Malaysian Former PM Najib Razak Ordered by High Court to Pay $130 Million to State-Owned Company

The High Court of Malaysia has ruled that former Prime Minister Najib Razak misappropriated government funds and ordered him to pay $130 million. Judge Ahmad Firuz Jainnol Abidin found that Najib caused a loss of $118 million to SRC International and misappropriated $12 million. The court stated that Najib abused his official powers to secure a 400 million ringgit loan from the retirement fund to SRC, which was then transferred to offshore accounts.

The High Court’s order requires Najib Razak to repay approximately $130 million (around 525 million Malaysian ringgit) in connection to allegations of misusing public funds and abuse of power. The ruling followed a case filed by SRC International, a company invested in by the Malaysian government. The court held Najib accountable for damages to the company. This amount is roughly equivalent to 19.5 billion Nepalese rupees.

SRC International was established as a subsidiary of 1MDB, an entity tied to Malaysia’s finance ministry investments. The 1MDB scandal is considered one of the world’s largest financial frauds, allegedly involving billions of government development funds being siphoned for private gains. According to the court, Najib created the position of ‘Advisor Emeritus’ at SRC to exert full control, circumventing the management committee and making arbitrary decisions.

Within hours of the verdict, Najib’s lawyer, Tan Sri Mohammad Shafee Abdullah, announced plans to appeal the decision in the High Court. The court has granted a 14-day window for lodging the appeal. Najib attempted to shift responsibility to other directors, but the court rejected this defense. This ruling is expected to have a significant impact on Malaysia’s political landscape and ongoing anti-corruption efforts.