1MDB audit begins

PUTRAJAYA: The Auditor-General's Department has started its audit on 1Malaysia Development Berhad (1MDB) following orders from the Cabinet to scrutinise the state-owned investment arm's accounts last week.
Auditor-General Tan Sri Ambrin Buang said the department will gather as much information as possible in an independent and professional manner, including calling up Prime Minister Datuk Seri Najib Abdul Razak (who is 1MDB advisory board chairman) if necessary.
"We hope those involved in the investigation will give their full cooperation whenever necessary," he said, adding that the auditing process would not only be confined to the accounts of 1MDB, but also include the assets, liabilities, corporate governance and equities.
"The audit will be done transparently and professionally," he told a press conference at his office here.
However, he was unable to say how long it would take to conduct the audit and submit the full report to the Public Accounts Committee (PAC).
"We will do whatever is necessary to get information within our means," he said.
Ambrin said he had recently met with 1MDB chief executive officer Arul Kanda, who has given his assurance to cooperate with the investigation.
Asked if the audit would also include expertise from outside the department, he said he would do whatever that is necessary "even if we have to bring in people from outside".
He said the audit investigation will be done holistically within its jurisdiction, including asking for emails from 1MDB and getting whistle-blower website Sarawak Report to assist in the probe.
The strategic investment fund has been embroiled in controversy over its financial dealings and debts, with many questioning whether public funds had been misused, in the wake of claims that 1MDB's financial position has been deteriorating, with total debts amounting to RM42 billion.
On March 4, Najib had called for the auditor-general to verify 1MDB's accounts, and the same call had been made by PAC earlier, calling for an immediate investigation.
On Monday, Inspector-General of Police Tan Sri Khalid Abu Bakar announced that a special task force comprising the police, Attorney-General's Chambers and Malaysian Anti-Corruption Commission (MACC) had been formed to probe 1MDB.
Today, he clarified that police will only begin investigations if the audit uncovers any discrepancies, reported Bernama.
He said police will speak to all whom “we believe can help shed light ... the focus will be on the decision makers in the company”.
He also cautioned all parties against lodging reports about 1MDB without any basis. “We will act against those who deliberately impose on our time.”
MACC chief commissioner Tan Sri Abu Kassim Mohamed had on Monday said it will initiate an investigation on 1MDB as soon as the full audit report has been done by the Auditor-General's Chambers.
Calls for a probe into 1MDB has been going on for years, with various parties questioning the management on issues such as the RM2 billion used to settle 1MDB's loan with local banks, and its funds deposited in the Cayman Islands.