Malaysia’s Ahmad Zahid walks free as embezzlement charges dropped in move slammed by critics: ‘so much for rule of law’

“For the reasons given, this court makes an order for discharge not amounting to acquittal,” Sequerah ruled.

Speaking to the media in the lobby of the court, Ahmad Zahid said: “I and all my family members … are grateful to God because today the court has made the decision that the 47 charges against me have been discontinued.”

He will still pursue a full acquittal, he added.

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The application came despite the court previously ruling that prosecutors had successfully argued their case against the two-time deputy prime minister, and ordering Ahmad Zahid – who leads Umno and Barisan Nasional – to mount his defence.

The prosecution argued that this money had been misappropriated for Ahmad Zahid’s personal use, including millions in credit card charges on a shopping spree at Giorgio Armani, Louis Vuitton and Hermes boutiques. The foundation was initially set up for welfare purposes.

The charges would have carried a maximum of 20 years’ imprisonment, corporal punishment and a fine.

The ruling is the latest blow to Anwar’s anti-corruption image – particularly as his coalition had heavily campaigned before November’s general election to throw Ahmad Zahid in jail, telling voters that “one vote for BN is a vote for Zahid”.

Mukhriz Mahathir, son of former prime minister Mahathir Mohamad and president of the opposition-leaning Pejuang party, called the whole thing “scripted”.

He noted in a post on X, formerly Twitter, that the lead prosecutor in the case was dropped in early August, at the end of August the attorney general took early retirement and “today, Zahid’s case [was] dropped … So much for Rule of Law”.

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In July, opposition leader Hamzah Zainuddin told the public that Ahmad Zahid had previously offered his coalition’s backing for Perikatan Nasional in return for his cases to be “resolved”. Hamzah believes that a similar offer was made to Anwar.

“Therefore, the agreement between Anwar and Zahid was for his cases to be resolved,” said Hamzah, who was formerly the home minister.

Malaysia’s vocal social media users are similarly hurling brickbats at the government over the case being dropped, with legal activist Lim Wei Jiet – who previously questioned the removal of the lead prosecutor in Zahid’s case – saying “it’s obvious what [the] plan was”.

Having been criticised heavily for questioning the move, he said that it shows that people were right to raise questions.

“We can never let guard down or give benefit of doubt,” he wrote on X.