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Focus Malaysia
21 hours ago
- Business
- Focus Malaysia
Najib granted DNAA in RM27mil SRC money laundering case
THE Kuala Lumpur High Court has granted a discharge not amounting to an acquittal (DNAA) to former prime minister Datuk Seri Najib Tun Razak over three money laundering charges involving RM27 mil from SRC International Sdn Bhd. Justice K. Muniandy made the decision after allowing Najib's application for the DNAA. 'In the present case there is nothing to show that the prosecution is able to proceed with the case for the time being, or proceed within a reasonable time,' the judge was quoted as saying in his brief judgement. 'Thus, it is unlikely that the case could proceed expeditiously in the short future.' Muniandy further noted that for six years since the case was first brought against the former premier in 2019, no witness testimony has been pursued except for an array of postponements. 'This court is also mindful of the prevailing fact that the preferred charges against the accused date back to the offence being committed in the year 2014, now it is 2025, and the case has not taken off for trial. 'By the virtue of these factors, the most appropriate order is for this court to discharge the accused person without acquitting him so he's not saddled with the charges preferred against him,' he added. 'Once the accused is charged in court, the charge cannot be hanging over its head for an indeterminate or indefinite period. That would be harsh and illegal.' With today's DNAA, Najib has only the 1MDB trial still pending. He is currently serving a jail term for the misappropriation of RM42 mil in the SRC International funds case. He was also previously acquitted over the removal of key information from the auditor-general's 2016 report on 1MDB, and granted a DNAA in his RM6.6 bil International Petroleum Investment Company (IPIC) criminal breach of trust case. Last week, Najib's counsel Tan Sri Muhammad Shafee Abdullah had submitted that it was unfair for his client to wait indefinitely for a fixed trial date as the prosecution was unable to provide a timeline to gather exhibits used in the previous SRC trial. Shafee also urged the court to grant his client a DNAA in the interest of justice as trial has been indefinitely postponed since 2019. A DNAA means an accused person can face trial for the same charges in the future if the prosecution decides to reinstate them. ‒ June 20, 2025 Main image: Bernama
Borneo Post
a day ago
- Business
- Borneo Post
Court grants DNAA to Najib in RM27 mln SRC money laundering case as trial stalled since 2019
Najib is pictured at the Kuala Lumpur High Court Complex on June 20,2025. — Malay Mail photo KUALA LUMPUR (June 20): Datuk Seri Najib Razak was today granted discharge not amounting to acquittal (DNAA) from his final criminal case involving SRC International Sdn Bhd funds amounting to RM27 million after trial has stalled since 2019. The decision was delivered by High Court Judge K Muniandy during today's hearing on whether to set new trial dates or grant a DNAA as previously applied by the defence. Muniandy said the rule of law was applicable to prevent such a detrimental situation whereby an accused person is saddled which criminal charges with no outcome for an indefinite and indeterminate period. 'The prolonged wait for trial has become a long haul for the accused person, denying him of a timely resolution,' he said. 'This court is also mindful of the prevailing fact that the preferred charges against the accused dates back to the offence being committed in the year 2014, now it is 2025, and the case has not taken off for trial. 'By the virtue of these factors, the most appropriate order is for this court to discharge accused person without acquitting him so they he's not saddle with the charges preferred against him,' he added. With today's DNAA, Najib has only the 1MDB trial still pending. He is currently serving a jail term for the misappropriation of RM42 million in the SRC International funds case. He was also previously acquitted over the removal of key information from the auditor-general's 2016 report on 1MDB; and granted a DNAA in his RM6.6 billion International Petroleum Investment Company (IPIC) criminal breach of trust case Najib's lawyer Tan Sri Muhammad Shafee Abdullah had previously suggested to court to grant his client a DNAA in the interest of justice as trial has been indefinitely postponed since 2019. A DNAA means an accused person can face trial for the same charges in the future if the prosecution decides to reinstate them. — Malay Mail MORE TO COME Najib Razak SRC International Sdn Bhd
Focus Malaysia
2 days ago
- Business
- Focus Malaysia
Sabah's GRS gov't steps up accountability with RM1.97b lawsuit against global audit giant EY
