Malaysia

‘Bank employees were pressured to expedite 1MDBGIL transactions’

Singaporean ex-banker says his discomfort with said speed was from day one

Updated 3 years ago · Published on 18 Apr 2023 7:44PM

‘Bank employees were pressured to expedite 1MDBGIL transactions’
Kevin Michael Swampillai (pic) says the BSI Bank staff involved in the flow of funds were constantly reminded that they were handling highly sensitive and time-bound transactions involving the sovereign wealth fund belonging to the Malaysian government and that complacency would not be tolerated by 1Malaysia Development Bhd Global Investment Ltd. – Bernama pic, April 18, 2023

KUALA LUMPUR – A Singaporean former banker told the high court here today that BSI Bank employees were put under tremendous pressure by 1Malaysia Development Bhd Global Investment Ltd (1MDBGIL) to expedite the process of investing US$2.72 billion (RM12.06 billion) into targeted companies’ accounts.

Former BSI Bank head of wealth management services Kevin Michael Swampillai, 59, said the money in 1MDBGIL and other 1MDB-related client accounts did not remain in their accounts for too long as there was always great haste demonstrated by the companies to invest the money in fiduciary funds as quickly as possible.

Kevin said because of this, the BSI Bank staff involved in the flow of funds were constantly reminded that they were handling highly sensitive and time-bound transactions involving the sovereign wealth fund belonging to the Malaysian government and that complacency would not be tolerated by 1MDBGIL.

He said that he was not surprised to learn that a significant number of fiduciary fund transactions occurred within one day of 1MDBGIL receiving about US$2.721 billion in its account at BSI Bank.

“My discomfort with these transactions was from day one. It didn't come up specifically to 1MDBGIL, but rather all transactions involving 1MDB-related companies. The transactions were shady, to say the least,” he said.

Kevin said this during cross-examination by Datuk Seri Najib Razak’s counsel, Tan Sri Muhammad Shafee Abdullah at Najib’s trial involving the misappropriation of RM2.3 billion from 1MDB funds.

The 44th prosecution witness said he understood the pressure to expedite the process of money flow came from fugitive businessman Low Taek Jho, who then passed it to another BSI Bank manager, Yak Yew Chee, who managed the 1MDBGIL account.

Shafee: “When this pressure was executed, another element of a red flag was raised. Is it correct BSI Bank officers were constantly reminded that they are dealing with the Malaysian government’s funds?”

Kevin: “That is correct.” 

The senior lawyer then asked Kevin if he was aware of Low’s involvement in 1MDBGIL, to which the witness answered in the affirmative.

“He was positioned as the enabler and adviser (for 1MDBGIL). I know that sounds very murky but that is what was conveyed. That is what came out on the onset,” he said.

The trial before justice Datuk Collin Lawrence Sequerah continues on May 8.

Najib, 70, is facing 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. – Bernama, April 18, 2023

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