Former prime minister Najib Abdul Razak has declined to comment on the arrest of his former spy chief Hasanah Abdul Hamid and allegations that she was involved in the misappropriation of US$12 million.

"Let the MACC investigate. Let her deal with her lawyer," Najib told reporters when met after attending a Merdeka Day picnic in Kuala Lumpur today.

Hasanah and seven others, including her former deputy, are currently being probed by graft-busters over the US$12 million, which was brought in prior to the 14th general election.

Sources told Malaysiakini that the funds were received from the Middle East.

During a special press conference yesterday, MACC deputy commissioner (operations) Azam Baki said a total of US$6.3 million was seized during their probe and that another US$5 million was still being sought.

A total of US$4.07 million of the amount seized thus far was found in a Cyberjaya condominium following the arrest of a businessperson said to be the "go to" person for the suspects.

Besides the misappropriation of funds, Hasanah is also being investigated by police over a letter she wrote to the CIA asking for US support for the BN in the 14th general election.

Najib has distanced himself from the letter, saying he had never seen it nor asked for it to be penned.

Hasanah was former Research Division head at the Malaysian External Intelligence Organisation, an intelligence unit under the Prime Minister's Department.

Meanwhile, Umno supreme council member Lokman Noor Adam claimed to have received information that indicated a possible sabotage attempt against Hasanah.

Lokman, who was also at the picnic, said he was informed that the letter in question had been written by Hasanah's former staff, when she was still head of the MEIO.

"For me, if the spy chief (Hasanah) really wrote a letter to the CIA, that is an unforgivable offence and must be investigated.

"But I received information from 'her side' that her staff had played her out," said Lokman.

However, he did not provide any proof to his claim.