A former minister in the Prime Minister's Department, Zaid Ibrahim, filed a representative action suit against Prime Minister Najib Abdul Razak yesterday, for breach of his fiduciary duty, and wants Najib to return US$731 million deposited into his private banking accounts to the government.

Zaid also sought that RM42 million, which Najib allegedly received from 1MDB subsidiary SRC International Sdn Bhd, to also be returned to the government and 1MDB.

He named Najib, 1MDB, the government and Najib's stepson Riza Aziz in the representative action.

Zaid filed the action in the High Court in Kuala Lumpur yesterday, through lawyer Americk Sidhu's law firm.

The former minister said the representative action is filed by him on behalf of all Malaysians and taxpayers.

The US$731 million consists of the purported US$681 million deposited in Najib's Ambank accounts prior to the 13th general election in March 2013, and also the US$20 million he allegedly received from Good Star Ltd between February and June 2011, as well as the US$30 million he allegedly received from Aabar BVI between October and November 2012.

A chart depicting the payments made is also filed with the suit.

In the suit, Zaid (photo) claims that Najib, as trustee of 1MDB, has a duty to protect and preserve its assets and not convert or misappropriate any of its assets for his own use or for the use of any person not entitled to the property.

The former minister alleged that Najib had misappropriated RM42 million as a bribe or financial inducement by using his influence over Kumpulan Wang Persaraan (Retirement Fund Inc) to make a loan to SRC International.

Najib liable to return money

As a result of this, Zaid said, Najib is liable to make a restitution (to return or recompense the money) to the government.

He also claimed that Penang-born businessman, Low Taek Jho, who is also sought in the United States in its legal action, had conferred pecuniary benefit on Riza, and also acted as an agent for Najib.

Zaid said that as Najib received the US$731 million, belonging to 1MDB, which he claimed that Najib had converted or misappropriated to himself or to other persons who are not entitled to it lawfully, the prime minister has to return the US$731 million to 1MDB.

For this reason, Zaid is seeking a court order that Najib returns the US$731 million and RM42 million, with interests charged at two percent.

He is also seeking an order for Riza to pay, by restitution, the money he received from 1MDB and to transfer all his movable and immovable assets acquired by the film producer, or his associates including Jho Low, to 1MDB.

The suit is the second legal action to get the money, said to be siphoned off from 1MDB, to be returned.

Earlier, this month, lawyer Matthias Chang, who was Dr Mahathir Mohamad's former political secretary, and former PAS vice-president Husam Musa filed a class action suit in the United States, where they named Red Granite Pictures in the legal action.

On July 26, the United States Department of Justice filed a civil forfeiture action to retrieve US$1 billion worth of assets, said to be misappropriated from 1MDB.

Asked to comment on why he filed the suit in Malaysia, Zaid, a former minister who was in charge of law, told Malaysiakini that he has confidence in the country’s judges.