Penang UMNO leader lodges police report against 1MDB

Batu Kawan UMNO deputy chief Datuk Paduka Khairuddin Abu Hassan lodged a police report against 1Malaysia Development Berhad (1MDB) for alleged mismanagement of funds by the government-owned agency.

He called for a thorough investigation is needed to address and identify the root of the problem facing 1MDB and its subsidiaries.

"I urge the police to conduct a thorough investigate on the entire administrative staff involved in the seemingly dubious transactions made by the company," he told reporters at the Dang Wangi police district headquarters, Friday.

He stressed that the company transactions have been worrying as it involved a large sum of taxpayers' funds.

"The management of the 1MDB funds involved a large sum of cash. Three former finance ministers have voiced their concerns on this matter," said Khairuddin.

He also questioned where 1MDB received their funding approval -- if the approval came from the Cabinet and which party responsible in making assessment reports on the company's assets.

Khairuddin however, did not lay the blame on Prime Minister Datuk Seri Najib Razak over the issue.

"To me, the matter has got nothing to do with Datuk Seri Najib although he is the Prime Minister and Finance Minister. 1MDB was established by him.

"It's human nature. There are times when the government may have good intentions in setting up 1MDB, but at the same time we may overlook many things. The Prime Minister may not know what is happening in 1MDB," he added.

Khairuddin in his report urged the police to probe into the following:

* The interest rates that was higher than normal rates often paid by 1MDB on borrowers;

* The reason for 1MDB paid an exorbitant fee to the company Goldman Sachs;

* 1MDB's debt which is totaled at a staggering RM41.9 billion;

* The strategy to transfer the company's funds to the Cayman Islands; and

* Other transactions including the purchase of plots of lands including in Air Itam.

According to Khairuddin, all evidence put forth by the media have yet to be denied by 1MDB.

He also said that he will also lodge a police report against the company at the Malaysian Anti-Corruption Commission in Putrajaya, next week.

The 1MDB issue took centre stage after the company was said to be facing a loss of close to RM38 billion.