What is the case about?

1Malaysia Development Berhad (1MDB) was a sovereign fund set up in 2009 with the help of Malaysian financier Jho Low to promote economic development. Najib Razak, who was prime minister from 2009 to 2018, co-founded 1MDB and chaired its advisory board until 2016.

1MDB raised billions of dollars in bonds for use in investment projects between 2009 and 2013.

The US Department of Justice (DoJ) said US$4.5 billion (S$6.3 billion) was diverted to offshore bank accounts and shell companies, many linked to Low.

The siphoned funds were used to buy luxury assets for Low and his associates, US lawsuits said.

Najib was not named by the DoJ, but was alluded to in the investigation as "Malaysian Official 1", according to sources.

The Malaysian authorities say Najib illegally received more than US$1 billion traceable to 1MDB.

Najib, whose coalition was voted out in a 2018 election amid public anger over the scandal, faced 42 criminal charges over losses at 1MDB and other state entities. If convicted, he could face decades in prison, as well as hefty fines.

In July 2020, in the first of five trials, he was sentenced to 12 years in prison and a RM210 million (S$65.3 million) fine after being found guilty of criminal breach of trust, abuse of power and money laundering for illegally receiving about RM42 million from SRC International, a former 1MDB unit.

Other trials he faces involve funds at 1MDB as well as allegations of audit tampering.

Despite the scandal, Najib remains influential within Umno.

He remains on trial in the four other cases. Najib has said he was misled by Low and other 1MDB officials into believing the funds banked into his accounts were donated by the Saudi royal family.

REUTERS