Malaysia's High Court has cleared the way for jailed former prime minister Najib Razak to begin house arrest, ending days of legal uncertainty over a royal pardon that allows him to serve his sentence at home.

The court ordered on Tuesday that Najib could start house arrest effective immediately, state news agency Bernama reported. Najib was seen arriving at his home in Kuala Lumpur later in the day, escorted by police, after leaving jail.

Transfer halted last week

Najib had been expected to be transferred from jail last Friday after a fine was paid as a condition of the pardon. The move was halted at the last minute after the attorney general intervened, saying questions had arisen over the legal interpretation of the pardon granted by King Sultan Ibrahim and an earlier court order allowing Najib to leave jail.

The king warned on Saturday that any attempt to challenge his order could amount to defying a pardon that was, in his words, clear, explicit and without any ambiguity. Tuesday's court order resolved the standoff in Najib's favour.

The 1MDB case

Najib, prime minister from 2009 to 2018, was found guilty of corruption in connection with the embezzlement of billions of dollars tied to 1Malaysia Development Berhad, the state investment fund he co-founded while in power. He has consistently denied wrongdoing and insists he was made the scapegoat for the scheme.

United States investigators say the complex, globe-spanning scheme siphoned away as much as $4.5 billion, with more than $1 billion allegedly ending up in accounts linked to Najib, prosecutors have said.

He was also convicted of abuse of power and money laundering in a separate 1MDB-related case in December and sentenced to 15 years in prison, with fines of $2.8 billion. He has appealed that verdict.

Minister resigns over the decision

The ruling has already cost the government a minister. Transport Minister Anthony Loke resigned with immediate effect on Tuesday, saying he was honouring a pledge he made on Friday to step down once the court cleared the path for Najib's transfer to house arrest.

Prime Minister Anwar Ibrahim had earlier dismissed speculation about a cabinet reshuffle as premature, but Loke's departure adds fresh political pressure on the unity government, which has been divided over the handling of the Najib case.

Najib remains one of Malaysia's most influential and divisive politicians, and his move to house arrest is likely to keep the 1MDB affair at the centre of the country's politics for months to come.