PARLIAMENT The Finance Ministry has said that the RM170 million from SRC International to Putra Perdana Construction has been returned.
It also revealed that the sum was transferred for the purpose of funding turnkey projects, which were later cancelled.
"For your information, RM170 million that was paid to Putra Perdana Construction was for the purpose of funding a turnkey development project that was later cancelled, and the money was completely returned to SRC," read a parliamentary reply.
The ministry was responding to DAP lawmaker Tony Pua, who had asked the reason behind SRC International channelling the RM170 million to Putra Perdana Construction.
Pua also asked why RM27 million from that amount was deposited into the account belonging to Prime Minister Najib Abdul Razak, who is also finance minister.
To this, the ministry said the former 1MDB subsidiary had no information.
"SRC had no information on the money that was channelled into the finance minister's account.
"And, this was based on a report by a news portal, the source of which could not be ascertained," it added.
In January, attorney-general Apandi Ali had cleared Najib of any wrongdoing with regard to the RM2.6 billion political donation and RM42 million channelled into his bank account from SRC International through its subsidiaries.
He said evidence showed that at all material times, the prime minister was of the belief that the "payments made by him" were made from the Saudi royal family's RM2.6 billion political donation.
However, he inadvertently revealed another transaction when he held up a chart.
Malaysiakini had reported that the company which channelled RM27 million to Najib's AmBank account was incorporated just one month before making the hefty transaction.
The flow chart describing the money trail from SRC International to the account indicated that Permai Binaraya Sdn Bhd made the transfer to the account AmPrivate 1MY (880) on July 8, 2014.
This is barely a month after Permai Binaraya was incorporated, based on Malaysiakini 's checks with the Companies Commission of Malaysia (CCM).
According to CCM records, Permai Binaraya was incorporated on June 6, 2014, and has a paid-up capital of RM400,000.
Meanwhile the RM42 million SRC International transfer was first exposed by The Wall Street Journal and whistleblower website Sarawak Report last July, based on documents reportedly leaked by Malaysian investigators.
According to the documents, RM50 million was transferred from SRC International to its subsidiary Gandingan Mentari, which in turn channelled the sum to another subsidiary Ihsan Perdana.
From this, RM42 million was transferred to the prime minister's accounts.
Najib has repeatedly denied abusing public funds for personal gain, and accused those behind the allegations of conspiring to topple him.