Malaysia

Najib’s RM2.3 billion 1MDB case ‘strange’, reflects chaotic governance - Prosecutor

Court hears that if corporate governance was truly important, the resignation of the 1MDB chairman in October 2009 should have served as a ‘waking-up call’ to resolve the company’s turmoil

Updated 11 months ago · Published on 30 Oct 2025 5:50PM

Najib’s RM2.3 billion 1MDB case ‘strange’, reflects chaotic governance - Prosecutor
DPP cites the late lead prosecutor Datuk Seri Gopal Sri Ram’s remark that 1MDB was “run like a coffee shop” - October 30, 2025

THE prosecution described former prime minister Datuk Seri Najib Razak’s RM2.3 billion 1Malaysia Development Berhad (1MDB) corruption case as “peculiar”, citing the late lead prosecutor Datuk Seri Gopal Sri Ram’s remark that 1MDB was “run like a coffee shop.”

Deputy Public Prosecutor Mohamad Mustaffa P Kunyalam told the Kuala Lumpur High Court on Thursday that the mismanagement of the state investment fund was so disorderly that its finances were deliberately diverted elsewhere.

He argued that had 1MDB been managed according to strict corporate standards, Najib, as the then finance minister, would not have faced prosecution.

“If corporate governance was truly important, the resignation of 1MDB chairman Tan Sri Mohd Bakke Salleh in October 2009 should have served as a ‘waking-up call’ to resolve the company’s turmoil.

Tan Sri Mohd Bakke even sent a message to Datuk Seri Najib about his resignation, but the accused never responded,” he said.

Mohamad Mustaffa said issues surrounding 1MDB’s operations, debts, and investments were already publicly known when the matter was raised in Parliament as early as 2010, where Najib was questioned over the involvement of fugitive businessman Low Taek Jho, or Jho Low.

He pointed to evidence, including Blackberry Messenger (BBM) records and testimony from former AmBank relationship manager Joanna Yu Ging Ping, showing Jho Low’s active role in managing Najib’s personal bank accounts.

These included the RM42 million transactions in December 2014 and February 2015 cited in the criminal breach of trust and money-laundering charges—transactions Najib later claimed were orchestrated by Jho Low to deceive him.

“How can we deny the impact of what Jho Low told senior 1MDB officials after seeing all this?” he said. “We submit that what matters for the court to decide is the effect of Jho Low’s statements, the testimony of those who heard them, and the subsequent actions. There are no double hearsay elements as argued by the defence. Jho Low is not on trial here—the accused is.”

The prosecutor further contended that Najib was never deceived by Jho Low, asserting that his own actions demonstrated otherwise.

“Najib in fact strengthened Jho Low’s role in both his personal and official dealings, allowing him to arrange private holidays while simultaneously handling 1MDB’s financial affairs. This was no coincidence—it reflected Najib’s dependence, consent, and trust in Jho Low,” he said.

Mohamad Mustaffa argued that Jho Low acted as Najib’s intermediary, proxy, and key operative within 1MDB.

He also noted that no action was taken against Jho Low, while then Attorney General Tan Sri Abdul Gani Patail was abruptly removed in 2015 at the height of the scandal.

“So, can the accused now claim he was deceived by Jho Low? The answer is no,” he said, adding that a similar argument was rejected in Najib’s SRC International corruption case, where the court ruled that the deception narrative was unsupported by evidence.

The hearing before Judge Datuk Collin Lawrence Sequerah, now in its eighth day, continues.- October 30, 2025

Spotlight

Malaysia

Haze: MOH issues strict guidelines to ensure public health

Cocaine in shoes: Invited on vacation to Japan, only to end up as drug mules

Malaysia

PDRM awaits Philippine confirmation on alleged politician’s role in 521kg drug seizure

Malaysia

Elderly man dies after being beaten repeatedly

Malaysia

Preliminary report on helicopter crash in Long Lellang released; probe ongoing

Malaysia

‘Am I not the Tuanku?’ Tuanku Muhriz tells off Ismail Lasim (video)

By Alfian Z.M. Tahir

Malaysia

Donating to Najib: ‘One of the most foolish things I have seen’ – UM student

Malaysia

AKPS officer was seeking divorce before alleged killing, says brother

By Alfian Z.M. Tahir

You may be interested

Malaysia

Cabinet reviews tighter enforcement on foreign e-commerce players to protect local businesses

Malaysia

Donating to Najib: ‘One of the most foolish things I have seen’ – UM student

Malaysia

KLIA steps up K9 patrols at peak hours after security incidents

Malaysia

UM urged to spare student disciplinary action over criticism of Najib donation drive

Malaysia

Global fuel shock drives electricity costs, but 8 million Malaysian households remain protected - DPM II

Malaysia

Home Minister: Authorities step up refugee oversight as police record 199 Rohingya-linked crimes

Malaysia

Police probe suspected concealment of birth after baby’s remains found in Terengganu drain

Malaysia

Is Malaysia 'soft' in tackling the haze? The government has done everything it possibly can – PM Anwar