C4 Centre: Najib 1MDB conviction a step toward accountability, but systemic reforms still needed

KUCHING (Dec 27): The Centre to Combat Corruption and Cronyism (C4 Centre) has welcomed the High Court’s conviction of former prime minister Datuk Seri Najib Tun Razak on charges of abuse of power and money-laundering involving nearly RM2.2 billion linked to the 1Malaysia Development Berhad (1MDB) case, describing it as a ‘critical step towards accountability’.

However, the watchdog civil society organisation (CSO) has also cautioned that the conviction should not lead Malaysians to complacency, noting that many of the systems and structures that enabled Najib to squander billions in public funds, are still intact.

“It has been seven years since Najib was removed from power, yet fundamental anti-corruption reforms have still not materialised to ensure that another 1MDB-scale scandal would not happen,” it said in a statement.

It noted that Justice Datuk Collin Lawrence Sequerah, in his judgment, made several key determinations that should put to rest any doubts over Najib’s guilt.

These included the ruling that the widely-cited ‘Saudi donation’ defence lacked merit and was based on forged letters; that 1MDB officers could not reasonably have conspired against a sitting prime minister; and that claims portraying Najib as ignorant of wrongdoing under his watch were ‘unreasonable’.

Nevertheless, C4 Centre said some determinations also raised serious concerns about the strength of Malaysia’s law enforcement and bureaucracy.

It observed that the court found the 1MDB officers had acted on instructions from fugitive businessman Low Taek Jho – more known as ‘Jho Low – because they genuinely believed the acting on Najib’s instructions or with his endorsement, despite holding no official position in the company.

“Have there been any effective reforms to the management and governance of GLCs (government-linked companies) to prevent a similar situation from occurring in the future?” it questioned.

It noted that under Prime Minister Datuk Seri Anwar Ibrahim’s administration, new circulars on the management and governance of federal statutory bodies and GLCs could still allow politicians to be appointed to leadership positions, leaving room for conflicts of interest.

C4 Centre also urged the government to ensure that Low would be brought back to face charges for his role in the 1MDB scandal, stressing that his relationship with Najib was ‘central to the entire operation’.

In addition, it called for accountability from parties involved in legitimatising the now-debunked Arab donation narrative.

“They include the team of Malaysian Anti-Corruption Commission (MACC) officers who were sent to Riyadh to investigate the veracity of the donation letters and subsequently, claimed that the funds were indeed a donation to Najib,” it said.

C4 Centre stressed that the ‘scars’ left by Najib on this nation would remain for a long time, as it had led to the loss of billions in taxpayers’ money, which could have been used to improve people’s lives.

“His (Najib’s) legacy underscored the dangers of excessive centralisation of power and weak checks-and-balances in Malaysia’s political system.”

C4 Centre reiterated its long-standing calls for structural reforms, including stronger oversight mechanisms, independent appointments for the MACC, independence of the Public Prosecutor Office, and clear laws regulating political donations.

While acknowledging that Anwar’s administration had taken steps to strengthen checks-and-balances such as amendments to the Audit Act 1957 to enhance the Auditor-General’s powers and the passing of the Parliamentary Service Bill 2025 to grant Parliament greater autonomy, the CSO said the key issues remained unresolved.

“The appointment process and tenure of the MACC chief commissioner are still under the Prime Minister’s unilateral discretion,” it pointed out.

It also said that while plans were underway to separate the roles of the Attorney General and Public Prosecutor, there had been no official confirmation that the new Public Prosecutor would not also be selected by the Prime Minister.

“It is incumbent upon this government to ensure that when such reforms are implemented, they meaningfully strengthen Malaysia’s anti-corruption framework and are not merely cosmetic, box-ticking exercises,” said C4 Centre.