Ex-Malaysia Leader Najib Razak Convicted Of Money Laundering, Abuse Of Power

Former Malaysian Prime Minister Najib Razak has been found guilty of abuse of power and money laundering in connection to the multibillion-dollar 1MDB fraud, a verdict that could stir tensions within the ruling coalition.

Judge Collin Lawrence Sequerah found Najib guilty of all charges, comprising four counts of abuse of power and 21 of money laundering. Najib, already in jail due to other convictions, has consistently denied wrongdoing and can appeal or apply for a pardon.

Friday’s ruling relates to 2018 charges against Najib involving roughly 2.2 billion ringgit ($544 million) tied to 1MDB.

The ruling followed a lengthy summation of the evidence in which Sequerah dismissed numerous aspects of Najib’s defense and questioned the former prime minister’s credibility. In particular, the judge said it was clear that Najib was directly connected with Jho Low, the fugitive financier believed at the center of the 1MDB scandal.

“The accused was no country bumpkin, but was possessed of not only an impeccable family and political pedigree, but of superior intelligence,” Sequerah said of the former premier Friday. He said Najib used Low, who is now on the run, as a “proxy or agent” in the affairs of 1MDB.

Najib, whose father was Malaysia’s second prime minister, is already serving time for crimes related to the collapse of 1MDB. On Monday he lost a bid to serve the rest of his current six-year sentence at home. 

Friday’s convictions could diminish the chances of a political comeback for Najib, although he retains significant influence in the United Malays National Organisation, which has campaigned for his release. UMNO’s secretary-general this week said it may be time to review its support for Prime Minister Anwar Ibrahim’s government after the biggest member of the coalition, the Democratic Action Party, crowed over Najib’s failed bid for house arrest.

The judge said prosecution witnesses were credible, also rejecting Najib’s “Arab donation” defense regarding millions of dollars placed in his bank account, purportedly by the Saudi royal family. The “cold hard facts” show Low’s presence and involvement in critical phases of 1MDB transactions and an “obvious proximity and relationship” with Najib, the judge said.

“The attempt by the accused to distance himself from Jho Low rang hollow in the light of the overwhelming evidence of these prosecution witnesses,” Sequerah said. Suggestions that officials below Najib “knowingly conspired” against the then-prime minister would “stretch the imagination into the realms of pure fantasy.”

1MDB was a state fund set up during Najib’s premiership before collapsing in a sprawling scandal stretching from Singapore to Switzerland. Those ensnared in the affair included a Grammy-winning rapper and a high-profile banker, with global investigations revealing salacious details of Hollywood deals and parties with actor Leonardo DiCaprio. About $4.5 billion was allegedly lost in the scandal, which led to multiple probes across continents.

The next election isn’t due until early 2028, and Najib technically can’t seek political office for five years after he leaves prison. Still, Anwar himself rose to the nation’s highest office after spending years in jail and receiving a pardon. And Mahathir Mohamad, a two-time Malaysian prime minister, was 92 when he started his second stint in office.

Najib lost power in 2018 and has been in jail since 2022 for criminal breach of trust and abuse of power in connection with 1MDB. He had his original sentence halved to six years in early 2024 following royal intervention, and is due to be released in 2028.