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Malaysian fund denies reports it provided $700 million to prime minister ahead of 2013 polls

Associated Press
Published | Updated

In this May 14, 2015 photo, construction workers chat in front of a billboard for state investment fund 1 Malaysia Development Berhad (1MDB) at the fund's flagship Tun Razak Exchange development in Kuala Lumpur, Malaysia. 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. (AP Photo/Joshua Paul) (The Associated Press)

In this May 14, 2015 photo, state investment fund 1 Malaysia Development Berhad's (1MDB) Tun Razak Exchange development site is pictured in Kuala Lumpur, Malaysia. 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. (AP Photo/Joshua Paul) (The Associated Press)

In this May 14, 2015 photo, Malaysians pass by a billboard for the Tun Razak Exchange, a development by state investment fund 1 Malaysia Development Berhad (1MDB) in Kuala Lumpur, Malaysia. 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. (AP Photo/Joshua Paul) (The Associated Press)

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.