1MDB Suffered Losses of US$5.64 Billion, Najib Alleged as Fraud Mastermind – 1MDB Lawyer
KUALA LUMPUR: The High Court was told today that 1Malaysia Development Berhad (1MDB) and its four subsidiaries will prove that former Prime Minister Datuk Seri Najib Tun Razak was the mastermind behind the fraud involving 1MDB.
When reading the plaintiffs’ opening statement, lawyer Datuk Lim Chee Wee said they will prove that Najib had enormous control and influence over the management of 1MDB.
“Najib used his highest position, power and influence as Prime Minister, Minister of Finance, the controlling officer of the Minister of Finance Incorporated (MOF Inc) and the sole shareholder of 1MDB to take actions and influence the Board of Directors of 1MDB to hastily execute extraordinary transactions in order to enrich himself, his wife Datin Seri Rosmah Mansor, his stepson Riza Aziz and his proxies, Jho Low (Low Taek Jho) as well as the family members of the fugitive businessman.
“As a result of the misappropriation committed, the plaintiffs suffered losses amounting to USD5,644,525,051,” he said on the first day of the trial of the lawsuit filed by 1MDB and its four subsidiaries against Najib and seven others in May 2021.
The proceedings took place before Judicial Commissioner Mohamad Redzuan Idrus.
Lim argued that Najib’s position as Minister of Finance and Chairman of the 1MDB Advisory Board from 2009 to 31 May 2016 gave him effective control over the directors and management of the company.
He also said that based on the various positions he held, Najib was a “shadow director” as defined under the Companies Act 1965.
Describing the case as “a betrayal of public trust”, Lim said the plaintiffs will prove that Najib had breached the trust given to him as the nation’s leader.
“This case is about betrayal… betrayal of public trust, betrayal of the ‘people’ who had placed their trust and elevated a citizen to the pinnacle of national leadership, and betrayal by that individual himself against the national interest,” he said before calling the plaintiffs’ first witness to testify.
The first witness to testify in today’s proceedings was Richard Templeman, an Investigation Director at Kroll Advisory Ltd based in the United Kingdom.
1MDB and its subsidiaries, namely 1MDB Energy Holdings Limited, 1MDB Energy Limited, 1MDB Energy (Langat) Limited and Global Diversified Investment Company Limited, formerly known as 1MDB Global Investments Limited, had filed the lawsuit on 7 May 2021.
They named Najib, former 1MDB Chief Financial Officer Terrence Geh Choh Heng, former lawyer Jasmine Loo Ai Swan, former Executive Director Casey Tang Keng Chee, former Chief Investment Officer Vincent Beng Huat Koh, former Chief Operating Officer Radhi Mohamad, former Investment Director Kelvin Tan Kay Jim and former Chief Investment Officer Nik Faisal Ariff Kamil as defendants.
All the plaintiffs, among others, claimed that the defendants had committed breach of trust, breached statutory duties, abused power as well as conspired and misappropriated 1MDB funds.
On 26 December 2025, the High Court had sentenced Najib, 73, to 15 years’ imprisonment and a fine totalling RM11.4 billion after finding him guilty of four counts of abuse of power and 21 counts of money laundering involving RM2.3 billion in funds linked to 1MDB.
BERNAMA