Najib, 61, had earlier denied the allegations saying these were part of a concerted campaign of "political sabotage" to topple a democratically elected Prime Minister.
Malaysia's anti-corruption commission on Monday cleared embattled Prime Minister Najib Razak of any wrongdoing, saying that US $700 million deposited into his personal bank account came from donors and not from a debt-ridden government investment fund.
"The report on the findings related to 2.6 billion ringgit has been referred to the Attorney-General. Results of the investigation have found that the RM 2.6 billion which was allegedly transferred into the account belonging to Prime Minister Najib Tun Razak came from the contribution of donors, and not from 1MDB," MACC said in a statement.
The MACC said that during the formation of the special task force, the investigations only focused on issues related to 1MDB's former subsidiary SRC International and the channelling of RM 2.6 billion into Najib's personal account.
It said that the police were carrying out investigations related to 1 Malaysia Development Berhad while the Malaysia Central Bank focused its probe on financial procedures. Najib, 61, had earlier denied the allegations saying these were part of a concerted campaign of "political sabotage" to topple a democratically elected Prime Minister.
The commission said that it would give full cooperation to the police but stressed that none of its officers was involved in any conspiracy to topple the government. "The actions taken by the MACC was to carry out duties and functions as an independent commission, without 'fear or favour'," the statement said.
Najib has been under increasing pressure after leaked documents alleged that millions had gone into his personal account from a state fund 1MDB. Najib's critic Muhyiddin Yassin was dropped last week as Deputy Prime Minister while Attorney General Abdul Ghani Patail who was probing graft charges against the prime minister quit citing health reasons.
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