okay, the country – including 1MDB – is alright,” he told reporters when met at the court complex here today.
Last month, Deputy Finance Minister Datuk Seri Ahmad Maslan said that to date, the government has paid RM43.8 billion of 1MDB’s debt, with a debt balance amounting to RM9.7 billion involving a principal of RM5 billion and RM4.7 billion interest.
Earlier today, the trial for Najib and ex-treasury secretary-general Tan Sri Mohd Irwan Serigar Abdullah for six criminal breach of trust charges totalling RM6.6 billion was postponed to May.
Shafee, representing Najib, had told the court that the defence team believes there are ongoing discussions by the government involving the funds related to International Petroleum Investment Company (Ipic) under the duo’s charges.
Commenting on the matter, Shafee said that Najib’s representation letter to the Attorney General’s Chambers (AGC) considers how the charges all involve funds related to Ipic, which he claims will be returning the monies.
“The money involved in the charges all have to do with Ipic, (which is) the one who took (the money). If they return the money, then this has nothing to do with him (Najib) already,” he said.
In February, it was reported that Ipic and Aabar Investments PJS (Aabar PJS) have agreed to pay US$1.8 billion (RM8.1 billion) to the Minister of Finance Incorporated and 1MDB.
This came after a London judge in November gave the go-ahead to Malaysia to press its case against Abu Dhabi’s state-owned Ipic and Aabar PJS for their role in the 1MDB scandal.
The Malaysian government had challenged a 2017 arbitration settlement between the two sides in the UK, arguing that Ipic and Aabar PJS were aware of fraud allegations against Najib at the time the deal was struck. – The Vibes, March 3, 2023