Asia Malaysia The US$8 billion 1MDB lawsuit against Najib suspended until end of criminal...

The US$8 billion 1MDB lawsuit against Najib suspended until end of criminal trial

Lawyers for 1MDB and Najib Razak agreed today to postpone the company's US$8 billion lawsuits against the latter and seven others until the outcome of his criminal trial.

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Najib Razak, the ex-Malaysian Prime Minister who is fighting to clear his name in the 1MDB scandal is relieved that a pending civil suit has been suspended.

Najib wishes to put the civil suit on hold pending the outcome of his criminal trial.

He was charged with 25 counts of abuse of power and money laundering in connection with the alleged siphoning of the Sovereign Wealth Fund totaling RM2.28 billion.

Between February 2011 and December 2014, the funds were deposited in his AmBank accounts.

Lawyers for 1MDB and Najib Razak agreed today to postpone the company’s US$8 billion lawsuits against the latter and seven others until the outcome of his criminal trial.

1MDB is suing them for $8 billion in damages.

“We don’t want the civil trial to go on until the criminal case is over. And they (1MDB) agreed,” says Najib’s lawyer Muhammad Shafee Abdullah.

He adds that the court recorded a consent on the stay application.

1MDB’s lawyer, PB Naban also confirmed the outcome of the court’s proceeding, according to local papers.

The criminal case will be heard again on March 14.

The lawsuit was filed by the government in May of last year through 1MDB and its subsidiary companies. They claimed that Najib and others committed fraud, breach of duty, breach of statutory duties, and unjust enrichment.

In July 2020, Najib became the first Malaysian leader to be convicted of corruption.

He was sentenced to serve 12 years in jail after a court in Kuala Lumpur found him guilty of corruption in the SRC International case.

This is the first of several cases linked to the alleged theft of billions of dollars from the state fund, 1MDB.

Najib was found guilty of diverting an estimated 42 million ringgit ($9.87 million) from SRC International, a unit of 1MDB, into his personal bank accounts. The former prime minister was found guilty on all seven charges brought against him by the judge.

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