Najib Razak, Malaysia's Ex-Prime Minister, Is Arrested Amid Corruption Inquiry

Najib Razak, Malaysia’s Ex-Prime Minister, Is Arrested Amid Corruption Inquiry

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Former Prime Minister Najib Razak was blocked from leaving Malaysia after his election defeat in May.CreditVincent Thian/Associated Press

By Hannah Beech and Austin Ramzy

July 3, 2018

BANGKOK — Najib Razak, the former prime minister of Malaysia who was ousted in an election two months ago, was arrested by anticorruption officials on Tuesday, amid an investigation involving billions of dollars diverted from a state investment fund.

Atop a political machine that had governed Malaysia since its independence in 1957, Mr. Najib and his allies used political influence, cash handouts and news media repression to try to keep corruption accusations at bay for years. But in May, voter anger over the scandal at the investment fund, 1Malaysia Development Berhad, led to a sweeping victory for a sprawling opposition movement that came together to oust Mr. Najib.

His successor as prime minister, Mahathir Mohamad, campaigned on bringing Mr. Najib to justice, and after his inauguration, officials moved to block Mr. Najib and his wife, Rosmah Mansor, from leaving the country.

American prosecutors have accused Mr. Najib, 64, of diverting into his personal bank account $731 million from the state investment fund, which he supervised for years. Money siphoned from the fund, known as 1MDB, was then spent on luxury goods, such as a $27.3 million pink diamond necklace that was worn by Mr. Najib’s wife, American investigators said.

The United States Justice Department said that at least $4.5 billion from 1MDB was laundered through American financial institutions and misspent by Mr. Najib, his family and associates.

Mr. Najib has denied any wrongdoing.

Officials close to the investigation say Mr. Najib will be charged on Wednesday.

The Malaysian police said last week that they had seized cash, jewelry, purses and other valuables worth as much as $273 million from properties of Mr. Najib and Ms. Rosmah.

Hannah Beech reported from Bangkok, and Austin Ramzy from Hong Kong.