Lim Guan Eng - who has demanded Najib explain a massive financial scandal linked to state investment fund 1Malaysia Development Berhad (1MDB) - is expected to be charged in court tomorrow. The 55-year-old Lim has been chief minister of Penang state since 2008 and has led the opposition Democratic Action Party (DAP) since 2004 as secretary-general.
"Lim was served with a warrant of arrest by the Malaysian Anti-Corruption Commission (MACC) this evening on two corruption charges," Jeff Ooi, a DAP lawmaker told AFP.
Ooi said one of the charges is related to improper change of use of public land to allow development.
The other is tied to the purchase of a house by Lim - and which if found guilty could see the chief minister jailed, he said.
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Lim was probed by the MACC last year for corruption over the purchase of a house at a below market price of 2.8 million ringgit (USD 693,000). He denies any allegations of impropriety.
"But we expect Lim, who is in MACC custody now, to be freed on bail after being charged in court Thursday," Ooi said.
He says the "personal donations" from the Saudi royal family were mostly returned.
Hundreds of millions of dollars of 1MDB money has gone missing in complex overseas transactions that have never been fully explained. Swiss authorities say more than USD 4 billion may have been stolen.
Both 1MDB and Najib, who founded the fund, vehemently deny wrongdoing.
In January, attorney general Mohamed Apandi Ali closed a graft investigation, clearing Najib of wrongdoing and said no criminal offence had been committed.