House arrest applies only to SRC sentence, Najib still faces other legal battles

LocalPolitics
18 Sep 2026 • 4:55 PM MYT
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Image from: House arrest applies only to SRC sentence, Najib still faces other legal battles

Najib remains involved in several other legal proceedings, including his appeal against his conviction and 15-year sentence in the 1Malaysia Development Berhad (1MDB) case.

PETALING JAYA: Allowing former prime minister Datuk Seri Najib Razak to serve the remainder of his prison sentence under house arrest does not bring an end to the other criminal and civil proceedings involving him.

The house-arrest arrangement applies only to his six-year sentence in the SRC International Sdn Bhd case, which involved the misappropriation of RM42 million. The sentence is due to end on Aug 23, 2028.

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Najib remains involved in several other legal proceedings, including his appeal against his conviction and 15-year sentence in the 1Malaysia Development Berhad (1MDB) case.

On Dec 26, 2025, the High Court found Najib guilty of 25 charges involving the abuse of his position to channel about RM2.3 billion from 1MDB, as well as related money-laundering offences.

He was sentenced to 15 years in prison and fined RM11.4 billion. The sentence is scheduled to begin after he completes his SRC sentence.

Najib filed an appeal against the conviction and sentence on Dec 29, 2025.

Separately, on March 31, 2026, the Kuala Lumpur High Court found Najib liable for about US$1.3 billion in losses suffered by SRC International, ruling that he had breached his fiduciary duties, abused his position and diverted company funds for his own use.

The court awarded SRC International US$1.18 billion, together with a further US$120 million that Najib had personally received from the company, bringing the total to about US$1.3 billion.

SRC filed the civil suit in May 2021 against Najib and six former directors. The directors were subsequently removed from the proceedings, leaving Najib as the sole defendant after a default judgment was entered against former SRC chief executive officer Nik Faisal Ariff Kamil in 2021.

Najib has also been discharged and acquitted in several other cases.

On June 20, 2025, the High Court discharged and acquitted him of three money-laundering charges involving RM27 million belonging to SRC International.

He and former 1MDB chief executive officer Arul Kanda Kandasamy also remain acquitted in the 1MDB audit-tampering case after the Court of Appeal struck out the prosecution’s appeal notices on Sept 12, 2023. The court ruled that the prosecution had missed the filing deadline and had not sought an extension.

In another case involving six counts of criminal breach of trust over RM6.6 billion paid to the International Petroleum Investment Company (IPIC), Najib and former Treasury secretary-general Tan Sri Mohd Irwan Serigar Abdullah were also discharged and acquitted.

However, further civil litigation remains pending.

1MDB has filed a civil suit amounting to about US$5.64 billion against Najib and six others, alleging breaches of fiduciary and statutory duties, abuse of power, conspiracy and misappropriation of funds.

The trial, before Judicial Commissioner Mohamad Redzuan Idrus, is scheduled to resume on March 15 next year.

Meanwhile, a separate RM42 million civil suit brought by SRC International and its subsidiary Gandingan Mentari Sdn Bhd concluded on March 16 this year, with both sides now making oral submissions before Justice Datuk Raja Ahmad Mohzanuddin Shah Raja Mohzan.

On the tax front, bankruptcy proceedings against Najib and his son, Datuk Mohd Nazifuddin, were stayed by the Court of Appeal on Sept 4 pending the outcome of their appeals before the Special Commissioners of Income Tax concerning additional assessments issued by the Inland Revenue Board (IRB).

The bankruptcy proceedings arose from High Court summary judgments in favour of the IRB over unpaid taxes for the 2011 to 2017 assessment years.

The IRB is seeking RM1.69 billion from Najib and RM37.6 million from his son.

Both men have previously failed in their attempts to overturn the summary judgments at the Court of Appeal and Federal Court.

Najib’s house-arrest arrangement therefore affects his current SRC International prison sentence, while his other criminal appeals, civil claims and tax-related proceedings remain subject to their respective court processes.

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