Malaysia’s jailed ex-prime minister Najib apologizes for mishandling of 1MDB scandal

By Rozanna Latiff and Mandy Leong

KUALA LUMPUR (Reuters) – Malaysia’s jailed former Prime Minister Najib Razak issued a rare apology on Wednesday for his mishandling of the multibillion-dollar 1MDB scandal, but insisted he had no knowledge of illegal transfers from the now-defunct sovereign wealth fund .

1Malaysia Development Berhad (1MDB), a sovereign wealth fund co-founded by Najib in 2009 when he was prime minister, has faced corruption investigations in at least six countries following the alleged embezzlement of more than US$4.5 billion by senior officials of the fund and their employees.

Malaysia’s top court in 2022 upheld a guilty verdict against Najib on corruption and money laundering charges for illegally receiving about $10 million from former 1MDB unit SRC International, and sentenced him to 12 years in prison. The sentence was later halved by a pardon council chaired by the former king of Malaysia.

Najib, 71, has consistently denied wrongdoing and expressed regret over the 1MDB scandal on Wednesday in a letter read by his son Mohamad Nizar Mohd Najib at a news conference.

“It pains me every day to know that the 1MDB debacle took place under my watch as Finance Minister and Prime Minister,” the former prime minister said, according to the letter.

“For this, I would like to apologize unreservedly to the Malaysian people.”

Najib said that while he launched an investigation into 1MDB, he should have acted differently when questions about the transactions first arose. He added that he was concerned at the time about the finances and diplomatic risks posed by the scandal.

Malaysian anti-graft investigators have previously said their investigations into 1MDB were blocked during Najib’s term, with witnesses disappearing and death threats made against them.

‘Deep shock’

Najib’s statement comes just days after Malaysia said in its 2025 budget plans that it would propose a new law that would allow house arrest as an alternative punishment for certain crimes.

Najib has insisted on serving the remainder of his sentence at home and is trying to force the government to confirm the existence of a royal order that he says pardoned and recommended house arrest for him.

Najib said he was still “deeply shocked” and deeply regretted the 1MDB scandal but maintained his innocence, citing a news report alleging that fugitive businessman Jho Low and two executives from Saudi oil company Petrosaudi conspired to kill SRC to transfer funds without the knowledge of the ex-prime minister. in 2009 and 2010.

Low is facing charges in the United States and Malaysia over his alleged central role in the scandal, while the two Petrosaudi executives were convicted by a Swiss court in August of embezzling 1MDB funds. The three men denied doing anything wrong.

“It is unfair to me to be held legally responsible for things that I did not initiate or consciously enable and I hope and pray that the judicial process will ultimately prove my innocence,” Najib said.

He reiterated his belief that the funds he received at the time were political donations from Saudi Arabia. He did not address subsequent allegations of money transfers from 1MDB.

Authorities have said Najib received more than $1 billion traced to 1MDB, including a $681 million transfer in 2013. He has denied that.

Najib faces several other transplant trials. A Malaysian court will decide on October 30 whether to acquit him or ask him to defend himself on money laundering and corruption charges in a 1MDB-related case.

(Reporting by Rozanna Latiff and Mandy Leong; Editing by Martin Petty)