Malaysian court clears ex-PM’s wife of money laundering, tax evasion charges

A Malaysian court’s decision to drop 17 money-laundering and tax-evasion charges against Rosmah Mansor, the wife of jailed former Prime Minister Najib Razak, has left analysts questioning the current government’s commitment to fighting corruption. 

The Kuala Lumpur High Court’s ruling on Thursday adds to a series of recent legal wins for Najib’s family and his former deputy prime minister, who is now the deputy PM under Prime Minister Anwar Ibrahim. 

As an opposition leader, Anwar had crusaded against corruption in Najib’s government (2009-18), but has been criticized lately over suspicions that his government meddled in court decisions around Najib and others. Najib’s UMNO party is a key partner in Anwar’s ruling coalition.

The recent rulings could reflect poorly on Anwar’s administration and its fight against corruption, according to Ahmad Mohsein Azman, a political analyst from consultancy firm BowerGroupAsia. 

“The issue of flawed charges can be seen as a recurring theme, coincidental or not, when it comes to these high-profile cases,” he told BenarNews.

“PM Anwar Ibrahim has not just been losing support but also credibility over the recent slew of decisions in favor of those he had previously criticized and branded as corrupt,” he also said.

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In dismissing the charges against Rosmah – the former first lady infamous for her extensive collection of luxury handbags and jewelry – the presiding judge ruled that the charges lacked sufficient evidence to go to trial.

In October 2018, Rosmah was arrested and indicted on 12 charges of money laundering involving 7.1 million ringgit ($1.7 million), and five charges of tax evasion.

The ruling marks a rare legal victory for Rosmah.

She remains free on bail, pending a separate appeal against a 10-year prison sentence for allegedly soliciting and receiving 1.25 million ringgit (U.S. $277,600) in bribes to help a company secure a government contract from Najib’s government. 

Rosmah also faces a lawsuit from the now-defunct 1Malaysia Development Berhad (1MDB) state fund and its subsidiaries, where she and another person were accused of embezzling money to acquire luxury goods worth $346 million. 

Reacting to the court’s decision on Thursday, Rosmah’s lawyer, Amer Hamzah Arshad, said the charges were flawed from the beginning.

“We have, from day one, upon studying the charges, maintained that they do not form any basis for anti-money laundering charges,” he said.

“The judge painstakingly went through all the legal arguments and found no elements of money laundering activities in the charges.”

The prosecution team said they would appeal the decision. 

The dismissal occurred a week after prosecutors withdrew their appeal against the acquittal of Deputy Prime Minister Ahmad Zahid Hamidi, who had faced 40 bribery charges linked to a foreign visa system.

Zahid is president of the United Malays National Organization (UMNO) party, a crucial ally of Anwar’s Pakatan Harapan coalition.

Zahid’s case has fueled accusations of political interference in judicial proceedings. Anwar has repeatedly denied any involvement in court decisions or judicial interference.

Last month, a court dropped corruption charges against Najib linked to the 1MDB financial scandal due to procedural delays and the prosecution’s failure to provide key documents.

Najib family ‘rehabilitation well underway’

James Chin, a political scientist at the University of Tasmania, noted that public perception was shifting towards a belief in the political rehabilitation of the Najib family. “Many people think the rehabilitation of the Najib family is well underway,” Chin told BenarNews.

Najib, who helped found 1MDB when he was PM, is serving a six-year prison term while defending himself against criminal charges tied to the state fund. 

He also appealed to the court to serve the rest of his sentence under house arrest.

U.S. investigators claim that nearly $4.5 billion was siphoned from 1MDB, with some of the money used to buy properties, artwork, and jewelry.

“As you know, all this came about after the big UMNO General assembly, where one of the major resolutions passed was for Najib to get a home detention. Again, part of the rehabilitation process, and also for Zahid to push more strongly to get Najib off the hook,” Chin said.

Najib’s release was the top demand during an UMNO party general assembly in August, The Star, a local news website, reported. 

In October, Anwar’s government denied it was trying to ensure an early release for Najib through a bill that would allow house arrest. 

The bill was intended to reduce prison overcrowding and punitive justice, government spokesman Fahmi Fadzil said.

Birthday ‘gift’

On Thursday, Rosmah was visibly emotional as the judge announced the decision. 

“This is what I call justice, and this is the kind of justice that everybody should have. You should not play around with justice,” she told reporters outside the courtroom.

Rosmah, who turned 73 years old on Dec. 10, said she would share the good news with her husband, whom she referred to as her “boss.”
“Of course, I will tell [Najib]. This is not only a gift for my birthday but also a gift for Bossku.”