Malaysian PM cleared of wrongdoing in $700 million scandal

“Based on the evidence from witnesses and supporting documents submitted, I am satisfied that no criminal offence has been committed in relation to the said (681 million dollars) donation”.

As if the sudden revelation of Saud Arabia’s role in the entire matter wasn’t odd enough, Apandi made it all the more confusing by not mentioning what exactly Najib do to merit such an overwhelmingly generous amount.

Malaysia’s Anti-Corruption Commission, however, said in a statement that it will seek a review of the decision with an independent government panel that among others reviews cases that are not taken to court for prosecution by the public prosecutor.

A spokesperson for the Saudi Foreign Ministry said no further comment would be made at the moment about the claim by Mr Apandi, who said on Tuesday he had ordered the country’s anti-corruption commission to close an investigation into the money transfers.

Mr Apandi’s announcement, which was greeted with widespread scepticism and derision, has intensified pressure on Mr Najib to resign, including from within the ranks of his long-ruling United Malays National Organisation (UMNO).

While Saudi officials have not spoken publicly about the alleged donation, the well-connected BBC correspondent Frank Gardner reports that a Saudi source has told him that the royals did indeed make the donation to Najib – and that the late Saudi King Abdullah was personally involved.

U.S. authorities are reportedly looking into 1MDB-related overseas fund flows, while Swiss, British, Singaporean and Hong Kong authorities have acknowledged scrutinising the affair.

“This issue has been an unnecessary distraction for the country”, he said in a statement, adding it was time for Malaysia to “unite and move on”.

The PM, who is also 1MDB’s chief adviser, has repeatedly denied using public funds for personal gain.

The opposition and rights groups accuse Mr. Najib of responding with an escalating crackdown that has seen dozens of government opponents arrested on various charges over the past two years, plus the introduction of tough new security laws.

The goal of the donation was simple, said the Saudi source – it was to help Mr Najib and his coalition win the election, employing a strategic communications team with global experience, focusing on the province of Sarawak, and funding social programmes through party campaigning. But it amassed £7 billion in debt after its energy ventures overseas faltered.

Investors periodically dumped Malaysia’s stocks, bonds and currency past year. It won in 2013, but lost the popular vote for the first time to an opposition alliance.

The money came via a body that had been used to send money to Mr. Najib’s political allies during the 2013 election, the Journal reported in December.

Mr Najib has fended off the criticisms and sacked cabinet members, including his deputy prime minister, who called for him to answer questions about the payments.