THE Sabah state government under Gabungan Rakyat Sabah (GRS) is continuing to signal a firmer commitment towards transparency and accountability in managing state institutions. Towards this end, the Sabah Development Bank (SDB), one of the state's most important financial institutions, has filed a RM1.97 bil lawsuit against global audit giant Ernst & Young (EY), alleging negligence in its audit work between 2017 to 2022, sources told FocusM. According to court documents sighted by FocusM, EY is accused of failing to detect serious financial irregularities during its audits, contributing to the accumulation of more than RM2.2 bil in non-performing loans (NPLs) and substantial losses for SDB. Initiated after an internal review under the Sabah leadership, the lawsuit marks a decisive step by the GRS administration to address long-standing financial problems at the bank. The case also represents a broader effort to safeguard public funds and reinforce integrity across government-linked institutions. In its statement of claim, SDB outlined 17 key points of alleged audit negligence by EY, including: Failure to detect over RM2.2 bil in NPLs Weak internal controls and failure to identify credit risks Reliance on outdated collateral valuation reports which lead to asset misstatements Audits conducted without professional scepticism Use of 'creative accounting' to mask financial weaknesses through loan 'evergreening' practices EY is also accused of having been aware of the true extent of asset impairments since 2017 but failing to advise SDB to make appropriate provisions, allegedly to maintain a positive financial image for the bank in order to support its bond and market borrowings. Clamping down on mismanagement On July 10 last year, State Finance Minister Datuk Masidi Manjun disclosed in the State Legislative Assembly that as of May 2023, a staggering 75% of SDB's RM6.6 bil loan portfolio had turned non-performing or impaired. He revealed that the former management had engaged in 'creative accounting' whereby new loans were issued to delinquent borrowers to repay old debts, thus masking the true extent of the NPL problem. Between 2017 and 2022 alone, the previous leadership allegedly 'fabricated' RM580 mil in book profits by recycling credit and recording unpaid interest as paper gains. Worse, many loans were approved without proper due diligence, allowing unqualified borrowers to tap into public funds. The bank's bond-driven funding model also worsened its liabilities as repayments fell short of bond maturities, thus forcing SDB to borrow further just to stay afloat. While financial mismanagement of this scale would once have been quietly buried, the present administration has chosen transparency. 'Cleaning up the dirt' The move comes as part of a wider approach under Chief Minister Datuk Seri Hajiji Noor's leadership. Based on new report, several individuals, including GRS assemblymen, are expected to be charged in court soon over alleged misconduct involving state-issued mining licenses. Throughout that investigation, the Sabah state government has publicly committed to giving full cooperation to the Malaysian Anti-Corruption Commission (MACC) with no political interference. The MACC has since clarified that the Chief Minister was not among those under investigation, and enforcement officials acknowledged the state's openness during the probe. Together, these developments point to a shift in Sabah's political and administrative culture that prioritises public accountability over political convenience. In SDB's case, EY was continuously appointed as external auditor by the previous state governments. However, it was only after the GRS government took over the state administration and new management was appointed at SDB that the true scale of the losses was uncovered. Since assuming oversight of SDB in mid-2023, the GRS administration has taken steps to overhaul the bank's governance. The bank was formally placed under the Chief Minister's Incorporation and the State Treasury with the new board launching sweeping reforms. These include a full internal audit, re-classification of loans in line with Bank Negara Malaysia (BNM) standards and legal action against 43 NPL borrowers. Professional recovery agencies have been engaged with the board targeting the recovery of RM1 bil in NPLs annually over three years. In the first year alone, SDB recovered RM1.9 bil in legacy loans from government-linked companies (GLCs) while reducing the bank's bond obligations from RM5 bill to RM3.3 bil. In early 2024, SDB rejected RM1.5 bil worth of new loan applications after stricter credit reviews, signalling a renewed focus on financial discipline. Very broadly, this lawsuit sends a clear message that even large corporate players will be held accountable if public interests are harmed. It also underscores the expectation that auditors, banks and other state-linked entities must meet higher governance standards going forward. Looking ahead, the GRS-led government is expected to pursue further improvements to financial oversight across state agencies and government-linked companies. The ultimate aim is to prevent a repeat of past failings, ensure stronger protections for public funds and build public confidence in Sabah's key institutions. As the state continues to focus on economic development, job creation and investor confidence, this latest move shows that governance reforms remain a key part of the agenda. – June 19, 2025 Main image credit: Sabah Development Bank's website
