Malaysia's state investment fund 1MDB says it has never provided any funds to Prime Minister Najib Razak, denying reports that entities linked to the fund had funneled $700 million ($2.6 billion) into Najib's personal accounts.

1MDB, which has accumulated 42 billion ringgit ($11.2 billion) in debt, is currently under government investigations for alleged impropriety. The Wall Street Journal and the Sarawak Report online news portal reported that investigators have traced some $700 million wired into Najib's bank accounts ahead of general elections two years ago.

In a statement Friday, 1MDB said it "wishes to make clear that the company has never provided any funds to the prime minister." It said the reports were "highly irresponsible."

1MDB's huge debt has raised fears a possible bailout could leave the government bankrupt.