Former Malaysian Prime Minister Najib Abdul Razak was charged Wednesday morning with three counts of criminal breach of trust and one count of abuse of power as part of an investigation into a scandal-mired state fund, and was later in the day released on bail.

Najib was arrested Tuesday by the country's graft-busting body, the Malaysian Anti-Corruption Commission, over a case involving millions of dollars that found their way into his personal bank account from a former unit of 1Malaysia Development Berhad.

At the High Court, Najib who created history by becoming the first former premier to be hauled to court for corruption, calmly pleaded not guilty to all the charges laid against him by prosecutors.

Speaking to the press after posting bail, Najib said, "I believe in my innocence. This is the best chance for me to clear my name after being accused and slandered so viciously."

"If that's the price that I have to pay after serving the people for 42 years, so be it."

A spokesman for Najib had on Tuesday claimed the arrest was "politically motivated and the result of political vengeance" by the ruling coalition and said the allegations against him will be contested.

Najib, 64, was questioned twice last month by the MACC over 42 million ringgit ($10 million) that was transferred from SRC International Sdn. Bhd., the one-time 1MDB subsidiary, into his bank account between December 2014 and March 2015.

On Wednesday, he was charged with committing three counts of criminal breach of trust over three separate transactions into his private bank accounts during that period.

If convicted, on each count, he faces a jail term of not less than two years and not more than 20 years and/or a fine.

The 42 million ringgit was on top of the $681 million, allegedly originating from 1MDB, that also found its way into his accounts in 2013, most of which was later returned. The police and the MACC are probing that as well.

Prosecution also charged Najib with abusing his power for self-gratification when as prime minister he took part in the government decisions between August 2011 and February 2012 to approve a government guarantee on a 4 billion ringgit loan to SRC International from the civil servants pension fund known as Kumpulan Wang Persaraan, and received the 42 million ringgit in return.

If convicted of that charge, he faces a maximum jail term of 20 years and a fine not less than five times the bribe received.

Najib was in power from 2009 until the historic May 9 election that saw his National Front coalition routed by Mahathir Mohamad's rag-tag, four-party Alliance of Hope.

The new government led by Mahathir, who ruled Malaysia for 22 years and was sworn-in as premier yet again on May 10 after a 15-year-hiatus, quickly moved to reopen the probe into the 1MDB scandal.

While in power, Najib had thwarted all domestic investigations into the scandal. He sacked the former attorney general who was heading a task force to probe the money that went into his pockets.

Abroad, 1MDB has been subject of investigation from Singapore to Switzerland and the United States for fraud and moneylaundering.

The United States has estimated $4.5 billion was misappropriated from the fund by people close to Najib to purchase expensive real estate in New York and London, fund Hollywood movies and buy jewelry.

Police investigating Najib for moneylaundering in connection with 1MBD raided six premises linked to him in mid-May and seized up to 1.1 billion ringgit worth of cash and valuables, including jewelry and designer handbags.

Najib had claimed the money that went into his bank accounts and the 116 million ringgit cash seized recently were political donations meant for his party to use in the past two elections.

Attorney General Tommy Thomas who took office on June 4, taking over from his tainted predecessor Mohamad Apandi Ali, made his first court appearance Wednesday as chief prosecutor.

He told reporters they have a "strong case."

After going through the investigation papers submitted by the MACC, Thomas said they reached a conclusion "that we have a prima facie case which we get to prove at court."

He expected more charges to be laid on Najib as the MACC has indicated to him that it has have opened more investigation papers on Najib.

Meanwhile, the court has granted an interim application by defense lawyer Muhammad Shafee Abdullah for a gag order against commentary or discussion over this case in the media.

"This nonsense must stop, this trial by media," he argued in court.

High Court Judge Mohamad Sofian Abdul Razak then fixed Aug. 8 for pre-trial case management. He also tentatively fixed 19 days beginning Feb. 8 next year through March 15, for hearings.