KUALA LUMPUR (Aug 3): 1Malaysia Development Bhd’s (1MDB) civil trial against former prime minister Datuk Seri Najib Razak and others has begun, with 1MDB alleging US$5.64 billion (RM24.7 billion) was misappropriated through fraudulent transactions. 

The lawsuit, filed in 2021, by 1MDB and four of its subsidiaries is seeking to hold the former prime minister and several others accountable for the "1MDB Fraud", which resulted in total losses of approximately RM51.4 billion. 

The long-awaited trial began on Monday, with 1MDB’s lawyer Lim Chee Wee delivering the opening statement before Judicial Commissioner Mohamad Redzuan Idrus.

Lim said in the statement that Najib — during his premiership — held the position of minister of finance which gave him control of the Minister of Finance (Incorporated) (MOF Inc), the sole shareholder of 1MDB. 

“Under Najib Razak’s leadership, 1MDB carried out various fraudulent transactions which were executed with undue haste,” the lawyer said. 

Lim said the alleged fraud occurred in four phases — Good Star, Aabar, Tanore and Options Buyback — involving a total of US$5.64 billion in misappropriated funds.

He continued that fugitive Low Taek Jho, better known as Jho Low, assisted Najib in the fraud. Lim said Jho Low had no official role in 1MDB; however, he issued detailed instructions and directions on behalf of Najib and also spoke on behalf of Najib on the affairs of 1MDB.

“The fraudulent acts resulted in 1MDB’s funds being siphoned for the benefit of, among others, Najib Razak, his wife Datin Seri Rosmah Mansor (Rosmah Mansor), his stepson Riza Aziz and his agent and/or proxy Jho Low and his family,” he said. 

Lim said examples of the alleged misuse of funds included US$681 million transferred into Najib’s account in 2013, luxury purchases linked to Rosmah and Jho Low, and investments in Riza Aziz’s film production The Wolf of Wall Street. Rosmah is subject to another suit fixed for trial in July 2027.

He added that the government and taxpayers continue to bear the ‘immense burden’ of 1MDB’s RM51.4 billion losses. 

“The total losses incurred by the 1MDB Fraud stand at approximately RM51.4 billion, and the federal government of Malaysia (and by extension the ordinary Rakyat) continues to shoulder this immense burden,” Lim said. 

The court heard that US$30 million was made to Najib's Ambank account in 2012, US$681 million in 2013, and further US$1.27 million was traced to his account in 2014.

Lim emphasised that the civil suit shares factual commonalities with the parallel criminal proceedings presided over by judge Collin Lawrence Sequerah, who sentenced Najib to 15 years in prison and a RM13.5 billion fine on Dec 26, 2025. 

“He was in public service for decades, holding various positions of power. Between 2009 and 2018, he was the sixth prime minister of Malaysia and simultaneously held the minister of finance portfolio,” he said. 

“As minister of finance, he controlled MOF Inc, which is the sole shareholder of 1MDB. Further, Najib Razak was the chairman of the 1MDB board of advisers (1MDB BOA) from 2009 to May 31, 2016,” he said. 

“By virtue of the various hats worn and roles held, Najib Razak exercised control over the plaintiffs’ (1MDB) directors and management and is a shadow director under the Companies Act 1965,” he said. 

Lim further stated that Najib — seated at the "apex of the Malaysian government" — allegedly "dismissed senior public officials (i.e., the deputy prime minister and the attorney general)" and classified the Auditor General’s audit report into 1MDB as a secret under the Official Secrets Act 1972 to conceal the misappropriation. 

“Seated at the apex of the Malaysian government, Najib Razak in his role as both prime minister and minister of finance initiated and facilitated the fraudulent transactions which resulted in the siphoning and misappropriation of 1MDB’s funds,” he said. 

Lim said this case is a betrayal of public trust against a person in a position of national leadership. 

“This case is about betrayal, betrayal of public trust, the betrayal of the rakyat who trusted and elevated a fellow citizen to the pinnacle of national leadership, and a betrayal by that very same individual of national interests. 

“Today we begin day 1 of a trial to hold Najib Razak and the co-defendants accountable. Quoting Thomas Fuller, 'be you ever so high, the law is above you',” he said. 

The plaintiffs are pleading eight causes of action against Najib and the others including fraud, negligence, breach of fiduciary duties, and the tort of misfeasance in public office.

The trial continues with the plaintiffs expected to call six witnesses, including former 1MDB chief executive officer Datuk Shahrol Azral Ibrahim Halmi and former general counsel Jasmine Loo Ai Swan.

1MDB and the four subsidiaries filed the then US$8 billion suit in 2021, where 1MDB along with 1MDB Energy Holdings Ltd, 1MDB Energy Ltd, 1MDB Energy (Langat) Ltd, and Global Diversified Investment Company Ltd (previously known as 1MDB Global Investment Ltd) were named as plaintiffs.

They had named Najib and seven other former senior 1MDB staff, several of whom are still missing, as defendants.

Those named include 1MDB deputy chief financial officer and executive finance director Terence Geh Choh Heng, executive director of business development Casey Tang Keng Chee, former director of investments and chief investment officer Vincent Beng Huat Koh, former chief financial officer and subsequently chief operating officer Radhi Mohamad, former director of investments Kelvin Tan Kay Jim, and former chief investment officer Nik Faisal Ariff Kamil.

Prior to this, the plaintiffs had a Mareva injunction imposed on Najib by the High Court in 2023, to freeze US$681 million in assets. The decision was upheld by the Court of Appeal and the Federal Court.