The RM2.6 billion donation to prime minister Datuk Seri Najib Razak's personal account came from Saudi Arabia, said an Umno division leader.
Malaysiakini quoted Umno Kuantan division chief Wan Adnan Wan Mamat as saying in a Sinar Harian report that the money was a form of appreciation to Malaysia for "championing Islam" and fighting militant group Isis.
"It was an appreciation to Malaysia for championing Islam and for practising Sunni Islam (Ahli Sunnah Wal Jamaah)," Wan Adnan was quoted as saying.
The report stated that the funds were also in appreciation of Malaysia's effort to combat Isis.
Wan Adnan claimed Najib said this to 146 Umno divisional leaders at a meeting last Wednesday.
"Not only Malaysia received the donation from Saudi Arabia, two or three more countries also received, including the Muslim community in the Philippines and (Southern) Thailand," Wan Adnan was further quoted as saying during the opening of the Umno Kuantan division meeting yesterday.
He said Najib had explained that the funds went to his personal accounts as the donation from Saudi Arabia was made to Najib and not to the party.
He also said all Umno division leaders were satisfied with the explanation, adding that they did not want the matter to drag on.
Najib has come under fire over the RM2.6 billion from both the opposition and within his own party, especially his deputy Tan Sri Muhyiddin Yassin, whom he axed from the cabinet late last month.
The prime minister recently claimed he had been cleared by the Malaysian Anti Corruption Commission (MACC) of corruption over the US$700 million or RM2.6 billion in his personal accounts, which he reiterated was on behalf of Umno, of which he is president, and not for his personal use.
The anti-graft agency had announced that the money was not from state strategic investor 1Malaysia Development Berhad (1MDB), but instead came from a Middle Eastern donor.
Allegations of RM2.6 billion in Najib's accounts first surfaced in a report by The Wall Street Journal (WSJ) on July 2, citing documents from Malaysian investigators.
WSJ said the source of the funds were unknown, but came through 1MDB-linked entities in various tranches, the largest of which – US$681 million – was channelled to Najib's accounts in March 2013, ahead of the general election in May that year.
A few of Najib's Cabinet members had previously said that there was nothing wrong in money being funnelled into his personal accounts as he had the capacity to be a trustee for Umno.
Umno secretary-general Datuk Seri Tengku Adnan Tengku Mansor said today he and the party treasurer knew of the existence of the RM2.6 billion, reported The Star Online.
The portal reported him saying the matter had been "repeatedly explained".
"We have repeatedly explained this issue. As the secretary-general, I am aware of it and so is the party treasurer," he was quoted as saying in his speech during at the Umno Setiawangsa division meeting. – August 16, 2015.