{"id":2240,"date":"2022-08-24T02:15:14","date_gmt":"2022-08-24T02:15:14","guid":{"rendered":"https:\/\/insight.thomsonreuters.com\/sea\/business\/?p=2240"},"modified":"2023-11-28T06:31:03","modified_gmt":"2023-11-28T06:31:03","slug":"anti-corruption-campaigners-hopeful-for-reform-following-najibs-1mdb-jail-sentence-2","status":"publish","type":"post","link":"https:\/\/insight.thomsonreuters.com\/sea\/business\/posts\/anti-corruption-campaigners-hopeful-for-reform-following-najibs-1mdb-jail-sentence-2","title":{"rendered":"Anti-corruption campaigners hopeful for reform, following Najib\u2019s 1MDB jail sentence"},"content":{"rendered":"\n

Financial crime and anti-corruption campaigners have expressed cautious optimism that Najib Razak\u2019s conviction over the 1MDB corruption scandal will mark a turning point for Malaysia as it seeks to combat political graft.<\/h4>\n\n\n\n

On Tuesday the Federal Court in Putrajaya denied Najib\u2019s final appeal and ordered the former prime minister to serve a 12-year prison sentence. Sources in Malaysia said it was still uncertain how long Najib would spend in jail, however, as he has the option of seeking a royal pardon.<\/p>\n\n\n\n

Clare Rewcastle, the journalist who broke the 1MDB story, said Najib had already been transferred to Kajang lockup by 8pm local time. Najib was now facing \u201ca night on a hard floor,\u201d said the founder of the Sarawak Report, who was banned from Malaysia and threatened with arrest over her reporting.<\/p>\n\n\n\n

\u201cFinally, over the past days as reality closed in that he had failed to convince anyone of his innocence, we saw Najib Razak express emotion in the form of immense self-pity,\u201d Rewcastle told Thomson Reuters Regulatory Intelligence (TRRI).<\/p>\n\n\n\n

\u201cYet he has shown no remorse for the crimes he committed or the damage those crimes did to people\u2019s lives in his own country. Perhaps, away from the adulation he was born into, he will have time to reflect on why he deserved to be punished.\u201d<\/p>\n\n\n\n

In Malaysian legal circles there has been jubilation over the result, which demonstrates that the country\u2019s legal system is independent and can resist the pressure of high-level political influence.<\/p>\n\n\n\n

Ambiga Sreenevasan, a lawyer and former president of the Malaysian Bar Council, said the result was \u201cgreat for Malaysia\u201d and would allow the country to move forward in the fight against financial crime and graft. She said Najib had little hope of any further legal challenge.<\/p>\n\n\n\n

\u201cNajib is expected to seek a judicial review of the Federal Court decision but this is an unusual procedure. They need to show that there has been a major jurisdictional error,\u201d she said.<\/p>\n\n\n\n

Chean Chung, a politician with the People\u2019s Justice Party (PKR), said the case would demonstrate to the world that Malaysia is serious about fighting corruption.<\/p>\n\n\n\n

\u201cThe international community can see that Malaysians respect the rule of law, regardless of rank. We need to continue to uphold this level of professionalism,\u201d Chung said.<\/p>\n\n\n\n

\u201cI very much hope this is a strong reminder to our politicians to keep our political culture more transparent and clean. Courts continue to look at other cases of corruption and I hope the courts subject them to the same standard of trial.\u201d<\/p>\n\n\n\n

\"Anti-corruption
Former Malaysian Prime Minister Najib Razak speaks to journalists outside the Federal Court during a court break, in Putrajaya, Malaysia August 23, 2022. REUTERS\/Lai Seng Sin<\/figcaption><\/figure>\n\n\n\n

Long-running case<\/h2>\n\n\n\n

Nigel Morris-Cotterill, a financial crime compliance consultant who focuses on Asia, said there was still plenty more to come in the 1MDB case following this landmark decision. Despite the news headlines, it remained to be seen whether Najib would spend 12 years in jail, he said.<\/p>\n\n\n\n

\u201cIt\u2019s the final judicial appeal but there is one more possible avenue: a plea for a pardon. No one is taking bets on Najib serving that or any other sentence,\u201d he said. \u201cThere are other charges pending and confiscation hearings. Then there are the cases against his wife, family and associates. It\u2019s a long way from over.\u201d<\/p>\n\n\n\n

Najib is now expected to apply for a royal pardon from King Abdullah, who is a childhood friend.<\/p>\n\n\n\n

Chung said there was no clear process for seeking a pardon and there were very few precedents where a politician had been pardoned.<\/p>\n\n\n\n

\u201cThey are very rare,\u201d he said. In one extraordinary case in 2018, Malaysia\u2019s former Deputy Prime Minister Anwar Ibrahim was released from prison after receiving a full pardon from the king. He went on to forge for a political alliance with Mahathir Mohamad and ousted Najib from power in the May 2018 election.<\/p>\n\n\n\n

