Malaysia court orders Najib to defend more 1MDB charges

(Bloomberg) — Malaysia’s Supreme Court has ordered former Prime Minister Najib Razak to defend himself against corruption and money laundering charges linked to sovereign wealth fund 1MDB, a fresh blow to the politician already in jail over the scandal.

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The charges against Najib are valid and the prosecutor has filed a case against him, Judge Collin Lawrence Sequerah told a courtroom in Kuala Lumpur on Wednesday. He also found all prosecution witnesses – including former Malaysian Central Bank Governor Zeti Akhtar Aziz – credible.

The court ruling shows that Najib’s long-standing legal troubles are far from over, even after Prime Minister Anwar Ibrahim welcomed a public apology from him. Najib, 71, was charged in 2018 with four counts of abusing his position to obtain 2.3 billion ringgit ($524 million) in 1MDB funds while in power. He is also charged with 21 counts of money laundering.

Najib’s affairs are a political headache for Anwar, who must balance competing interests to stay in power. The jailed former leader retains significant influence in the United Malays National Organization party, which is part of Anwar’s coalition government formed after a hung parliament in 2022. But any concession to Najib could weaken the prime minister’s credibility and support base . Anwar has denied interfering in the lawsuits.

Judge Sequerah said in his ruling on Wednesday that Najib was in an excellent position to exercise control over 1MDB. Najib had also been warned several times that something might be wrong, he said. Commenting on the decision, Najib said he would defend himself against the allegations.

“We feel extremely disappointed,” Najib’s lawyer, Shafee Abdullah, later told reporters outside the courthouse. “But we are not giving up, we are going to fight this case and we are more determined by this decision.”

The trial will resume on December 2 and the defense plans to call 11 witnesses, he said.

The former prime minister remains behind bars for separate crimes linked to 1MDB. He has tried to serve the remainder of his prison sentence at home after it was halved to six years by a royal pardon in January, although a Malaysian court rejected his request.

He apologized in a letter last week for allowing the scandal to unfold while he was prime minister, but denied any criminal involvement in the scheme. He also said he did not realize the money sent to his bank accounts came from 1MDB funds.

“I am still deeply shocked to know the extent of the wretched and unscrupulous acts and illegalities that have happened in 1MDB,” he said in the letter read out by his son. “I deeply regret what happened.”

(Updates with comments from Najib’s lawyer in sixth paragraph)