KUALA LUMPUR (Dec 13): Malaysian strategic investment firm 1Malaysia Development Bhd (1MDB) will welcome any investigation into its affairs, which is now the subject of a police report yesterday and a festering controversy among opposition politicians.

The issue of 1MDB's finances and business also made it to the Cabinet's weekly meeting which was chaired by Deputy Prime Minister Tan Sri Muhyiddin Yassin on Wednesday as Prime Minister Datuk Seri Najib Razak is abroad on official business. The PM is chairman of the 1MDB board.

“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,” according to a press statement issued by 1MDB in capital Kuala Lumpur yesterday night.

Penang's Batu Kawan Umno division leader Khairuddin Abu Hassan lodged the police report at the Dang Wangi district police headquarters in Kuala Lumpur, saying he was "suspicious" and doubted the financial management of 1MDB, which he noted was not transparent.

Calling for a “detailed and comprehensive” investigation, Khairuddin urged authorities to interrogate 1MDB’s directors, and representatives of any company that might be implicated.

He said he lodged the report against the company and its board of directors after studying various reports in national and international print media and online media that “clearly proved” that there were weaknesses in 1MDB’s management of taxpayers’ funds.

1MDB also failed to be convincing in countering these allegations of impropriety, he said.

“As a responsible citizen,” he said, “I am anxious and worried over the very opaque manner of 1MDB’s management of its funds.

“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."

The Umno leader also said that he would lodge another report against Najib, who is also the finance minister, should no action be taken.

1MDB, which is Najib's brainchild, had recently come under much scrutiny after several opposition leaders highlighted the fund's massive debts, dubious land deals and secrecy over its transactions.

Former prime minister Tun Dr Mahathir Mohamad, also one of 1MDB's fiercest critics, asked Putrajaya to explain how 1MDB benefitted Malaysians, as it incurred a RM38 billion debt within just five years of its operations.

Dr Mahathir also hit out at Najib and other Umno leaders for failing to address the controversies surrounding 1MDB at last month's Umno general assembly.

1MDB is in the process of listing its power assets and is also involved in the Bandar Malaysia and Tun Razak Exchange property developments in Kuala Lumpur.