Money laundering conviction upheld<\/h2>\n\n\n\n

On Tuesday, Malaysia\u2019s top court ordered Najib to begin a 12-year prison sentence after upholding a guilty conviction on charges related to $10 million he received from SRC International, a former unit of 1MDB. His conviction was upheld on charges of money laundering, criminal breach of trust and abuse of power. He must also pay a 210 million ringgit ($46.84 million) fine, or face an additional five years\u2019 imprisonment.<\/p>\n\n\n\n

The Federal Court also denied Najib\u2019s request for a stay of sentence. Najib, who is now 69, was initially found guilty by a lower court in July 2020.<\/p>\n\n\n\n

Chief Justice Tengku Maimun Tuan Mat said the court had unanimously dismissed Najib\u2019s appeals and that the lower courts\u2019 convictions must stand.<\/p>\n\n\n\n

\u201cThe defence is so inherently inconsistent and incredible that it has not raised reasonable doubt on the case \u2026 We also find that the sentence imposed is not manifestly excessive,\u201d she said.<\/p>\n\n\n\n

Najib was seated in the dock as the verdict was read out. His wife, Rosmah Mansor, and three children were seated behind him.<\/p>\n\n\n\n

The court had earlier rejected a last-ditch effort from Najib to forestall the final verdict by requesting the removal of the chief justice from the panel.<\/p>\n\n\n\n

\u201cIt\u2019s the worst feeling to have to realise that the might of the judiciary is pinned against me in the most unfair manner,\u201d Najib had told the court.<\/p>\n\n\n\n

Winds of change<\/h2>\n\n\n\n

Simon Baker, a London-based economic and financial crime investigator, said the decision would come as a relief to everyone who was involved in the 1MDB case.<\/p>\n\n\n\n

\u201cCorruption on this scale represents a huge challenge and, in some cases, high risk to the welfare of those whose job it is to investigate. It\u2019s a huge relief to all who believe in the rule of law applying equally to all, regardless of their position in communities,\u201d Baker said.<\/p>\n\n\n\n

The 1MDB case has led prosecutors to chase billions of dollars in stolen funds around the world. U.S. prosecutors have said Goldman Sachs helped 1MDB arrange $6.5 billion of bond sales, but $4.5 billion was diverted via bribes and kickbacks to government officials, bankers and others.<\/p>\n\n\n\n

Xavier Andr\u00e9 Justo, the founder of Expose Advisory Services and one of the key 1MDB whistleblowers, said the case was a \u201cmajor victory for justice and for Malaysia\u201d.<\/p>\n\n\n\n

\u201cIt shows they have an independent system of justice that many doubted. But it\u2019s not over. We must not forget that this is the SRC case and not 1MDB. There are many other cases related to 1MDB still ongoing and hopefully they will have the same conclusion \u2014 sending criminals to jail,\u201d Justo said.<\/p>\n\n\n\n

The 1MDB whistleblower said it is critical that the stolen assets must now be repatriated to Malaysia from abroad, including from \u201csafe havens\u201d such as Switzerland. He said it was highly unlikely, however, that Malaysia would be able to retrieve all of the embezzled funds.<\/p>\n\n\n\n

\u201cUnfortunately, I do think that a lot of money has been lost forever. I just hope that Switzerland will act soon,\u201d he said.<\/p>\n\n\n\n

The butterfly effect<\/h2>\n\n\n\n

Civil asset recovery experts are hopeful that Najib\u2019s imprisonment will encourage other people to come forward with new information about 1MDB. A senior adviser to Malaysian opposition leader Anwar Ibrahim said the government was working to recover the lost funds.<\/p>\n\n\n\n

\u201cThere are many 1MDB trials underway involving Najib and the prosecution are actively encouraging new witnesses and evidence,\u201d the adviser said. \u201cI do not expect this verdict to send Malaysia shooting up the Transparency International corruption perceptions index. But it certainly won\u2019t do the country\u2019s image any harm. In the longer term we will see Malaysia\u2019s political elite rethinking their stance on corruption.\u201d<\/p>\n\n\n\n

Tommy Thomas, the country\u2019s former attorney general, captured the country\u2019s jubilation and said that \u201cjustice had been served\u201d after four years.<\/p>\n\n\n\n

\u201cFormer prime minister and serial fraudster, Najib Razak lost his final appeal and starts 12 years\u2019 jail. Hallelujah,\u201d Thomas told TRRI.<\/p>\n\n\n\n

Other officials said the court\u2019s decision on Tuesday was a turning point for Malaysia in its battle against kleptocracy.<\/p>\n\n\n\n

Wong Chen, chairman of Malaysia\u2019s international relations and trade select committee, said: \u201cMalaysia should not rejoice that a former prime minister has been sent to jail but Malaysia should rejoice that we have an independent judiciary, unafraid of executive powers. This ruling has given much needed hope to Malaysia\u2019s long struggle to get rid of blatant corruption and abuses of power.\u201d<\/p>\n\n\n\n

(Additional reporting by Rozanna Latiff and Zahra Matarani, Reuters)<\/p>\n\n\n\n

This article first appeared on\u00a0Thomson Reuters Regulatory Intelligence and features on Business Insight with permission.\u00a0<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

Financial crime and anti-corruption campaigners have expressed cautious optimism that Najib Razak\u2019s conviction over the 1MDB corruption scandal will mark a turning point for Malaysia as it seeks to 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