A Malaysian court on Wednesday cleared former Prime Minister Najib Razak and former Treasury Secretary-General Irwan Serigar Abdullah of corruption charges linked to the infamous 1Malaysia Development Berhad (1MDB) scandal. The court’s decision to drop the charges, reportedly tied to allegations of criminal breach of trust involving RM6.6 billion (US$1.48 billion), has sparked widespread reaction across Malaysia and abroad.
The 1MDB scandal, often described as one of the largest financial fraud cases in history, revolves around billions of dollars allegedly siphoned from the state investment fund, 1Malaysia Development Berhad. The scandal unfolded globally, implicating high-profile politicians, businessmen, and financial institutions in a web of corruption, money laundering, and mismanagement.
Najib Razak, who founded 1MDB during his tenure as Malaysia’s Prime Minister (2009–2018), has faced multiple charges of corruption related to the scandal. The fund was initially established to drive economic development and attract foreign investment but quickly became mired in controversy when investigators uncovered massive irregularities in its financial dealings.
The fallout from 1MDB extended far beyond Malaysia’s borders, drawing scrutiny from the United States, Switzerland, and Singapore, among other countries. Funds linked to 1MDB were allegedly used to finance luxury real estate, art purchases, and even Hollywood films, notably The Wolf of Wall Street.
Najib Razak and Irwan Serigar Abdullah were jointly charged in October 2018 with six counts of criminal breach of trust. The charges pertained to the alleged misappropriation of RM6.6 billion in government funds, reportedly tied to a settlement agreement between 1MDB and Abu Dhabi’s International Petroleum Investment Company (IPIC).
Prosecutors had accused the two of diverting funds meant to fulfill Malaysia’s financial obligations to IPIC under the settlement agreement. The payment was part of a deal struck to resolve disputes over 1MDB’s debts, which were guaranteed by IPIC. The charges alleged that their actions violated their fiduciary duties to the government, causing significant financial losses to Malaysia.
On Wednesday, the court allowed prosecutors to drop the charges against Najib and Irwan, marking a controversial turn in a long-running legal battle. While detailed reasoning behind the decision has yet to be disclosed, local media reports suggest that the prosecution sought to discontinue the case.
The ruling follows years of legal proceedings against Najib, who is already serving a 12-year prison sentence following his conviction in another 1MDB-linked case. In 2020, Najib was found guilty of seven charges related to the misappropriation of RM42 million from SRC International, a former subsidiary of 1MDB.
The decision to drop the charges has drawn mixed reactions from various quarters.
Legal experts and opposition figures have questioned the decision, with some raising concerns about transparency and accountability. Critics argue that dropping the charges undermines Malaysia’s efforts to combat corruption and risks sending a message of impunity for high-ranking officials.
Gobind Singh Deo, a prominent opposition lawmaker, said, “This decision raises serious questions about the integrity of the judicial process. The public deserves to know why these charges were dropped and whether political considerations played a role.”
The Attorney General’s Chambers (AGC) has yet to issue a comprehensive statement explaining its rationale for discontinuing the case.
Public sentiment has been divided. Many Malaysians, who view Najib as a symbol of corruption and abuse of power, expressed outrage on social media. Hashtags such as #JusticeForMalaysia and #1MDB have trended, with users calling for greater accountability.
Conversely, Najib’s loyal supporters, known as “Bossku” followers, celebrated the ruling. They argue that Najib has been unfairly targeted for political reasons and maintain that he was not directly involved in the 1MDB scandal.
International observers have also weighed in on the ruling, noting its implications for Malaysia’s anti-corruption efforts. Transparency International Malaysia stated, “The decision is a step backward for accountability and sends a troubling signal about the seriousness of tackling high-level corruption in Malaysia.”
The decision to drop charges against Najib and Irwan raises questions about the future of Malaysia’s efforts to address the 1MDB scandal. Since the scandal came to light, successive governments have pledged to recover stolen assets and hold perpetrators accountable. The United States Department of Justice (DOJ), which played a key role in uncovering the scandal, has already seized over US$1 billion in assets linked to 1MDB.
With Najib still facing other trials related to 1MDB, the court’s ruling may not signal an end to his legal woes. However, it underscores the challenges of pursuing complex corruption cases, particularly when they involve politically influential figures.
Najib’s legal battles over 1MDB-related charges have been protracted and multifaceted. In 2020, he became the first Malaysian prime minister to be convicted of corruption. His conviction in the SRC International case was upheld by Malaysia’s Federal Court in 2022, cementing his status as a convicted felon.
Despite his imprisonment, Najib has maintained his innocence, insisting that he was misled by advisors and did not personally benefit from 1MDB funds. His legal team has pursued multiple appeals, and his supporters have called for a royal pardon.
Irwan Serigar Abdullah, a lesser-known figure in the 1MDB saga, served as Treasury Secretary-General during Najib’s administration. His involvement in the 1MDB scandal has largely been overshadowed by the high-profile charges against Najib. The dropped charges now leave questions about his role in the broader context of the financial mismanagement linked to 1MDB.
Malaysia’s efforts to recover assets and prosecute those responsible for the 1MDB scandal remain ongoing. According to the Ministry of Finance, over RM28 billion (US$6 billion) in assets have been recovered to date, but billions more remain unaccounted for.
The court’s decision to drop charges against Najib and Irwan may complicate these efforts, potentially emboldening others implicated in the scandal. Anti-corruption advocates have urged the government to reaffirm its commitment to justice and transparency.
