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Najib has consistently denied wrongdoing in dealings with 1MDB. He said the amount is a drop in the ocean compared to some 50 billion ringgit ($12.4 billion) of losses related to the defunct 1MDB investment fund set up by Najib, including from alleged outright theft and loans used to hide the graft.

The party is set to hold an election for party president on Saturday, after Najib stepped down as UMNO chief following the election defeat. I am inviting others to work together with the new leadership in translating Umno transformation.

The exclusive report states that the freezing of bank accounts belonging to Umno's central and state chapters could be linked to this money trail which investigators are trying to establish.

Police said earlier this week that they seized cash amounting to $226 million and luxury items worth $273 million from Najib's premises in connection with the 1MDB probe.

He declined to say who the unoccupied apartment belongs to, saying the investigation is ongoing.

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Najib's arrest was in relation to a probe into SRC International, a former 1MDB unit, a task force investigating the fund said. Police also separately took 150 handbags and valuables from an apartment occupied by Najib's daughter, he said.

Anti-graft agents picked up Najib from his home after serving him with a remand order, two sources close to the family said.

Najib and his wife have been barred from leaving the country.

He said government debt had ballooned to more than 1 trillion ringgit (US$251 billion) and that the Finance Ministry had bailed out 1MDB by paying almost 7 billion ringgit (US$1.76 billion) to service its debts since April 2017, contrary to 1MDB's claim that the money was from a rationalization exercise.

"Indeed, the smooth election is a manifestation of Umno members who love the party and want the party to recoup to remain relevant on the nation's political stage", he said in a statement here last night. Arul joined 1MDB in 2015 to turnaround the debt-laden state fund.