Multiple civil suits, bankruptcy proceedings await Najib in 2026

Multiple civil suits, bankruptcy proceedings await Najib in 2026

Former prime minister Najib Razak must defend several civil suits, including those that relate to his criminal convictions in the SRC and 1MDB cases.

najib razak
On Dec 26, the High Court ordered that Najib Razak begin his 15-year jail term in the 1MDB case on Aug 23, 2028, after his current reduced six-year sentence in the SRC International case is completed. (Bernama pic)
PETALING JAYA:
Jailed former prime minister Najib Razak — convicted and sentenced last week for abuse of power and money laundering in connection with the 1MDB scandal — is set to return to the courts in 2026 to face multiple civil suits.

They include a RM35 billion lawsuit filed in the Kuala Lumpur High Court by 1MDB and four of its subsidiaries against Najib and several former members of the company’s top management.

Najib’s co-defendants include former 1MDB chief executive officer Nik Faisal Ariff Kamil and ex-business development executive director Casey Tang, both of whom remain untraceable.

Others named as defendants include Terence Geh, the company’s former deputy chief financial officer, Jasmine Loo, its ex-general counsel, former chief investment officer Vincent Beng, and ex-chief operating officer Radhi Mohamad.

1MDB filed the action in 2021.

Another long-delayed court case set to resurface is a 2017 lawsuit brought by former Damansara MP Tony Pua against Najib, alleging misfeasance in public office. The suit also names the government as a co-defendant.

Both suits were put on hold pending the conclusion of the 1MDB corruption trial.

SRC suit

In addition, Najib is facing a separate claim brought by SRC International Sdn Bhd, a former 1MDB subsidiary, seeking to recover US$1.18 billion. The sum represents funds borrowed from the Retirement Fund Inc (KWAP) for investments in the energy sector.

Najib, who also held the finance portfolio in his administration, and Nik Faisal are alleged to have misappropriated company property and dishonestly conspired to convert it to their own use.

In the suit, Najib has named former SRC chairman Ismee Ismail, as well as former directors Suboh Yasin, Shahrol Azral Ibrahim Halmi, Azhar Osman Khairuddin and Che Abdullah @ Rashidi Che Omar, as third parties. Najib is seeking an indemnity or contribution from them for damages he may be held liable for.

Justice Ahmad Fairuz Zainol Abidin is expected to deliver his ruling in the case soon, having already presided over the trial and heard the parties’ closing submissions.

The SRC suit began last year, following the Federal Court’s affirmation in August 2022 of Najib’s conviction for misappropriating RM42 million in SRC funds.

The apex court at the time also affirmed the sentence of 12 years’ imprisonment and RM210 million fine handed down by the High Court on the former prime minister.

However, on Jan 30 last year, the Federal Territories Pardons Board halved Najib’s prison term and reduced his fine to RM50 million.

Bankruptcy action

Najib is also facing bankruptcy proceedings for failing to settle RM1.69 billion in taxes owed to the Inland Revenue Board (LHDN) for assessment years 2011 to 2017.

His bid to stay the proceedings was dismissed by the High Court in November last year, a decision he is appealing.

Lawyer R Kengadharan told FMT the plaintiffs in the civil suits face a lower burden of proof compared to criminal trials, adding that they would need to prove their case “on a balance of probabilities”.

“This is unlike the SRC and 1MDB criminal trials where the prosecution had to meet the higher threshold of ‘beyond reasonable doubt’,” he said.

However, Kengadharan said the plaintiffs would still be required to tender sufficient evidence to succeed in their respective cases.

“Convictions in the criminal cases do not automatically give the plaintiffs an advantage — they must still produce oral and documentary evidence to support their claims,” he said.

Meanwhile, lawyer Alliff Benjamin Suhaimi said the outcome of the civil suits may have a significant financial impact on Najib.

“If Najib is found liable, he will have to pay damages, interest and costs to the plaintiffs,” Benjamin said, adding that Najib would conversely be entitled to recover legal costs should any of the suits fail.

Benjamin further explained that if judgment is entered in favour of the plaintiffs, it could be enforced against Najib through a variety of actions, including by freezing his personal accounts, and seeking the sale and seizure of his assets.

An unsatisfied monetary judgment in excess of RM100,000 could also be the subject of bankruptcy proceedings, he added.

Benjamin also said that it was open to the plaintiffs to discontinue their suits or to negotiate a settlement which may include the entry of a consent judgment, the terms of which may be kept confidential if the parties so decide.

On 26 December 2025, Justice Collin Lawrence Sequerah sentenced the former Pekan MP to 15 years in jail and a RM11.387 billion fine after convicting him of abuse of power in the 1MDB case.

The judge ordered that Najib’s jail term begin on Aug 23, 2028, the day after the former prime minister completes his six-year prison sentence in the SRC case.

Sequerah also sentenced Najib to five years’ imprisonment and ordered him to pay a recoverable sum of RM2.08 billion after convicting him of 21 money laundering charges.

Najib has filed a notice of appeal against both conviction and sentence.

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