Amanah Raya Berhad (ARB) has denied lending RM2 billion to troubled government entity 1MDB

Its chairperson, Reezal Merican Naina Merican said today the allegations by Tanjong MP Ng Wei Aik were malicious and meant to damage ARB's credibility.

"I wish to state clearly that ARB has not issued a loan for that amount and the agreement as stated (by Ng) and has never been brought to the ARB board of directors, which I chair, for approval," Reezal said in a statement today.

"I will order immediate legal action be taken against this insolent and malicious attack by Ng. I will not let this slander slide by," he added.

Ng had claimed at a press conference at Parliament's lobby today that ARB had loaned RM2 billion to 1MDB at an interest rate of four percent per year.

Citing sources, he also claimed the loan was only approved when Reezal Merican, who is also Umno's Kepala Batas MP, took over at ARB.

Reezal however dismissed the allegations, saying there were no backing documents.

"Ng as reported, failed to present any document to back up his claim," he said.

In a separate statement, 1MDB president Arul Kanda said his company has never had any dealings with ARB.

"There is no truth in the claim by an opposition MP that 1MDB has taken a RM2 billion loan from ARB

"1MDB has never had any financial dealings, including borrowings, with ARB," he said.