The former Malaysian prime minister Najib Razak has appeared in court in Kuala Lumpur where he was charged with corruption-related offences over his alleged involvement in the multibillion-dollar 1MBD corruption scandal.

In a stunning fall from grace, the former prime minister was charged with three counts of criminal breach of trust and one count of corruption, in a prosecution led by the attorney general, Tommy Thomas. He has pleaded not guilty to all charges.

Najib said: “I claim trial” in a barely audible voice as he stood in the dock at the high court. Prosecutors demanded 4m ringgit (nearly $1m) bail, but the judge granted it at 1m ringgit in cash ($250,000) and ordered Najib to surrender his two diplomatic passports.

The court has also allowed an interim gag order sought by Najib’s lawyers, which restricts media discussions around merits of the case, except for what is presented in court. The attorney general said his team opposed the order and they would file a formal response. It is unclear how the scope of the order might restrict reporting of events.

Najib faces allegations that, between August 2011 and March 2015, 42m Malaysian ringgit ($10m) was transferred from SRC International, a 1MDB subsidiary, to his personal bank accounts. Each count carries a possible sentence of up to 20 years in prison. Whipping is also a penalty but Najib, 64, would be exempt because of his age. The charges also carry a possible fine, which would be no less than five times the value of the funds in question.

The charges, relating to offences which allegedly occurred over a period of more than three years, refer to Najib’s role in various government posts, including as prime minister and minister of finance.

In the first charge, for example, Najib is accused of criminal breach of trust in relation to a sum of $6.7m, in both positions. The court charge sheets also refer to the AmIslamic bank, the bank where Najib held an account through which illicit funds were allegedly channelled.

Q&A What is Malaysia’s 1MDB financial scandal? Show Hide Malaysia’s extraordinary 1MDB corruption scandal allegedly involved billions being stolen from the country's sovereign wealth fund and spent on everything from Hollywood films to handbags.



Former prime minister Najib Razak was arrested in the 1MDB corruption inquiry set up by his successor, which engulfed the ex-leader and his cronies and resulted in his loss at elections in May 2018.



1Malaysia Development Berhad (1MDB) is a state investment fund that Najib launched in 2009 shortly after becoming prime minister.



Its portfolio has included power stations and other energy assets in Malaysia and the Middle East, and real estate in Kuala Lumpur.



The fund was closely overseen by Najib.



Whistleblowers say Low Taek Jho, or ‘Jho Low’, a shadowy, jet-setting Malaysian financier close to Najib but who has no official positions, helped set up 1MDB and made key financial decisions. Jho has now been charged with conspiring to launder billions of dollars embezzled from 1MDB by the US Department of Justice, though he remains at large. After the scandal emerged, Najib purged 1MDB critics from his government, curbed domestic investigations, enacted a tough new security law and generally lurched to the right.



But the issue exploded in July 2015, when the Wall Street Journal published documents showing Najib received at least $681m (£518m) in payments to his personal bank accounts.



The US justice department has piled on the pressure by filing lawsuits to seize $1.7bn in assets it said were purchased with stolen 1MDB money.



Najib's dramatic election loss in 2018 left him facing the possibility of prosecution and imprisonment.



The election winner, 93-year-old Mahathir Mohamad, pledged to investigate the scandal and try to recover stolen funds from 1MDB that have been sent abroad.



The former leader was arrested at his home on Tuesday. After being held overnight at the anti-corruption commission, Najib arrived at 8.20am at the court complex in Kuala Lumpur, wearing a dark blue suit and a red tie. Crowds jostled to catch a glance of the former leader as he was led to a sessions court. Some members of Najib’s UMNO party chanted and held up placards in solidarity.

Following the hearings on Wednesday, pandemonium erupted at the court complex when Thomas was scheduled to give a statement to the press.

Raucous Najib supporters heckled intensively and demanded that he speak in Malay, knowing that he often gives statements in English. They were eventually escorted out by police. When the attorney general eventually spoke he was flanked by heavily armed police.

Fahmi Reza, a Malaysian artist who was jailed last year for publishing a caricature of Najib looking like a clown, was among the throng of people that gathered outside the court .

“Finally we can hope to see some justice being served,” said Fahmi.

Convicted in the same court of charges that he continues to appeal against, Fahmi noted how dramatically the tables in Malaysian politics had turned. “I think this sends a really strong message to all politicians, including people in the current government, that you won’t get away,” he added.

The 1MDB corruption scandal, described as the biggest in Malaysia’s history, saw billions of dollars allegedly embezzled and lavishly spent around the globe, on luxury property, a private yacht, Hollywood films and extravagant shopping sprees.

Najib has consistently denied the charges, last week telling local news portal Malaysiakini that his trial would be a “test” for the Malaysian judiciary. “I believe in my innocence. Therefore, the only way I can clear my name is through a system that is fair and a system that is predicated on the rule of law,” he said, “Everybody [should have] a chance to prove themselves under the system.”

Melissa Goh (@MelGohCNA) Ex PM #NajibRazak arrival at KL court complex created quite a commotion with his supporters and sympathizers chanting slogans to free Najib . pic.twitter.com/gnjJAswJve

Najib was going home on Wednesday after posting the agreed bail, but told the press he maintained his innocence and hope for a fair trial.

“I believe in my innocence and this is the best chance for me to clear my name after all the slander and accusations against me,” he said. “I have served the people and the country for 42 years. If this is the price I have to pay, I am willing.”

Commenting on the gag order, Najib’s lawyer Shafee Abdullah said it was designed to prevent prejudicial reporting of the case.

“If you and your loved ones face the same situation, then you will know the importance,” he said.

The arrest and trial of the former prime minister follows a surprise electoral defeat in May, which brought Najib’s former mentor, 92-year-old Mahathir Mohamad, back to power. Mahathir had pledged to investigate the 1MDB scandal if he was elected.

An investigation into 1MDB by Najib’s government previously cleared him of any wrongdoing, but there was seemingly little room for a different outcome at the time.

Facebook Twitter Pinterest Former Malaysian Prime Minister Najib Razak arrives at court in Kuala Lumpur on Wednesday. Photograph: Ahmad Yusni/EPA

Several political figures, including the then deputy prime minister, Muhyiddin Yassin, were removed from their posts after making critical remarks about Najib’s handling of the corruption allegations, while the government suspended the licence of one media organisation that rigorously reported the case.

It is unclear whether the former first lady Rosmah Mansor – who is widely known and deplored for her extravagances, from Birkin bags to diamond-studded watches and tiaras – will also be arrested in connection with the scandal.

Najib and Rosmah have both been questioned by anti-graft investigators and are blacklisted to prevent them leaving the country. Recent raids on several of Najib’s properties in Kuala Lumpur revealed extraordinary wealth, with authorities seizing cash and luxury goods, including hundreds of designer handbags and jewellery worth $273m.

• Additional reporting by King Chai