(June 2): Datuk Seri Najib Razak should go on leave now while the auditor-general (A-G) is looking through troubled 1Malaysia Development Berhad's (1MDB) books, an opposition federal lawmaker said today.

DAP's Klang MP Charles Santiago said the prime minister should stay away until the A-G cleared him and his family of any involvement in the debt-laden state investment vehicle.

"The Cabinet should advise the prime minister to go on leave till the auditor-general report clears him and his family members of any involvement in the ongoing 1MDB controversy.

"The Cabinet ministers are not under scrutiny here. Najib’s decisions and alleged interests in 1MDB are.

"The Malaysian public have a right to demand that their prime minister practise the highest standards in integrity and transparency in managing the affairs of the state," he said in a statement.

Criticism has been mounting over the Finance Ministry wholly-owned investment vehicle, established in 2009, which has chalked up debts of up to RM42 billion.

Scrutiny has grown more intense following whistleblower site Sarawak Report's exposes, which piled pressure on Najib and prompted opposition politicians, former and current Umno leaders including long-serving former prime minister Tun Dr Mahathir Mohamad, and anti-graft groups to demand a thorough investigation into the fund.

The A-G is currently looking through 1MDB's books, with a preliminary report expected to be submitted to Parliament in June, while Parliament's Public Accounts Committee (PAC) started its investigation into the company two weeks ago.

Santiago also warned that 1MDB’s high debt exposure had the potential "to rock" the financial sector.

"Its financial dealings are non-transparent. Its loan repayment is based on more borrowings and business and investment decisions smack of vested interests," he said, citing the company's alleged failures.

"In short, these are all traits of a failed company that should be sent to the intensive care unit.

Therefore, Najib had no standing to threaten his Cabinet ministers, he said.

Utusan Malaysia reported yesterday that Najib had issued an ultimatum to his Cabinet, telling ministers to resign if they did not support him over the rehabilitation of the state fund.

This however was denied by Culture and Tourism Minister Datuk Seri Nazri Aziz, who told The Malaysian Insider that Naijb practised inclusivity and wanted consensus from his Cabinet colleagues. – The Malaysian Insider