Saudi Arabia says $681m was 'gift' to Malaysian PM

The $681 million transferred to Malaysian Prime Minister Najib Razak's bank account was a "genuine donation," Saudi Arabia has said. 

Corruption allegations were brought against Razak when details of the transfer were discovered last year; however the embattled prime minister was later cleared of charges by Malaysia's attourney general in January.

Saudi Foreign Minister Adel al-Jubeir hoped to end speculation about the matter when he addressed the issue at the summit of the Organisation of Islamic Cooperation in Istanbul.

"It is a genuine donation with nothing expected in return," Jubeir said.

"And we are also fully aware that the attorney general of Malaysia has thoroughly investigated the matter and found no wrongdoing," he added. "So, as far as we are concerned, the matter is closed."

Although Malaysia has claimed that the money was donated to help combat extremism, comments from Riyadh have done little to allay rumors of foul play.

In February, Jubeir was quoted by the New York Times as having said that he believed the funds "went to an investment in Malaysia", however the minister did not confirm whether the transfer was a gift.

At present, the Malaysian government is also battling allegations that billions of dollars were usurped from the 1 Malaysia Development Berhad (1MDB) state fund.

While huge Saudi donations to neighbouring and Muslim countries are not uncommon, the discovery that such a large amount was in the Malaysian leader's bank account gave impetus to opposition groups calling for his resignation.

With a current deficit of roughly the same amount, Saudi Arabia is thought to have spent around $100 billion in the last three decades in trying to spread its brand of conservative Islam around the world.