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| Malaysian PM Najib cleared of corruption over $681m 'gift' from Saudi royals | Malaysian PM Najib cleared of corruption over $681m 'gift' from Saudi royals |
| (about 2 hours later) | |
| Malaysia’s attorney-general said on Tuesday that $681m transferred into prime minister Najib Razak’s personal bank account was a gift from the royal family in Saudi Arabia, and there were no criminal offences or corruption involved. | Malaysia’s attorney-general said on Tuesday that $681m transferred into prime minister Najib Razak’s personal bank account was a gift from the royal family in Saudi Arabia, and there were no criminal offences or corruption involved. |
| Related: Scandal-hit Malaysian PM Najib Razak says conscience is 'absolutely clear' | Related: Scandal-hit Malaysian PM Najib Razak says conscience is 'absolutely clear' |
| The involvement of the Saudi royal family is an unexpected twist in a scandal over the mysterious funds transfer and the troubles of indebted state fund 1Malaysia Development Berhad (1MDB), whose advisory board Najib chairs. | The involvement of the Saudi royal family is an unexpected twist in a scandal over the mysterious funds transfer and the troubles of indebted state fund 1Malaysia Development Berhad (1MDB), whose advisory board Najib chairs. |
| “I am satisfied with the findings that the funds were not a form of graft or bribery,” attorney-general Mohamed Apandi Ali told a hastily called news conference, where a statement was issued that said Najib had returned $620m to the Saudi royal family because it had not been utilised. | “I am satisfied with the findings that the funds were not a form of graft or bribery,” attorney-general Mohamed Apandi Ali told a hastily called news conference, where a statement was issued that said Najib had returned $620m to the Saudi royal family because it had not been utilised. |
| “There was no reason given as to why the donation was made to PM Najib – that is between him and the Saudi family,” Apandi said. | “There was no reason given as to why the donation was made to PM Najib – that is between him and the Saudi family,” Apandi said. |
| He said no criminal offence was committed by Najib in relation to three investigations submitted by Malaysia’s anti-graft agency and that no further action would be taken. | He said no criminal offence was committed by Najib in relation to three investigations submitted by Malaysia’s anti-graft agency and that no further action would be taken. |
| The Malaysian anti-corruption commission (MACC) had earlier said the funds were a political donation from an unidentified Middle Eastern benefactor. | The Malaysian anti-corruption commission (MACC) had earlier said the funds were a political donation from an unidentified Middle Eastern benefactor. |
| The attorney-general said in a statement he would return to the MACC papers pertaining to the three separate investigations with instructions to close all three cases. | The attorney-general said in a statement he would return to the MACC papers pertaining to the three separate investigations with instructions to close all three cases. |
| Malaysian opposition parliamentarian Tony Pua told the Guardian the “basis to absolve the prime minister of any wrongdoing is utterly without merit because the ‘personal affair’ does not preclude corrupt motives or transactions”. | |
| He added: “The attorney-general has provided no new or convincing information or arguments on whether the massive funds were bona fide, which leads to the question whether the newly appointed attorney general is merely covering up for the prime minister.” | |
| In July last year, Najib sacked the country’s previous attorney general, who had led the investigation into the scandal, for “health reasons” in a government reshuffle that also saw the dismissal of several officials critical of the premier. | |
| Related: Malaysian PM Najib used state funds for 'bribery', says former leader Mahathir | Related: Malaysian PM Najib used state funds for 'bribery', says former leader Mahathir |
| Najib, who has weathered months of calls from opposition leaders and establishment figures to resign, has denied any wrongdoing and says he did not take any money for personal gain. | Najib, who has weathered months of calls from opposition leaders and establishment figures to resign, has denied any wrongdoing and says he did not take any money for personal gain. |
| A spokesman from the prime minister’s office told the Guardian he would seek comment from Najib following the attorney general’s statement. | |
| The scandal has shaken investors in south-east Asia’s third-biggest economy and rocked public confidence in the coalition led by Najib’s United Malays National Organisation (UMNO) party, which has held power since independence in 1957. | The scandal has shaken investors in south-east Asia’s third-biggest economy and rocked public confidence in the coalition led by Najib’s United Malays National Organisation (UMNO) party, which has held power since independence in 1957. |
| However, Najib still enjoys the backing of most of UMNO’s powerful division chiefs. Even his fiercest internal critics, such as influential former prime minister Mahathir Mohamad, accept that he cannot be unseated. | However, Najib still enjoys the backing of most of UMNO’s powerful division chiefs. Even his fiercest internal critics, such as influential former prime minister Mahathir Mohamad, accept that he cannot be unseated. |
| Reuters contributed to this report |