Former Malaysian Prime Minister Najib Razak has been convicted on charges of abuse of power and money laundering related to the embezzlement of funds from 1Malaysia Development Berhad (1MDB). The ruling carries potentially significant political consequences for the nation.
Embezzlement and Conviction
Judge Collin Lawrence Sequerah found Najib guilty of four counts of abuse of power and 21 charges of money laundering stemming from his role in the misappropriation of funds from 1MDB, a Malaysian strategic development company that is now insolvent. Sentencing has not yet been announced.
Investigators in both Malaysia and the United States have stated that at least $4.5 billion (€3.8bn) was stolen from 1MDB. More than $1 billion (€850m) is alleged to have been deposited into accounts linked to Najib, who has consistently denied any wrongdoing.
The Court’s Findings
Judge Sequerah stated that evidence against Najib refuted claims that the charges were politically motivated. He emphasized the “cold, hard and incontrovertible evidence” demonstrating Najib’s abuse of power within 1MDB. The judge also dismissed Najib’s argument that funds were legitimate donations from the Saudi royal family, deeming the claim “implausible” and suggesting supporting letters were likely forgeries.
Evidence presented in court revealed an “unmistakable bond and connection” between Najib and Jho Low, a fugitive financier who acted as Najib’s “proxy and intermediary” in 1MDB affairs. Low has been charged in the United States for his role in the scandal and remains at large.
Political Implications
Najib, 72, has been imprisoned since August 2022 following a previous conviction for corruption related to 1MDB funds. A 12-year sentence from that case was halved last year by a pardons board. This latest conviction adds to the political complexities surrounding Prime Minister Anwar Ibrahim’s governing alliance.
The ruling comes after a recent court decision denying Najib’s request to serve his sentence under house arrest, a decision that has already fueled tensions within the governing alliance. The UMNO, despite campaigning against Anwar Ibrahim in the 2022 election, joined his coalition after the election resulted in a hung parliament. Disagreement over Najib’s case is evident, with some UMNO leaders expressing disappointment at the denial of house arrest and others angered by celebratory reactions from members of Anwar Ibrahim’s coalition.
Najib apologized last year for mishandling the scandal, stating he was misled by 1MDB officials and Jho Low regarding the source of the funds.
Potential Penalties
Najib could face a maximum jail term of 15 to 20 years for each charge, in addition to fines of up to five times the value of the alleged misappropriations.
Frequently Asked Questions
What is 1MDB?
1Malaysia Development Berhad (1MDB) was a Malaysian strategic development company founded in 2009 by Najib Razak while he was prime minister. It is now insolvent.
What role did Jho Low play in the scandal?
Jho Low acted as Najib Razak’s “proxy and intermediary” in 1MDB affairs, according to Judge Sequerah. He has been charged in the United States for his central role in the case and remains a fugitive.
Has Najib Razak been in prison before?
Yes, Najib Razak has been in prison since August 2022, when Malaysia’s top court upheld a previous conviction for corruption related to illegally receiving funds from a 1MDB unit. His 12-year sentence was later halved by a pardons board.
How will this ruling impact the current political landscape in Malaysia?
