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Former Malaysian Prime Minister Najib Razak was unsuccessful in his attempt to complete the remainder of his sentence through house arrest rather than incarceration.

Key points

Najib Razak is currently incarcerated for the misappropriation of approximately $9.9 million from a Malaysian investment fund into his personal bank accounts. He was prime minister during the time when $4.5 billion was embezzled from the state’s 1MDB fund. The theft from 1MDB is considered one of the largest corruption cases in recent history. The court has ruled that Najib must remain in prison for the remainder of his sentence.

A Malaysian court has turned down former Prime Minister Najib Razak’s request to complete his prison term from home.

The Kuala Lumpur High Court decided on Monday that a royal directive, which could have permitted the action, was not valid because it did not comply with constitutional standards.

The court did not question the validity of the order issued in 2024 by the reigning monarch, but argued that the king was required to seek advice from the pardon board beforehand.

This indicates that the 72-year-old will complete the remaining part of hissentence for money laundering and misuse of authority in prison.

He is set to be released in 2028 following his initial term.A 12-year prison term was reduced by half.

What position did Najib hold in the 1MDB corruption case?

Najib is currently imprisoned following his conviction for charges related to the embezzlement of billions of dollars from a Malaysian state-owned fund known as 1Malaysia Development Berhad, often referred to by its acronym, 1MDB.

Najib established 1MDB in 2009, upon taking up his position, with the aim of fostering economic growth and attracting investment.

However, high-ranking officials and their connections ultimately embezzled over $4.5 billion (€3.84 billion) from the fund between 2009 and 2013, as reported by the US Department of Justice. The funds were transferred through multiple layers of bank accounts in the United States and various other nations.

It stands among the most significant cases of corruption and misappropriation of funds in global history.

The money was spent on gambling, $25 million in Las Vegas casinos, funding a Hollywood film, and luxurious acquisitions including a private jet and yacht, along with art and jewelry.

After police inspected locations connected to Najib following his defeat in the 2018 election, they confiscated 1,400 necklaces, 567 handbags, 423 watches, 2,200 rings, 1,600 brooches and 14 tiaras, along with almost $27 million in cash, totaling approximately $273 million. The majority of the jewelry was owned by his wife, Rosmah Mansor.

Najib received a conviction in 2020 for misuse of authority, criminal breach of trust, and financial laundering. The seven charges involved the transfer of approximately $9.9 million from a 1MDB affiliate to his private bank accounts.

Expected separate ruling on Friday

On Friday, the court will issue a ruling in a separate corruption trial involving the former prime minister.

The Supreme Court will decide on four allegations of misuse of authority to secure more than $700 million from 1MDB, which was deposited into Najib’s bank accounts, along with 21 charges related to money laundering involving the same sum.

If convicted, Najib could receive as many as 20 years in prison for each instance of misuse of authority and up to five years for each money laundering charge.

Edited by: Sean Sinico

Author: Kate Hairsine (with AP, Reuters, AFP)