Malaysia's train ruling party

KUALA LUMPUR (Reuters) – Malaysia's ruling party has taken over a new face on Saturday.

The United Malaysian National Organization (UMNO) elected Ahmad Zahid Hamidi, formerly Deputy Prime Minister Najib Razak, who was voted out of office, a multi-billion dollar scandal at state fund 1Malaysia Development Berhad (1MDB) and unpopular consumption tax.

Ahmad Zahid is popular among grassroots members but his position as a member of the old guard by the scandal may be little to rebuild trust with voters.

"The people have high hopes that they will continue to fight for the interests of religion, race and the country," Ahmad Zahid said in a statement after he was declared the new party leader.

Ahmad Zahid, who was made acting party head after Najib quit the post last month, takes over at a time of intense scrutiny by the public and the authorities.

On Friday, the Malaysian Anti-Corruption Commission (MACC) froze several bank accounts linked to UMNO as part of their investigations into 1MDB.

Finance Minister Lim Guan Eng told Reuters in June that UMNO was not the only political party to have received 1MDB funds.

Several UMNO lawmakers have left the party since the election, and it has been abandoned by most of its coalition partners.

U.S. authorities say more than $ 4.5 trillion (3.41 trillion pounds) was misappropriated from 1MDB, and that nearly $ 700 million (529.94 million pounds) from the fund was diverted into Najib's personal bank accounts.

Najib, who has been barred from leaving the country and questioned by the MACC, denies wrongdoing and claims the $ 700 million was a donation from the Saudi Arabian royal family.