Former Malaysian PM Najib Razak with corruption, weeks after stunning election defeat

KUALA LUMPUR: The Malaysian Prime Minister Najib Razak was accused of being an investigator of a tragedy.

Najib pleaded not guilty, but the charges, the first of their kind faced by a Malaysian first, and his short appearance were the culmination of a swift and stunning downfall for the country for nearly a decade.

"I believe in my innocence and this is the best chance to clear my name," Najib told reporters outside the courtroom after being released on 1 million ringgit lease ($ 247,000).

Crowds of Journalists and Onlookers, Najib, and some of his backers, and his position in Malaysia, the second prime minister, is held in high regard.

National television networks broadcast live images of Najib's convoy moving through morning rush-hour traffic to the capital, Kuala Lumpur, an extraordinary show few could have imagined before the May 9 election upset.

Najib thwarted corruption allegations for three years after revelations in 2015 that hundreds of millions of dollars from troubled state funds have been diverted to his personal accounts.

But his life has been unraveled since the election of the most senior politician, Mahathir Mohamad, who returned to the prime minister's office from 1981 to 2003.

Mahathir reopened an investigation into the fund, 1Malaysia Development Berhad (1MDB), and barred Najib from leaving the country. Najib, whom he called a "thief" during the campaign.

Najib has been charged with the abuse of power and three counts of criminal breach of trust, each of the four charges carrying prison terms of up to 20 years. The abuse of power also carries a fine line of the "value of gratification".

He was instructed to surrender his pbadports and judge the trial for Feb. 18 next year.

Wednesday's charges relate to funds of about 42 million ringgit ($ 10.4 million) that allegedly went out of SRC International, to form 1MDB unit, into Najib's personal bank account.

This represents a small fraction of the $ 4.5 billion U.S. Department of Justice has been misappropriated from 1MDB, which is being investigated in at least six countries on suspicion of money laundering.

Malaysia's attorney general is reported to be in the Malaysian Anti-Corruption Commission's investigations.

SRC has been the initial focus of Malaysian investigators as all the suspicious transactions involved it went through Malaysian entities, unlike other 1MDB-related transactions that went through foreign banks and companies.

The judge imposed a temporary order to stop the public discussion of the case. Najib's lawyers said their client has been dragged through a trial by the media.

FAMILY QUESTIONED

Najib entered Parliament at 23 and attained the top job in 2009, setting up 1MDB shortly after, but his second term in office was plagued by allegations about the fund.

Mahathir, who helped Najib's political ascent before turning on the accusations of surfacing, a campaign to unseat him, appealing to voters' disgust with a government apparently mired in corruption.

Mahathir told Reuters last month that bribery and bribery using money were among the charges being considered against Najib, adding that his training was fully responsible for the scandal.

Since the election loss, investigators have valued $ 275 million from properties linked to Najib's family.

His wife Rosmah Mansor and Riza Aziz stepson have also been questioned. Riza is the co-founder of Red Granite Pictures, a company U.S. prosecutors say financed three Hollywood movies, including the 2013 Martin Scorsese movie "The Wolf of Wall Street", with funds misappropriated from 1MDB.

Najib must be held accountable, said Anwar Ibrahim, the prime minister-in-waiting and opposition leader.

"Because of the allegations against him concerning 1MDB, he must be held accountable in court," Anwar told reporters in neighbouring Indonesia.

In a pre-recorded message posted on Twitter after his arrest on Tuesday, Najib said he was not perfect and "not all the accusations against me and my family are true."