Saudi royal family "gifted" Malaysian PM $681m

Malaysia’s attorney-general has cleared Prime Minister Najib Razak of any criminal offences or corruption after it was disclosed that the Saudi royal family deposited about $681 million into his personal bank account.

Attorney-General Mohamed Apandi Ali said the transfer was a gift from Saudi Arabia’s royal family, adding that no further action needed to be taken on the matter.

But opposition party leaders denounced the finding, saying the appointment of the attorney-general by the prime minister in the midst of the crisis suggested a conflict of interest.

Apandi told a news conference no criminal offense had been committed by Najib in relation to three investigations submitted by Malaysia’s anti-graft agency.

“I am satisfied with the findings that the funds were not a form of graft or bribery,” he said. “There was no reason given as to why the donation was made to PM Najib, that is between him and the Saudi family.”

The involvement of the Saudi royal family is an unexpected twist in the saga over the funds transfer and the troubles of 1MDB, whose advisory board Najib chairs.

Najib denied any wrongdoing and said he did not take any money for personal gain. His office declined to make any comment on the attorney-general’s findings.

The Malaysian Anti-Corruption Commission (MACC) had earlier said only that the funds were a political donation from an unidentified Middle Eastern benefactor.

Apandi said $620 million was returned to the donor in August 2013, about five months after the transfer, because it had not been utilized.

He did not clarify what happened to the remaining $61 million that was not returned or explain why it had taken so long for news of the return of the funds to be released.

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