Arab donation letters in 1MDB case were forged – Judge

PUTRAJAYA – The Kuala Lumpur High Court ruled today that four letters submitted as evidence of purported donations from the Saudi Arabian royal family were "forgeries."

These letters were key to the defence of former Prime Minister Datuk Seri Najib Razak in his trial involving four counts of abuse of power and 21 counts of money laundering involving RM2.3 billion in 1Malaysia Development Berhad (1MDB) funds.

Justice Datuk Collin Lawrence Sequerah, presiding at the Palace of Justice, noted that the original copies of these letters were never produced in court.

He further observed that Najib’s defence team failed to conduct any verification to confirm if the funds truly originated from the late King Abdullah.

“The letters were forged because evidence demonstrates that the money actually originated from 1MDB funds.

“Tracing of the funds shows they were channeled through private third-party entities—namely Vista Equity, Blackstone and Tanore—which were owned by fugitive financier Eric Tan,” the judge said.

Justice Sequerah added that it was "highly unusual" for Najib not to have sent a formal letter of appreciation to the Saudi royal family as a gesture of gratitude for such a massive alleged donation.

The judge, who was elevated to the Federal Court on December 3, characterised the origin of the funds as "highly suspicious."

After spending over three hours reading his findings on the 25 charges, the judge adjourned proceedings at 12.15pm for Friday prayers.

The hearing is set to resume at 3pm.

“I still require approximately one more hour to deliver the remainder of the decision,” he informed the court.

The Legal Background

Najib, 72, is currently facing:

Four charges of abusing his position as Prime Minister, Finance Minister and Chairman of the 1MDB Board of Advisers to obtain gratification totaling RM2.3 billion.

21 money laundering charges involving the receipt, transfer and use of illegal proceeds between 2011 and 2014.

The offences were allegedly committed at AmIslamic Bank Berhad on Jalan Raja Chulan, Kuala Lumpur.

The abuse of power charges fall under Section 23(1) of the Malaysian Anti-Corruption Commission (MACC) Act, which carries a maximum penalty of 20 years in jail and a fine of five times the value of the bribe.

The money laundering charges, framed under the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act (AMLATFA), carry a fine of up to RM5 million and imprisonment of up to five years per count.

Legal Teams

The prosecution is led by Deputy Public Prosecutors Datuk Ahmad Akram Gharib and Datuk Kamal Baharin Omar, while Najib is represented by a team led by Tan Sri Muhammad Shafee Abdullah.