Former PM Mahathir Mohamad storms back to power in Malaysia

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Mahathir has promised to eventually hand the premiership over to Anwar, his former nemesis turned ally in an opposition alliance formed to take on scandal-plagued former prime minister Najib Razak. Said Dr Mahathir: "We have to act quickly because we don't want the problem of extradition with other countries". "I respect the decision and I will remain in the country with my family", he said.

Meanwhile, Mr Matathir's former political foe Anwar Ibrahim, 70, who was jailed in 2015 on charges of sodomy, is set to be released after the country's king agreed to pardon him.

They say some 700 million (£517 million) landed in Mr Najib's bank account.

The United Malays National Organisation (UMNO) is the main party in the coalition.

On the campaign trail, Dr Mahathir lambasted Mr Najib as a "thief" and in the aftermath of his election win, he said he is not seeking revenge but the rule of law will be fully implemented.

Barisan Nasional won only 79 of the 222 parliamentary seats, losing power to Mahathir Mohamad's four-party alliance amid public anger over the wealth fund scandal and rising cost of living.

In his earlier statement on social media, Mr Najib said he was committed to "facilitating a smooth transfer of power".

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Mahathir, who governed for more than two decades became, at the age of 92, the world's oldest elected leader.

"We are looking for government documents that may have been illegally taken", said a senior police officer, who requested anonymity as he was not authorised to talk to the media. "God willing, UMNO will continue to live". Being grounded, however, was largely due to his nemesis and new Prime Minister Mahathir Mohamad.

The Barisan chairman and Umno president said that he prayed for the country to unite after this divisive period and apologise for any shortcomings and mistakes.

Mahathir was the country's prime minister for 22 years, between 1981 and 2003, making him the country's longest-serving leader.

He denied any wrongdoing and was cleared by Malaysia's attorney-general, even as USA authorities alleged that over $4.5 billion was stolen from the fund in a fraud orchestrated by a financier known to be close to Najib and his family.

Mahathir has indicated that Mohamed Apandi would be fired for hiding evidence of wrongdoing. Democratic Action Party chief and outgoing Penang chief minister Lim Guan Eng will be Finance Minister, Parti Amanah Negara president Mohamad Sabu will be Defence Minister, and Parti Pribumi Bersatu Malaysia president Muhyiddin Yassin, Home Affairs Minister.

The PM named three key members of his Cabinet which will consist of only 10 core ministries, as he prepares to run the country with a streamlined administration, according to The Star.