1MDB lawyer vows to prove Najib was at heart of alleged fraud involving US$5.64b

 

The Kuala Lumpur High Court heard today that 1MDB and its four subsidiaries are set to prove that former prime minister Najib Abdul Razak stood at the very heart of the alleged fraud that cost the sovereign wealth fund US$5.64 billion (RM23.1 billion).

It was the first day of the trial arising from a suit that 1MDB and its four subsidiaries filed against Najib and seven others in May 2021.

Reading the plaintiffs’ opening statement, counsel Lim Chee Wee said they would establish that Najib wielded immense control over 1MDB’s management.

“Najib used his apex position, power, and influence as prime minister, finance minister, controller of Minister of Finance Incorporated, and sole shareholder of 1MDB to commit acts and exert influence over 1MDB’s board to execute abnormal transactions with undue haste, all to enrich himself, his wife Rosmah Mansor, his stepson Riza Aziz, and his proxy, Jho Low (Low Taek Jho) together with his family.

“As a result of these misappropriations, the plaintiffs suffered losses amounting to US$5,644,525,051,” Lim submitted before judicial commissioner Redzuan Idrus.

Lim further submitted that Najib’s dual role as finance minister and 1MDB board of advisers chairperson from 2009 to May 31, 2016, placed him firmly in control of the company’s directors and management.

He contended that by virtue of these multiple positions, Najib qualified as a shadow director under the Companies Act 1965.

Describing the case as “a betrayal of public trust”, Lim said the plaintiffs would show that Najib had breached the trust placed in him as the nation’s leader.

“This case is about betrayal… the betrayal of public trust, the betrayal of the ‘rakyat’ who entrusted and elevated a fellow citizen to the pinnacle of national leadership, and a betrayal by that very same individual of national interests,” he asserted before calling on the plaintiffs’ first witness.

The first witness called to testify today was UK-based Kroll Advisory Ltd’s director of investigation Richard Templeman.

1MDB and its subsidiaries - 1MDB Energy Holdings Limited, 1MDB Energy Limited, 1MDB Energy (Langat) Limited, and Global Diversified Investment Company Limited, formerly known as 1MDB Global Investments Limited, filed the civil suit on May 7, 2021.

They named Najib, former 1MDB finance director Terrence Geh, former counsel Jasmine Loo, former executive director Casey Tang, former chief investment officer Vincent Beng, former chief operating officer Radhi Mohamad, former investment director Kelvin Tan, and former chief investment officer Nik Faisal Ariff Kamil, as defendants.

The writ of summons stated that the plaintiffs, among other things, accused the defendants of breach of trust, breach of statutory duty, abuse of power and conspiracy to misappropriate 1MDB funds.

On Dec 26, 2025, the High Court sentenced Najib, 73, to 15 years’ imprisonment and fined him RM11.4 billion after finding him guilty on four counts of abuse of power and 21 counts of money laundering involving RM2.3 billion in 1MDB funds.

- Bernama