Malaysia's Prime Minister Najib Razak attends a presentation for government interns at the Prime Minister's Office in Putrajaya, Malaysia, on July 8, 2015
Olivia Harris—Reuters
By Charlie Campbell
August 4, 2015

Malaysia’s embattled Prime Minister Najib Razak has been effectively absolved of misconduct in an ongoing corruption scandal, after the country’s anticorruption agency ruled that the almost $700 million found in his personal bank accounts were legitimate “donations.”

However, the agency did not reveal who donated the funds or their purpose.

A Wall Street Journal report early last month alleged that Najib received the funds from 1Malaysia Development Bhd, or 1MBD, a state investment fund set up by his government in 2009 that is currently wallowing in $11 billion of debt.

Najib, who acted as chairman of 1MBD’s board of advisers, and is also Finance Minister, strongly denies any malfeasance and has threatened legal action against the newspaper. The Journal stands by its story.

Some analysts believe that the scandal could bring down the Southeast Asian nation’s government. Najib has been in office since 2009 but some of his strongest erstwhile backers, including longtime former Prime Minister Mahathir Mohamad, have recently withdrawn their support.

Last week, Najib sacked his deputy and Malaysia’s attorney general in an apparent attempt to shore up his beleaguered administration.

Write to Charlie Campbell at charlie.campbell@time.com.

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