The 1Malaysia Development Berhad (1MDB) scandal has been described as “kleptocracy at its worst” and a stain on Malaysia’s international reputation, according to a written judgment issued in the RM2.3 billion 1MDB misappropriation case involving former prime minister Najib Razak.
The remarks were made by Collin Lawrence Sequerah, who delivered the judgment while serving as a High Court judge. The 808-page written grounds of judgment were published on the judiciary’s e-Kehakiman portal on Tuesday.
“In the international arena, the 1MDB financial scandal has been characterised as kleptocracy at its worst. It is an unwanted blemish on the reputation of our beloved nation, which had long enjoyed a strong standing on the world stage,” the judge wrote.
Sequerah said the financial and reputational fallout from the scandal continues to affect the country, with significant liabilities still being borne by the government and future generations.
According to the judgment, the total liabilities arising from the 1MDB scandal reached nearly RM50 billion, with approximately RM42 billion already paid by the government, including both principal sums and interest.
Although asset recovery efforts have successfully recouped around RM29 billion, the judge noted that roughly RM13 billion in outstanding debt remains unresolved.
Sequerah said the damage extended far beyond financial losses, arguing that Malaysia’s global reputation suffered significantly as a result of the scandal.
“It is no secret that the impact of this financial scandal has been felt worldwide,” he stated.
He added that the network of financial transactions involved had been deliberately structured through multiple layers of complex dealings designed to conceal the origin of the funds.
“The crimes involved sophisticated cross-border financial transactions, resulting in enormous financial losses and serious, long-lasting consequences for the country,” he wrote.
The judge stressed that the scandal did not involve a low-ranking employee exploiting weaknesses in a system for personal gain.
Instead, he said, it involved an individual who occupied the highest levels of power in the country and was entrusted with safeguarding the nation’s interests.
According to Sequerah, Najib held multiple influential positions simultaneously, including Prime Minister, Finance Minister and chairman of 1MDB’s advisory board.
The judge said the former premier allegedly used those positions to influence decision-making within 1MDB and secure approval for a number of extraordinary transactions that were pushed through without proper justification.
“He allegedly exercised his power and influence to ensure certain transactions were executed urgently despite raising serious governance and commercial concerns,” the judgment stated.
Sequerah further ruled that the abuse of power and betrayal of public trust committed while holding such high office must be treated as a major aggravating factor during sentencing.
The judge also considered Najib’s previous conviction in the SRC International case, which was formally presented by prosecutors under Section 400 of the Criminal Procedure Code.
Court records showed that verification had been obtained through official criminal records maintained by Malaysian and Singaporean authorities, as well as fingerprint checks conducted by the Criminal Investigation Department at Bukit Aman.
As a result, the court recognised Najib as an offender with a prior conviction, a factor that was also taken into account during sentencing considerations.
