KUALA LUMPUR (April 7): PKR said the Public Accounts Comittee (PAC) report on 1MDB has revealed that the government's risk exposure is estimated at RM20.31 billion, excluding interest payment as at October 2015, should 1MDB failed to pay its loans.

PKR Kelana Jaya MP Wong Chen said the sum is larger than what has been revealed all this while.

"The PAC says the exposure of the government if 1MDB fails is about RM20.31 billion.

"That is a lot of money, when 1MDB said that the federal government don't have to worry, we will sort out the problem. If they cannot sort out the problem, the Federal Government will have to sort it out for them.

"So that will cost the rakyat. This is not a 1MDB's private matter, this is the rakyat money at stake," Wong said.

According to the report, based on the analysis of the Auditor General, the government has given a guarantee amounting to RM5.8 billion, a letter of support for RM13.56 billion and a standby credit of RM950 million.

Wong said that he found that the scope of the PAC's investigation is limited as there are more deals involving 1MDB.

Wong also said the authorities must begin criminal investigations against former 1MDB chief executive officer Datuk Shahrol Azral Ibrahim Halmi.

He said the report has shown that the 1MDB management has in 19 situations not carried out the board of director's orders.

"This is a clear breach of corporate governance; they didn't do it, they did something else, the worst one is they transferred RM700 million out of the 1MDB account," Wong said.

According to the report, the board has in a meeting on Sept 26, 2009 approved to move US$1 billion to the bank account of a joint venture company 1MDB PetroSaudi Ltd to subscribe to 1 billion shares in the company.

But the management has transferred US$700 million on Sept 30, 2009 to an account at RBS Coutts Bank Ltd that belonged to a company not related to the project.