Malaysia Drops 1MDB-Linked Charges Against Ex-PM Najib Razak and Former Treasury Official

KUALA LUMPUR – On Nov 27, a Malaysian court dropped corruption charges against former Prime Minister Najib Razak and ex-Treasury chief Irwan Serigar Abdullah linked to the multibillion-dollar 1MDB scandal, their lawyers confirmed.

The charges involved six counts of criminal breach of trust over government funds totaling RM6.6 billion (S$2 billion), allegedly connected to a settlement between Malaysia’s 1Malaysia Development Berhad (1MDB) and Abu Dhabi’s International Petroleum Investment Company. Both Najib and Irwan had denied any wrongdoing.

The Kuala Lumpur High Court granted a discharge not amounting to an acquittal, citing procedural delays and the prosecution’s failure to disclose key documents, according to defense lawyers. Najib’s counsel, Muhammad Farhan Muhammad Shafee, stated the court’s decision aligned with legal principles.

Najib, who founded 1MDB in 2009 during his tenure as prime minister, was convicted in 2022 for corruption and money laundering in a separate case linked to the scandal and sentenced to 12 years in prison. His term was later reduced by half through a royal pardon. While Najib has apologized for mishandling 1MDB, he maintains he was unaware of any illegal transfers.

This decision raises concerns about the remaining charges against Najib, following prosecutors’ decision last year not to appeal his acquittal in another 1MDB-related case. Critics argue these developments undermine Prime Minister Anwar Ibrahim’s anti-corruption promises. Anwar, elected on a reformist platform, insists he does not interfere in court matters and remains committed to tackling graft.

Najib has been lobbying to serve the rest of his sentence under house arrest, citing an alleged royal order. Meanwhile, Anwar’s government has proposed a law permitting house arrest for specific offenses, slated for next year, while denying any intent to benefit Najib or other politicians facing corruption charges.