The Umno supreme council has decided the government should cease funding the Perdana Leadership Foundation, which is led by former prime minister Dr Mahathir Mohamad.

Umno president Najib Abdul Razak said this was after the party’s Youth wing suggested that the government do so.

“The supreme council has asked that to government cease any kind of financial funding for the Perdana Leadership Foundation, be it allocation for maintenance or for employees.

“(This is) because the foundation was used as a centre to topple the government by unconstitutional means while the government was chosen democratically," Najib said at a press conference at the Umno headquarters in Kuala Lumpur today.

Therefore, Najib said, it was not proper for the government to continue funding the foundation.

“Employees will be given the appropriate termination notices,” he added.

Earlier, supreme council member Reezal Naina Merican confirmed that the issue was discussed during the meeting at the party's headquarters this evening.

This was after Umno Youth vice-chief Khairul Azwan Harus suggested the government stop all financial assistance to the foundation.

Reezal said while criticism against Umno was accepted, one must not cross the line.

"The moment you go completely against (this) principle, there must be action.

"There must be some kind of a reaction from the party or else we will be seen as being impotent," he added.

This afternoon, Mahathir, in a blog post, said he had no qualms with funding being cut for the foundation.