Malaysian PM Najib to take legal action against Wall Street Journal: Report

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PM Najib giving the keynote address during UMNO's annual assembly at the Putra World Trade Centre in Kuala Lumpur. PHOTO: REUTERS

PETALING JAYA - Malaysian Prime Minister Najib Razak will take legal action against the Wall Street Journal (WSJ) over an article alleging that RM2.6 billion (S$927 million) was transferred into his personal bank accounts from state fund 1Malaysia Development Berhad (1MDB).

Mr Najib's political secretary Muhammad Khairun Aseh told a Malay daily that the report was criminal defamation, The Star news portal reported on Saturday.

"The report was done with bad intention and based on unsubstantiated and dubious sources.

"We will take legal action," he told Sinar Harian.

WSJ published an article on Friday quoting an "unnamed investigator" claiming that almost US$700 million (S$943 million) of 1MDB funds went into the prime minister's personal accounts through government agencies, banks and companies linked to 1MDB.

The newspaper cited documents which it said it had obtained, including bank transfer forms and flow charts prepared by government investigators, as the basis for its report.

The Prime Minister's Office said on Friday that the report was "political sabotage" and an effort to "undermine confidence in our economy, tarnish the government, and remove a democratically elected prime minister".

1MBD also insisted that no funds had been transferred to Mr Najib's accounts.

In a Facebook posting late last night, the Malaysian leader accused former premier Dr Mahathir Mohamad of being behind the latest attack.

"The latest allegation is that I have taken state-linked funds for personal gain. I believe Tun, working hand in glove with foreign nationals, including the now discredited political attack blog Sarawak Report, is behind this latest lie,'' he said.

Mr Najib gave a point-by-point rebuttal of the allegations and claims in the WSJ report, saying it was the latest in a string of attacks designed to force his resignation.

"These attacks began when I refused to implement Tun Mahathir's personal demands. I refused, because I do not believe it is right for Malaysia to be ruled by proxy.

"Tun then created a crisis when he recklessly claimed that RM42 billion was missing from 1MDB, when in fact these are audited debts backed by RM51 billion audited assets," he said.

"It is now clear that false allegations such as these are part of a concerted campaign of political sabotage to topple a democratically elected Prime Minister."

"Let me be very clear: I have never taken funds for personal gain as alleged by my political opponents - whether from 1MDB, SRC International or other entities, as these companies have confirmed,'' he stressed.

"At no point have those making these allegations offered any evidence. All we have heard is that these allegations are based on leaked documents and unnamed investigators. Not once has the source of these documents ever been shown, neither have the documents themselves been provided for verification by lawful authorities."

In a warning to his critics, Mr Najib said those who continue to mount these attacks should be prepared to face the consequences of their actions.

"These gutter tactics - in some cases criminal tactics - to overthrow the government will fail. Where appropriate, they will be met with the full force of the law."

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