By Ashley Tang and Rozanna Latiff
KUALA LUMPUR, Dec 22 (Reuters) - A Malaysian court on Monday denied a bid by jailed former Prime Minister Najib Razak to serve the remainder of his sentence at home, in the first of two key rulings the ex-premier faces this week over his role in the multibillion-dollar 1MDB scandal.
Najib, who has been imprisoned since 2022, had his 12-year jail sentence halved last year by a pardons board chaired by the country's former king.
But he insists the monarch also issued
an "addendum order" that converts his sentence to house arrest, and he has been seeking to compel the government to confirm the document's existence and enforce its contents.
Government officials, including members of the pardons board, for months denied knowledge of its existence, though the former king's office and a federal lawyer this year confirmed the royal document had been issued.
The king plays a largely ceremonial role in Malaysia but can pardon convicted people as one of the discretionary powers granted to him by the federal constitution.
The Kuala Lumpur High Court on Monday said the existence of the document was not in dispute, but the order was not legally enforceable as it was not made with the consultation of the country's pardons board, as required under the constitution.
While Malaysia's rulers are allowed to issue pardons according to their discretion, their powers are not without limits, Judge Alice Loke said.
"The addendum order was not deliberated nor decided at the pardons board meeting ... Consequently, it is not a valid order," Loke said.
Najib will appeal the ruling, his lawyer Muhammad Shafee Abdullah said immediately after the decision was made.
NAJIB FACES ADDITIONAL JAIL TIME
Monday's decision comes four days before the court reaches a verdict in Najib's biggest trial related to the scandal at 1MDB, the state fund he co-founded in 2009.
U.S. investigators say at least $4.5 billion was misappropriated from 1MDB by the fund's high-level officials and their associates. More than $1 billion allegedly flowed into bank accounts owned by Najib, who co-founded the fund in 2009.
He 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 his appeals.
Voted out in 2018, Najib last year apologised for mishandling the scandal during his time in office, but he has consistently denied wrongdoing, saying he was misled about the source of the funds by fugitive financier Jho Low and other 1MDB officials.
On December 26, the court will decide whether to convict Najib of four additional charges of corruption and 21 counts of money laundering involving the illegal transfer of about 2.2 billion ringgit ($538.69 million) from 1MDB.
If found guilty, he could face a maximum of 20 years' imprisonment on each charge, as well as a fine of up to five times the value of the alleged misappropriations.
Both court rulings are being closely watched as a test of current premier Anwar Ibrahim's campaign against graft.
"It's a test of the prosecution, it's a test of the judiciary, it's a test of political will," University of Nottingham Asia political analyst Bridget Welsh said.
Anwar, who came to power in 2022 on an anti-corruption platform, has faced repeated questions about his commitment to reform as prosecutors dropped several charges against Najib. This month, prosecutors also abandoned an appeal against the acquittal of Najib's wife Rosmah Mansor in a separate graft case.
Anwar has said he does not interfere in court cases, though the country's attorney generals are appointed by the prime minister and their independence has often been questioned.
($1 = 4.0840 ringgit)
(Reporting by Ashley Tang and Rozanna Latiff; Editing by David Stanway)
