Prime Minister Datuk Seri Najib Tun Razak should take legal action against The Wall Street Journal (WSJ) over the allegation on the issue of 1Malaysia Development Berhad funds so as to clear his name and to safeguard the country's image, said Home Minister Datuk Seri Dr Ahmad Zahid Hamidi.

He said the disclosure by WSJ that almost US$700 million (RM2.6 billion) had been deposited into the private bank account of Najib was an allegation which touched on the dignity of the national leadership.

"As an influential and respected international media institution, WSJ should furnish firm evidence before making a serious accusation in a report.

"WSJ's action, which preceded the ongoing investigation, is definitely aimed at sensationalising the news," he said.

Ahmad Zahid spoke to reporters after handing over contributions to Hilir Perak Police personnel at the Hilir Perak District Police headquarters here today.

The minister said the person responsible for disseminating what he claimed was inaccurate news must assume full responsibility, and legal action would be taken by the authorities in this country.

"As we are all aware, the Attorney-General and the Public Accounts Committee are investigating the 1MDB issue. As such, all quarters must wait for the outcome of the investigations before making any evaluation.

"We leave it to the prime minister to discuss with his lawyers or the Attorney-General, which can be done in his capacity as an individual or as the prime minister," he said.

Ahmad Zahid said his ministry would take action under the law against the media which published inaccurate information or information from invalid sources, with the aim of tarnishing the dignity of the government and country.

He said the banking laws were subject to the Banking and Financial Institutions Act (BAFIA).

"Information regarded as banking official secrets should not be divulged, what more if the news comes from documents which were not validated by the banks. This is outside the purview of journalism ethics," he said.