KUALA LUMPUR, May 24 — A multi-agency team should be formed to comprehensively investigate 1Malaysia Development Bhd (1MDB) for elements of wrongdoing and abuse, the advisory panel of the Malaysian Anti-Corruption Commission (MACC) said today.

Saying that the MACC has already decided to form a special task force to scrutinise the state investment firm, the commission’s Anti-Corruption Advisory Board (ACAB) noted that the agency was, however, limited to only investigating corruption.

“As such, seeing the complexity of the 1MDB issue, the ACAB suggests that this task force comprise the MACC, the Royal Malaysia Police, Bank Negara Malaysia, the Securities Commission, Bursa Malaysia and the Auditor-General,” it said in a statement.

“It is important that a comprehensive investigation is conducted and its findings made known to the public.”

It added that such a team would be able to dissect the preliminary findings of the AG that is due next month, and allow the proper authorities to prosecute any wrongdoings that are discovered.

Earlier today, former prime minister Tun Dr Mahathir Mohamad demanded a criminal probe against Putrajaya following its admission that the US$1.103 billion (RM3.97 billion) in offshore deposits that 1MDB had supposedly redeemed was now in the form of “units” instead of cash as previously claimed.

The response contradicted a previous reply by Prime Minister Datuk Seri Najib Razak that the funds had been redeemed and kept in the form of US dollars in BSI Bank in Singapore.

In March, Najib ordered the AG and Public Accounts Committee to investigate 1MDB, amid growing demands for explanations over the state investment firm’s allegedly opaque investment decisions and for amassing a RM42 billion debt pile.

The strategic investment firm’s debts and subsequent cash flow issues that led to problems servicing its loan payments had prompted Dr Mahathir to seek Najib’s resignation.

1MDB was incorporated in 2009, after Najib announced the decision to turn the Terengganu Investment Authority state fund into a federal agency.

Since then the fund has been dogged by negative publicity over its finances and debts with the most recent being the controversial land deal with Lembaga Tabung Haji (LTH).