(July 15): DAP today accused Datuk Seri Ahmad Husni Hanadzlah of having "blatantly lied" over the auditor-general's 1Malaysia Development Berhad (1MDB) preliminary report after declaring that no evidence of wrongdoing was found against the debt-ridden firm.

Expressing shock over the second finance minister's statement, DAP national publicity secretary Tony Pua, one of Parliament's Public Accounts Committee (PAC) members to whom the A-G had forwarded the interim report, said the A-G never cleared the transfer of US$700 million in the report.

Instead, he said, the transaction raised many suspicious questions which the National Audit Department said it needed to investigate further before making final conclusions.

"What is worse, however, is the fact that the minister blatantly lied about the findings in the A-G's report.

"While I will continue to refrain from referring to the specifics of the interim report, any normal person reading the report will be stunned by the sheer number and scale of infractions and transgressions committed by 1MDB and its officers cited in the report.

"Hence it boggles the mind as to why Ahmad Husni saw it fit to make the unilateral announcement that the A-G 'found no evidence of wrongdoing' to create the false impression that 1MDB has been cleared of all its alleged shenanigans," Pua said in a statement.

Husni yesterday said the preliminary report found no evidence of wrongdoing by 1MDB or proof that US$700 million went to a "certain individual".

"The reckless allegations by some parties, including the disappearance of RM42 billion and transfer of US$700 million to certain individual does not arise," he had said in a statement released in Kuala Lumpur.

"It is my hope that all baseless allegations will be put to rest. We have to remain patient and look forward to the final report by the A-G and the PAC."

Pua today said he was encouraged by the efforts made by the National Audit Department to discover the truth, despite 1MDB’s lack of cooperation.

The PAC previously said 1MDB had yet to submit more documents for the government audit.

"At the end of the day, after reading the interim report, I am now convinced that all the lies, denials, mismanagement and misappropriations by 1MDB and all who are involved in the decision-making process will be duly proven and exposed," Pua said.

The audit on 1MDB was ordered by Prime Minister Datuk Seri Najib Razak earlier this year following public outcry over the firm’s RM42 billion debt incurred in just 6 years.

1MDB is also mired in controversial deals such as overpaying for power asset purchases and buying land cheaply from the federal government.

More recently, it has been linked to an election funding scandal, where other companies linked to it had allegedly funnelled billions of ringgit into Najib's personal bank accounts.

The interim audit was started in March and completed by end-June before being presented to the PAC last week.

PAC chairman Datuk Nur Jazlan Mohamed said that 1MDB had yet to submit bank statements and signed agreements to the A-G despite requests from the department.

"The A-G has told us that they are still facing hindrance as some documents have not been submitted," he said last Thursday.

1MDB previously said that it had been giving full cooperation to the authorities scrutinising its accounts.

Nur Jazlan said it was too early to draw conclusions based on the report, adding that there would be more follow-up questions for 1MDB's former and current bosses.

The audit also examined the controversial joint venture with PetroSaudi International and the process of 1MDB's formation as a company.

The final audit, which will include examinations of 1MDB's real estate and energy arms, is due end of the year.

1MDB, Najib's brainchild, was formed in 2009 to drive up federal investments. It ventured into real estate, energy and various other investments overseas. – The Malaysian Insider