EXPLAINER - Malaysian ex-PM Najib and the 1MDB scandal

KUALA LUMPUR: A court in Malaysia will on Wednesday deliver its verdict on an appeal by former premier Najib Razak over his conviction in a case related to a corruption scandal at 1Malaysia Development Bhd (1MDB), a state fund he co-founded.

The following are details of the scandal and the cases brought against him:

WHAT IS 1MDB?

1MDB was a sovereign fund set up in 2009 with the help of Malaysian financier Jho Low to promote economic development.

Najib chaired its advisory board until 2016.

HOW DID BILLIONS GO MISSING?

1MDB raised billions of dollars in bonds for use in investment projects and joint ventures between 2009 and 2013.

The U.S. Department of Justice (DoJ) said $4.5 billion was diverted to offshore bank accounts and shell companies, many linked to Low. Malaysian authorities say billions more remain unaccounted for.

The siphoned funds were used to buy luxury assets and real estate for Low and his associates, including a private jet, a superyacht, hotels, jewelry, and to finance the 2013 Hollywood film "The Wolf of Wall Street", U.S. lawsuits have said.

Low, who has been charged in Malaysia and the United States over his central role in the case, denies wrongdoing and his whereabouts is unknown.

WHAT ARE THE CASES AGAINST NAJIB?

Authorities say Najib illegally received more than $1 billion traceable to 1MDB.

Najib, voted out in a 2018 election amid public anger over the scandal, is facing 42 charges of criminal breach of trust, abuse of power and money laundering over losses at 1MDB and other state entities.

If convicted, he could face decades in prison as well as hefty fines.

Last year, in the first of five trials, he was sentenced to 12 years in prison and a $50 million fine after being found guilty of seven charges for illegally receiving $10 million from SRC International, a former 1MDB unit.

Other trials he faces involve funds at 1MDB and other government bodies, as well as allegations of audit tampering. He has plead not guilty to all charges.

WHAT ARE THE STATUS OF THESE CASES?

Defence lawyers say Najib was misled by Low and other 1MDB officials, and that he believed the funds in his accounts were donations from the Saudi royal family.

Najib remains out on bail following his conviction pending the appeal.

He can also appeal further to the Federal Court, if his bid to overturn the conviction fails on Wednesday.

Najib remains on trial in four other cases.

HOW ARE AUTHORITIES INVESTIGATING 1MDB?

At least six countries, including Singapore and Switzerland, have launched financial mismanagement and criminal investigations into 1MDB dealings, in a global probe that has implicated financial institutions and high-ranking officials worldwide.

Last year, U.S. firm Goldman Sachs agreed to pay more than $5 billion, including a record $2.9 billion in the United States, to settle investigations into its role in underwriting $6.5 billion in bond sales for 1MDB.

($1 = 4.2300 ringgit)