KUALA LUMPUR: An "ethical issue" was created when Prime Minister Datuk Seri Najib Tun Razak accepted the RM2.6bil foreign donation, says Tan Sri Shahrir Samad (BN-Johor Baru).

The Barisan Nasional Backbenchers Club chairman and Johor Bahru MP also said he supported the National Consultative Committee on Political Funding's proposal to ban political donations from foreign sources.

Shahrir added that the Committee, led by Minister in the Prime Minister's Department Minister Datuk Paul Low, should also look into prohibiting non-monetary perks from foreign countries or non-governmental organisations and view it as a form of political funding.

"Its not just money, but material support from foreigners to our Parliamentarians," he said, adding that their integrity had to be protected.

"We will have to wait until they bring (the proposals) to Parliament. I support the direction, but I want to see a more comprehensive proposal.

When questioned further at the Parliament lobby Wednesday, Shahrir agreed that the RM2.6bil donation was an ethical issue.

"You are right in the sense it becomes an ethical issue.

"In the case of Najib, whether it is something bad for the integrity of a leader is subject to debate," he said.

However, Shahrir said that the donation was strictly for political purposes and that Najib had returned the money to his benefactor.

The Committee on Tuesday submitted proposals on political funding in the country, among them was a prohibition on accepting donations from foreign sources.

Attorney-General Tan Sri Apandi Ali had previously cleared Najib of any criminal offence in investigations into the RM2.6bil political donation, saying documents showed it was in fact US$681mil (2.08bil) that was transferred to Najib's personal accounts from the Saudi royal family.

He also said Najib had returned US$620mil (RM2.03bil) in August 2013 as the funds had not been put to use.