Najib fails in attempt to halt bankruptcy proceedings
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Being bankrupt would mean former prime minister Najib Razak would lose his seat in Malaysia's Parliament.
KUALA LUMPUR • Malaysia's former prime minister Najib Razak yesterday faltered in his bid to get a high court to halt bankruptcy proceedings against him for failing to pay a RM1.74 billion (S$560 million) tax bill.
Kuala Lumpur High Court Judge Ahmad Bache dismissed Najib's application for a stay of execution, an e-mail exchange between the court and relevant parties shows. Separately, the court of appeal will hear Najib's plea tomorrow, his lawyer Farhan Shafee said.
Yesterday's ruling is a blow to Najib, who was slapped with a bankruptcy notice in April just as he began his appeal against his conviction last year on charges in a case involving millions he received from a former unit of troubled state fund 1MDB. Malaysia's court had ruled that he must pay RM1.69 billion in taxes, a bill he has disputed.
Being bankrupt would mean Najib would lose his parliamentary seat and be ineligible to contest in party polls and national elections. This would be a boon for Prime Minister Muhyiddin Yassin, who has been heavily criticised by Najib despite the United Malays National Organisation (Umno) being part of the ruling administration. Najib is a former president and a leading lawmaker in Umno.
If Najib is disqualified as an election candidate before his imprisonment, Tan Sri Muhyiddin will "weaken the hostile factions in Umno", said political analyst Wong Chin Huat.
Mr Muhyiddin could even claim to accomplish what he and former premier Mahathir Mohamad set out to do years ago, he added.
Najib has said the "tyrannical" tax imposed on him has no merit and he had sought a stay of execution.
BLOOMBERG