Najib sentenced to 15 years’ jail in major 1MDB trial, verdict likely to add to tensions in Anwar’s government

PUTRAJAYA – Former Malaysian prime minister Najib Razak was sentenced to 15 years’ jail on Dec 26 in a case involving the alleged misappropriation of about RM2.3 billion (S$730 million) in funds linked to the 1Malaysia Development Berhad (1MDB) state fund.

Najib faced 25 charges, comprising 21 counts of money laundering and four counts of abuse of power, over allegations that roughly RM2.3 billion was transferred into his personal bank accounts through a network of offshore entities. He was found guilty of all the charges.

The 72-year-old was sentenced to 15 years’ jail by Malaysia’s High Court for each charge of abuse of power and five years for each of the 21 money laundering charges. The sentences are to run concurrently.

He was also fined RM11.4 billion (S$3.6 billion), in default of which he would serve an additional 10 years in prison. The sentence will run after Najib completes his jail term from an earlier case, which is scheduled to end in August 2028.

Justice Collin Lawrence Sequerah also ordered Najib to pay a recoverable sum of RM2 billion under the anti-money laundering act, failing which he would face additional jail time.

The judge said the prosecution had proven its case beyond a reasonable doubt, finding that Najib had knowledge of and control over the funds, and that the transactions could not be explained as legitimate political donations.

The judge also rejected defence arguments that Najib had been misled by advisers or that the prosecution was politically motivated.

The ruling, which took about four hours to be read out, is likely to worsen tensions between Prime Minister Anwar Ibrahim’s coalition and UMNO, which Najib once led. A court decision this week that

rejected Najib’s bid

to serve the rest of his jail sentence under house arrest in another case had already sparked tensions in Datuk Seri Anwar’s unity government, of which UMNO is a part.

Mr Mujibu Abd Muis, a political analyst at Universiti Teknologi MARA, said the court verdict could sharpen existing tensions between UMNO and the Democratic Action Party (DAP), which is part of Mr Anwar’s ruling coalition. However, he stressed that it should not be viewed as the root cause of those strains. 

While Najib’s case was, to his supporters, more symbolic and emotive than purely a legal issue, the DAP and its supporters viewed it as a matter of accountability and the rule of law. These contrasting readings, he added, are likely to intensify mistrust and rhetorical friction, both among party elites and supporters.

On Dec 26, Justice Sequerah rejected Najib’s claim that the RM2.3 billion constituted a political donation, finding that the purported Arab donation letters relied on by the defence were fabricated. The judge said that this finding was supported by testimony from former AmBank relationship manager Joanna Yu Ging Ping and former 1MDB general counsel Jasmine Loo Ai Swan.

​The judge noted that Ms Loo testified to seeing a draft of one of the donation letters on a computer screen at a hotel in Mayfair, London. The draft lacked a signature at the time, and she was unsure when or if it was eventually sent to Najib.

“The fourth letter does not have a date despite having an AmBank emblem stamp,” he said, referring to the Malaysian financial group.

“The court found that the letters were unverified and, at best, highly questionable,” the judge stated. ​He added that Ms Loo’s testimony cast serious doubt not only on the authenticity of the fourth letter but also on the credibility of the entire set of correspondence.

The judge also said the court acknowledged testimonies that fugitive financier Jho Low had acted as an intermediary for Najib and 1MDB, a state investment fund launched by Najib in 2009 after he became prime minister.

Justice Sequerah noted the “cold hard facts” of Low’s presence and involvement at critical phases of transactions and dealings involving 1MDB as well as “the obvious proximity and the relationship with the accused, including the fact that no actions were taken against Jho Low even after the wrongdoing surfaced”.

The trial heard testimony from dozens of witnesses, including investigators, former 1MDB executives and banking professionals. Among the key prosecution witnesses was Ms Loo, the former 1MDB general counsel, who testified about internal dealings at the fund and offshore transactions linked to the alleged money trail. Her evidence was vigorously challenged by the defence.

Najib’s lawyers also called witnesses, including former Goldman Sachs banker Roger Ng Chong Hwa, who told the court he did not believe Najib was part of a broader conspiracy to loot 1MDB.

Najib had faced a maximum of 20 years’ imprisonment on each charge, as well as a fine of up to five times the value of the alleged misappropriations.

The prosecutors asked for the maximum sentences for Najib, noting the magnitude of the losses involved and the damage to Malaysia’s reputation.

Quoting from the Parliamentary Hansard, lead prosecutor Ahmad Akram Gharib said Malaysia’s offshore borrowings stood at RM22.4 billion, below the statutory ceiling of 35 per cent, while Treasury bill issuance remained at RM4 billion, within the approved limit of RM10 billion.

He said the largest debt burden continued to stem from 1MDB, which the government inherited in 2018. The liability amounted to RM34 billion, including RM17 billion in interest commitments, bringing total obligations to nearly RM50 billion. To date, the government has paid RM42 billion in principal and interest.

Mr Akram added that the authorities had recovered RM29 billion through coordinated efforts by multiple agencies, including the Attorney-General’s Chambers, the Ministry of Finance and the Malaysian Anti-Corruption Commission. But the government still faced an outstanding 1MDB-related debt of about RM13 billion.

“The magnitude of the losses suffered, the continued financial burden borne by the government, and the severe damage inflicted upon the nation’s reputation demand a sentence that unequivocally reflects society’s condemnation of the offences committed. Anything less would fail to uphold public confidence in the administration of justice and would undermine the fundamental principle that no person, regardless of status or position, is above the law.”

In mitigation, Najib’s lawyer Shafee Abdullah asked for the sentence in this latest case to run concurrently with that of an earlier one involving SRC International, a former subsidiary of 1MDB. In July 2020, Najib was sentenced to 12 years’ jail for misappropriating funds, but this was halved to six years by the Pardons Board in February 2024.

He told reporters after the sentencing was announced that an appeal will be filed by Dec 29.

Najib’s wife, Rosmah Mansor, dressed in pink, was seated behind him during the court proceedings. Four of their children were also present in court. They appeared calm as the verdict was read.