Any irregularity in 1MDB will be traced - Shahrir

The 1Malaysia Development Berhad's (1MDB) transparency in implementing its objectives should not be questioned because its financial statements are now open for investigation.

Barisan Nasional Backbenchers Club (BNBBC) chairman Tan Sri Shahrir Abdul Samad said in the event of any irregularity, certainly it would not be overlooked by the National Audit Department (NAD) and Public Accounts Committee (PAC).

"The forensic audit being conducted by the authorities will make it difficult for 1MDB to protect its business activities.

"Any dubious measure will be questioned by NAD and PAC which have the authority to question anyone on the company's (1MDB) affairs since its establishment in 2009," he was quoted as saying in the official BNBBC portal Monday.

1MDB, a government-linked strategic development company established in 2009, became the main focus of the media and the public, following allegations of financial mismanagement.

However, Prime Minister Datuk Seri Najib Tun Razak on March 4 directed the auditor-general to independently verify the 1MDB accounts.

"If there is evidence of misconduct, the law will be enforced without exception," said the prime minister.

In the meantime, Shahrir, who is also Johor Baharu member of parliament said 1MDB management was still seen based on the goals and early objectives of its establishment as executor of strategic ideas and having a clear strategy in terms of raising finance and its governance structure.

However, he was quoted in the portal as saying that 1MDB became an issue that was sensationalised because of the strategy of using a specific personality, as well as the involvement of international companies from the Middle East.

"The use of terms such as 'transferring money' (siphoning), 'under investigation' combined with the names of personalities caused 1MDB to become an interesting issue to be debated over," he said.

However, Shahrir pointed out in the portal that in terms of cash flow, the 1MDB account was still stable, and he found there were some facts that were not accurately reported, causing the company to be discredited.

"For the record, 1MDB posted a profit of RM424 million in 2010, RM544 million in 2011, than dropped to RM44 million for 2012, then profits surged again to RM778 million in 2013 but recorded a loss of RM665 million in 2014," he said.

In fact, he added, gross development value (GDV) of the Tun Razak Exchange project was estimated to reach RM26 billion over the next 10 to 15 years while Sungai Besi had a GDV of up to RM35 billion for the next 15 to 20 years.

Despite having assets that ensure long-term profitability, Shahrir is of the view that 1MDB has to review its business plan to move forward.

"Currently, 1MDB must be nurtured as was done by Khazanah Nasional to companies facing problems during the 1997 economic crisis.

"The future environmental situation is difficult, but with help, 1MDB will be able to rise as proven by Khazanah Nasional on the success of various companies before now," he said in the portal.