Malaysian Opposition Leader Charged with Graft, Money Laundering

A court charged Malaysian opposition leader and former Deputy Prime Minister Ahmad Zahid Hamidi on Friday with 45 offenses, including abuse of power, criminal breach of trust and money laundering, as Malaysia’s new government widened its crackdown on corruption.

Zahid, who is now the leader of the main opposition United Malays National Organization (UMNO) party, pleaded not guilty to all charges at the Kuala Lumpur Sessions Court. He was freed after posting half of his 2 million ringgit (U.S. $481,000) bail.

If found guilty, Zahid could be sentenced to 765 years behind bars, as each charge carries a prison term of 15 to 20 years, prosecutors said. He will also face fines of up to 481 million ringgit (U.S. $116 million).

Judge Azura Alwi ordered Zahid to settle the remainder of the bail before Oct. 26 and to surrender his passport.

Zahid appeared tired and was seen nodding his head when the charges were read out to him in the courtroom: Eight counts of abuse of power, 10 counts of criminal breach of trust and 27 counts of money laundering, amounting to $27.56 million.

After being freed on bail, he told supporters that the raft of charges against him was “a test from Allah.”

“Whatever the public opinion is, I leave it to Allah to decide. Allah willing, with all the good things I have done with the intention of upholding Allah’s religion, I hope Allah will protect me,” he said, according to the Associated Press.

Zahid was accused of receiving bribes in exchange for helping companies win contracts for government projects when he was home minister, the state-run Bernama news agency said.

Zahid, 65, is the next highest-ranking official from Malaysia’s previous government to face graft charges since Mahathir Mohamad led the Pakatan Harapan alliance to a stunning victory in a general election in May.

Former Prime Minister Najib Razak has also been arrested twice and charged in connection with a massive financial scandal linked to 1MDB, a state investment fund.

Najib appeared at the Kuala Lumpur court on Friday and told reporters he was there “to give support to an old friend.” Najib’s wife, Rosmah Mansor, has also been arrested and charged. Both are free on bail but are barred from leaving the country.

Zahid served as Najib’s deputy from July 2015 until the May 9 polls.

After the elections, as Najib faced a swirling probe from anti-graft investigators, Zahid became president of UMNO, the anchor party in the Barisan Nasional coalition.

Court: Luxury yacht belongs to government

In a related development, the Malaysian High Court on Friday declared that the luxury yacht Equanimity, which has been at the forefront of the 1MDB probe, belonged to the Malaysian government with the scandal-plagued state fund as the beneficiary owner, a government lawyer said.

“To that effect, the government is now free to sell the super yacht,” lawyer Sitpah Selvaratnam, who is leading the legal team for the government, was quoted by Bernama as saying.

The registered owner failed to appear in court to claim the vessel, she said.

“The court today has declared that the two 1MDB companies, which are 1MDB Energy Holdings Limited and 1MDB Global Investment Limited, be the legal and beneficial owner of the vessel. Therefore, indirectly the government of Malaysia is the ultimate beneficiary of these two companies,” she said.

Previously, fugitive Malaysian financier Low Taek Jho – better known as Jho Low – staked his claim on the vessel after it was seized from him by Indonesian authorities in February before it was handed over to Malaysia on Aug. 7.

Sitpah told BenarNews that it would be very difficult for Low or his representatives to claim the vessel now.

“They were given the opportunity, they had two and a half months, they chose not to come,” said Sitpah.

Malaysian authorities expect the U.S. $250-million yacht to be sold by year’s end.