Ordinary citizens converged on the capital's historic heart, many of them defiantly wearing the yellow t-shirts - banned by the government - of Malaysia's leading pro-reform movement for the beginning of a planned two-day rally.
But early arrivals were encountering roadblocks set up at key points and manned by a heavy security presence determined to thwart plans for an overnight occupation of the capital's central Independence Square.
The revelation, brought to light by the Wall Street Journal last month, has angered many Malaysians, including members of Najib's ruling party, already fed up with recurring government graft scandals.
"We want to show Najib that a lot of people don't want him," said Sheila Devaraj, 58, a retired school teacher.
Echoing the concerns of many, she complained of rising prices, worries over economic growth and the nation's plummeting currency.
"The (Najib) scandal is an insult that adds to all our sufferings," she said, dressed in yellow.
There were no incidents reported as of early this afternoon.
Tensions have escalated in recent days, with police and Najib calling the rally provocative and disrespectful as Malaysia prepares to celebrate National Day on Monday, with ceremonies also set for Independence Square.
"Don't they understand? Are they that shallow and poor in their patriotism and love for their motherland?" Najib was quoted saying today by state-run Bernama news agency.
Najib had earlier said National Day should not be used as "a stage for political disputes".
"The government of Malaysia should listen to the concerns of its people," the corruption watchdog's Chairman Jose Ugaz said in a statement today.
Najib's cabinet ministers say the money transfers were "political donations" from unidentified Middle Eastern sources. They say there was nothing improper, but no further details have been given.
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