The former prime minister of Malaysia, Dr Mahathir Mohammed, is to escape prosecution over a lavish gift of hardwood to Zimbabwean president Robert Mugabe, which was used to build his M$9m palatial home.

The news of the gift, worth around M$28,000, had been strongly criticised in Malaysia, with the opposition leader saying the gesture was “indefensible”, given the Zimbabwean’s dictatorial reputation.

Malaysia’s parliament ruled that the gift was a token of respect and recognition to president Mugabe from the Malaysian government. Although the country’s own rules allow no more than M$80 to be spent on a senior official, there is no limit governing gifts to heads of state or government