Malaysian court drops one of the graft cases against jailed former premier Najib Razak

A Malaysian court on Wednesday dropped charges against jailed former Prime Minister Najib Razak over criminal breach of trust linked to the multibillion-dollar looting of a state fund.

Najib had already been convicted in his first graft case tied to the 1Malaysia Development Berhad state fund, or 1MBD, scandal and began serving time in 2022 after losing his final appeal in his first graft case.

But he faces other graft trials including Wednesday's case in which he was jointly charged with ex-treasury chief Irwan Serigar Abdullah with six counts of misappropriating 6.6 billion ringgit ($1.5 billion) in public funds. The money was intended as 1MDB's settlement payment to Abu Dhabi's International Petroleum Investment Company.

The Kuala Lumpur High Court discharged the pair after ruling that procedural delays and prosecutors' failure to hand over key documents were unfair to the defense, said Najib's lawyer, Muhammad Farhan. A discharge doesn't mean an acquittal as prosecutors reserve the right to revive charges against them, he said.

"The decision today was based on the non-disclosure of critical documents, six years after the initial charges were brought up, which are relevant to our client's defense preparation. Therefore the court correctly exercised its jurisdiction to discharge our client of the charges," Farhan said.

Najib set up 1MDB shortly after taking power in 2009. Investigators allege more than $4.5 billion was stolen from the fund and laundered by his associates to finance Hollywood films and extravagant purchases. The scandal upended Najib's government and he was defeated in the 2018 election.

Najib, 71, issued a rare apology in October for the scandal "under his watch" but reiterated his innocence.

Last month, he was ordered to enter his defense in another key case that ties him directly to the 1MDB scandal. The court ruled that the prosecution established its case on four charges of abuse of power to obtain over $700 million from the fund that went into Najib's bank accounts between 2011 and 2014, and 21 counts of money laundering involving the same amount.

In addition, Najib still has another money laundering trial. His wife Rosmah Mansor and other senior government officials also face corruption charges.