Malaysia appeal court overturns government liability, cuts Altantuya family damages to US$340K

PUTRAJAYA, MALAYSIA: The family of Altantuya Shaariibuu has lost its long-running bid to claim damages from the Malaysian government, after the Court of Appeal allowed the government’s appeal and set aside an earlier High Court ruling.

Delivering the unanimous decision on 20 January 2026 via video conference, Justice Muniandy Kannyappan said the government could not be held vicariously liable for the 2006 murder of the Mongolian woman by two policemen.

The ruling brings a case that began nearly two decades ago closer to a final conclusion, although Altantuya’s family has indicated it will seek leave to appeal to the Federal Court, Malaysia’s highest judicial authority.

Ms Sangeet Kaur Deo, who represents Altantuya’s relatives, said the family intends to pursue the matter further, arguing that important legal and public interest questions remain unresolved.

Family signals final appeal to Federal Court

The three-member bench also rejected an appeal by Altantuya’s former lover, Abdul Razak Baginda, upholding findings of conspiracy and complicity in her death, but reducing the overall damages payable by him.

In its decision, the court set aside the High Court’s award of RM5 million in vindicatory damages, ruling that claims arising from death are governed strictly by Section 7 of the Civil Law Act.

Justice Muniandy said the provision only allows for compensatory damages based on proven pecuniary loss suffered by dependants, such as loss of financial support and funeral expenses.

He said vindicatory damages, which are intended to mark the court’s condemnation of particularly egregious conduct, were not permitted in cases involving death under the existing statutory framework.

Killing ruled outside scope of police duties

On the issue of government liability, the court found that the two policemen convicted of the murder, Azilah Hadri and Sirul Azhar Umar, were not acting in the course of their employment at the material time.

“Azilah and Sirul were not performing any police duty when they took the deceased to a remote location and executed her,” Justice Muniandy said in reading out the judgment.

He said the killing was a private arrangement initiated by Abdul Razak, and that the use of government-issued firearms and explosives did not, by itself, bring the acts within the scope of official duties.

“These were tools used for an unauthorised illegal enterprise entirely independent of their duties as Special Actions Unit policemen,” he said, adding there was no evidence they were acting on government instructions.

As a result, the court ruled that the Malaysian government could not be held vicariously liable for the actions of the two men, overturning the High Court’s earlier finding on that point.

Court upholds conspiracy finding against Abdul Razak

However, the bench affirmed the lower court’s conclusion that Abdul Razak was involved in a conspiracy that led to Altantuya’s death.

Justice Muniandy said the court rejected Abdul Razak’s argument that he merely sought police assistance to deal with a harassment issue and had no intention to cause physical harm.

The judges found that Azilah and Sirul’s presence at Altantuya’s hotel and their interception of her at Abdul Razak’s house were facilitated by information he provided.

“This sequence of events demonstrated a common design to deprive Altantuya of her liberty,” Justice Muniandy said, describing such conduct as inconsistent with that of an innocent party.

The court agreed with the trial judge’s finding that the two policemen had no independent motive to kill Altantuya, and that their actions were the direct result of Abdul Razak’s solicitation and assistance.

Altantuya’s family filed the civil suit in 2007 against Azilah, Sirul, Abdul Razak and the Malaysian government, following the killing that shocked the country and drew international attention.

In a landmark High Court judgment delivered on 16 December 2022, Datuk Vazeer Alam Mydin Meera found all four defendants jointly liable for Altantuya’s unlawful death.

He ruled that Azilah and Sirul were clearly responsible for the killing, that Abdul Razak was the link between them and the victim, and that the government was vicariously liable as their employer.

That ruling was later supplemented by orders requiring the government and Abdul Razak to deposit damages while their appeals were pending.

In 2025, a judge ordered both parties to pay RM4.7 million each, pending the outcome of the appeals. Those sums have not been released to the family.

The latest decision means the family’s claim against the government has been dismissed entirely, while Abdul Razak’s liability has been reduced to more than RM1.38 million, equivalent to about US$340,362.

Background to Altantuya’s killing and civil suit

Altantuya was abducted on 19 October 2006 outside Abdul Razak’s home and taken to a forested area outside Kuala Lumpur, where court records show she was shot twice in the head and her body destroyed with explosives.

Abdul Razak had been involved in brokering Malaysia’s 2002 purchase of submarines from a French state-owned company, a deal later investigated for corruption in Malaysia and France.

Najib Razak, who was defence minister at the time and later became prime minister, was not charged over Altantuya’s killing and has consistently denied any involvement.

Two members of an elite police unit assigned to protect senior officials, Azilah and Sirul, were convicted of the murder and initially sentenced to death.

Sirul fled to Australia, which has refused extradition because Malaysia retained capital punishment at the time, while Azilah remains imprisoned in Malaysia.

After the abolition of the mandatory death penalty in 2023, Azilah’s sentence was commuted to 40 years’ imprisonment.

In a sworn affidavit filed earlier, Azilah alleged that Najib had ordered Altantuya’s killing, a claim Najib has denied and which has not been upheld by any court.

Najib is currently serving prison sentences for multiple corruption offences linked to the 1MDB scandal, separate from the Altantuya case. In December 2025, the former PM was sentenced to 15 years in prison and fined RM13.4 billion (approx. US$2.8 billion) for abuse of power and money laundering in connection with the 1MDB scandal

In October 2025, the High Court granted Altantuya’s father, Dr Shaariibuu Setev, permission to pursue a judicial review to compel authorities to investigate the contents of Azilah’s affidavit.

With the Court of Appeal decision now delivered, the case appears set to enter its final legal chapter, pending whether the Federal Court agrees to hear the family’s appeal.