Audit of 1MDB not enough, get the cops involved too, says Dr Mahathir

Tun Dr Mahathir Mohamad says there should be a police forensic investigation into the allegations involving troubled state-owned firm 1MDB. – The Malaysian Insider file pic, March 13, 2015.

There is a need for a police forensic investigation into the allegations against those linked to the controversial 1Malaysia Development Berhad (1MDB), said former prime minister Tun Dr Mahathir Mohamad today, adding that a mere audit is not enough.

"An audit of its financials by the Auditor-General as ordered by Putrajaya earlier this week is not enough to uncover the truth behind the debt-ridden state investment vehicle.

"What is needed is more than the normal audit of the account books. What is needed is a forensic investigation by the police on the accusations made against several people who are involved in managing 1MDB's finances," he said in a blog posting today.

He added that if this was not done soon, the people's support for Barisan Nasional (BN) would continue to fall.

"And when this happens, there is a strong possibility that BN will lose the general election in 2018," Dr Mahathir said.

Last Wednesday, Prime Minister Datuk Seri Najib Razak ordered the Auditor-General (A-G) to "independently verify 1MDB's accounts", with the findings to be passed on to the Public Accounts Committee (PAC).

A-G Tan Sri Ambrin Buang told the press that the national auditor's inspection of 1MDB's account had started, but did not set a time frame to complete the audit.

Dr Mahathir, however, said that appointing the A-G to audit 1MDB's books would not answer many questions posed by the people.

"The allegations made against 1MDB are not rash accusations. It comes with clear facts, that is the amount of debts, who are managing them, who received billions of ringgit, the investments made, where the money is being kept and in what form.

"1MDB had not amassed regular debts like the government's which is just hundreds of millions. 1MDB has billions of ringgit in debt. Although it is not government, it is wholly-owned by the government.

"So the government cannot claim that it is the company's problem and not theirs," Dr Mahathir said in a scathing post about 1MDB today.

He warned the BN-led federal government that if the police investigation is not done soon, the coalition could lose the next general election.

"There is a huge possibility that BN will lose in 2018, despite the fact that all Umno leaders have expressed support, accepted and are satisfied with the explanations given," he said, referring to the gathering by Umno division chiefs to show their support for Najib last weekend.

All 160 of the 191 division chiefs who showed up at the meeting with Najib said they were confident with his handling of the 1MDB issue, that has taken prominence after criticism from Dr Mahathir in recent months.

The Malaysian Insider had reported that Najib had quelled whatever internal dissent brewing over 1MDB, which the opposition claimed could dent the country's finances if the government-owned company defaults on its mountain of debt.

Those who attended the meeting were reported as saying that they were satisfied with Najib’s explanation of 1MDB, the audit reports on its accounts and the company’s finances.

The former prime minister said that he did not know how Najib had explained the controversies surrounding 1MDB, but noted that the allegations should not be dismissed just because they were highlighted by the opposition.

"The explanation that it is mere slander because it was highlighted by the opposition is not enough for the people to reject these allegations.

"The people are still dissatisfied with 1MDB. They talk about it everywhere. And if they are not happy, they might not vote for BN in the next GE and if BN is rejected, there is no meaning to the support expressed by Umno leaders towards their president.

"Remember, the votes of Umno members alone are not enough to win the elections," he said.

- TMI