Kuala Lumpur (VNA) – Malaysia has opened a civil trial against former Prime Minister Najib Razak and seven other defendants, with state investment fund 1Malaysia Development Berhad (1MDB) seeking damages of about 51.4 billion MYR (5.64 billion USD) over losses linked to the multibillion-dollar 1MDB scandal.
According to The Edge Malaysia, the lawsuit, filed by 1MDB and four of its subsidiaries, alleges that Najib and the other defendants orchestrated a systematic fraud scheme that enabled the misappropriation of billions of dollars from the state investment fund.
Counsel representing 1MDB, Datuk Lim Chee Wee, told the court that the plaintiffs would present documentary evidence and witness testimony to show that Najib exercised effective control over the fund through fugitive financier Low Taek Jho, better known as Jho Low, despite the latter holding no official position at 1MDB. The alleged fraud was carried out in four major phases involving the Good Star, Aabar, Tanore and Options Buyback transactions.
The plaintiffs argued that Najib exploited his simultaneous roles as prime minister, finance minister and chairman of 1MDB's advisory board to dominate the fund's operations. They contended that he effectively acted as a "shadow director" under Malaysian company law by directing the decisions of the fund's management and board.
The court also heard allegations that, after irregularities at 1MDB came to light, Najib attempted to conceal the wrongdoing by dismissing senior officials, including the deputy prime minister and the attorney general, and by classifying the Auditor General's report on 1MDB as an official secret.
According to the plaintiffs, funds diverted from 1MDB ultimately benefited Najib, members of his family and associates, including Jho Low. They cited the transfer of 681 million USD into Najib's personal bank account in 2013, luxury purchases allegedly financed with misappropriated funds, and investments linked to the Hollywood film The Wolf of Wall Street.
The lawsuit seeks to hold Najib and the other defendants liable for fraud, negligence, breach of fiduciary duty, abuse of public office, conspiracy and unjust enrichment, while requiring them to compensate 1MDB for losses estimated at 51.4 billion MYR.
The civil proceedings follow Najib's criminal conviction in the 1MDB case. On December 26, 2025, he was found guilty on four counts of abuse of power and 21 counts of money laundering.
The trial is regarded as a significant step in Malaysia's continuing efforts to recover assets lost in one of the country's largest financial scandals./.
