Malaysia Fines Ex-PM Najib $2.8 Billion for 1MDB, Adds Jail Time

(Bloomberg) — Former Malaysian Prime Minister Najib Razak, already jailed for his role in the 1MDB scandal, faces another 15 years in prison and a fine of 11.4 billion ringgit ($2.8 billion) after being convicted of abuse of power and money laundering in connection with the failed state-run fund.

Judge Collin Lawrence Sequerah announced the sentence after earlier finding Najib guilty of four counts of abuse of power and 21 of money laundering. Najib has consistently denied wrongdoing and his lawyer said he plans to appeal.

Friday’s verdict could add to political tensions in the ruling coalition and follows a years-long trial over 2018 charges involving about 2.2 billion ringgit. He is already midway through a six-year prison term for a separate conviction, and on Monday lost a court bid to spend the rest of his sentence at home.

The punishment includes four prison sentences of 15 years apiece for abuse of power, to be served concurrently. Najib was also sentenced to prison for money laundering, with the time to be served concurrently with the abuse charges.

Sequerah gave an hours-long summation in which he dismissed numerous aspects of Najib’s defense and questioned the former prime minister’s credibility. In particular, the judge said it was clear that Najib was directly connected with Jho Low, the fugitive financier believed at the center of the 1MDB scandal.

“The accused was no country bumpkin, but was possessed of not only an impeccable family and political pedigree, but of superior intelligence,” Sequerah said of the former premier Friday. He said Najib used Low, who is now on the run, as a “proxy or agent” in the affairs of 1MDB.

Before the sentencing, defense lawyer Muhammad Shafee Abdullah asked for the judge to take into account the ex-premier’s age and health issues, including hypertension. He said Najib, whose father was Malaysia’s second prime minister, contributed to the country and is pursuing a doctorate behind bars. The lawyer also said Najib shouldn’t be treated as a second offender, claiming the previous trial was unfair.

The prosecution argued that society must be shown that people in power cannot get away with corrupt practices, calling for a 20-year prison sentence and a fine of 11.4 billion ringgit.

Friday’s convictions further diminish the chances of a political comeback for Najib, though he could ask for a pardon and retains significant influence in the United Malays National Organisation, which has campaigned for his release.

UMNO’s secretary-general this week said it may be time to review its support for Prime Minister Anwar Ibrahim’s government after the biggest member of the coalition, the Democratic Action Party, crowed over Najib’s failed bid for house arrest.

The judge said prosecution witnesses were credible and rejected Najib’s “Arab donation” defense regarding millions of dollars placed in his bank account, purportedly by the Saudi royal family. The “cold hard facts” show Low’s presence and involvement in critical phases of 1MDB transactions and an “obvious proximity and relationship” with Najib, the judge said.

“The attempt by the accused to distance himself from Jho Low rang hollow in the light of the overwhelming evidence of these prosecution witnesses,” Sequerah said. Suggestions that officials below Najib “knowingly conspired” against the then-prime minister would “stretch the imagination into the realms of pure fantasy.”

1MDB was a state fund set up during Najib’s premiership that collapsed in a sprawling scandal stretching from Singapore to Switzerland. Those ensnared in the affair included a Grammy-winning rapper and a high-profile banker, with global investigations revealing salacious details of Hollywood deals and parties with actor Leonardo DiCaprio. About $4.5 billion was allegedly lost in the scandal, which led to multiple probes across continents.

The next election isn’t due until early 2028, and Najib technically can’t seek political office for five years after he leaves prison. He could also seek a pardon.

Anwar himself rose to the nation’s highest office after spending years in jail and receiving a pardon. And Mahathir Mohamad, a two-time Malaysian prime minister, was 92 when he started his second stint in office.

Najib lost power in 2018 and has been in jail since 2022 for criminal breach of trust and abuse of power in connection with 1MDB. He had his original sentence halved to six years in early 2024 following royal intervention, and is due to be released in 2028.

–With assistance from Joy Lee and Adrian Kennedy.

©2025 Bloomberg L.P.