Malaysia’s former Prime Minister Najib Razak has been found guilty of embezzling millions from the country’s 1Malaysia Development Berhad (1MDB) sovereign wealth fund, marking a significant chapter in one of the world’s largest financial scandals.
Judge Collin Lawrence Sequerah of the Kuala Lumpur High Court delivered the verdict on Friday, convicting the 72-year-old politician on all 25 charges brought against him. These include four counts of abuse of power and 21 counts of money laundering involving approximately 2.28 billion ringgit (£554 million) siphoned from the state investment vehicle.
The judgement represents the latest development in a multi-year legal battle that has captivated Malaysia since the scandal first emerged. Najib, who served as Prime Minister from 2009 to 2018, already faces a six-year prison sentence from a separate 1MDB-related case handed down in 2020. The sentencing for these new convictions, scheduled for later on Friday, is expected to add substantial years to his current term at Kajang Prison outside Kuala Lumpur.
The 1Malaysia Development Berhad was established in 2009, shortly after Najib assumed the premiership, with the stated purpose of fostering economic development in Malaysia. However, investigators revealed that the fund became the centrepiece of an elaborate scheme to divert public funds for personal enrichment.
According to authorities across multiple jurisdictions, more than $4.5 billion (£3.5 billion) was diverted from 1MDB between 2009 and 2015. Whistleblowers identified Jho Low, a Malaysian financier with no official government position, as a key architect of the fraud. Low allegedly worked alongside fund officials to siphon vast sums, which were subsequently used to purchase luxury assets including high-end property, a superyacht, and valuable artwork.
The scandal sparked investigations in numerous countries, including Singapore, Switzerland, and the United States, damaging Malaysia’s international reputation and raising serious questions about governance and oversight within the country’s financial institutions.
During proceedings, prosecutors presented testimony from more than 50 witnesses, alongside bank records and documentary evidence demonstrating how funds flowed from 1MDB into Najib’s personal accounts. The prosecution argued that Najib exploited his positions as Prime Minister, Finance Minister, and chairman of 1MDB’s advisory board to facilitate these illegal transfers.
Judge Sequerah rejected the defence’s central argument that Najib had been deceived by Jho Low and 1MDB management. “The evidence clearly points to the fact that this was no coincidence but was evident of a relationship in which Jho Low operated as a proxy or agent of the accused with regard to the running of the affairs of 1MDB,” the judge stated.
The court also dismissed claims that donations from Middle Eastern benefactors accounted for the money in Najib’s accounts, with Judge Sequerah describing this explanation as “a tale that surpassed even those from the Arabian Nights.”
Deputy Public Prosecutor Ahmad Akram Gharib told the court that Najib “wielded absolute financial, executive and political control” over 1MDB. “The accused paints himself as a victim of rogue subordinates, when in truth, he was the single most powerful decision-maker,” Gharib argued during closing submissions.
Throughout the trial, Najib’s legal team maintained their client’s innocence, asserting he had no knowledge of the illegal financial activities occurring at 1MDB. Defence lawyer Muhammad Shafee Abdullah told journalists last week that his client “never got a fair trial” and placed blame squarely on Jho Low, who remains a fugitive with an Interpol red notice issued for his arrest.
Najib, who publicly apologised for allowing the 1MDB scandal to occur during his tenure, has consistently denied any criminal wrongdoing. Dressed in a navy blue suit and white shirt, he appeared visibly dejected as the verdict was read, witnesses reported, slumped in his seat as the judge delivered the guilty findings on each count.
The former leader’s legal troubles were compounded earlier this week when he lost an appeal to serve the remainder of his existing sentence under house arrest rather than in prison.
Najib Razak’s conviction represents a dramatic reversal of fortune for a politician who seemed destined for leadership from birth. The son of Malaysia’s second Prime Minister, Abdul Razak Hussein, Najib entered politics at age 23 and rose steadily through the ranks of the United Malays National Organisation (UMNO), the dominant party in Malaysian politics for decades.
His 2018 election defeat came amid mounting public anger over the 1MDB scandal and allegations of corruption. The shocking loss ended UMNO’s 61-year grip on power and paved the way for investigations that have since ensnared not only Najib but also his wife, Rosmah Mansor, who faces separate graft charges.
The political earthquake triggered by 1MDB has reshaped Malaysia’s landscape, with successive governments pursuing accountability for those involved in the scandal.
The 1MDB case has had far-reaching international implications. American authorities have described it as kleptocracy at its worst, with the US Department of Justice seizing more than $1 billion in assets allegedly purchased with stolen 1MDB funds, including properties in Beverly Hills and New York, artwork by Monet and Van Gogh, and a luxury yacht.
Financial institutions worldwide, including Goldman Sachs, faced scrutiny for their roles in underwriting billions in bonds for 1MDB. Goldman Sachs Malaysia pleaded guilty in 2020 to violating corruption laws and agreed to pay more than $2.9 billion (£2.3 billion) as part of a settlement with authorities.
Under Malaysian law, each count of abuse of power carries a maximum penalty of 20 years’ imprisonment and fines of up to five times the bribe amount. The money laundering charges also carry substantial prison terms. Legal observers expect Judge Sequerah to impose significant additional sentences when he delivers his decision later today.
Najib retains the right to appeal the conviction to Malaysia’s Court of Appeal and, if necessary, to the Federal Court, the country’s highest judicial body. However, his unsuccessful appeal of the 2020 conviction—which was upheld by the Federal Court in 2022 suggests a challenging path ahead.
