The Malaysian Anti-Corruption Commission (MACC) has found that the RM2.6 billion purportedly deposited into Prime Minister Najib Abdul Razak's personal banks accounts came from donation.
"The investigation report related to the RM2.6 billion has been referred to the attorney-general.
"Investigations have found the RM2.6 billion which was allegedly deposited into the prime minister's accounts is the contribution of donors and not from 1MDB funds," said the commission in a statement.
MACC's statement comes amidst hints by BN leaders in recent days that the RM2.6 billion might have been donations.
BN strategic communications director Abdul Rahman Dahlan had said that Najib, as Umno president, is allowed by the Umno constitution to act as a trustee for the party.
Following this, Umno supreme council member Azalina Othman said there was nothing wrong with political parties receiving foreign funding .
Najib himself spoke about political funding as well, pledging to disclose Umno's source of funding if DAP did the same .
Three companies in the clear?
Earlier today, PKR secretary-general Rafizi Ramli predicted that Putrajaya might claim that the RM2.6 billion was funded by well-heeled Middle Eastern figures.
Questions about Najib's bank accounts arose from the Wall Street Journal report on July 3.
Quoting Malaysian investigators, WSJ said that RM2.6 billion was traced to Najib's private accounts which have since been closed.
The report claimed that US$681 million was transferred into Najib's bank accounts in two tranches in March 2013, two months before the general election.
The money originated from a Tanore Finance, incorporated in the British Virgin Islands.
The WSJ said another three tranches involving RM42 million were transferred from SRC International into Najib's accounts.
SRC International is owned by the Finance Ministry, which Najib heads.