KUALA LUMPUR - The government of former Malaysian Prime Minister Najib Razak used funds from a central bank deal to pay for some of the liabilities of beleaguered state fund 1Malaysia Development Berhad (1MDB), two sources with knowledge of the matter told Reuters.
Funds from a land sale made by the government to the central bank for about 2 billion ringgit ($502.51 million) were used to pay for 1MDB's obligation to Abu Dhabi state fund IPIC, the sources said.
The ministry had made use of government assets to make several payments to bail out 1MDB, one source said.
The sources did not want to be identified as they were not authorised to talk to media.
The payment from the central bank was first reported on Wednesday by the Wall Street Journal.
The central bank and the finance ministry did not immediately respond to requests for comment.
The news comes as Malaysia's new finance minister said this week that Najib's government had deceived the public and parliament over the country's financial situation and 1MDB.