Daily Express
7 days ago
- Business
- Daily Express
Sabah places third for Q1 investments
Published on: Saturday, June 14, 2025 Published on: Sat, Jun 14, 2025 Text Size: Kota Kinabalu: Sabah has solidified its position as one of Malaysia's top investment destinations, recording RM10.9 billion in approved investments in the first quarter of 2025, surpassing its total for the entire year of 2024. According to the latest investment performance report by the Malaysian Investment Development Authority (MIDA), Sabah now ranks third nationally in total investments, behind Selangor and the Federal Territory of Kuala Lumpur. Advertisement Foreign Direct Investment (FDI) led the surge, contributing RM6.6 billion or 61pc of the total, while Domestic Direct Investment (DDI) accounted for RM4.29 billion (39pc). The manufacturing sector emerged as the top contributor with RM7.3 billion in investments, making Sabah the number one recipient of manufacturing investments in Malaysia for the quarter. Of the manufacturing total, RM6.59 billion (91.3pc) came from foreign sources, reflecting robust international confidence in Sabah's business environment. Domestic investment in the sector amounted to RM711 million (9.7pc). The services sector drew RM2.83 billion, while the primary sector attracted RM757.1 million. Industrial Development and Entrepreneurship Minister Datuk Phoong Jin Zhe described the milestone as a testament to investor confidence in Sabah's economic prospects and pro-business policies. 'Despite global economic uncertainties and geopolitical pressures, Sabah remains a competitive and trusted investment hub. This performance shows our strategic policies are yielding tangible results,' he said. He added that the state government remains fully committed to strengthening Sabah's investment ecosystem and welcomes both foreign and local investors in contributing to sustainable and inclusive economic growth. 'The State Government will continue to create an enabling environment for investors and push forward with our industrial development agenda,' Phoong said. * Follow us on our official WhatsApp channel and Telegram for breaking news alerts and key updates! * Do you have access to the Daily Express e-paper and online exclusive news? Check out subscription plans available. Stay up-to-date by following Daily Express's Telegram channel. Daily Express Malaysia
Borneo Post
13-06-2025
- Business
- Borneo Post
Sabah records RM10.9 billion in investments in Q1 2025, ranks third nationally
Phoong speaking at the press conference. KOTA KINABALU (June 13): Sabah recorded a total of RM10.9 billion in approved investments in the first quarter of this year, surpassing the state's total investment figure for the entire year of 2024. According to the Malaysian Investment Development Authority (MIDA), the investment performance from January to March places Sabah third nationally, behind Selangor and Kuala Lumpur. State Industrial Development and Entrepreneurship Minister Datuk Phoong Jin Zhe said Foreign Direct Investment (FDI) was the main contributor, accounting for RM6.6 billion or 61 percent of the total, while Domestic Direct Investment (DDI) amounted to RM4.29 billion or 39 percent. The manufacturing sector was the top performer, recording RM7.3 billion in investments — the highest among all states for this quarter. Of this, RM6.59 billion or 91.3 percent came from foreign investors, with the remaining RM711 million or 9.7 percent from domestic sources. The services sector followed with RM2.83 billion, while the primary sector attracted RM757.1 million. Phoong said the figures reflected continued investor confidence in Sabah's economic growth potential and its conducive business ecosystem. 'Despite global economic uncertainties and geopolitical pressures, Sabah remains a competitive investment destination trusted by both foreign and domestic investors,' he said at a press conference at Wisma Kewangan today. He added that the success was due to investor-friendly policies and the state government's strong commitment to stimulating industrial development. 'The state government is committed to strengthening the investment ecosystem and welcoming more investors to achieve sustainable and inclusive economic development for Sabah,' he said.
