Jessica Fino 5 Jul 2018 05:33pm

Former Malaysian PM charged in 1MDB corruption scandal

Najib Razak has been charged over his involvement in the 1Malaysia Development Berhad (1MDB) corruption scandal, where billions of pounds went missing from the state investment fund

The former Malaysian prime minister has been charged with one count of corruption and three counts of criminal breach of trust. He faces a possible sentence of up to 20 years in prison for each count.

The ex-PM established the Malaysia government investment fund, which is currently under investigation for corruption, with $4.5bn (£3.4bn) allegedly missing.

Razak is being accused of transferring RM42m (£7.85m) from 1MDB subsidiary SRC International, to his personal accounts.

However, he pleaded not guilty during his High Court hearing on Wednesday, after being arrested one day earlier. He was bailed at RM1m (£186,885) and surrendered his two diplomatic passports.

KPMG said last month its annual audits of 1MDB between 2010 and 2012 are no longer reliable after receiving information withheld by 1MDB.

After seeing an Auditor General of Malaysia report on audits and issues surrounding 1MDB, which until May were classified under the Official Secrets act, KPMG said the information meant that the audits for the period could no longer be used.