Malaysian court rejects Najib’s bid to halt bankruptcy order

Bloomberg

Former Malaysian prime minister Najib Razak faltered in his bid to get a high court to halt bankruptcy proceedings against him for failing to pay a tax bill totaling 1.74 billion ringgit ($420 million).
Kuala Lumpur High Court Judge Ahmad Bache on Monday dismissed Najib’s application for a stay of execution, according to an email exchange between the court and relevant parties. Separately, the court of appeal will
hear Najib’s plea on June 16, according to his lawyer Farhan Shafee.
The ruling is a blow to Najib, who was slapped with a bankruptcy notice in April just when he began his appeal against his conviction last year on charges in a case involving millions he received from a former unit of troubled state fund 1MDB.
Malaysia’s court ruled in 2020 that the former leader must pay 1.69 billion ringgit in taxes, a bill he has
disputed.
Being bankrupt would mean Najib would lose his parliamentary seat and be ineligible to contest for party polls and national elections. This would be a boon for Prime Minister Muhyiddin Yassin, who has been criticised by Najib despite the United Malays National Organisation (UMNO), a party Najib belongs to, being part of the ruling administration.
If Najib is disqualified as an election candidate before his imprisonment, Muhyiddin will “weaken the hostile factions in UMNO,” said political analyst Wong Chin Huat. Muhyiddin could even claim to accomplish what he and former premier Mahathir Mohamad set out to do when they teamed up in the last election to overthrow Najib, he added.
Najib has said the “tyrannical” tax imposed on him has no merit and had sought for a stay order. The case relates to 3 billion ringgit put in an account under his name when he was prime minister that was used to receive donations for corporate social responsibilities and political purposes, he added.
UMNO has said it will end its current ties with Muhyiddin once the next general election is called.
The party unexpectedly returned to power in March last year by joining a coalition led by Muhyiddin, who secured a razor-thin majority following the abrupt resignation of
his predecessor Mahathir
Mohamad.