The 1Malaysia Development Berhad (1MDB) civil case against former Prime Minister Datuk Seri Najib Razak and others opened on August 3, 2026, at the Kuala Lumpur High Court [1, 2, 3, 4, 5].
1MDB alleges that Najib orchestrated a US$5.64 billion fraud through a series of fraudulent transactions from 2009 to 2016, causing losses totalling RM51.4 billion borne by the Malaysian government and taxpayers [1, 2, 3, 4, 5]. Datuk Lim Chee Wee, the 1MDB lawyer, said Najib "used his apex position, power and influence as Prime Minister, Minister of Finance, controller of Minister of Finance Incorporated (MOF Inc), and sole shareholder of 1MDB to commit acts and exert influence over 1MDB’s board to execute abnormal transactions with undue haste," enriching himself, family members, and fugitive financier Low Taek Jho, also known as Jho Low [3, 1].
Najib served concurrently as Prime Minister, Finance Minister, chairman of 1MDB's advisory board, and controller of MOF Inc, the sole shareholder of 1MDB during the period under investigation [1, 2, 3, 4, 5]. The alleged fraud involved four phases: Good Star, Aabar, Tanore, and Options Buyback, with $5.64 billion misappropriated [1, 2].
Fugitive financier Jho Low acted as Najib's proxy, directing and executing fraudulent transactions despite holding no official 1MDB role [1, 2, 5]. In one documented transaction, $681 million was transferred into Najib's personal account in 2013, with $620 million returned to Tanore Finance Corporation, a shell company linked to Jho Low [1, 6, 7, 8, 5]. Whether the returned funds were redirected back to Najib remains unproven and under investigation [6, 7, 8].
Najib's lead counsel, Tan Sri Muhammad Shafee Abdullah, challenged investigator Richard Templeman for not probing the flow of the $620 million returned, calling it a critical issue for the fraud claim [6, 7, 8]. Shafee said, "You have not investigated whether the US$620 million somehow went around and came back to Najib?" [7].
Najib was convicted on December 26, 2025, of abuse of power and money laundering related to 1MDB, receiving a 15-year prison sentence and a RM13.5 billion fine [2, 5]. The current civil suit lists eight causes of action including fraud, negligence, breach of fiduciary duty, breach of trust, conspiracy, misfeasance in public office, unjust enrichment, and acceptance of constructive trust [5].
Tony Pua, former MP and Public Accounts Committee member, testified as a plaintiff witness on August 5, 2026, but his testimony was challenged by Najib's counsel for relying on opinion, hearsay, and media reports instead of official records [9, 10]. Shafee said Pua was acting "as though he is the chief investigator... on matters that he only knows from second-hand sources" [9].
Najib's defense team cross-examined the 1MDB fraud investigator on August 4 concerning the unexplained flow of the $620 million returned to Tanore Finance Corporation [6, 7, 8].
The trial continues amid heavy scrutiny on the complex financial transactions spanning years. The court will further assess evidence related to the alleged misappropriations and Najib’s benefit from the transactions.
