1MDB scandal: Malaysia wants Najib Razak’s brother, along with more than 70 others, to repay misappropriated funds

Nazir Razak was the chairman of Malaysia’s second-largest bank, CIMB, but went on a leave of absence in 2015

Malaysian and US investigators say about US$4.5 billion was misappropriated from 1MDB, set up in 2009 by Najib

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Former Malaysian prime minister Najib Razak. Photo: EPA

Published: 12:15pm, 7 Oct 2019Updated: 6:00pm, 17 Dec 2019

Malaysia has asked the brother of former premier Najib Razak and former cabinet ministers to return funds believed to have come from 1MDB or risk being prosecuted. Malaysia has taken similar action against 80 individuals and entities for allegedly receiving money from the state fund, the country’s anti-corruption chief said on Monday.

Malaysian and US investigators say about US$4.5 billion was misappropriated from 1MDB, set up in 2009 by Najib.

Najib, who lost a general election last year, is now facing dozens of corruption and money laundering charges over allegations that he received about US$1 billion in 1MDB funds. He has pleaded not guilty.

Latheefa Koya, the head of Malaysia’s Anti-Corruption Commission (MACC), told reporters the agency was aiming to recover 420 million ringgit (US$100 million) from individuals and entities who had allegedly received funds laundered through accounts linked to Najib.

“We have issued compound notices against all of these people and entities for the purpose of them to pay up the fine,” Latheefa said, adding that they could be fined up to two-and-a-half times the amount received.

The individuals include Najib’s brother Nazir Razak, the former chairman of Malaysia’s second-largest bank, CIMB, and Shahrir Abdul Samad, former chairman of state palm oil agency Felda.

Nazir Razak, the former chairman of Malaysia’s second-largest bank, CIMB. Photo: SCMP Pictures

Funds were also distributed to companies, political parties and organisations linked to Najib’s coalition, a list provided by the MACC showed.