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Malaysia's ex-PM Najib charged with corruption over 1MDB | |
(35 minutes later) | |
Najib Razak has been charged with corruption, a dramatic fall from grace for the former Malaysian prime minister two months after he lost office. | |
He faces three counts of criminal breach of trust and one count of abuse of power. | |
Mr Najib has long been accused of pocketing $700m (£517m) from the state development fund 1MDB, which he set up. He denies wrongdoing. | |
A new investigation began after his shock election loss in May. | |
Mr Najib was arrested by anti-corruption authorities on Tuesday and spent the night in detention. | Mr Najib was arrested by anti-corruption authorities on Tuesday and spent the night in detention. |
In a video posted on Twitter a day earlier, he appealed to the public not to believe the reports, saying that not all of the accusations were true. "I have not had a chance to defend myself," he said. | |
The charges against him carry a maximum of 20 years imprisonment. | |
1MDB, set up by Mr Najib in 2009, was meant to turn the capital, Kuala Lumpur, into a financial hub and boost the economy through strategic investments. | |
But it started to attract negative attention in early 2015 after it missed payments for some of the $11bn it owed to banks and bondholders. | But it started to attract negative attention in early 2015 after it missed payments for some of the $11bn it owed to banks and bondholders. |
Then the Wall Street Journal (WSJ) reported it had seen a paper trail that allegedly traced close to $700m from the fund to Mr Najib's personal bank accounts. | Then the Wall Street Journal (WSJ) reported it had seen a paper trail that allegedly traced close to $700m from the fund to Mr Najib's personal bank accounts. |
Billions of dollars are still unaccounted for. | |
Mr Najib has always denied the corruption charges and had been cleared by Malaysian authorities while in power, but he is being investigated by several other countries. | |
The allegations played a central role in his defeat to former ally, 93-year-old Mahathir Mohamad, in May. | |
Mr Mahathir pledged to re-open the investigation and Mr Najib was banned from leaving Malaysia. | |
Raids in recent weeks have been carried out across properties linked to Mr Najib and his wife. | |
Police say they recovered $273m in luxury goods and cash from a raid in June, calling the seizure of valuables the biggest in Malaysian history. | |
Jewellery accounted for the biggest portion of the seizure, with the most expensive item being a $1.6m diamond and gold necklace. | |
Mr Najib has always insisted such goods were gifts or legitimately bought. |