Malaysian court rejects Najib Razak’s house arrest bid, keeps Ex-PM in jail over 1MDB graft case

A Malaysian court on Monday rejected former Prime Minister Najib Razak’s bid to serve the remainder of his prison sentence under house arrest, ruling that a purported royal addendum order allowing such relief was not valid under the country’s Constitution.

The High Court held that although an addendum order linked to Malaysia’s former king did exist, it was not made in accordance with constitutional requirements. Judge Alice Loke said the king’s prerogative of mercy must be exercised on the advice of the Pardons Board and cannot be issued independently. Since the issue of house arrest was neither raised nor discussed during the Pardons Board meeting held on Jan. 29, 2024, the court ruled that the order permitting Najib to complete his sentence at home could not stand, warning that allowing otherwise would “invite arbitrary decision-making.”

Najib’s lawyer, Muhammad Shafee Abdullah, said the defence would appeal the verdict, describing the ruling as shocking and arguing that it diluted the powers of the monarchy. Najib, 72, showed little emotion in court but later smiled briefly as his lawyer spoke. He remains disappointed by the decision, his counsel said.

With the ruling, Najib will continue to serve his prison term until August 2028. His original 12-year sentence was reduced by half last year after the Pardons Board granted him partial clemency, also sharply reducing a fine imposed on him. Najib has been incarcerated since August 2022, after losing his final appeal, becoming the first former Malaysian prime minister to be jailed.

Najib is serving time following his conviction in a case linked to the sprawling 1Malaysia Development Berhad (1MDB) scandal, one of the world’s largest financial frauds. In 2020, he was found guilty of abuse of power, criminal breach of trust and money laundering involving 42 million ringgit (about USD 10.3 million) that was channeled into his personal bank accounts from SRC International, a former subsidiary of 1MDB. Prosecutors said Najib used his position to secure government guarantees and financing for SRC, before misappropriating its funds for personal use.

The SRC case is part of the wider 1MDB scandal, which investigators allege involved the theft of at least USD 4.5 billion from the state investment fund set up by Najib shortly after he took office in 2009. Authorities in multiple countries say the money was siphoned off by Najib’s associates and laundered through a complex web of bank accounts across the United States and other jurisdictions. The funds were allegedly used to bankroll Hollywood films and finance lavish purchases, including luxury real estate, a superyacht, high-end jewellery, artwork and other extravagances.

The court setback comes just days before another crucial legal moment for Najib. On Friday, the High Court is due to rule in a second major graft trial that directly ties him to the core of the 1MDB scandal. In that case, Najib faces four charges of abuse of power for allegedly obtaining more than USD 700 million from 1MDB, as well as 21 counts of money laundering involving the same sum. If convicted, he could face up to 20 years in prison for each abuse of power charge and up to five years for each money laundering count.

Najib has consistently denied wrongdoing, claiming he was deceived by Malaysian financier Low Taek Jho, widely believed to be the mastermind behind the 1MDB scheme. Low remains a fugitive.

Public anger over the 1MDB scandal culminated in the historic 2018 general election, when Najib’s coalition suffered a shock defeat, ending more than six decades of uninterrupted rule by the United Malays National Organisation since Malaysia’s independence from Britain in 1957. Despite his conviction and imprisonment, Najib continues to wield influence within UMNO, which is now part of Prime Minister Anwar Ibrahim’s unity government formed after the 2022 elections.