Najib Conviction Bolsters Malaysia Leader’s Hopes of Staying On

The guilty verdict against former prime minister Najib Razak in the first of the 1MDB trials could strengthen the current government’s hand after months of political turmoil.

Najib faces at least 12 years in prison after the High Court on Tuesday found him guilty of all seven charges in a case involving millions he received from a former unit of troubled state fund 1MDB. He’s out on bail and his lawyer said he would appeal the ruling, but a criminal conviction would complicate any efforts by Najib to seek office again.

The decision could bolster Prime Minister Muhyiddin Yassin’s political capital at a time when his administration controls a razor-thin majority in parliament and talk of a snap election is heating up. The current leader relies on Najib’s United Malays National Organisation party for support and was seen to be at risk of succumbing to pressure from UMNO on policy matters — including on how he treats the 1MDB cases.

Malaysia King Names Muhyiddin as Premier to Succeed Mahathir
Muhyiddin YassinPhotographer: Samsul Said/Bloomberg
Muhyiddin may now be able to quell some of those concerns, with the added advantage that Najib’s conviction could split UMNO into those who support the ex-premier against those who want to move on and work with Muhyiddin’s government.

The verdict comes days after a $3.9 billion settlement Malaysia struck with Goldman Sachs Group Inc. to help resolve the country’s 1MDB case against the bank. That deal enables the country to recoup some of the money lost through the troubled state fund.

Muhyiddin’s government, which includes a breakaway faction from the Pakatan Harapan administration, came to power earlier this year on the backing of UMNO, the party once led by Najib. The fledgling government faced public backlash after prosecutors reached a deal to drop 1MDB-related charges against Najib’s stepson Riza Aziz, even as Muhyiddin himself repeatedly pledged to ensure justice.

Budget Vote
While the ruling on Tuesday means the prime minister could lose support from pro-Najib factions within UMNO, he may be able to pick it up elsewhere, which would be critical to securing majority support for the 2021 state budget set to be tabled in parliament this November, Wong said. Sticking to the reforms promised by the last government may also help him in the event of an election.

The opposition has been planning to launch a no-confidence vote against Muhyiddin for months, even as it struggled to agree on who should be its prime minister candidate.

“This story is far from over,” said Peter Mumford, Southeast & South Asia practice head at risk consultancy Eurasia Group. “In some ways the outcome is better for Muhyiddin as it would be tricky for him to campaign in the likely upcoming election if there were accusations that he had somehow engineered an acquittal for Najib.”

The case that concluded this week involved 42 million ringgit ($10 million) of funds deposited in Najib’s personal accounts from a former unit of 1MDB. Delivering the verdict on Tuesday, High Court Judge Mohd Nazlan Mohd Ghazali told the court he found “the defense has not succeeded in rebutting the presumption on the balance of probabilities or raising reasonable doubt on the charge against the accused.”

Najib was sentenced to 12 years in prison for one count of abuse of power, as well as 10 years each for three charges of money laundering and three criminal breach of trust charges, to be served concurrently. He must also pay a fine of 210 million ringgit or face an additional five years imprisonment. He was released on bail late Tuesday.

Najib is a divisive figure in Malaysian politics, even as he remains popular in some quarters. Many Malaysians celebrated his conviction on social media, like former lawmaker Rafizi Ramli, who was imprisoned for leaking the contents of a 1MDB audit report to the public amid the scandal in 2016. Rafizi said on Twitter that he “never expected much from those years, but I did feel that all the heartbreaks were well worth it today.”

Yet as the verdict hearing dragged on through the day, hundreds of Najib’s supporters crowded outside the courthouse, some wearing masks and others not.

The trial is only the first of at least three involving Najib, who faces dozens more corruption and money-laundering charges, including those linked to billion-dollar acquisitions and bond sales by the scandal-ridden fund.

Subscribe to our YouTube channel: https://bit.ly/2TwO8Gm

QUICKTAKE ON SOCIAL:
Follow QuickTake on Twitter: twitter.com/quicktake
Like QuickTake on Facebook: facebook.com/quicktake
Follow QuickTake on Instagram: instagram.com/quicktake
Subscribe to our newsletter: https://bit.ly/2FJ0oQZ
Email us at quicktakenews@gmail.com

QuickTake by Bloomberg is a global news network delivering up-to-the-minute analysis on the biggest news, trends and ideas for a new generation of leaders.


In This Story: Malaysia

Malaysia is a Southeast Asian country occupying parts of the Malay Peninsula and the island of Borneo. It’s known for its beaches, rainforests and mix of Malay, Chinese, Indian and European cultural influences. The capital, Kuala Lumpur, is home to colonial buildings, busy shopping districts such as Bukit Bintang and skyscrapers such as the iconic, 451m-tall Petronas Twin Towers. 

2 Recent Items: Malaysia

Palestinian solidarity: Marches in support of Gaza around the world

Chinese airlines add over 2,500 new international flights for upcoming Spring Festival

Leave a Comment

We don't require your email address, or your name, for anyone to leave a comment. If you do add an email address, you may be notified if there are replies to your comment - we won't use it for any other purpose. Please make respectful comments, which add value, and avoid personal attacks on others. Links are not allowed in comments - 99% of spam comments, attempt to post links. Please describe where people may find additional information - for example "visit the UN website" or "search Google for..." rather than posting a link. Comments failing to adhere to these guidelines will not be published.