Ex-banker tells Najib trial of 'shady', high-pressure transactions

A former Singaporean banker told the Kuala Lumpur High Court today that BSI Bank employees were put under tremendous pressure by 1Malaysia Development Bhd Global Investment Limited (1MDBGIL) to expedite the process of investing US$2.72 billion into targeted company accounts.

Former BSI Bank head of wealth management services, Kevin Micheal Swampillai, 59, said the money in 1MDBGIL and other 1MDB-related client accounts did not remain in their accounts for too long as there was always great haste demonstrated by the companies to invest the money in fiduciary funds as quickly as possible.

Kevin said because of this, the BSI Bank staff involved in the flow of funds were constantly reminded that they were handling highly sensitive and time-bound transactions involving the sovereign wealth fund belonging to the Malaysian government, and that complacency would not be tolerated.

He said he was not surprised to learn that a significant number of fiduciary fund transactions occurred within a day of 1MDBGIL receiving about US$2.721 billion in its account at BSI Bank.

"My discomfort with these transactions was from day one. It didn't come up specifically to 1MDBGIL but rather all transactions involving 1MDB-related companies. The transactions were shady, to say the least," he said.
 
Kevin said this during cross-examination by Najib Razak’s lawyer, Muhammad Shafee Abdullah, at Najib’s trial on the misappropriation of RM2.3 billion from 1MDB funds.

The 44th prosecution witness said he understood that the pressure to expedite the money flow process came from fugitive businessman Low Taek Jho or Jho Low, who then passed it to another BSI Bank manager, Yak Yew Chee, who managed the 1MDBGIL account.

Shafee: When this pressure was executed, another red flag element was raised. Is it correct that BSI Bank officers were constantly reminded that they were dealing with the Malaysian government’s funds?

Kevin: That is correct. 

The lawyer then asked Kevin if he was aware of Jho Low’s involvement in 1MDBGIL, to which the witness answered in the affirmative.

"He was positioned as the enabler and adviser (for 1MDBGIL). I know that sounds very murky but that is what was conveyed. That is what came out on the onset," he said.

The trial before justice Collin Lawrence Sequerah continues on May 8.

Najib, 70, faces four charges of using his position to obtain bribes totalling RM2.3 billion from 1MDB funds and 21 charges of money laundering involving the same amount.