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Malaysia Court Convicts Ex-PM Najib Razak in Landmark 1MDB Trial: Guilty on Abuse of Power and Money Laundering Charges

Najib, 72, was found guilty on four counts of abuse of power and 21 counts of money laundering, involving sums totaling nearly 2.2 billion ringgit (approximately $500 million USD). The charges stem from the embezzlement of at least $4.5 billion from 1MDB between 2009 and 2014, during Najib's tenure as prime minister. Sentencing is scheduled for a later date, but legal experts warn that the maximum penalties—up to 20 years imprisonment and fines equivalent to five times the laundered amounts—could keep Najib behind bars well into his 90s.
26 December 2025 by
Malaysia Court Convicts Ex-PM Najib Razak in Landmark 1MDB Trial: Guilty on Abuse of Power and Money Laundering Charges
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Kuala Lumpur, Malaysia – December 26, 2025

In a stunning escalation of Malaysia's long-running battle against corruption, a high court in Kuala Lumpur convicted former Prime Minister Najib Razak on Friday of abusing his power and laundering millions in funds siphoned from the state investment fund 1Malaysia Development Berhad (1MDB). The verdict, delivered by Judge Collin Lawrence Sequerah, marks the latest chapter in one of the world's largest financial scandals, potentially extending Najib's prison time by up to 20 years per charge.

Najib, 72, was found guilty on four counts of abuse of power and 21 counts of money laundering, involving sums totaling nearly 2.2 billion ringgit (approximately $500 million USD). The charges stem from the embezzlement of at least $4.5 billion from 1MDB between 2009 and 2014, during Najib's tenure as prime minister. Sentencing is scheduled for a later date, but legal experts warn that the maximum penalties—up to 20 years imprisonment and fines equivalent to five times the laundered amounts—could keep Najib behind bars well into his 90s.

### The 1MDB Scandal: A $4.5 Billion Web of Deceit

The 1MDB affair, often dubbed the "world's biggest kleptocracy case," began in 2009 when Najib co-founded the sovereign wealth fund with the ambitious goal of driving Malaysia's economic development. Instead, it became a vehicle for massive graft. U.S. and Malaysian investigators allege that over $4.5 billion was looted from the fund through a complex scheme involving shell companies, luxury yacht purchases, Hollywood film financing (including *The Wolf of Wall Street*), and high-end real estate deals.

At the scandal's heart is fugitive Malaysian financier Low Taek Jho, known as "Jho Low," who prosecutors say acted as Najib's proxy. Low, believed to be hiding in China, allegedly orchestrated the diversion of funds, with more than $1 billion flowing directly into accounts controlled by Najib and his family. Prosecutors presented evidence of Najib's "unmistakable bond" with Low, including emails and financial records linking the pair to illicit transactions.

Najib has long maintained his innocence, claiming the funds in his personal accounts—totaling over $700 million—were legitimate donations from Saudi royalty. In court, he apologized for his "mishandling" of the crisis but insisted he was deceived by 1MDB officials and Low. Judge Sequerah rejected this defense as "implausible," calling purported Saudi donation letters "likely forgeries" and stating that the "irresistible conclusion" was that the money originated from 1MDB.

"The contention by the accused that the charges against him were a witch hunt and politically motivated were debunked by the cold, hard and incontrovertible evidence against him," the judge declared, emphasizing Najib's abuse of his "powerful position" in the fund.

### A Jailed Leader's Mounting Legal Woes

This conviction adds to Najib's already extensive rap sheet. He has been incarcerated since August 2022, serving a reduced 12-year sentence (halved from 24 years by a pardons board) for earlier corruption charges related to a 1MDB unit. That case alone stemmed from $700 million funneled into his accounts, which he used for political campaigns, luxury goods, and family expenses. Without this latest ruling, Najib was set for release in 2028. Now, with multiple overlapping sentences, his freedom could be deferred indefinitely, pending appeals.

Just days before the verdict, on December 22, Najib's bid for house arrest was denied, forcing him to remain in a standard prison facility despite his ailing health. Supporters, including members of his United Malays National Organisation (UMNO) party, have rallied online, decrying the proceedings as a "political vendetta" by the current government led by Prime Minister Anwar Ibrahim.

### Political Ripples and Broader Implications

The ruling arrives at a precarious moment for Malaysia's fragile unity government. UMNO, Najib's former party, is a key ally in Anwar's coalition despite campaigning against him in the 2022 elections. Tensions have simmered, with UMNO leaders voicing frustration over Najib's treatment and Anwar's allies celebrating the conviction on social media. Analysts warn that the verdict could test the coalition's stability, potentially fracturing alliances ahead of future polls.

Globally, the 1MDB saga has prompted asset recoveries exceeding $1 billion, including from U.S. authorities who seized yachts and artworks linked to the scandal. It also fueled Najib's 2018 electoral defeat, paving the way for Anwar's rise and a renewed anti-corruption drive.

As Malaysia grapples with the "staggering" sums exposed in court, the conviction underscores a hard-won commitment to accountability. Yet for Najib's loyalists, it represents the final nail in a once-mighty political coffin. Sentencing details, expected in the coming weeks, will clarify just how long the disgraced leader's fall from grace will last.

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Malaysia Court Convicts Ex-PM Najib Razak in Landmark 1MDB Trial: Guilty on Abuse of Power and Money Laundering Charges
TCO News Admin 26 December 2025
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