PUTRAJAYA: Inspector-General of Police Tan Sri Khalid Abu Bakar has confirmed that police will investigate 1Malaysia Development Bhd’s (1MDB) activities, which have resulted in debts exceeding RM42 billion.

Khalid said the police probe is in tandem with the National Audit Department’s audit of the government-owned strategic development firm.

This is a change of position by Bukit Aman, as two weeks ago Khalid had said police would commence investigations only after the Auditor-General has done his part.

Although the police had originally wanted to conduct the investigation if the audit detected irregularities, the special task force to probe 1MDB, which met last Friday, decided to probe all information and reports pertaining to the issue.

“As the police have received information and reports on the case, the special squad felt that we should undertake an investigation without having to wait for the report of the National Audit Department,” Bernama reported Khalid as saying at a press conference after flagging off the “Kayuh Malaysia” cycling event at Dataran Putrajaya yesterday.

Khalid said besides the Commercial Crimes Division, the special squad also has the assistance of the Attorney-General’s Chambers and the Malaysian Anti-Corruption Commission (MACC).

On March 4, Prime Minister Datuk Seri Najib Razak instructed the Auditor-General to independently verify the 1MDB accounts and said that if any wrongdoing was proven, the law would be enforced without exception.

Khalid said Najib will be questioned as part of the task force’s investigations since he is chairman of the advisory board.

The case has been classified as “cheating” under Section 420 of the Penal Code. The focus of the probe is also on businessman Low Taek Jho aka Jho Low — a central figure in 1MDB who is accused of siphoning off US$700 million (RM2.59 billion) through a front company. — Bernama/The Malaysian Insider

This article first appeared in The Edge Financial Daily, on March 23, 2015.