A task force investigating Malaysia`s troubled state investment fund 1MDB said on Tuesday it had frozen half a dozen bank accounts following a media report that nearly $700 million had been transferred to an account of Prime Minister Najib Razak.
The Wall Street Journal (WSJ) reported last week that investigators probing the debt-laden 1MDB had traced nearly $700 million to bank accounts they believed belonged to the prime minister.
Reuters could not independently verify the WSJ report.
Najib has denied taking any money from 1MDB or any other entity for personal gain, and is considering legal action.
The special task force said it had frozen six bank accounts in relation to the allegations, but it did not specify whose accounts they were or the banks involved.
The team also took possession of documents related to 17 accounts from two banks to help with the investigations.
Former prime minister Mahathir Mohamad, who was once Najib`s patron and remains highly influential, weighed into the scandal on Tuesday saying Najib had shamed Malaysia.
“Truly, the one who shamed the country is Najib with his 1MDB. Prior to this, the country has never been insulted by unanswered allegations, unlike now,” Mahathir said in a blog.
Malaysia`s longest-serving prime minister has repeatedly demanded Najib account for the disappearance of billions of dollars borrowed by state fund 1MDB, or resign.
The attorney-general said on Saturday he had received documents from the investigating task force that are “connected to allegations” money was transferred into the prime minister`s account.
