Najib headed for house arrest after US$12.3 million fine is paid in 1MDB case

[KUALA LUMPUR] Malaysia’s former prime minister Najib Razak is heading home after more than four years in prison for his role in the country’s biggest corruption scandal, after the political party he once led paid a RM50 million (US$12.3 million) fine required for him to serve the remainder of his sentence under house arrest.

The United Malays National Organisation (Umno) paid the fine on Friday (Nov 6) following a fundraising initiative launched on Sep 18, Asyraf Wajdi Dusuki, the party’s secretary-general, said in a statement. The amount collected has reached its target, he added.

“Umno has completed all payment procedures to the Kuala Lumpur High Court this morning,” Asyraf said.

Malaysia’s King Sultan Ibrahim Iskandar granted Najib a conditional pardon in September to see out his 1MDB sentence under home detention, subject to the payment of a RM50 million fine. 

Najib has received the order setting out the terms of his house arrest, his lawyer, Muhammad Shafee Abdullah, said in October. The Prisons Department instructed Najib not to reveal the terms to avoid speculation, he said.

The former premier’s residence in Langgak Duta, an affluent enclave in Kuala Lumpur, where he will live with his family, has also been confirmed as the location of his house arrest, the lawyer said. The arrangement will run through August 2028. 

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Najib was sentenced in 2020 to 12 years in prison and fined RM210 million after he was accused of siphoning off billions of dollars raised by the country’s sovereign wealth fund 1MDB, with the help of bankers from firms including Goldman Sachs Group.     

The scandal led to the ex-premier’s party Umno losing power in 2018 for the first time since Malaysia’s independence. The party, which has repeatedly pushed for Najib’s release, has been part of Prime Minister Anwar Ibrahim’s ruling coalition since 2022.  

Najib, whose father also served as prime minister, remains a popular figure within Umno and his house arrest has fuelled tensions among parties in the government.

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Anwar’s Pakatan Harapan coalition has said those convicted in high-profile corruption and abuse-of-power cases should serve their full court-imposed sentences. Malaysian Transport Minister Anthony Loke said he plans to resign from cabinet in response to Najib’s conditional pardon. Loke is also chief of the Democratic Action Party, which holds the largest number of seats in parliament among parties in government. He did not immediately respond to a request for comment.     

The house arrest for Najib is his second royal reprieve after his sentence was reduced in 2024 by the country’s Pardons Board, chaired by the king.

Under then King Sultan Abdullah Ahmad Shah, the board halved Najib’s sentence to six years and cut his fine to RM50 million.

In 2025 Najib was sentenced to 15 years in prison and fined RM11.4 billion in another 1MDB-related graft conviction. He has appealed the verdict. The conditional pardon for house arrest does not cover that conviction. BLOOMBERG