The Wall Street Journal reported on July 3 that investigators had discovered nearly USD 700 million had moved through government agencies, banks and companies linked to 1Malaysia Development Bhd (1MDB) before ending up in Najib's personal accounts.
The report created a storm of controversy in Malaysia with the prime minister dismissing the WSJ report as "political sabotage" and threatening possible legal action, while 1MDB denied any wrongdoing, saying it had not transferred any funds to the premier.
"These criminal acts are very serious and raise national security implications," said the police chief in the statement.
"We are therefore duty bound to conduct a fully independent investigation. This will include investigating all members of the special task force..."
"The Royal Malaysia Police have not eliminated the possibility of a conspiracy to subvert Malaysia's democratic process and topple the prime minister," he added.
The task force is made up of the police, the Malaysian Anti-Corruption Commission, the Attorney-General and Malaysia's central bank.
1MDB was launched in 2009 by Najib, who still chairs its advisory board. Critics say it has been opaque in explaining its dealings.
It is reeling under an estimated $11 billion debt, which has weighed on the Malaysian currency, the ringgit, amid allegations of mismanagement and murky overseas transactions.
1MDB is facing multiple investigations. Under pressure, Najib earlier this year ordered the auditor-general to examine 1MDB's books. Its full report has not yet been released.
Both Najib and 1MDB have said that previously leaked documents had "reportedly" been tampered with, and that the documents cited by the WSJ had not been verified.
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