The prosecution has withdrawn charges against Khairuddin Abu Hassan and lawyer Matthias Chang for alleged financial sabotage for reports against 1MDB that they lodged overseas.

Deputy public prosecutor Awang Armadajaya Awang Mahmud said he has received instructions not to proceed with the case.

"Hence we apply for a discharge not amounting to an acquittal," Awang Armadajaya told the Sessions Court in Kuala Lumpur today.

He said the decision to withdraw was done in the interest of justice and based on the representation made by the accused...