GENEVA: Two PetroSaudi managers have been indicted in Switzerland on suspicion of embezzling and laundering nearly $2 billion in connection with the scandal-tainted Malaysian state fund 1MDB, Bern said Tuesday.

Switzerland’s top prosecutor’s office said it had “filed an indictment against two PetroSaudi managers”, adding that the two, who were not named, face charges of fraud, aggravated criminal mismanagement and aggravated money laundering.

They “are alleged, with the aim of enriching themselves and others, to have misappropriated at least $1.8 billion transferred by the Malaysian sovereign wealth fund… 1MDB in connection with a joint-venture with PetroSaudi… and to have laundered the amounts involved,” the statement said.

The allegations, which cover a period from 2009 to 2015, are just the latest development in what has been described as “the largest ever money-laundering case”.

It first came to light in 2015 amid revelations that huge sums from 1MDB had been looted.

Investigations were launched across the world into the vast corruption scandal, which embroiled the Malaysian prime minister at the time, Najib Razak, who is now serving a 12-year jail sentence in the case.

The attorney general’s indictment, filed with Switzerland’s federal criminal court, alleges that the two unnamed managers with the Saudi oil exploration and production company PetroSaudi cooperated with Malaysian financier and Najib confident Low Taek Jho, also known as Jho Low, at the heart of the 1MDB scandal.

Together, they had “proposed an investment scheme consisting of a purported government-to-government’ transaction” between Saudi Arabia and Malaysia through 1MDB, comprising of a joint venture between PetroSaudi and 1MDB, it said.

Saudi Arabia was not actually involved in the venture, but in a bid to strengthen the appearance that it was, the accused helped set up a meeting between Najib and a Saudi prince on a yacht in Cannes in 2009, the statement said.

The wealth fund’s board was duped, and was also never made aware that the deal landed the venture with $700 million of debt owed to PetroSaudi, or that the oil exploration company did not actually hold the rights to $2.7-billion worth of assets it agreed to bring to the table.

As a consequence, the board gave its blessing and the transaction went through in September 2009, with 1MBD pitching in $1 billion in cash.

But then $700 million of that contribution was swiftly transferred to a Swiss bank account in the name of a company owned by Low, who transferred $85 million to one accused, who in turn transferred $33 million to the other, the statement said.

The remaining $300 million was placed in a Swiss bank account belonging to the joint venture, but only benefited PetroSaudi, it added.

In addition, the two accused and Low, managed to convince the 1MDB board to authorise transfers of another $830 million as part of an Islamic loan that followed on from the joint venture, it said.

“The funds transferred were also misappropriated,” the statement said, adding that the $80 million in alleged interest payments transferred to 1MBD were actually taken from the funds it had itself transferred.

According to the indictment, the accused laundered the money between 2009 and 2015 by opening a web of bank accounts in Switzerland and abroad, transferring funds between them, and also using the funds to purchase real estate in Switzerland and in London, jewellery and private equity.

It remains unclear when the case could go to trial.

Tuesday’s statement stressed that the accused were “entitled to be presumed innocent unless and until a final judgement has been pronounced finding them guilty.”