key points
- Najib Razak is serving a prison sentence for embezzling about $9.9 million from a Malaysian investment fund into his personal bank accounts.
- He was Prime Minister during the period when $4.5 billion was stolen from state 1MDB funds
- The 1MDB plunder is one of the biggest corruption scandals in modern history
- Court rules that Najeeb will have to remain in jail for the rest of his sentence
A Malaysian court has rejected former Prime Minister Najib Razak’s demand to serve his remaining prison sentence at home.
The Kuala Lumpur High Court ruled on Monday that a royal decree that would have allowed the measure was invalid because it was not made in accordance with constitutional requirements.
The court did not dispute the existence of the order issued by the then king in 2024, but said the king should have first consulted the pardon board.
This means the 72-year-old man will serve the remainder of his sentence in prison for money laundering and abuse of power.
He is scheduled for release in 2028 after his original 12-year prison sentence was halved.
What was Najib’s role in the 1MDB corruption scandal?
Najib is serving a sentence after pleading guilty to charges related to the theft of billions of dollars from the Malaysian state fund called 1Malaysia Development Berhad, commonly known by its acronym 1MDB.
Najib launched 1MDB when he took office in 2009 to promote economic growth and investment.
But according to the US Justice Department, senior officials and their associates stole more than $4.5 billion (€3.84 billion) from the fund from 2009 to 2013. The money was laundered through layers of bank accounts in the United States and other countries.
It is one of the world’s largest corruption and embezzlement scandals in recent history.
The money was used to gamble $25 million at a Las Vegas casino, finance a Hollywood film, and make extravagant purchases such as a private jet and yacht, art and jewellery.
When police searched properties linked to Najib shortly after he lost the 2018 election, they seized 1,400 necklaces, 567 handbags, 423 watches, 2,200 rings, 1,600 brooches and 14 crowns, as well as about $27 million in cash, which had an estimated street value of $273 million. Most of the jewelery belonged to his wife Rosmah Mansoor.
Najib was convicted in 2020 of abuse of power, criminal breach of trust and money laundering. The seven charges relate to the misappropriation of approximately $9.9 million from a 1MDB subsidiary into his personal bank accounts.
The verdict in a separate trial is expected on Friday
Separately, on Friday the court will deliver its verdict in a second corruption trial against the former prime minister.
The High Court will rule on four charges of abuse of power for obtaining more than $700 million from 1MDB that went into Najib’s bank accounts and 21 counts of money laundering involving the same amount.
If found guilty, Najib faces up to 20 years in prison on each count of abuse of power and up to five years on each count of money laundering.
Edited by: Shawn Sinico