(August 4): The Malaysian anti-graft agency's clearance of RM2.5 billion in Datuk Seri Najib Razak's personal accounts as donations and not corruption has only raised more questions which the prime minister must explain, says Penang Chief Minister Lim Guan Eng.

Despite the Malaysian Anti-Corruption Commission's (MACC) announcement that the money did not come from troubled investment fund 1Malaysia Development Bhd (1MDB), Lim said Najib had several questions to answer.

"Najib must come out and clarify. Number one, where are his money sources?

"Number two, the quantum is shocking. The amount is not chicken feed. It is huge.

"Number three, (former prime minister Tun Dr) Mahathir Mohamad has said he never put (political funds) in his own accounts, so why did he (Najib) put in his? That is not right," Lim said when asked to comment on the issue.

Claims that Najib received US$700 million (RM2.6 billion) in his personal accounts were first reported by The Wall Street Journal last month, which added that it did not know the source of the money.

Najib has only denied taking 1MDB funds for personal gain but did not address the transfers into his account. The MACC's statement last night also did not state where the donation was from

In the run up to the MACC's announcement  that the RM2.6 billion was from donors, several Umno leaders last week raised the issue of political donations, challenging the opposition, in particular the DAP, to come clean on their funding sources.

Najib, in a speech to Umno grassroots over the weekend, had also challenged opposition parties to reveal their source of donations if Barisan Nasional were to do the same.

Lim, who is also DAP secretary-general, today said the party "had nothing to hide" regarding political funding reforms, following recent accusations by Putrajaya that the opposition party was a stumbling block to such initiatives by not wanting to disclose who its donors are.

"Nothing to hide. No problem.

"But don't tell me people buy tickets at RM20, RM50, RM100 (at fundraising events) and you want us to tell you who they are.

"We are not going to do that. Come on, that is not fair," Lim said.

Lim, who was attending a Hari Raya open house at the Penang Development Corporation (PDC) lobby this afternoon, earlier said in his speech that the state investment arm should understand the difference between donations and corruption.

"Only then can we convince the people and investors that we have a conducive environment for business, and to make Penang a manufacturing and services hub," he said. – The Malaysian Insider