Key Takeaways
- The High Court heard testimony from Richard Templeman, a UK‑based financial fraud investigator, during a civil suit filed by 1MDB and four subsidiaries against former Prime Minister Najib Razak and six associates.
- Templeman admitted he did not trace whether the US$620 million that Najib returned to Tanore Finance Corporation was later channelled back to Najib.
- Najib’s counsel, Tan Sri Muhammad Shafee Abdullah, argued that this omission is critical for a fraud investigator and suggested Templeman was brought in merely to bolster an already‑filed claim.
- Templeman conceded he had not seen the document allegedly showing Bank Negara’s approval for the funds’ transfer into Najib’s account and confirmed he only began his investigation in July 2021, two months after the suit was filed.
- The plaintiffs allege breach of trust, breach of fiduciary duty, abuse of power, and a conspiracy to misappropriate 1MDB’s funds, naming Najib, former 1MDB officials, and SRC International’s former CEO as defendants.
- The hearing continues before Judicial Commissioner Mohamad Redzuan Idrus, with the next session scheduled for August 5.
Background of the 1MDB Civil Suit
On May 7, 2021, 1Malaysia Development Bhd (1MDB) together with its subsidiaries—1MDB Energy Holdings Ltd, 1MDB Energy Ltd, 1MDB Energy (Langat) Ltd, and Global Diversified Investment Company Ltd (formerly 1MDB Global Investments Ltd)—initiated a civil action in the Kuala Lumpur High Court. The suit names former Prime Minister Datuk Seri Najib Razak, former 1MDB finance officer Terrence Geh Choh Heng, former executive director Casey Tang Keng Chee, former chief investment officer Vincent Beng Huat Koh, former chief operations officer Radhi Mohamad, former investment director Kelvin Tan Kay Jim, and former SRC International Sdn Bhd CEO Nik Faisal Ariff Kamil as defendants. The plaintiffs contend that the defendants breached trust and fiduciary duties, abused their positions, and conspired to siphon off 1MDB’s funds.
Allegations Against Najib Razak
Central to the claim is the accusation that Najib received US$681 million linked to 1MDB and subsequently returned a substantial portion—US$620 million—to Tanore Finance Corporation. The plaintiffs allege that the returned money was later funneled back to Najib, effectively concealing the misappropriation. Muhammad Shafee Abdullah, Najib’s lead lawyer, highlighted this circular flow during cross‑examination of the prosecution’s expert witness, arguing that proving the money’s ultimate destination is essential to establishing fraud.
Testimony of Richard Templeman
Richard Templeman, a financial fraud investigator based in the United Kingdom, took the stand on August 4, 2021. He was questioned by Muhammad Shafee about the scope of his investigation. Templeman acknowledged that he did not determine whether the US$620 million returned to Tanore was subsequently redirected to Najib. When pressed on whether this omission constituted a critical gap for a fraud investigator, Templeman maintained that he had investigated the “relevant matters” but did not claim to have traced the funds’ eventual path.
Questions Regarding Bank Negara Approval
The defence also probed whether Templeman had examined Najib’s assertion that the funds entered his account with the approval of Bank Negara, Malaysia’s central bank. Templeman responded that he had not seen any document substantiating such approval. This admission further weakened the prosecution’s attempt to show that the transfers were authorised and legitimate, raising doubts about the sufficiency of the evidence presented.
Timing of Templeman’s Involvement
Muhammad Shafee pointed out that Templeman only commenced his investigation in July 2021, two months after 1MDB had filed the civil suit. He suggested that the witness was recruited to reinforce an already‑established claim rather than to conduct an independent, contemporaneous inquiry. Templeman agreed that the suit predated his work but declined to comment on whether his testimony was intended to “bolster a claim that had already been made,” stating he could not comment on the motivations behind his engagement.
Plaintiffs’ Claims of Misconduct
The plaintiffs’ statement of claim outlines multiple causes of action: breach of trust, breach of fiduciary duty, abuse of power, and a conspiracy to misappropriate 1MDB’s assets. They argue that the defendants, through their senior positions, facilitated the diversion of billions of dollars from the sovereign wealth fund for personal gain. The suit seeks restitution of the misappropriated sums, damages, and declaratory relief confirming the defendants’ liability.
Proceedings and Next Steps
The hearing continued before Judicial Commissioner Mohamad Redzuan Idrus, with the next session scheduled for August 5. Both sides are expected to further examine the documentary evidence, witness testimonies, and expert analyses concerning the flow of funds through Tanore Finance Corporation and other entities. The outcome of this civil suit could have significant financial and reputational implications for the named individuals and may influence related criminal proceedings stemming from the broader 1MDB scandal.