Malaysia confirms final closure of graft case against Deputy PM Zahid ahead of UMNO assembly

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Umno president Datuk Seri Dr Ahmad Zahid Hamidi.

On Jan 8, the Attorney-General’s Chambers announced that the case against Malaysian Deputy Prime Minister Zahid Hamidi will be formally closed.

PHOTO: THE STAR/ASIA NEWS NETWORK

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  • Zahid Hamidi cleared of all 47 graft charges after further MACC investigations found insufficient evidence, according to the AGC's Jan 8 announcement.
  • The decision strengthens Zahid's position within UMNO before its AGM and potentially reinforces UMNO's ties with Anwar's coalition.
  • Critics may view the decision as reformist backsliding, increasing pressure to separate the roles of attorney-general and public prosecutor.

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Malaysian Deputy Prime Minister Zahid Hamidi has been cleared of all 47 charges of graft, criminal breach of trust and money laundering, in a move that is expected to boost ties between his UMNO party and Prime Minister Anwar Ibrahim’s ruling coalition.

On Jan 8, the Attorney-General’s Chambers (AGC) announced that the case against Dr Zahid, who is president of UMNO, will be formally closed.

The charges against him had involved funds belonging to his charitable foundation Yayasan Akalbudi.

Following further investigations by the Malaysian Anti-Corruption Commission into the source and use of the foundation’s funds, the AGC concluded that there was not enough evidence to justify pursuing prosecution, leading to a decision of “no further action”.

“After studying all the evidence and new statements obtained from further investigations, the AGC, based on the assessment of the prosecution, finds that there is insufficient evidence to support the continuation of the prosecution for all of the charges,” the AGC said on Jan 8.

It added: “This decision thus brings this case to a final conclusion, in accordance with the power and discretion of the Attorney-General under the Federal Constitution and related laws.”

Dr Zahid was first charged in 2018 in relation to this corruption case, a few months after the once-dominant UMNO lost power at that year’s general election amid public anger over graft allegations linked to the 1Malaysia Development Berhad (1MDB) state fund.

In September 2023, the Kuala Lumpur High Court had granted Dr Zahid a discharge not amounting to acquittal after the prosecution applied to discontinue the proceedings, citing the need for further investigations.

The decision meant that he could, in principle, have been charged again over the same allegations in the future, but the AGC’s latest statement has now brought the matter to a close.

After the announcement, Dr Zahid posted on his Facebook account: “Praise be to God. In the end, time answers everything, and the truth has been proven.”

Mr Amir Fareed Rahim, strategic director at risk consultancy KRA Group, said that the development was timely for Dr Zahid ahead of the upcoming UMNO annual general assembly scheduled for Jan 14 to 17.

“The news will certainly be welcome for Zahid ahead of the next UMNO AGM, as he will be able to face his critics with renewed credibility among the party faithful. This will further increase Zahid’s already strong grip over the party,” he told The Straits Times.

The timing of the decision was significant, Mr Amir said, amid calls from some quarters for UMNO to withdraw from the ruling unity government coalition.

This comes after former prime minister and UMNO chief

Najib Razak was sentenced to 15 years’ jail

on Dec 26, 2025, after he was found guilty of abuse of power and money laundering charges linked to 1MDB.

Pressure has mounted for UMNO to leave the ruling government and revive the Muafakat Nasional alliance with the Islamist opposition Parti Islam SeMalaysia, which was in place from 2019 to 2022.

“This decision could strengthen ties between Zahid-led UMNO and Pakatan Harapan,” Mr Amir said, referring to Datuk Seri Anwar’s ruling coalition.

At the same time, he said that the move would not sit well with some members of the public.

Those who are anti-UMNO will take this as proof of further reformist backsliding by Mr Anwar’s government, said Mr Amir.

“Calls to separate the roles of attorney-general and public prosecutor will increase, and so it gives an urgency to the PM’s pledge to do so,” he added.

Mr Anwar, in his New Year address, said he would table Bills in Parliament to separate the powers of the attorney-general and public prosecutor, in a move that proponents hope would make the judiciary more independent.

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