Former Malaysian Prime Minister Najib Razak convicted in trial over 1MDB corruption scandal

PUTRAJAYA, Malaysia (AP) — Imprisoned former Malaysian Prime Minister Najib Razak was convicted Friday following a corruption trial tied to multibillion-dollar looting of the 1MDB state investment fund.

The nation’s High Court found Najib, 72, guilty on four counts of abuse of power and 21 charges of money laundering related to more than $700 million channelled into his personal bank accounts from the 1MDB fund.

Najib's defense team was expected to make mitigation arguments before sentencing later Friday.

Najib denied any wrongdoing and maintained the funds were a political donation from Saudi Arabia and that he had been misled by rogue financiers led by Low Taek Jho. Low, thought to be the scandal’s mastermind, remains at large.

Justice Collin Lawrence Sequerah said Najib’s claim of a Saudi donation was “incapable of belief." Four letters purportedly from the Saudi donor were forged and evidence clearly showed the funds originated from 1MDB, he said.

He rejected defense arguments that Najib was an unwitting victim, duped by former 1MDB officials and Low. Witness testimonies had pointed to an “unmistakble bond” between Najib and Low, who had played a pivotal role in the scandal and operated as “the proxy, the conduit, the intermediary and the facilitator” for Najib in 1MDB, the judge said.

The judge noted that Najib failed to take steps to verify the origin of the massive funds nor took action against Low. Instead, Najib used the money despite its suspicious origins and also took steps to protect his position, including by removing the then-attorney general and anti-corruption chief investigating the case, he said.

“The accused was no country bumpkin,” said Sequerah, who took five hours to read the ruling. “Any attempt to paint the accused as an ignoramus who was hopelessly unaware of the misdeeds going around him must therefore, fail miserably.”

The ruling marked a major milestone in one of the world's largest financial scandals, which rippled across global markets and triggered investigations in the United States and other nations.

Dressed in a blue suit, Najib appeared calm and at times wrote in his notebook.

Najib, who served as prime minister from 2009 to 2018, currently is serving a prison sentence after being convicted in an earlier case linked to the 1MDB scandal, which led to his government’s defeat in 2018.

He was sentenced to 12 years in prison in 2020 for abuse of power, criminal breach of trust and money laundering involving 42 million ringgit ($10.3 million) channeled into his accounts from SRC International, a former unit of 1MDB.

He began his sentence in August 2022 after losing a final appeal, becoming Malaysia’s first former leader to be jailed. The Pardons Board, a body that advises rulers on granting clemency, halved his sentence and sharply reduced his fine in 2024.

Najib set up the 1MDB development fund shortly after taking office in 2009. He chaired 1MDB’s advisory board and held veto power as finance minister while serving as prime minister.

Between 2009 and 2014, top executives and associates of Najib looted over $4.5 billion from the fund, laundering it through countries including the U.S., Singapore and Switzerland, according to the U.S. Justice Department. Authorities alleged the funds were used to finance Hollywood films and extravagant purchases including hotels, a luxury yacht, art and jewelry. Jeff Sessions, the U.S. attorney general at the time, called it “kleptocracy at its worst.”

The scandal also hit Wall Street, with Goldman Sachs facing billions in fines for its role in raising money for 1MDB.

The scion of a prominent political family, Najib was long seen as untouchable until public anger over 1MDB led to the 2018 election defeat of his ruling party, which had governed Malaysia since the country gained independence from Britain in 1957.