KUALA LUMPUR (April 7): The Public Accounts Committee (PAC) has called upon the authorities to study the report it tabled in Parliament on 1Malaysia Development Bhd (1MDB) "very carefully" and to carry out the necessary investigations.

"The PAC calls upon the authorities to study the report very carefully, and carry out the necessary investigations. The law must be exercised, if any wrongdoing is found," said PAC chairman Datuk Hasan Arifin in a statement.

He further said that the PAC found the troubled strategic investment fund has a weak capital structure, with several of the weaknesses of the management outlined in the PAC report.

"The PAC admits that 1MDB has a weak capital structure, and there are several governance weaknesses outlined with details in the report. The PAC also found that 1MDB's capital structure is too reliant on borrowings," said Hasan.

He explained that the PAC report is based on a report prepared by Jabatan Audit Negara, following the cabinet's decision to launch an investigation into the management of the fund.

"The report provides a summary and suggestions to the government, relating to the management of 1MDB," he said.

The PAC has called up the various parties involved in the issue, including the Ministry of Finance, Economic Planning Unit, board of directors and top management of 1MDB, and its auditors.

He added that the committee views positively the rationalisation plan for 1MDB and the steps taken by the government, within a short time period, to address issues faced by the company.