By Ashley Tang
KUALA LUMPUR, Sept 18 (Reuters) - Malaysia's king agreed on Friday to allow jailed former premier Najib Razak to serve the remainder of his sentence under house arrest, in a second royal pardon over his conviction for his involvement in a multi-billion-dollar financial scandal.
Najib, prime minister from 2009 to 2018, was found guilty of corruption in relation to the embezzlement of billions of dollars tied to 1Malaysia Development Berhad, a state investment fund he co-founded while in power. He has consistently denied wrongdoing.
"King Sultan Ibrahim has consented to grant a conditional pardon to Najib Razak, allowing him to serve the remainder of his sentence under house arrest until August 23, 2028," the prime minister's legal department said in a statement.
In the 1MDB scandal, more than $1 billion allegedly made its way into accounts linked to Najib, who says he has been made the scapegoat for a complex, globe-spanning scheme that siphoned away as much as $4.5 billion in funds, according to US investigators.
NAJIB A DIVISIVE FIGURE
It was the second pardon for Najib, who under the previous king in 2024 had his 12-year sentence halved and the fines imposed on him reduced.
Najib was also convicted in a separate 1MDB-related case in December last year, for which he was sentenced to 15 years in prison and fined $2.8 billion for abuse of power and money laundering. He has lodged an appeal in that case.
Despite being jailed, Najib, 73, is a divisive figure in Malaysian politics and is still influential in the once-dominant United Malays National Organisation (UMNO), which is part of Prime Minister Anwar Ibrahim's multi-party government.
Anwar's Pakatan Harapan alliance has opposed leniency towards Najib and the pardon could widen fissures in his administration. Though the next election is not due until early 2028, Anwar has said he might consider calling a snap poll if the rifts deepen.
Anwar on Friday called on the public to accept the king's will graciously and said his government was committed to fighting graft, adding that Malaysia would not "submit to the practice of thieves and corruption".
"This country will no longer regard lightly any misconduct or abuse of power to enrich any leader or any citizen. This is our stance," he said.
Pakatan teamed up with rival UMNO to form a government in 2022 when a general election left Malaysia with a hung parliament, but relations are now testy following a series of internal disagreements, including on the treatment of Najib.
Anwar's public support has taken a hit and it is unclear how his coalition would fare if an early election was called. Pakatan was trounced twice in the past two months by UMNO's Barisan Nasional coalition in state elections.
PARDON 'A BIG WIN FOR UMNO'
UMNO president Ahmad Zahid Hamidi said a collection fund would be launched for party members and supporters to help Najib pay a 50 million ringgit ($12.27 million) fine that came with his house arrest, and expressed gratitude to the king.
"This development holds immense significance for him (Najib) and his family, as well as the entire UMNO family who have never ceased to hold on to hope and offer prayers throughout this time," he said on his Facebook page.
It was not immediately clear when Najib would be allowed to leave prison and his lawyers did not respond to a request for comment.
Syaza Shukri, a political scientist at the International Islamic University Malaysia, said the pardon was bad news for Anwar and a boon for Najib's UMNO ahead of the next election.
"The impact on Anwar and his government is really bad unless they can explain to the people the constitutionality and limitations they face," she said.
"This is a big win for UMNO and they would feel more confident and emboldened going forward to get things going their way, looking like they will be the next government in waiting."
(Reporting by Ashley Tang; Writing by Martin Petty; Editing by David Stanway)
