Malaysia court orders ex-PM Najib to pay US$1.3 billion to 1MDB unit
High Court judge Ahmad Fairuz Zainol Abidin ruled that Najib breached his fiduciary duties, abused his position as prime minister, and misappropriated SRC funds for personal gain, state news agency Bernama reported.
Malaysia's former Prime Minister Najib Razak, jailed for corruption in the multibillion-dollar 1MDB scandal, is escorted by prison guards at Kuala Lumpur Courts Complex, on the day he attends the verdict of his house arrest bid, at Kuala Lumpur, Malaysia December 22, 2025. REUTERS/ Hasnoor Hussain
KUALA LUMPUR: A Malaysian court on Tuesday (Mar 31) ordered jailed former Prime Minister Najib Razak to pay US$1.3 billion to a former unit of scandal-tainted state fund 1MDB, state media reported.
The Kuala Lumpur High Court ruled that Najib was liable for losses incurred by SRC International, a former subsidiary of sovereign wealth fund 1Malaysia Development Berhad, state news agency Bernama reported.
High Court judge Ahmad Fairuz Zainol Abidin ruled that Najib breached his fiduciary duties, abused his position as prime minister, and misappropriated SRC funds for personal gain, state news agency Bernama reported.
SRC's lawyer, Lim Chee Wee, confirmed the Bernama report to Reuters but declined further comment on the ruling in its civil suit against Najib.
Local news outlet New Straits Times (NST) reported that the judge held Najib liable for SRC's losses amounting to US$1.18 billion. The court also found that another US$120 million from SRC-linked funds was credited into his personal account bank account, and it rejected his claims that the funds were donations.
"Najib exercised comprehensive and meticulous control over every critical decision affecting the company, from its incorporation through to the cover-up of the misappropriation," Fairuz was quoted as saying by NST.
"He wielded his position as prime minister and finance minister not to serve the public interest or SRC's legitimate corporate purposes, but to facilitate a systematic misappropriation," he added.
Najib would appeal the ruling, his lawyer Muhammad Shafee Abdullah said, according to Bernama. Muhammad Shafee did not immediately respond to Reuters' request for comment.
Najib has been in prison since Aug 2022 after being found guilty of corruption and money laundering over funds misappropriated from SRC in a separate case. He was also fined RM50 million (US$12.4 million) as part of that sentence.
Malaysia and US investigators say at least US$4.5 billion was stolen from 1MDB, a state fund Najib co-founded in 2009 during the first of his nine years in power in the Southeast Asian country.
In December 2025, Najib was sentenced to a further 15 years in jail and fined US$2.8 billion for power abuse and money laundering in the biggest trial of the multibillion-dollar scandal.
He denies wrongdoing and is appealing the ruling.
SRC's 2021 lawsuit centres on Najib's role and responsibilities regarding SRC International and the handling of funds from the RM4 billion Retirement Fund Inc (KWAP) loan.
Najib was sentenced to 12 years in jail and fined RM210 million in July 2020 after being found guilty of one count of abuse of power involving the KWAP loan to SRC International, and three counts of each criminal breach of trust and money laundering involving RM42 million of the company's funds.
The country's Pardons Board later reduced his jail term to six years and fine to RM50 million.
