A Malaysian court on Monday rejected a bid by jailed former Prime Minister Najib Razak to serve the remainder of his sentence under house arrest, marking the first of two pivotal rulings the ex-premier faces this week concerning the multibillion-dollar 1MDB scandal.

Najib, imprisoned since 2022, had his 12-year jail sentence halved last year by a pardons board chaired by the former king of Malaysia. The former prime minister argued that a subsequent “addendum order” issued by the monarch converted his sentence to house arrest. He has sought to compel the government to recognize and enforce this order.

Court Rules Royal Addendum Order Invalid

While acknowledging that the royal addendum existed, the Kuala Lumpur High Court ruled that it was not legally enforceable, as it was not deliberated upon or approved by the country’s pardons board, a constitutional requirement for clemency measures.

Judge Alice Loke explained:

“The addendum order was not deliberated nor decided at the pardons board meeting … Consequently, it is not a valid order.”

Najib’s lawyer, Muhammad Shafee Abdullah, confirmed that the former prime minister intends to appeal the ruling, arguing that the decision undermines the powers of Malaysia’s rulers to grant clemency.

Impending 1MDB Verdict

The court’s decision comes four days before Najib faces the verdict in his most significant trial tied to 1MDB, the state investment fund he co-founded in 2009. According to U.S. investigators, at least $4.5 billion was misappropriated from 1MDB, with over $1 billion allegedly transferred to Najib’s personal accounts.

Najib was found guilty of graft and money laundering in 2020 after receiving funds from a 1MDB unit. Two years later, he became the first Malaysian prime minister to go to prison after losing all appeals.

On December 26, the court will decide whether to convict Najib of four additional corruption charges and 21 counts of money laundering, involving the alleged illegal transfer of approximately 2.2 billion ringgit ($539 million). Conviction could result in up to 20 years’ imprisonment per charge and fines up to five times the value of the misappropriated funds.

Political Ramifications

The rulings are closely watched amid tensions within Prime Minister Anwar Ibrahim’s ruling coalition, especially regarding the treatment of Najib, who retains strong support within his party, UMNO (United Malays National Organisation).

UMNO youth leader Akmal Saleh criticized the government, calling for withdrawal from the coalition, arguing that denying Najib house arrest diminished the powers of the Malay rulers.

Analysts highlight the verdicts as a test of Malaysia’s judicial independence and political will. University of Nottingham Asia political analyst Bridget Welsh commented:

“It’s a test of the prosecution, it’s a test of the judiciary, it’s a test of political will.”

While Anwar came to power on an anti-corruption platform, his administration has faced scrutiny over recent prosecutorial decisions, including dropping charges against Najib and abandoning an appeal against Najib’s wife Rosmah Mansor in a separate graft case.