The Malaysian Anti-Corruption Commission (MACC) found evidence in late 2015 that 42 million ringgit ($10.6 million) was transferred from a former subsidiary of state fund 1MDB into an account of then Prime Minister Najib Razak, but its recommendation for further investigation was rejected by the attorney general, a member of a panel that reviewed the commission's case files told Reuters.

Najib, who was ousted in a shock election loss May 9, has consistently denied wrongdoing in connection with alleged graft involving 1Malaysia Development Berhad (1MDB), and insisted $681 million of funds deposited in his personal bank account were a donation from a Saudi royal. The $10.6 million would be in addition to that sum.

Newly elected Prime Minister Mahathir Mohamad, who was sworn in Thursday, has vowed to investigate the 1MDB scandal and take action against those who may have abetted or benefited from corruption at the fund. At least six countries, including the United States and Switzerland, are investigating claims that $4.5 billion was allegedly siphoned off from 1MDB.