Umno division chief files police report against 1MDB

KUALA LUMPUR: An Umno divisional leader has lodged a police report against 1MDB and its subsidiaries, alleging “questionable” business, investment and fund raising transactions and decisions.

According to reports, Batu Kawan Umno deputy chief Khairuddin Abu Hassan called for “detailed and comprehensive” investigations in his report at the Dang Wangi police station, such as the interrogation of 1MDB’s directors and representatives of any companies implicated.

Said to be backed by powerful forces in the party, his decision to lodge the report came after studying various reports in both national, international and online media, which “clearly proved” weaknesses in 1MDB’s management of taxpayer funds.

He was also dissatisfied with the state investor’s failure to convincingly counter allegations of impropriety.

“As of March 2014, 1MDB is burdened with debts to the tune of RM41.9 billion, bearing the risk of bankruptcy and the loss of public funds. This will burden the Malaysian Government as 1MDB’s guarantor,” Khairuddin added.

In response, 1MDB statement have issued as statement as follows:

"We are aware that a police report concerning 1MDB was filed earlier today by a politician in Penang.

We have not seen any documentation related to this, so are unaware of the nature of the complaint.

However, we are confident that it will have no legal basis. We welcome any investigation into our affairs and the opportunity to rebut malicious allegations."