KUALA LUMPUR (Mar 25): The police have reached out to the Malaysian Anti-Corruption Commission (MACC) following the reports lodged by Umno member Datuk Seri Khairuddin Abu Hassan on debt-ridden 1Malaysia Development Bhd (1MDB) to prevent an overlap of investigation.

Home Minister Datuk Seri Ahmad Zahid Hamidi confirmed that the police is investigating the strategic state investor after receiving the police report lodged by the former Batu Kawan Umno division vice-chairman.

He said the case is classified under Section 409 of the Penal Code which provide for jail term between two and 20 years, fine and whipping if found guilty of criminal breach of trust by a public servant or agent.

"Since Khairuddin has also lodged a report with the MACC against 1MDB at the same time, the police is currently in the process of obtaining feedback from MACC on the status of their investigation to prevent an overlap probe into 1MDB," he said in a written reply to R. Sivarasa (PKR-Subang).

In December last year, Khairuddin had lodged a police report against the firm, calling for a “detailed and comprehensive” investigation, urging authorities to interrogate 1MDB’s directors and representatives of any company that might be implicated in its scandals.

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

A month later, he lodged a similar report with MACC, urging the anti-corruption body to look into reports of alleged mismanagement in the sovereign wealth fund.

Khairuddin, however, was subsequently sacked from his division post in February, after being declared a bankrupt in May last year by the Malaysian Insolvency Department.

It is learnt that his party received a report on his bankruptcy in December.

According to the Umno Constitution, Rules 8.4 and 28.9 state that a bankrupt will be automatically disqualified from holding or contesting any position in the party.
Section 9A(1)(d) of the Societies Act 1966 also states that an undischarged bankrupt cannot hold any office in any society.

Besides Khairuddin, other Umno members have also taken 1MDB to task – the most prominent critics being former prime minister Tun Dr Mahathir Mohamad and former finance minister Tun Daim Zainuddin.

Parliament's Public Accounts Committee (PAC), which is headed by an Umno MP Datuk Nur Jazlan Mohamed, has also asked the auditor-general to conduct an audit of the troubled firm before the PAC itself probes 1MDB.

Prime Minister Datuk Seri Najib Razak then ordered the auditor-general to look at 1MDB’s books, saying that the A-G report would be passed for transparency inspection to the PAC, which is fully bipartisan and reflects Parliament’s composition.