Malaysia’s Prime Minister Najib Razak says ‘conscience clear’ as party tensions mount on 1MDB scandal

Malaysian Prime Minister Najib Razak said he had done nothing wrong in receiving hundreds of millions of dollars into his personal bank accounts, as a senior party rival called on him to step aside over a festering funding scandal.

Najib has so far weathered calls for him to quit over allegations of graft at state fund 1Malaysia Development Berhad (1MDB) and his receipt of 2.6 billion ringgit (US$610.8 million) in what he says was a political donation.

But pressure mounted on Najib as his United Malays National Organisation (UMNO) gathered on Tuesday for its annual meeting, after UMNO's deputy leader called on members to remove a “cancer” from the long-ruling party that looks increasingly at risk of losing the next election in 2018.

In his most detailed explanation since the scandal erupted in July, Najib said his conscience was “absolutely clear”.

Malaysia's Anti-Corruption Commission (MACC) questioned Najib over the deposits at the weekend and said on Monday that it had also interviewed the unidentified donor in the Middle East.

“Firstly, the 2.6 billion ringgit is neither public funds nor 1MDB's money. This was confirmed by the MACC,” Najib said in an interview with state television TV3. “It's a donation, a gift. A donation is not illegal under any legal provision.”

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Malaysia's Central Bank was aware of the accounts' existence, he said, adding the donor did not see it as a bribe and expected nothing in return.