Malaysia court orders ex-PM Najib to pay US$1.3 billion to 1MDB unit

The court ruled that Najib was liable for losses incurred by SRC International, a former subsidiary of sovereign wealth fund

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Published Tue, Mar 31, 2026 · 05:39 PM

High Court judge Ahmad Fairuz Zainol Abidin ruled that Najib (top) breached his fiduciary duties, abused his position as prime minister, and misappropriated SRC funds for personal gain. PHOTO: BERNAMA

[KUALA LUMPUR] A Malaysian court on Tuesday (Mar 31) ordered jailed former Prime Minister Najib Razak to pay US$1.3 billion to a former unit of scandal-tainted state fund 1MDB, state media reported.

The Kuala Lumpur High Court ruled that Najib was liable for losses incurred by SRC International, a former subsidiary of sovereign wealth fund 1Malaysia Development Berhad, state news agency Bernama reported.

High Court judge Ahmad Fairuz Zainol Abidin ruled that Najib breached his fiduciary duties, abused his position as prime minister, and misappropriated SRC funds for personal gain, Bernama reported.

SRC’s lawyer, Lim Chee Wee, confirmed the Bernama report to Reuters but declined further comment on the ruling.

Najib would appeal the ruling, his lawyer Muhammad Shafee Abdullah said, according to Bernama. Muhammad Shafee did not immediately respond to Reuters’ request for comment.

Najib has been in prison since August 2022 after being found guilty of corruption and money laundering over funds misappropriated from SRC in a separate case. He was also fined RM50 million (S$15.9 million) as part of that sentence.

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Resolutions pushing for a full pardon and demanding justice for Najib were the “hottest topic” submitted by the party’s 191 divisions ahead of its annual assembly.

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While civil society groups welcomed the verdict, many said it raised fresh questions over the independence of Malaysia’s institutions and exposed deep structural problems that have not been addressed since the 1MDB scandal was exposed more than a decade ago.

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Najib was found guilty of four charges of abuse of power and 21 counts of money laundering for illegally receiving about US$567.90 million originating from 1MDB, in the biggest trial he has faced.

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Malaysia and US investigators say at least US$4.5 billion was stolen from 1MDB, a state fund Najib co-founded in 2009 during the first of his nine years in power in the South-east Asian country.

In December, Najib was sentenced to a further 15 years in jail and fined US$2.8 billion for power abuse and money laundering in the biggest trial of the multibillion-dollar scandal. He denies wrongdoing and is appealing the ruling. REUTERS

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