More than US$ 1 billion was transferred into Malaysia PM’s accounts

“This has been reiterated by multiple lawful authorities including the Malaysian Anti-Corruption Commission, the Malaysian Attorney General, and various reputable global publications, who have confirmed that these funds came from Saudi Arabia”, it said in an email response.

Last year, Mr Lim called for a grand coalition between opposition leaders and those against Mr Najib from Barisan Nasional (BN), calling it a campaign – a slogan that has recently been adopted by Dr Mahathir.

Probes into the fund’s finances have been opened in Malaysia, the United States, Switzerland, Hong Kong, Singapore and Abu Dhabi, the Wall Street Journal said.

Najib has been tightening his grip over UMNO, amid growing calls by detractors in the party, and the opposition, for him to step down over allegations of graft at 1MDB and revelations of the transfer of funds into his bank accounts.

“I feel embarrassed that I am associated with a party that is seen as supporting corruption”, he told a news conference.

“The focus of UMNO is on how to keep Najib as prime minister, how to keep him in power”, Mahathir said.

Ibrahim Suffian from Merdeka Center, an independent opinion polling firm, said Mahathir’s exit will have limited short-term impact on Umno.

Mahathir said he will not be joining any other party because he is “Umno at heart”. The ex-premier now intends to align himself with a group of Malaysians set on seeing Najib removed from his position.

Mr Najib has been urged to sue WSJ to clear his name over the earlier allegations but his lawyers said he would not be able to obtain damages because of the American Speech Act which prevented enforcement of any judgment obtained in a foreign court.

MIC president Datuk Seri Dr S. Subramaniam said the former UMNO president had the right to make his own decision.

This would not be the first time Mahathir has quit the party – he also left UMNO in 2008 when the party was helmed by then Prime Minister Abdullah Ahmad Badawi, whom he was also not on good terms with.